S&V Weekly Newsletter Vol.8 No.44, October 31 2022

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Yeezy split will cost Adidas AG, but no response on local effect

Cape Town, W. Cape, SA - Adidas AG will lose between €1 billion and €1.5 billion in annual sales of Yeezy product following the split last week, according to a report in Bloomberg, which also said it had been "too slow to walk away from Kanye's controversies"
"The company said the termination would have a short-term negative impact of up to €250 million ($246.5 million) on its full-year net income, given the high percentage of sales in the final quarter," Bloomberg said, "but the long-term damage will be much bigger. The Yeezy partnership is estimated to generate annual sales of between €1 billion and €1.5 billion, roughly 4%-8% of Adidas’s group revenue. Shares in Adidas fell close to 5% on the news."

Adidas SA didn't respond to S&V's queries about the effect locally. We asked:
- How many SA customers stock this brand?
- How successful is it in SA?
- Have you had any reaction from your retailers?
- Are they obliged to stop selling immediately or can they sell off their stock?
- What happens to any stock on the water?
- Has the split pushed up demand and therefore price?

Adhesives: Yes, there's a shortage - for some

There are reports that there are shortages of adhesives for the footwear industry in SA. We asked 3 adhesive manufacturers to comment. Deepesh Ghela, managing member of National Adhesive Manufacturers, did.

Pietermaritzburg, KZN, SA - Since the start of COVID 19 worldwide, we have seen shortages of chemical feedstocks from various manufacturers across the globe. The availability, at any one time, oscillated depending on which country was going into lockdown and typical supply and demand factors led to price increases over the 2020 and 2021 years.

Fast forward to 2022 and it seems we have the perfect storm:

- Putin deciding to start the Cold War again.
- OPEC using (or abusing) their cartel for the benefit of themselves.
- Reduction in the pumping of crude oil barrels (approx. 2m from OPEC).
- Gas supply nearly completely cut off to Europe from Russia (Nord stream 1 & 2).
- Manufacturers already under constraints with COVID 19.
- Eskom's inability to supply enough electricity and switching power off in the middle of manufacturing.
- Local refineries getting out of refining chemical feedstocks such as Engen who import most of their solvents since closing their plant in Durban due to the fire, Astron only recently starting up again after being shut since 2020 due to fire, and SAPREF looking to sell in part due to new onerous environmental laws leading to decreased ROI.
- Raw material manufacturers pushing out their lead times of raw material feedstocks in some cases by 20 weeks before it will even go on the water.
- Transnet strike - I heard every 1 day of strike will take up to 9 days to make up the lost time, and this was apart from their very slow and inefficient way of doing things.
      Hence, this has been building up and all just came together leading to shortages of raw materials that go into the manufacture of the adhesive. With not having enough raw materials one cannot manufacture to supply everyone and so I guess this is what we are seeing in the market. The glue manufacturers that forecast these issues should be able to ride out this wave and capitalize on some manufacturers' poor planning. Luckily, we at National Adhesive Manufacturers do not have any shortages and are well placed to supply the market - including any new customers that will be needing adhesives. We are more than happy to take on the additional volumes and look forward to being of service to the industry and beyond.
      Customers can contact me on 0333860331, info@nam.co.za or my cell on 0823015996.

Edelstein Distributors acquires Behr's

East London, E. Cape, SA - Edelstein Distributors, which owns men's outfitting stores Bryant's and Woza, has bought Behr's Shoes as of 01 September from Stephen Wilken, who has retired.
      Behr's carries mostly medium-priced family footwear. It had consolidated to 1 store, in King William's Town.
      "The intention is to consolidate the business, then grow on the foundation that was laid," said Edelstein member Graham Weber. "It takes us into women's footwear, which we weren't in before."
      Edelstein has also just relocated its head office from the East London CBD to 6 Glaston St, Berea.

PPE resellers hit by closures, retrenchments

Johannesburg, Gauteng, SA - Business "has been showing a slight improvement", said Cedric Zoghby, with his brother Norman, a member of Atlantic Protective Clothing cc. "However, we are going into end-of-year mode, and orders are slowing down."
      He said the year overall had been tough. "We sell to smaller businesses," he said, "and many of them have either retrenched staff or have closed down. Many of them are uncertain about next year."
      He said supply hadn't been an issue, and where there were problems, their suppliers had given them adequate warning.
      "Next year? We always hope next year will be better."

'Dramatic turnaround' for wedding sector

Bedfordview, Gauteng, SA - Retailers specialising in weddings and matric dances were among the worst hit by lockdowns, but for those who survived, there has been a complete turnaround, says Liz de Freitas, owner of Glam & Glitz.
      "It started picking up in September last year," she said. "The recovery has been a bit patchy, but overall it's been a very good year, and we have more than caught up with pre-lockdown turnover. I'm hoping that the growth will continue next year."
      Procurement has been an issue: As a designer, all the fabrics she uses are imported, and there have been periods "when I didn't have much to choose from", but she said her fabric suppliers were now sending notifications that stock was available.
      She also sells a small range of wedding shoes "and my supplier is offering a very limited range". She doesn't sell bags. "I used to supply a lot of accessories," she said, "but people don't have much money, so I've stopped that."

In case you missed it!

The October issue of S&V Footwear & Leather Goods Magazine

CLICK HERE TO VIEW IT ONLINE

S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL88 NO10 October 2022

IN THIS ISSUE:

03 Upfront
- Is the worse behind us? Kingsmead reopening a rare moment of joy.

05 Simac / Tanning Tech
- For SA, ease of use and reliability outweigh advanced technology, says Samfer Equipment Technologies' Sam Ferreira.
- Atom Group: Maximising leather cutting efficiency.
- Atom Shoemaster Division: Local training a vital part of the deal.
- Fioretto Shoe Machinery: Simulating hand stitching with machine precision.
- Main Group Technologies: Energy saving a major focus.
- Olympic Engineering: Making a shoe look good.
- Sagitta Officina Meccanica: Perforating machine caught most attention.
- Ormac: 'Made-in-Italy reliability is what sets us apart.'

14 Sustainability
- Venator becomes first titanium dioxide producer with 'Eco Passport' for textile industry.
- SAVA: Annual clean-up day

16 Fairs
- AYSAF: Turkey's components fair.

17 The US Market
- US holiday purchase intentions, from the NPD.

19 Notice Board
- Obituary for Eston Leather's Walter Kassier: An extraordinarily varied career.



Advertisers in this Issue
BBF Safety Group (OFC), Bolton Footwear (07, 08, 10), Evolution Engineering (06), Freestyle Genuine Handcrafted Leather (02), Sole Agents / Rossimoda (11, 12), Italtan (09), S&V Directory (16), Saddler Belts (05), SAFLEC (15).

They Said It

"Gee Graham. You have changed a lot over the past 20 years." - Graham Weber, member of Edelstein Distributors, East London, E. Cape, SA, sharing a comment by his cousin, commenting on his WhatsApp profile photo...of a tree frog. A very beautiful tree frog, but almost certainly not a good likeness.

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

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.
01/11/1934: Bob Brown, Crown Footwear, Pinetown, KZN, SA.
01/11/1940: Innes Rhind, retired, formerly Crispin Industries [closed], Gaborone, Botswana.
01/11/1942: Laurence Smith, PMC Components, Cape Town, W. Cape, SA.
01/11/1957: Anthony le Roux, Agussi Crafts, Franschhoek, W. Cape, SA.
02/11/1934: Hawa Shaikh, formerly Amshu Distributors, closed, Greytown, KZN, SA.
02/11/1936: Alastair Gardner, retired, formerly Panther Shoes [closed], Cape Town, W. Cape, SA.
02/11/1962: Jan Morgan, Morgan Hides, Pretoria, Gauteng, SA.
03/11/1976: Voden Wearne, Oden, Cape Town, W. Cape, SA.
03/11/1979: Orian Mendes, Shuler Enterprises, Harare, Zimbabwe.
04/11/1947: Greg Sadie, Desch SA, Johannesburg, Gauteng, SA.
04/11/1962: Philip A Carstens, Carstens’ Orthotic Laboratories, Durbanville, W. Cape, SA.
05/11/1988: Jacques van As, Le Croc, Brits, N.W. Province, SA.
06/11/1950: Idris Kajee, Favourite Sports, Newcastle, KZN, SA.

01/11/2018: Bobby Moodley (b. 29/01/1949), Chronicle Footwear, Durban, KZN, SA.
03/11/2007: Ahmed ‘Bull’ Patel, hand stitching CMT operator, Greytown, KZN, SA.
03/11/2010: Grahame Steele (b. 17/04/1929), Budget Footwear [closed], Durban, KZN, SA.
04/11/1998: Roy Schefermann, Futura Footwear, Pinetown, KZN, SA.
05/11/1998: Bob Gould, SB Agencies [closed], Pinetown, KZN, SA.
05/11/2013: Brian de Bruin (b. 26/09/1941), DB Components, Durban, KZN, SA.
05/11/2016: Byron Ludlow (b. 29/03/1951), Michelle Footwear, Durban, KZN, 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.

New subscribers last week

Khaya Ndlazi, MD, Nala Beef Abattoir & Meat Processing Plant, Wesselsbron, Free State, SA.
Massoud, Owner, Faromas Medical, Vereeniging, Gauteng, SA
Moreblessing Shumba, Brand Manager, Bata Shoe Company, Gweru, Zimbabwe
Julian, Retailer, Simone, Kuils River, Western Cape, SA
Herman, Factory manager, Bacaheit (Pty) Ltd, Hilton, KZN, SA

Directory entries updated last week

Glam & Glitz, Bedfordview, Gauteng, SA.
Kalee's Shoes & Shoe Repairs cc, Durban, KZN, SA.

Trade fairs & events updated last week

28-30 January 2023: Fashn Rooms, Düsseldorf, Germany.
05-07 March 2023: Shoes Düsseldorf, Düsseldorf, Germany.

3. Malawian Kwacha (MWK)

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

4. Zambian Kwacha (ZMW)

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

5. Zimbabwean Dollar (ZWL$)

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

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (27 October 2022) - The current average hide price remained unchanged at  R4.61/kg from a week ago. The current price is 0.7% lower than the average price a month ago and 9.7% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.00 Maximum price: R5.00. Please note: 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.

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:
Holiday Makers Shop, Port Shepstone, KZN, SA. Men's outfitter.
Empiro/Hollywood House, Umhlanga, KZN, SA. Men's outfitter.

Classified Adverts

Sewing Machine Mechanic/Technician seeks position

PREMCHAND HARIPERSAD. I have 34 years combined experience as a machinist/mechanic. Currently a qualified sewing machine mechanic. My qualification was obtained at ‘London City of Guilds institute’. During my tenure in the industry I have serviced and fixed high quality machinery that production depended on. Passion and skill for the industry assisted me in obtaining world class experience which I thoroughly enjoy not just as a job but more as my hobby. This allows me to exceed expectations of technical demands and standards ensuring maximum production at all times. Based in Durban CV available +27 78 151 7752 +27 67 047 3952 haripersadpremchand@gmail.com

Contact us

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

Next newsletter: November 7, 2022.

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

Our website www.svmag.co.za