Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

S&V Weekly Newsletter Vol.6 No.17, April 27, 2020

This Newsletter is sponsored by SAFLIA

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

 

Restarting manufacturing and retail: Details expected this week

Cape Town, W Cape, SA – Following the announcement that the manufacture and retail of 'winter clothing' will be allowed from May 1, a Government Gazette spelling out the conditions is expected to be published this week.
       "We're busy writing a lot of motivations and product lists which have to be with the government by midday tomorrow [today]," National Clothing Retail Federation of SA executive director Michael Lawrence said yesterday. "The lists include footwear. We've been very specific about the categories."
       He said the NCRF had also asked for time ahead of the scheduled re-opening to be able to "tidy up our stores", and to train staff and install any equipment required to comply with regulations.
       "I suspect the government has already written the notification, and is just waiting to finalise details. They've set the date. They must make it happen, somehow."
       He said retailers were welcome to contact him. (+27 (0)82 496 0126, michaell@ncrf.org)
       On the manufacturing side, Dr Jaywant Irkhede, Director: Leather & Footwear at the Department of Trade, Industry & Competition (DTIC), asked all manufacturers' associations in the leather industry to submit proposals to the DTIC: "We will appreciate if all six sub-sector associations (SAFLIA, SHALC, SAOBC, SACIA, SATTA and GGBB&LEA) can submit their proposal in favour of how the industry in their sub-sector would like to operate during Alert Level 4 by 27th April 2020. We would like to urgently feed all proposals to the DTIC Chief Economist by close of 27th April 2020. We have already received an official draft proposal today from Ernest Heunis of SHALC on behalf of Skins & Hides sub-sector for all tanneries to be allowed to operate under Alert Level 4 and it be gazetted under new regulation."
       One manufacturer said of the recommended preventative measures and procedures for manufacturers produced by FLIC and published in last week's newsletter: "If you look at the list of things your staff and factory have to now comply with, I feel first of all they will battle to work productively and secondly with the expense will it be worth opening?" [Note: FLIC's list was of recommendations, not regulations]
       Said SAFLIA director Jirka Vymetal: "The little I do know is that working conditions will be very strict under COVID conditions, so most of what FLIC state will probably be a requirement. So yes, going forward there will be huge additional expenses for a factory to commence and carry on working."
       So far, leather goods haven't been mentioned in the re-opening dialogue. Said Equator - the Belt Factory™ director Leon Buhr: "Winter shoes might manage to get into that definition [winter clothing], but I doubt belts or bags can make a case to be included as winter clothing at Level 4. Although you do need a belt to hold up your corduroys.... I have lowered my expectations to zero so whatever happens I can only be surprised on the upside. We fully support the extensive safety protocols in work-places and factories and had already implemented many of these soon after 4 March, and are readying for a very stringent environment at the workplace as thinking and suggestions around this evolve. At the end of the day, whether we can re-open now or later, everything depends on consumer demand. Nothing else matters really, does it?"

 

 

UIF: Few payments to Leather Bargaining Council employers so far

Several manufacturers have said they have yet to receive money from the UIF for their employees.
Moda Shoes is a family footwear retailer with 3 stores in Pretoria.
       "It seems that UIF payments have started to filter through to some factories," SAFLIA director Jirka Vymetal said, "but they also battle to get through to the UIF COVID helpline. So that doesn’t help.
       "This week I sent a list to the commissioner, Mr. Teboho Maruping, via Ms. Eunice Mazibuko, of our members who applied and who provided me with the info I requested. I too have not had a response. The reason for my (SAFLIA’s) intervention with the Commissioner was to see if somehow things could be fast tracked for our members."
       On April 17, in response to a query from S&V, Marthie Raphael, chairperson of the National Bargaining Council for the Clothing Manufacturing Industry, said it had received payments: "The agreement between the National Bargaining Council for the Clothing Manufacturing Industry and the UIF was a historical agreement and we knew at the time of concluding the agreement that it is not perfect and that there may be some administrational burdens to overcome.
       "We have been working extensively with the UIF and can confirm that payments have been made and will continue to be made during the coming period.
       "The COVID-19 agreement between Employers and Trade Union as has been published in the Government Gazette, has mostly been implemented, while some items are in the process of being operationalised."

 

Palm Footwear: Making masks

Durban, KZN, SA – Palm Footwear has begun making non-medical masks, and prepared a video to promote it. MD Rajeev Pattundeen sent this clip, noting: Sharing our home made clip with you. We just had to get stuck in.

 

Stock Exchange News Service (SENS)

Steinhoff: Update on Covid-19

Stellenbosch, W Cape, SA (April 20, 2020) – Steinhoff International Holdings is today providing a further update on the impact of Covid- 19 on Group trading and the expected timetable for publishing the audited Group Annual Report for 2019 and holding the AGM.

Covid-19 – Trading Impact
In its announcement of 20 March 2020, the Group provided a detailed update on the impact of Covid-19 on its trading activities. Since that time, the scale and scope of the global effort to bring the virus under control has broadened further, resulting in additional restrictions on trade, with the United Kingdom, South Africa, the USA and Australia all adopting increased social distancing and other lockdown measures.
       All of the countries in which we do business have now implemented broad-based steps to contain the spread of the virus, resulting in significant restrictions on movement and public gatherings, and the closure of commercial facilities. These measures have resulted in the partial or full closure of many of our general merchandise stores, or restrictions on trading hours, and the closure of our offices.
       The extent and duration of the current restrictions on trade remain uncertain and it is too early to determine the exact impact of the pandemic on the performance of the Group for the 2020 financial year. However, we expect Covid-19 to have a material negative impact on overall turnover and the underlying business performance during this period, and consequently on the assessment of current realisable values of investments.
       The health and safety of our colleagues remains our top priority and we are continuing to adopt all specific public health protocols and to provide the necessary support as we navigate through this unprecedented situation.
       As detailed in the announcement of 20 March 2020, management are continuing to take an active approach, implementing a range of mitigating strategies, including making use of selected business support initiatives made available by the respective Governments of the countries in which the Group operates, to protect cashflow and profitability. Immediate and significant actions are being implemented to reduce costs and optimise liquidity. While the Group is confident that the actions it is taking to address the impacts of Covid-19 are appropriate and timely, the situation remains fast moving and uncertain and these are being kept under constant review.

Covid-19 – Impact on 2019 Annual Report timetable and AGM
The Group notes that, in light of the impact of Covid-19, financial regulators in countries in which it operates have indicated that they will take into consideration that the operational restrictions relating to Covid-19 will have an impact on the timetable for the publication of its 2019 Annual Report and audited Consolidated Financial Statements. The necessary restrictions on travel and the need to enforce social distancing measures have resulted in delays to the audit process, including challenges in providing or obtaining audit documentation for judgemental areas and, despite significant effort being exerted by all parties, the 30 April 2020 timeline for completing the Group consolidated financial reporting and related audit processes can no longer be met.
       The Management Board and Mazars, the Group’s external auditor, have, based on currently available information, jointly agreed on a revised timeline. The new schedule is provisional and subject to change, as the restrictions and related impacts arising from Covid-19 remain fluid and uncertain.
       On this basis, the Group currently estimates that it will be able to publish its 2019 Annual Report, including the audited Consolidated Financial Statements, on 30 June 2020.
       This delay will also impact the timing of the forthcoming Annual General Meeting, which will no longer be held on 26 June 2020. A new date will be announced once there is more certainty.
       In light of the current extraordinary circumstances, all of these dates will be kept under review and the Group will inform shareholders should it become clear that a further change is necessary.

 

SAFLEC arranges Zoom Cloud Trend Seminars via Arsutoria.

SAFLEC press release

The first Industry,  Zoom cloud  global  training session for the Footwear and Leather Industry took place this week. The seminars are 1 to 1.30 mins long, every day for one week . The sessions negotiated with Arustoria by Director of SAFLEC, Nerisha Jairaj is intended to ensure continuity of training sessions that equip South African Manufacturers with the latest and forecasted global seasons . 2021 trends forecast in times of COVID. “ We should not just stop.  We need to empower our member base”, she said.  A test session was held 2 days before the actual sessions to iron out any problems in connectivity and learning.  The 20th of April launched off with much success.
SAFLEC has brought many firsts to Industry and this is a start of bringing many more world leaders in industry into such knowledge sharing sessions for benefit of our members. Yes, we going through a world Pandemic, but we need to plan for post lockdown with a positive and equipped mind-set.  We hope these seminars will give our manufacturers global perspective.  It is amazing that even through these testing times, we are able to learn across continents via virtual classrooms like this, and rise.
The seminars via zoom cloud has 20 participants. SAFLEC has initiated these seminars as well as AGOA and export seminars to keep the Industry moving and planning forward.

1. TREND FORECASTING DYNAMICS FOR FOOTWEAR AND LEATHER GOODS. 20 - 24 APRIL
Timing 1 hour Software: Zoom
  Monday 17:00-18:30. Tuesday to Friday 11:00-12:30
This subject will be managed by Orietta Pelizzari

2. TREND ANALYSIS, CONSUMER, CATWALK. MATERIAL COMBINATION WITH FOOTWEAR AND BAGS VOLUMES. 11-15 MAY
Timing 1 hour Software: Zoom
  Monday to Friday 11:00 - 12:30
This subject will be managed by Maria Cristina Rossi and Georgia Turri

Contents week 20 - 24 April

April 20th
TRENDS AND INDUSTRY
Which elements are changing the seasonal dynamics in footwear and leather goods. New rules will change the brand collections.
  Q&A Live Conversation Session

April 21st
TRENDS INSPIRATION CREATIVITY
Analyse Ars Trends Now. AY 20-21. How to adapt trends to next season for materials and colours.
Q&A Live Conversation Session

April 22nd
TRENDS AND WHAT’S NEXT IN SUSTAINABILITY
What the industry is talking about Sustainability, Authenticity, Traceability, Recycling.
Q&A Live Conversation Session

April 23rd
TRENDS AND CONSUMER PREFERENCE
Which Styles will be more suitable for the new consumer sentiment. Global lockdown creates a different appetite on footwear and leather goods.
Q&A Live Conversation Session

April 24th
TRENDS DYNAMICS APPLIED TO YOUR BRANDS
Howe to truck a trend which can be suitable for your business.
  Collect information’s, analyse data’s, predict the best application, build a relationship with your consumer, plan online/offline retail actions.
Q&A Live Conversation Session
 

 

They Said It

"I prefer to read the other guys' news." - Dinesh Kalyan, Allan Edwards, Johannesburg, Gauteng, SA, asked about retail trading conditions.

"The problem is the first 2 characters of my ID number..." - The Sweatshop's Jax Snyman, referring to his age and supposed greater vulnerability to that disease. For the record, he's 65.

 

Death notice

Val Barnes, formerly with the Edcon Group's quality department based in Durban, died in Southampton Hospital in the UK of Covid-19 on April 18, according to her son, Neil Barnes, of importer Millbrook Trading.

 

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za

 

Updating the 2020 S&V Directory

I am using the lockdown to complete the 2020 edition of the S&V Directory. Something productive you could do with your lockdown time is to let me know if you have moved, had any other address or staff changes in the last 12 months. Please mail to tony@svmag.co.za.

 

2020 Trade Fairs Another essential service from S&V

Please note that we have updated most 2020 trade fairs and conferences on our website, linked to their websites: http://www.svmag.co.za/events

 

Exchange rates

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

 
  Euro € GBP £ US $ Yuan Renminbi ¥
2020/01/04 R15.97 R18.71 R14.31 R2.05
2020/01/11 R15.97 R18.76 R14.36 R2.07
2020/01/18 R16.04 R14.47 R14.47 R2.10
2020/01/25 R15.87 R18.82 R14.39 R2.07
2020/02/01 R16.54 R19.81 R15.00 R2.16
2020/02/08 R16.48 R19.41 R15.06 R2.15
2020/02/17 R16.16 R19.44 R14.90 R2.13
2020/02/22 R16.27 R19.43 R15.00 R2.13
2020/02/29 R17.27 R20.08 R15.66 R2.24
2020/03/07 R17.69 R20.44 R15.67 R2.26
2020/03/14 R18.04 R19.94 R16.25 R2.32
2020/03/21 R18.92 R20.50 R17.60 R2.48
2020/03/28 R19.63 R21.93 R17.61 R2.48
2020/04/04 R20.58 R23.37 R19.03 R2.68
2020/04/11 R19.70 R22.43 R18.01 R2.56
2020/04/18 R20.43 R23.49 R18.79 R2.65
2020/04/25 R20.59 R23.53 R19.02 R2.68
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends: Hides & skins prices

Hide prices (March 25, 2020) - Please note: We will not be sending out any hide reports for the next 3 weeks due to the lockdown period. The hide markets will be closed. - Conce Moraba, agricultural economist, Absa group.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
2020/01/03 1.38 35.00 46.67
2020/01/10 1.42 28.69 45.71
2020/01/17 1.35 30.74 45.71
2020/01/24 1.39 33.75 48.14
2020/02/07 1.36 33.47 47.50
2020/02/14 1.36 33.75 47.50
2020/02/21 1.32 33.75 47.50
2020/02/28 1.29 37.22 43.89
2020/03/06 1.29 36.50 43.50
2020/03/13 1.31 36.00 43.50
Note: For previous prices, see HERE
 

  

27/04/1944: Kelly Smith, agent.
27/04/1964: Francois Strydom, formerly Bolton Footwear, Great Brak River.
27/04/1968: Wyatt Brodie, left the industry, formerly Polo SA, Johannesburg.
28/04/1949: Malcolm Novos, Economic Shoes, Paarl.
28/04/1972: Serge Glowiczower, Lion’s Gate, Johannesburg.
29/04/1951: Elizabeth Loubser, retired, formerly Bolton Group, Great Brak River.
29/04/1980: Mark Fraser, Claw Boots International, Johannesburg.
30/04/1946: Willi Angeloch, retired, formerly Nakara, Windhoek.
30/04/1959: Gustav Franzsen, Vinaco, Cape Town.
30/04/1964: Hayley Roberts (nee Caro), Labora Footwear, Durban.
30/04/1985: Gert Bosch, TST Agencies, Cape Town.
01/05/1932: George Wilkens, retired, formerly Martin Johnson [closed], Pietermaritzburg.
01/05/1960: Patience Zikalala, Edcon.
01/05/1961: Ronell Nieuwoudt, Suzi Q, Phalaborwa.
01/05/1962: Tanya Vosloo, Greystone Trading 387, Cape Town.
02/05/1956: Dave Robertson, emigrated, formerly Bushy Marketing, Pinetown.
03/05/1949: Sam Wells, Malome Leather Technologies, Boksburg.
03/05/1951: Ron Rink, retired, formerly Puma, Cape Town.
03/05/1953: Alex Leith, left the industry, Durban.
03/05/1964: Rafique Vahed, Casual Boyz, Estcourt.
03/05/1972: Afzal Deedat, Speed Zipper Durban.

 

In Memoriam this week

30/04/2012: Ebrahim Aboo (b. 07/08/1948), MG Shoes [closed], Pietermaritzburg.

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.

 

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Casanova/Q'DOS, durban, KZN, SA. Men's boutiques:
Cassim's The Man's Shop, Port Shepstone, KZN, SA. Men's Italian footwear retailer:

 


Classified Adverts

Groundcover Leather Company is a small footwear and bag manufacturing factory based in KZN Midlands. We are doing high quality stitch down footwear, bags, belts, and other accessories. We are presently looking for reps in all areas of South Africa except KZN. Anyone interested, please contact us on info@groundcover.co.za




  

Contact us

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

Next newsletter: May 4, 2020.

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

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