S&V Weekly Newsletter Vol.7 No.43, October 25 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Logistics
On 20 October, FN Daily warned of U.S. holiday trading: 'Empty Shelves Could Define the Season,' and CNBC said 'panic ordering' by retailers was making a bad situation even worse. We asked 13 SA chains to comment: 3 responded.
TFG: On-shoring programme means we'll be very well stocked over Christmas
Anthony Thunström, CEO, TFG
Cape Town, W. Cape, SA – Whilst there are real supply chain issues in terms of production in the Far East as well as in terms of delayed shipping, I am very confident that we will be very well stocked over the key trading months of November and December. This is largely as a result of our strategic on-shoring of production over the last 5 years which has enabled TFG to now source approximately 70% of its clothing units locally.
Retailability: No concern for December, but autumn/winter will be bigger risk
Norman Drieselmann, CEO, Retailability
Durban, KZN, SA – I do foresee some supply challenges in the retail environment here in SA. Supply lines are still constrained, but not getting worse. However despite our situation on supply, which was further hampered by the unrest in July, I don’t see empty shelves being a concern in December. I believe Autumn/Winter will be a bigger risk as delays in raw material coming from China will hurt supply from local manufacturers as well.
Woolworths: Outlook 'not encouraging', local would 'definitely help'
Thilu Govender, Head of Central Sourcing, Woolworths
Cape Town, W. Cape, SA – Global supply chains have been severely disrupted over the past year and this has impacted all countries. The outlook does not look very encouraging and we continue to work with our supply chain partners to find alternative strategic and tactical solutions to minimise risks in terms of stock shortages. The situation remains very fluid and we continue to monitor this on an ongoing basis.
Sourcing product locally will definitely assist us in having stock more readily available.
Branded distributors say deliveries to SA from the East are, at best, unpredictable.
It's impossible to plan accurately
Laurence Slotsky, MD, 1721 Distributors, distributor of Fila
Johannesburg, Gauteng, SA – Global shipping costs and logistics are a disaster at the moment, as you know.
There is a shortage of containers and ships are at the opposite sides of the globe.
China has major power outages and factories in many areas are only working every alternate day, creating a backlog in production.
Shipping costs have more than doubled over the past 6 months.
All these factors will fuel price inflation.
Lead times that used to be 90/120 days are now 180 days.
There are also delays in production from Asia, and particularly Vietnam, where factories were closed due to Covid and a spiralling shortage of raw materials and components which are produced and sourced in China.
All imported goods have been affected out of Asia.
It's impossible to plan accurately when goods will dock in our ports and be cleared at this stage.
There have also been delays out of Mauritius and Madagascar, due to Covid regulations and factory downtime/lower productivity.
There is also a shortage of vessels and air cargo from this region.
I believe there will be a shortage of goods and late deliveries for Q1 2022 and hopefully things will improve after Chinese New Year.
We live in uncertain times.
Good stock is gold.
The shipping companies have taken full advantage of the global demand for containers and vessels vs. the supply of containers and vessels available, and that’s why they have leveraged off the global shortage of vessels and containers in the right locations.
They have had unbelievable financial growth over the past 12 months.
The talk is that they have been far more profitable and have made more money over the past 12 months than during the past 10 years.
Stock? What stock?
Iqbal Baruffwala, member, Bar Global Trading, distributor of Wolverine and Buckmaster
Benoni, Gauteng, SA – Stock? There isn't any. Wolverine Worldwide, which includes many other brands, has pushed out its lead times to 9 to 10 months. Orders placed in August are only expected to ship in May, which, combined with shipping and clearing challenges, means a probable July in warehouse date ... thus missing winter.
There's nothing we can do as far as Wolverine is concerned except wait.
One other issue we're facing is that communication from the brands is not good. They have had to restructure and many old, familiar faces have been let go or moved on. Furthermore, many key people are working remotely and both communication and continuity have become a major challenge.
However, with Buckmaster, which is outdoor lifestyle-inspired footwear, our licence agreement allows us to source product, and we're looking at various options which will hopefully allow us to make up some of the losses we've sustained.
We're also looking at sourcing some footwear locally.
Retailing
Store for small women's shoes closes
Johannesburg, Gauteng, SA – Marie Locker, who started an online store to sell exclusively petite women's shoes - UK sizes 1-3 - trading as Kathleen Jones, has closed her business.
"I had really hoped to be able to assist South Africans with petite feet, offering quality leather shoes in stock styles (court, loafers). However I fear that I didn’t appreciate that more mature ladies have simply given up and settled for flats, and the younger ladies are all looking for trendy, platforms, etc. Furthermore, being leather, they aren’t entry level priced.
"You can communicate that Kathleen Jones has been closed. Sad but a reality."
She has tied up with Richard Kushlick of Unique Feet to dispose of her remaining stock.
They Said It
"I was only involved in the industry tangentially so I really don’t have too much direct knowledge of the leather industry. My one thought is that it is a medium which is maybe not appreciated for the value that it provides. I can give you countless examples of where a buyer has gone for the cheaper alternative and finished up replacing products like menu covers, bill folders and room directories – amongst other products. My highlights have been where I have succeeded in persuading a buyer to go for a leather option and seen their pleasure at the finish, quality and durability of their purchase. I wish you much success in the future and thank you for your newsletter which has always been informative and interesting." - Brian Findlay, recently retired KZN agent for corporate promotional products provider Barno.
"The business will continue to run here as normal, actually not the business will run more efficiently, we're very fortunate in that this business can run remotely; in the midst of COVID we did a new implementation entirely remote using Zoom. I'm in the process of opening up a UK division and we will be marketing Europe and Africa from the new year. Since July we've spent loads of time and effort setting up a complete cloud platform and solution. Regarding leaving SA, yes it's very sad, I've enjoyed an incredible lifestyle here and my children have experienced so much that not many countries have to offer but the looting really made me look in the mirror and forced some hard truths." - Sean Hadnum, Shoepack software solutions for footwear manufacturers, Durban, KZN, SA - another casualty of the anarchy and looting, and the feeling among ordinary citizens that they had been abandoned by the supposed forces of law and order. As if we can afford to lose talented people who create jobs and pay taxes.
"Further to the above meeting at the Central Bank, today I experienced just what the Resolutions meant. On Thursday I paid ZWL6 per litre from Pick n Pay. Today it was ZWL14.29 per litre." - Bev Jack, retired former director of LAIFEZ, Harare, Zimbabwe, making a wry comment about the real outcome of discussions on inflation between government and business.
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za
25/10/1969: Leon Buhr, Equator Accessories, Pinetown, KZN, SA.
25/10/1966: Michael Schiller, Nakara Leather Tanning & Processing, Windhoek, Namibia.
25/10/1972: Venothan Munsami, Little Slipper Co, Port Elizabeth, E. Cape, SA.
25/10/19??: Chrystal Erasmus, Imaani, Cape Town, W. Cape, SA.
26/10/1941: Rob Morris, retired, formerly BU Technical [closed], Cape Town, W. Cape, SA.
26/10/1959: Hennie van Zyl, Ostriland, Citrusdal, W. Cape, SA.
26/10/1962: MH Klopper, Bethlehem Hides & Skin, Bethlehem, Free State, SA.
26/10/1971: Ayoob Seedat, Shoe Tech, Springs, Gauteng, SA.
27/10/1949: Rolf Stumpfe, Lederwerkstatt, George, W. Cape, SA.
27/10/1950: Beverly Phillips, retired, formerly Bata SA / Futura Footwear, Pinetown, KZN, SA.
27/10/1965: Selvan Naicker, Ethekwini Leather, Durban, KZN, SA.
28/10/1970: Sannet Gerber, Zoom In Shoe Boutique, Jeffry’s Bay, E. Cape, SA.
30/10/1939: Peter Boudewijns, retired, formerly Badger Footwear [closed], Port Elizabeth, E. Cape, SA.
31/10/19??: Ofer Ardenbaum, formerly Tiago Trading [closed], Durban, KZN, SA.
31/10/1961: Deidre Harte, retired, formerly LTE, Cape Town, W. Cape, SA.
In Memoriam this week
25/10/2000: CIR 'Rex' Van Coller, (b. 12/04/1925), agent, Durban, KZN, SA.
25/10/2005: Braam Keyser (b. 05/09/1957), Feltex Automotive Leathers [closed], Ladysmith, KZN, SA.
26/10/2015: Richard Reddiar (b. 29/03/1943), Premier Safety Footwear, Johannesburg, Gauteng, SA.
27/10/1994: Brian Vincer (Futura), Pinetown, KZN, SA.
30/10/2001: David Cairns (BASF SA).
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.
Calendar updates this week
06-08 March 2022: Shoes Düsseldorf Autumn/Winter, Areal Böhler, Düsseldorf, Germany.
28-30 August 2022: Shoes Düsseldorf Spring/Summer, Areal Böhler, Düsseldorf, Germany.
New subscribers this week
Lloyd Naidoo, Destiny Footwear, Pietermaritzburg, KZN, SA.
Classified Adverts
Free State & Northern Cape agent
Corvari Footwear seeks an agent for the Free State and Northern Cape to market its Natural Steps and Angels ladies' brands and its Cobbles and Noodles infants' brands. Please reply to business@corvari.co.za, tel 031 700 3234.
Position sought / services offered
Susan van Rooyen
Full time or part time contract
18 years experience with a top end leather goods manufacturer - (Via la Moda)
- Procurement - import & export, production planning and execution.
- Excellent procurement/negotiating skills - (global & local).
- Documentation/permits/customs and CITES systems – experience in submitting and requirements.
- Sourcing new materials/products as per customer requirements/new developments.
- International payments.
- Implementing and control of general and stock systems.
- Accounting up to trial balance - various accounting and stock programmes. (including returns, etc)
- Proficient in Microsoft.
- PA functions.
- Honest, reliable & dedicated.
Please feel free to request my CV/further information.
E-mail: icaregreen@gmail.com
Contact number: +27 072 410 6683
Exchange rates
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/10/03 |
R17.24 |
R20.14 |
R14.87 |
R2.30 |
| 2021/10/09 |
R17.27 |
R20.32 |
R14.93 |
R2.31 |
| 2021/10/16 |
R16.93 |
R20.05 |
R14.59 |
R2.26 |
| 2021/10/23 |
R17.26 |
R20.44 |
R14.83 |
R2.32 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/10/03 |
13.10 |
15.31 |
11.30 |
1.75 |
| 2021/10/09 |
13.03 |
15.33 |
11.26 |
1.74 |
| 2021/10/16 |
13.05 |
15.45 |
11.25 |
1.74 |
| 2021/10/23 |
12.98 |
15.36 |
11.15 |
1.74 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/10/03 |
947.33 |
1106.94 |
817.21 |
126.78 |
| 2021/10/09 |
945.90 |
1113.04 |
817.60 |
126.87 |
| 2021/10/16 |
947.59 |
1121.96 |
816.81 |
126.91 |
| 2021/10/23 |
948.88 |
1122.72 |
815.09 |
127.66 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/10/03 |
19.48 |
22.77 |
16.81 |
2.60 |
| 2021/10/09 |
19.84 |
23.34 |
17.14 |
2.66 |
| 2021/10/16 |
19.68 |
23.29 |
16.96 |
2.63 |
| 2021/10/23 |
19.89 |
23.53 |
17.08 |
2.67 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
| 2021/10/03 |
419.52 |
490.20 |
361.90 |
87.66 |
87.66 |
| 2021/10/09 |
418.69 |
492.67 |
361.90 |
56.16 |
85.55 |
| 2021/10/16 |
419.81 |
497.00 |
361.90 |
56.23 |
90.07 |
| 2021/10/23 |
421.30 |
498.49 |
361.90 |
56.68 |
90.08 |
Directory updates this week
ChilliSource Development, Durban, KZN, SA.
Leather Link, Cape Town, W. Cape, SA.
Noji - The Kalk Bay Clothing Co., Cape Town, W. Cape, SA.
Research Unit, Cape Town, W. Cape, SA.
Saddler Belt, Durban, KZN, SA.
Woodheads, Cape Town, W. Cape, SA.
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (21 October 2021) - The current average hide price decreased by 5.9% to R5.34/kg from R5.68/kg a week ago. The current price is 40% lower than the average price a month ago and is 99% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R5.25, Maximum price: R5.55. Please note, we have changed our methodology and price levels are not directly comparable to previous prices that we reported on. Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.
| Hide & skin price progression |
| Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
| 2020/11/06 |
2.36 |
26.00 |
44.00 |
| 2020/11/13 |
2.38 |
23.59 |
40.00 |
| 2020/11/20 |
2.69 |
35.00 |
50.00 |
| 2020/11/27 |
3.08 |
36.00 |
49.00 |
| 2020/12/04 |
3.65 |
34.03 |
49.00 |
| 2020/12/11 |
3.68 |
33.21 |
50.83 |
| 2020/12/18 |
3.93 |
32.59 |
51.67 |
| 2021/12/25 |
4.08 |
34.39 |
51.67 |
| 2021/01/01 |
3.93 |
34.03 |
54.00 |
| 2021/01/08 |
3.88 |
31.43 |
46.43 |
| 2021/01/15 |
4.03 |
31.43 |
46.43 |
| 2021/01/22 |
4.16 |
30.00 |
47.00 |
| 2021/01/29 |
4.04 |
33.05 |
50.83 |
| 2021/02/05 |
3.86 |
31.41 |
45.71 |
| 2021/02/12 |
4.33 |
35.46 |
45.83 |
| 2021/02/19 |
4.29 |
34.49 |
50.00 |
| 2021/02/26 |
4.94 |
34.70 |
47.50 |
| 2021/03/05 |
5.67 |
38.33 |
51.67 |
| 2021/03/12 |
4.80 |
42.50 |
59.17 |
| 2021/03/19 |
4.99 |
35.74 |
52.86 |
| 2021/03/26 |
6.33 |
35.16 |
55.00 |
| 2021/04/02 |
6.50 |
31.83 |
49.00 |
| 2021/04/16 |
8.98 |
37.44 |
50.00 |
| 2021/04/22 |
8.37 |
|
|
| 2021/04/29 |
8.98 |
40.96 |
62.00 |
| 2021/05/06 |
7.56 |
40.96 |
62.00 |
| 2021/05/24 |
7.82 |
40.83 |
61.67 |
| 2021/05/28 |
7.47 |
|
|
| 2021/06/14 |
8.34 |
40.83 |
61.67 |
| 2021/06/24 |
8.31 |
|
|
| 2021/07/02 |
8.25 |
42.21 |
66.00 |
| 2021/07/09 |
9.53 |
46.39 |
64.00 |
| 2021/07/16 |
8.17 |
39.00 |
61.00 |
| 2021/07/23 |
8.44 |
43.33 |
67.50 |
| 2021/07/30 |
7.57 |
39.00 |
61.00 |
| 2021/08/06 |
9.60 |
39.63 |
64.00 |
| 2021/08/12 |
9.93 |
|
|
| 2021/08/23 |
|
41.40 |
64.00 |
| 2021/09/09 |
9.78 |
|
|
| 2021/09/16 |
8.96 |
|
|
| 2021/09/23 |
8.89 |
|
|
| 2021/09/29 |
6.40 |
39.60 |
65.00 |
| 2021/10/07 |
6.27 |
|
|
| 2021/10/11 |
5.68 |
41.00 |
64.00 |
| 2021/10/21 |
5.34 |
|
|
Note: For previous prices, see HERE
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:
Freequency Footwear, Johannesburg, Gauteng, SA. Men's and women's imported European footwear.
Freerange Clothing, Midlands Meander, KZN, SA. Women's boutique.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: November 1, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
|
