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S&V Weekly Newsletter Vol.6 No.44, Nov 2, 2020

This Newsletter is sponsored by SAFLIA

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

 

Busby creditors back rescue plan

Johannesburg, Gauteng, SA – The New House of Busby has been given a lifeline by creditors. In a statement, CEO Bernard Mostert said: "The Busby business rescue plan was voted on on Monday and received a 91% approval from creditors. We have not yet put out a more detailed report. It is great to have been able to save the business and I must say it was good to see how any lenders and creditors aligned with the future vision of the company and that we can forge ahead."

 

Business

Botswana

Not enough customers

Men's outfitter who preferred anonymity.
Lobatse – Business has picked up a little, but not enough to justify our stock. You need to turn your stock at least 3 or 4 times a year, and we're currently not doing that. It leads to stock being carried over and redundancy.
      Reducing prices is the only option we have, and that's not increasing the turnover.
      I think business in Gaborone is better. I have brothers there - not in apparel - who are doing reasonably well. Lobatse's population is maybe too small.
      I own my building, so I have that advantage.

 

Namibia

Local consumers appreciate quality

Herbert Schier, member, African Leather cc, veldskoen manufacturer and leather goods retailer.
Swakopmund – Veldskoene are easy to make, affordable, and everyone likes them. We can retail them for R650 a pair and still make a profit. I wish I could charge the tourists more, but you can't have 2 prices!
      There are problems - we can still only work 4 or 5 hours a day, and the tourists haven't yet started coming in any numbers, but local consumers have supported us during this period, and I'm very glad I never tried to aim my business just at the tourist trade. The aim has always been to supply local consumers with good, affordable footwear.
      In the shop, we also stock bags and belts from Der Lederhandler in South Africa, and all our components, except leather - which is from Nakara - are imported from South Africa.
      It's a small business, with 10 staff in the factory, 3 in the shop, and me, and we've been going 50 years.
      A campaign has been launched by the government under the title “local is lekker” to support local products. Further we at African Leather Creations keep to the motto “together for leather”.

 

 

South Africa

'It's next year that concerns me'

Ismail Karolia, director, Malvern Shoe & Clothing (Pty) Ltd. Family outfitter, 1 store.
Johannesburg, Gauteng, SA – Trading is on a downward slope at the moment. Many people are out of work or working short time, so they don't have the money to pay the full price, which means we have to cut our margins. It means we've had to change our buying patterns from what we should buy to what we are buying - now it's more synthetic footwear, and lower-priced brands which still have the look that people want.
      For the rest of the year, there's always a peak around Christmas, but what really concerns me is what happens next year. To be honest, I expect it to be very tough.

 

Focusing on repairs, smaller items

Arun Prag, member, Prag Shoes & Leatherworks cc t/a Prag Leather & Luggage. Luggage, leather goods and shoe repairer, luggage and leather goods retailer, 1 store.
Somerset West, W. Cape, SA – We're still trying to get on our feet, but at this stage we're still crawling.
      We're focusing on our leather restoration and repair business, which has been keeping us going.
      On the retail side, with travel so down, we've expanded more into smaller items - handbags, laptop bags, small leather goods.
      We're off the beaten track, a destination store, and we're attracting the same clientele as we've always had, but with a different product offering.

 

Good, but overall the year will be ordinary

Jeremy Nel, brand manager, Crown Footwear. Importer.
Pinetown, KZN, SA – At the moment, business is very good, and it's been very good since we reopened in May. I've completed winter sales until June next year and our order book is healthy. However, we were essentially closed for 2 months, which would result in a very average year overall.

 

Oops

Correction to OR Leathers article

Brits, N.W. Province, SA – For reasons I am at a loss to explain, the following text appeared in the October issue of S&V African Leather, quoting Johan May, sales agent for OR Leathers:      "There are enough hides available, but at a higher price - an 8% increase from June to September as compared to the same period last year."
      What he said was: "There are enough hides available, but at a higher price." For the life of me, I can't find where the "8% increase" came from. Truly, gremlins didn't disappear with the end of hot metal printing (not that many of you would remember what THAT was).

 

Death notice

Cape Town, W. Cape, SA – David Berry, An obituary will appear in S&V Footwear & Leather Goods later on Wednesday.

 

 

They Said It

"I see in your birthday column that you don't know Bob Brown's year of birth - it's 1896." - Italian Leather's Lionel Astill. In fact, it was 1934, a very helpful person at Crown confirmed for me. Meanwhile Lionel has some quite dramatic news which he doesn't want to share. So let me just say he has a new postal code. Far away.

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

 

Exchange rates

1. SA Rand (ZAR)

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

 
  Euro € GBP £ US $ CNY ¥
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
2020/04/30 R20.24 R23.27 R18.51 R2.62
2020/05/09 R19.89 R22.69 R18.29 R2.58
2020/05/16 R20.11 R22.49 R18.58 R2.61
2020/05/23 R19.24 R21.47 R17.64 R2.47
2020/05/30 R19.48 R21.67 R17.54 R2.45
2020/06/06 R18.93 R21.28 R16.77 R2.37
2020/06/13 R19.19 R21.39 R17.06 R2.40
2020/06/20 R19.37 R21.28 R17.25 R2.43
2020/06/27 R19.35 R21.28 R17.25 R2.43
2020/07/04 R19.14 R21.24 R17.01 R2.40
2020/07/11 R18.94 R21.16 R16.77 R2.39
2020/07/25 R19.39 R21.36 R16.64 R2.37
2020/08/01 R20.05 R22.28 R17.05 R2.44
2020/08/08 R20.78 R23.02 R17.63 R2.53
2020/08/15 R20.57 R23.73 R17.37 R2.49
2020/08/22 R20.23 R22.45 R17.15 R2.47
2020/08/29 R19.74 R22.14 R16.58 R2.41
2020/09/05 R19.66 R22.06 R16.61 R2.42
2020/09/12 R19.83 R21.42 R16.74 R2.45
2020/09/19 R19.32 R21.08 R16.32 R2.41
2020/09/26 R19.92 R21.81 R17.12 R2.50
2020/10/03 R19.39 R21.40 R16.55 R2.43
2020/10/10 R19.47 R21.48 R16.46 R2.45
2020/10/17 R19.40 R21.37 R16.55 R2.47
2020/10/26 R19.28 R21.22 R16.31 R2.43
2020/10/31 R18.91 R21.02 R16.23 R2.42

Note: For previous rates, see HERE

2. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/06/20 20.39 22.53 18.24 2.58
2020/06/27 20.48 22.52 18.25 2.57
2020/07/04 20.24 22.46 17.99 2.54
2020/07/11 20.54 22.94 18.17 2.59
2020/07/25 21.18 23.26 18.17 2.59
2020/08/01 21.55 23.95 18.31 2.66
2020/08/08 24.05 24.05 18.42 2.64
2020/08/15 22.08 24.40 18.64 2.68
2020/08/22 22.48 24.94 19.05 2.75
2020/08/29 23.33 26.16 19.60 2.85
2020/09/05 23.27 26.11 19.66 2.87
2020/09/12 23.66 25.56 19.97 2.92
2020/09/19 23.73 25.90 20.04 2.96
2020/09/26 23.26 25.48 20.00 2.93
2020/10/03 23.55 26.00 20.10 2.96
2020/10/10 23.85 26.31 20.16 3.01
2020/10/17 23.71 26.12 20.23 3.02
2020/10/26 23.96 26.38 20.28 3.02
2020/10/31 24.05 26.71 20.62 3.08



3. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥ Official US$ Rate
2020/06/20 405.54 446.91 361.90 51.17  
2020/06/27 405.98 446.46 361.90 51.13  
2020/07/04 407.08 451.78 361.90 51.21  
2020/07/11 408.89 456.71 361.90 51.70  
2020/07/25 421.71 463.13 361.90 51.58  
2020/08/01 426.09 473.50 361.90 51.58  
2020/08/08 426.53 472.42 361.90 51.93  
2020/08/15 428.56 473.55 361.90 52.06  
2020/08/22 426.90 473.72 361.90 52.30  
2020/08/29 430.86 483.20 361.90 52.71  
2020/09/05 428.42 480.70 361.90 52.89  
2020/09/12 428.70 463.13 361.90 52.95  
2020/09/19 428.45 467.52 361.90 53.46 80.48
2020/09/26 421.04 461.12 361.90 53.04 81.49
2020/10/03 423.96 468.06 361.90 53.29 81.44
2020/10/10 428.11 472.14 361.90 54.06 80.12
2020/10/17 424.13 467.25 361.90 54.04 81.34
2020/10/26 427.91 471.32 361.90 54.02 81.34
2020/10/31 431.64 468.64 361.90 54.07 81.35

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (October 12, 2020) - The current average hide price increased by 10.3% to R1.50/kg from R1.36/kg green a week ago. The current price is 146.9% higher than the average price a month ago and is 19.4% lower than the average price a year ago. The domestic hide price was at such a low level that any improvement in price is dramatic. The global hide market has seen an improvement in hide prices due to an improvement in the upholstery sector as people perform home improvements and home décor with a big push for leather upholstery.  Expectations among industry members is that prices will continue to see an improvement in the coming months until reaching a more sustainable level where prices will then likely hold. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, and Paige Bowen, 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
2020/03/27 0.93 37.22 48.33
2020/04/03 0.92 37.78 47.36
2020/04/10 0.89 35.63 42.22
2020/04/17 0.88 39.38 41.25
2020/04/24 0.89 33.82 43.33
2020/05/01 0.82 34.55 46.88
2020/05/08 0.82 32.10 43.33
2020/05/18 0.77 32.10 43.33
2020/05/22 0.72 26.54 40.00
2020/05/29 0.72 25.44 40.00
2020/06/05 0.70 23.65 40.00
2020/06/12 0.72 31.14 45.71
2020/06/19 0.69 23.62 43.13
2020/06/26 0.73 28.92 47.14
2020/07/03 0.67 23.58 43.13
2020/07/10 0.68 24.96 43.13
2020/07/17 0.61 28.83 45.00
2020/07/24 0.51 25.63 43.13
2020/07/31 0.57 25.19 43.13
2020/08/07 0.61 26.77 42.50
2020/08/14 0.58 28.57 43.57
2020/08/21 0.57 25.63 43.57
2020/08/28 0.59 27.88 43.57
2020/09/04 0.61 27.17 43.57
2020/09/11 0.67 27.48 43.57
2020/09/18 0.82 27.40 43.57
Note: For previous prices, see HERE
 

  

02/11/1934: Hawa Shaikh, formerly Amshu Distributors, closed, Greytown.
02/11/1936: Alastair Gardner, retired, formerly Panther Shoes [closed], Cape Town.
02/11/1962: Jan Morgan, Morgan Hides, Pretoria.
03/11/1976: Voden Wearne, Oden, Cape Town.
03/11/1979: Orian Mendes, Shuler Enterprises, Harare.
04/11/1962: Philip A Carstens, Carstens’ Orthotic Laboratories, Durbanville.
05/11/1988: Jacques van As, Le Croc, Brits.
06/11/1950: Idris Kajee, Favourite Sports, Newcastle.
07/11/1945: Garth Ribbinck, A Greenaways Natal, Durban.
07/11/1966: Leslie Govender, Godvast, Durban.
07/11/1971: Ajay Singh, United Agencies, Durban.
08/11/1959: Ashmore Matemera, DyStar Boehme Africa, Harare, Zimbabwe.
08/11/1967: ISW Smit, Clarens Curio, Clarens.
08/11/1974: Louis de Sousa, Price Rite, Welkom.

 

In Memoriam this week

03/11/2007: Ahmed ‘Bull’ Patel, hand stitching CMT operator, Greytown.
03/11/2010: Grahame Steele (b. 17/04/1929), Budget Footwear [closed], Durban.
04/11/1998: Roy Schefermann, Futura Footwear.
05/11/1998: Bob Gould, SB Agencies [closed], Pinetown.
05/11/2013: Brian de Bruin (b. 26/09/1941), DB Components, Durban.
05/11/2016: Byron Ludlow (b. 29/03/1951), Michelle Footwear, Durban.
07/11/2004: Ralph Mossop (b. 04/12/1913), Mossop & Son (now Mossop Western Leathers), Cape Town.
08/11/1993: Roy Lagerwall, Saxian Trading, Johannesburg.

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:
Corbeau, Plettenberg Bay, W. Cape, SA. Leather goods brand
Cordova Leathers, Pietermaritzburg, KZN, SA. Leather wholesaler.

 

Contact us

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

Next newsletter: Nov 9, 2020.

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

 

 

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