S&V Weekly Newsletter Vol.4 No.25, June 25, 2018

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

Slotsky buys back Fila, Levi's, from Bounty Brands

Johannesburg (SA) – Former Footwear Trading director Laurence Slotsky has bought back the Fila and Levi's brands from Bounty Brands, and will officially open his new business, 1721 Distributors (Pty) Ltd, on July 1.
       He will operate from the former Footwear Trading premises, because Bounty has retrenched all Footwear Trading staff except for retail division personnel, and will be centralising the Diesel and Jeep businesses alongside Vans in Cape Town. It has done the same with the Musgrave Agencies business in Durban.
       1721 will have Fila clothing, footwear and accessories, and Levi's footwear, for sub-Saharan Africa.
       "I was supposed to be with Footwear Trading until next year," Slotsky said, "but I've come to an arrangement with Bounty, and I don't have a restraint of trade agreement."
       He has taken on a number of former Footwear Trading staff, including former Fila brand manager Lynton Picker, former Levi's brand manager Jonathan Chaimowitz, Tracey Abrahams, and his daughter, Lara Slotsky.
       "It's a small team, which matches business conditions," he said. "I've been offered other brands, but I won't look at them until we've settled this business down." - +27 (0)11 630 4000, slotsky@gbsa.co.za

SAFLIA beefs up SARS delegation

Cape Town (SA) – Several senior manufacturers have joined the SAFLIA delegation which will take part in future meetings to be convened by SARS to discuss customs issues relating to footwear.
       Dick Whittington Shoes MD Arveen Boodhoo, Celrose/Eddels CEO John Comley and BBF Safety Group CEO Silvio Ceriani will join Jannie Kriel of IS Training Consultants and SAFLIA executive director Jirka Vymetal.
       With union representatives and other interested parties, they will be part of what was called the SARS footwear task team, and what is now known as the SARS Footwear and Leather Industries Forum (FLIF).
       FLIF is a subsidiary body of the SARS clothing and textile forum.
       The 2 previous meetings concentrated on 'reference pricing' for imported safety footwear - compiling a list of realistic prices - to enable Customs officials to judge whether imports are under- invoiced.
       "We hope that through this new body, more effective interventions can take place," Vymetal said. "The focus will mainly be on footwear, but there will also be leather issues to discuss."

Spree and Superbalist merge

Cape Town (SA) – Media24 and Takealot.com announced on June 18 that they will merge their online fashion brands, Spree and Superbalist. The statement read:

In South Africa the penetration of online retail sales is currently around 1%, while in the USA, China and the UK it is in excess of 13%. Clothing and footwear sales in the UK drive a large share of the growth of online retail with similar trends in the USA, China and India. This suggests that there is room to build a substantial position in the online footwear and apparel market in South Africa.
       There is currently no integration between Spree and Superbalist, both part of the Naspers group, with each business running its own sourcing and buying, technical, marketing, warehousing and logistics functions while primarily targeting a similar, if not the same customer segment and demographic in South Africa. Merging the two businesses into a single entity will create a larger, more focused platform on which to build a substantial online retail, footwear and apparel business.
       The new venture will be held 51% by Media24, Spree’s current shareholders, while Takealot Group will own 49% of the venture. Takealot will be responsible for the day-to-day operations and management of the business.
       The merger is effective on the 1st of July 2018 and is not subject to Competition Commission Approval.  The merged entity will undergo a two to three month period of integration planning and implementation during which each business will continue to operate independently before final integration.
       “We are very excited about the opportunity to further accelerate the growth of online fashion retail in South Africa.  We look forward to welcoming Spree into the Takealot Group,” said Kim Reid, Takealot Group CEO.
       “Media24 believes in and loves efashion. Since starting Spree in 2013 we have always said efashion is a very important growth portfolio to ensure a diversified and sustainable future for Media24. That is why we are delighted to be the majority shareholder in the combined business,” said Esmare Weideman, CEO of Media24.

SIRESS: Simplifying cross border trade

Regional Payments Integration, Financial Inclusion, and Remittances in the SADC (SADC Integrated Real Time Electronic Settlement System: SIRESS)
From Dr. Jaywant Irkhede, the DTI
Pretoria (SA) – Improved availability of affordable digital financial services is a pressing need for cross-border payments, both generically, and for the growing number of regional integration efforts such as the Payments Project under way in the Southern African Development Community (SADC). The SADC Payments Project is a top-down mandate implemented by the private sector. There is a shared industry utility operating with multilateral rules, multiple payment streams are under contemplation, and both bank and non-bank providers of payment services are participants. The combination of these factors—alongside the financial inclusion objectives—most certainly qualifies the SADC regional payments initiative as a noteworthy undertaking. SADC Banking Association is mandated to:
* Set and implement regional standards for payments messaging in-line with international standards
* Define and Develop of the regional payments instruments
* Promote the development of interoperable systems
* Develop business processes, rule books, operating manual, messaging guidelines, and formats in support of regional payments processing and settlement
* Assume the role of Payment Scheme Management Body for the SADC Integrated Real Time Electronic Settlement System (SIRESS) environment and execute related functions associated with this role including reporting into the Payments SADC Oversight Committee (PSOC).
       Presently, there are 14 countries participating in SIRESS: South Africa, Lesotho, Swaziland, Namibia, Malawi, Mauritius, Mozambique, Tanzania, Zambia, Zimbabwe, Seychelles, Botswana, Angola and DRC. There are 83 participating banks, made up of seven central banks and 76 commercial banks.
       As reported:
* During March 2018, SIRESS processed 28,305 transactions to the value of R107.61 billion.
* The average number of transactions processed per day was 1,415, with an average value of ZAR5.38 billion.
* The total number of transactions settled to date is 1,035,642 worth ZAR4.35 trillion (US$368,85 billion/€299.16 billion)
       SIRESS continues to grow the volume and value of its transactions. You may review the SADC Banking Project through https://www.sadcbanking.org/payments-project/ or contact secretariat@sadcbanking.org, +27 (0)11 645 6731, 32 Princess of Wales Terrace, Parktown.

Competition Commission approves centre takeovers

Pretoria (SA) – On June 21 the Competition Commission approved, without conditions, the proposed transaction whereby East & West Investments (Pty) Ltd (East & West) intends to acquire joint control in North Cape Mall in Kimberley and Northridge Mall in Bloemfontein.
       The North Cape Mall is a retail property in the Sol Plaatjie Municipality District, in Kimberly, in the Northern Cape. It is a shopping centre classified as a “minor regional shopping centre”. The Northridge Mall is a retail property situated in Bloemfontein, in the Free State. It is classified as a community shopping centre.
       The Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market. In addition, the proposed transaction does not raise any public interest concerns.

They Said It

"He likes to believe that he's semi-retired." - Claw Boot's Mark Fraser on his father, Grant. The comment followed a week-long fishing trip.

"The grass is greener where you water it." - Chilli Source Development director Sean Hadnum on why he and Odélle and their inspiring team aren't considering emigrating.

Exchange rates

Source: http://www.x-rates.com/calculator/

25/06/1976: Scott Croney, agent, East London.
25/06/1983: Sylvia Steyn, Fashion House Rules, Johannesburg.
26/06/1935: Jurgen Wedekind, retired, formerly Bellstedt, Durban.
26/06/1945: John ‘Zorb’ Caryer, retired, formerly Camdeboo Meat Processing, Graaff Reinet.
26/06/1956: Beau Rynhoud, RR Chemicals, Edenvale.
27/06/19??: Mpho Ramoshaba, the DTI, Pretoria.
28/06/1948: Joan Furner, retired, formerly Shoe Style, Johannesburg.
28/06/1957: AH Bulbulia, ?, formerly Papa Shoes/Bulhafi Shoes, Pretoria.
28/06/1975: Zane Ashraf, Foot Style, Durban.
30/06/1948: John Ashworth, ?, formerly Little Slipper, Port Elizabeth.
01/07/1932: Allan Capell, retired, formerly Capelli [closed], Durban.
01/07/1953: Bobby Janky, retired, formerly Michelle Footwear, Durban.
01/07/1963: Tommy Sharma, Futura Footwear, Pinetown.

In Memoriam this week

25/06/2002: Gerald Haug (b. 28/01/1924), Bondseal [closed], Pinetown.
27/06/2015: Dave Bromfield (b. 19/11/1946), Apeco, Pinetown.
28/06/1996: Geoff Hirsch, S&V, Durban.
29/06/2014: Joe Vivian (b. 02/11/1928), agent, Cape Town.
01/07/2016: Matthew Barnard (b. 07/05/1936), Stanhope Boot & Shoe, Pinetown.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

ABSA Agri Trends 22/06: Hides & skins prices

The average hide price over the past week was R7.60/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R32.50, and for Merino skins was R86.70.

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

Classified Adverts

AGENCIES REQUIRED FOR KWAZULU/NATAL

Experienced well-established agents are seeking additional lines in Apparel and Footwear.
We have superb centrally situated showrooms and have years of experience in both Wholesale and Retail.


Contact:
Mike Samuel   0824477110      031-3127065    samuel@iafrica.com
Yasin Ally    0837295136      031-3127531    yasinally786@gmail.com

In need of a boardroom?

SAFLEC, situated at 6 Stedman Mews, 128 Jan Hofmeyr Road, Westville, has a boardroom for hire.
       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: July 2, 2018.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za