S&V Weekly Newsletter Vol.10 No.35, August 26 2024
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SA manufacturers ‘get opportunity to make big quantities of basic shoe for U.S.’
Durban, KZN, SA - South African footwear manufacturers may be offered the opportunity to make very big quantities of basic shoes for the U.S. market.
SA Footwear & Leather Export Council (SAFLEC) executive director Nerisha Jairaj showed samples of the shoes, which have textile uppers and are direct injection moulded, at SAFLEC’s AGM on Thursday last week.
The potential customer hasn’t been named, and she cautioned: “We don’t have this opportunity yet – it’s being investigated for potential. There have been no promises, and we are still in extremely early stages of discussion with the potential buyer. This will take a long time before any possible fruition.”
Temu and Shein turn on each other
Temu a ‘fraudulent’ marketplace, Shein says
From a report on 21 August 2024 in https://finance.yahoo.com/news/temu-fraudulent-marketplace-shein-says
Shein is feuding with Temu again, this time for running a “fraudulent” marketplace that it says employs “unfair and unlawful” means such as counterfeiting, trade secret theft and intellectual property infringement to get a leg up on its competitors—primarily Shein.
“Temu masquerades as a legitimate e-commerce ‘marketplace’ where independent sellers can offer their products for sale,” Shein parent company Roadget Business wrote in a lawsuit filed against Temu operators PDD Holdings and Whaleco in the U.S. District Court for the District of Columbia on Monday. “But the facts uncovered to date—and those expected to be uncovered in discovery—demonstrate otherwise.”
The legal salvo is only the latest in an ongoing fusillade of grievances between the two Chinese-founded e-tail empires, whose impossibly inexpensive products—they sell everything from clothing to electronics to kitchen wares—have fueled their breakneck growth among Western consumers seeking relief from the persistent inflationary squeeze, though not without blowback.
Shein, which is based in Singapore, accused Temu, whose headquarters are located in Boston, of controlling “every aspect” of its sellers’ activity, directing what products they can sell and for how much, even “preventing” them from withdrawing items after they have admitted infringement. These are not the actions of a “legitimate third-party ‘marketplace,” the lawsuit said, adding that Temu reportedly loses $30 or 30 to 50 percent on every order placed in the United States as part of its strategy to seize market share.
“Temu draws U.S. consumers into downloading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from the sale of these products, which are priced so low that Temu must subsidize each sale, losing money on every transaction,” Shein said. “Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or substandard goods can Temu hope to minimize the massive losses it is subsidizing.”
At the same time, Temu has “strategically ripped off” the “Shein brand” and “swindled consumers,” the complaint said. Its “brazen” behavior, meant to achieve its rock-bottom prices “by any means,” has also included “substantial” investment by the “Shop Like a Billionaire” platform to pass itself off as Shein.
“At least one Temu employee stole valuable trade secrets that identify bestselling Shein products—and internal pricing information—to give Temu a blueprint for unlawfully competing with Shein,” the lawsuit said. “Armed with this stolen information, Temu then directed its sellers to copy those and other bestselling Shein products and sell knock-off versions on Temu’s website and mobile applications.”
But Shein has fielded its share of copyright infringement allegations, including one that claimed that the aggressiveness of its copycat violations was tantamount to racketeering. Lawsuits from Adidas, Dr. Martens, H&M Group, Levi Strauss & Co., Ralph Lauren and others are still active, as is a complaint that charges Shein with using “mafia-style intimidation and detention scare tactics,” including false imprisonment, to coerce sellers into exclusive agreements. Shein, Temu told the same Washington, D.C. court in December, has been “abusing” the U.S. legal system by instigating “dubious” copyright infringement lawsuits and issuing “voluminous” bad-faith takedown notices.
“Shein’s illegal scheme to disrupt Temu’s business cannot be separated from its public campaign to manufacture the false image of itself as a law-abiding corporate citizen,” Temu said in its complaint. “Shein’s behind-the-scenes campaign to prevent competition and thwart Temu’s success exposes its public campaign as a fraud and a farce. The truth is that Shein’s interpretation of ‘protecting intellectual property’ is illegally seizing, fabricating and weaponizing intellectual property rights to block competition.”
“The audacity is unbelievable,” a Temu spokesperson told Sourcing Journal. “Shein, buried under its own mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for.”
The latest lawsuit comes as Shein edges closer to a potential initial public offering in London and Temu grapples with a demand from nearly two dozen U.S. attorneys general to clarify its possible ties to the Chinese Communist Party, its data collection and sharing practices and any potential violations of the Uyghur Forced Labor Prevention Act. Shein, too, has come under similar scrutiny, though the company doesn’t appear to be allowing the negative attention to cramp its style: It’s currently forging a sprawling $517 million supply chain nerve center in Guangzhou.
Whether proposed de minimis reforms—in the United States mainly, but also in the European Union, South Africa and Turkey—will disrupt either e-tailer’s trajectory of success, which experts say derives in part from the ability of low-value packages to skirt import taxes and closer customs attention, is still a looming question. As the companies continue their internecine turf war, however, Shein v. Temu is the conflict to watch. Whaleco, the legal entity that operates Temu in the United States, said so itself in a complaint filed with a federal court in the district of Massachusetts last July, though it stood down this particular lawsuit a few months later.
“Shein now views itself as being ‘at war’ with Temu and has engaged in an elaborate and anticompetitive scheme aimed at stymieing Temu’s business,” Whaleco said. “The U.S. market is the primary theater of this war.”
And the feeling, it would seem, is nothing if not mutual. It was only in January, after all, that Shein filed four lawsuits in Illinois’ Northeastern District Court against Temu—plus AliExpress—sellers for copyright theft. Shein also tried to haul Temu and the social media platform formerly known as Twitter to court last year after accusing its rival of “impersonating the Shein brand” and demanding that Twitter hand over all undeleted data. The complaint was later voluntarily dismissed. If there was a truce at some point, it’s now decidedly over.
“Temu massively, continuously and illegally infringes on Shein’s rights directly and through its suppliers who Temu controls,” a Shein spokesperson told Sourcing Journal. “Temu uses deceptive and unlawful tactics, including theft of trade secrets, trademarks and copyrights. Shein is confident that evidence will demonstrate Temu’s engagement in infringing activities, which wrongfully misleads consumers, suppliers and the public.”
In case you missed it!
The August issue of S&V African Leather Magazine
S&V African Leather Magazine Vol18 No8 August 2024
IN THIS ISSUE:
02 Sam Setter’s ‘Pills’
- A new quip from Sam Setter in each issue.
04 Upfront
- ‘Stable to positive’ – the ostrich leather industry is doing well, writes Cape Karoo International MD Francois de Wet.
- Poor market for sheepskins, but hides remain steady: Cape Produce Company MD Greg Feinberg answers our questions.
06 An Eclectic View
- Job cards: An old concept, increasingly digitised, and still an essential work tool, writes correspondent H. Procter.
09 Leather, Its Image & Its Place In The World
- There are many benefits to working with us, writes the Sustainable Leather Foundation’s Deborah Taylor.
- Celebrities to judge the Leather & Hide Council of America’s Real Leather. Stay Different blog competition.
13 Technology
- Stahl extends its EleGrade portfolio of high-end leather upgrading solutions.
14 Weights & Measures
- Compiled by the ISTT.
15 Notice Board
- CPC’s Benjy Lapiner turns 75.
- Tannery Environmental Consultancy Services’ Roger Rowswell has died.
15 Agriculture
- Update on outbreak of Foot and Mouth Disease in Eastern Cape.
- Organised agriculture organization TLU says first meeting with new Minister of Agriculture John Steenhuisen ‘positive and constructive’.
Advertisers in this Issue
Authenticae (08), International School of Tanning Technology (ISTT) (12), Mimosa (03), Rolfes Leather Division (05), S&V Calendar (01), S&V Directory (11), Southern African Footwear & Leather Export Council (SAFLEC) (02), Stahl/Elegrade (OFC), Sustainable Leather Foundation (10).
They Said It
"I keep a running total of my mistakes. I call it my MBA. North of R8m so far." - A South African manufacturer in the leather value chain, a very successful manufacturer, as it happens. He prefers anonymity.
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
New subscribers last week
Liezel Pretorius, Partner, Sourcing Genie, Greenstone Hill, South Africa
Candice, Director, Legacy Freight Services, Durban, South Africa
Dee, Manager, Baba Workwear, Moseley, South Africa
Birthdays this week
26/08/1971: Sadia Edries, Rizzo Sales, Cape Town, W. Cape, SA.
27/08/1945: Krish Gangiah, Impact Footwear, Durban, KZN, SA.
27/08/1962: Vidrik Thurling, Thurling Investments, Cape Town, W. Cape, SA.
28/08/1947: Kathy Graham, retired, formerly Bagshaw, Port Elizabeth, E. Cape, SA.
28/08/1964: Maon Saxe, Lonshoe Holdings [closed], Cape Town, W. Cape, SA.
28/08/1969: Craig Munro, ? formerly Crafcor Hart Hides [closed], Pietermaritzburg, KZN, SA.
28/08/1984: Clive Pozniak, Headmasters, Johannesburg, Gauteng, SA.
29/08/1961: Steve Miller, Queue, Cape Town, W. Cape, SA.
29/08/1976: Minesh Gangiah, Impact Industries Footwear Manufacturers, Durban, KZN, SA.
29/08/????: Indira B Ambaram, JFK Trading, Durban, KZN, SA.
30/08/1971: Cheryl Kretschmer, Sparg’s Wholesale Supermarket, East London, E. Cape, SA.
01/09/1940: Tony Kirkpatrick, R. Faulks, Hilton Hickman Slipper Factory [closed], Adorable Footwear [closed], Vogue Shoes [closed], Antonio Footwear [closed], Crown Footwear, Verona Shoes [closed], Michelle Footwear, Strayz Footwear, Pinetown, KZN, SA.
01/09/1941: Stan Kotkin, Calvin Klein SA, formerly Footwear Trading (ceased trading), Johannesburg, Gauteng, SA.
01/09/1942: Judy Vincent, Saddler Belts & Leathercraft, Durban, KZN, SA.
01/09/1971: Antonella Florio, Vanity, Ladybrand, Free State, SA.
01/09/1981: Jean Teplitsky, Bertier Custom Made, Somerset West, W. Cape, SA.
01/09/1991: Ushir Singh, Palm Footwear, Durban, KZN, SA.
In memoriam this week
27/08/2006: Keith Barkus (b. 08/04/1954), agent, Durban, KZN, SA.
28/08/1997: Richard Denton (b. 24/06/1914), Ricmar group [closed], Durban, KZN, SA.
28/08/2013: Tony Denton (b. 06/03/1943), Ricmar group [closed], Himeville, KZN, SA.
28/08/2021: Michael Anthony Clark (b. 14/03/1946), International Shoe Machinery, Royal Adhesives, Durban, KZN, SA.
29/08/2021: Nelson Govender (b. 04/10/1964), Prisaan Footwear, Pinetown, KZN, SA.
30/08/1997: Neville Socher, Medicus agent.
30/08/2015: Willem Delft (b. 10/04/1944), Bobbie Leathers, Uganda.
30/08/2023: Ray Venter (b. 14/09/1937), Prestige Agencies cc (closed), Alberton, Gauteng, SA.
01/09/2012: Mike Cromhout (b. 06/02/1947), agent, Cape Town, W. Cape, SA.
01/09/2021: Mike Lashbrooke (b. 07/06/1935), agent, Cape Town, W. Cape, 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.
Directory entries updated last week
Dancewell cc, Durban, KZN, SA.
Exchange rates
Note: For previous rates, see HERE
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 01/06/2024 |
R20.41 |
R23.96 |
R18.81 |
R2.59 |
| 08/06/2024 |
R20.40 |
R24.02 |
R18.87 |
R2.60 |
| 18/06/2024 |
R19.47 |
R23.03 |
R18.16 |
R2.50 |
| 23/06/2024 |
R19.22 |
R22.74 |
R17.97 |
R2.47 |
| 29/06/2024 |
R19.44 |
R22.95 |
R18.14 |
R2.49 |
| 07/07/2024 |
R19.74 |
R23.35 |
R18.23 |
R2.50 |
| 13/07/2024 |
R19.60 |
R23.32 |
R17.96 |
R2.47 |
| 20/07/2024 |
R19.89 |
R23.61 |
R18.27 |
R2.51 |
| 27/07/2024 |
R19.88 |
R23.55 |
R18.29 |
R2.52 |
| 03/08/2024 |
R19.92 |
R23.39 |
R18.27 |
R2.55 |
| 10/08/2024 |
R20.01 |
R23.38 |
R18.33 |
R2.55 |
| 17/08/2024 |
R19.66 |
R23.11 |
R17.86 |
R2.49 |
| 24/08/2024 |
R19.86 |
R23.42 |
R17.72 |
R2.48 |
2. Botswana Pula
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 01/06/2024 |
14.74 |
17.31 |
13.59 |
1.87 |
| 08/06/2024 |
14.82 |
17.45 |
13.71 |
1.89 |
| 18/06/2024 |
14.52 |
17.18 |
13.55 |
1.86 |
| 23/06/2024 |
14.45 |
17.11 |
13.52 |
1.86 |
| 29/06/2024 |
14.53 |
17.15 |
13.56 |
1.86 |
| 07/07/2024 |
14.76 |
17.46 |
13.63 |
1.87 |
| 13/07/2024 |
14.70 |
17.49 |
13.47 |
1.85 |
| 20/07/2024 |
14.71 |
17.46 |
13.51 |
1.85 |
| 27/07/2024 |
14.80 |
17.53 |
13.62 |
1.87 |
| 03/08/2024 |
14.83 |
17.41 |
13.60 |
1.90 |
| 10/08/2024 |
14.80 |
17.30 |
13.56 |
1.89 |
| 17/08/2024 |
14.82 |
17.42 |
13.46 |
1.87 |
| 24/08/2024 |
14.96 |
17.65 |
13.35 |
1.87 |
3. Malawian Kwacha (MWK) (buying)
Source: https://www.rbm.mw/
| |
Euro € |
GBP £ |
US $ |
ZAR |
| 01/06/2024 |
1912.34 |
2247.95 |
1716.73 |
94.10 |
| 08/06/2024 |
1925.25 |
2260.15 |
1716.73 |
93.44 |
| 18/06/2024 |
1897.13 |
2244.77 |
1716.73 |
96.93 |
| 23/06/2024 |
1895.01 |
2239.46 |
1716.73 |
98.39 |
| 29/06/2024 |
1890.06 |
2233.45 |
1716.73 |
95.73 |
| 07/07/2024 |
1913.40 |
2258.56 |
1716.73 |
97.10 |
| 13/07/2024 |
1921.86 |
2283.53 |
1717.02 |
98.27 |
| 20/07/2024 |
1924.69 |
2286.18 |
1717.02 |
96.71 |
| 27/07/2024 |
1919.74 |
2273.98 |
1717.02 |
96.61 |
| 03/08/2024 |
1910.19 |
2252.40 |
1717.02 |
97.14 |
| 10/08/2024 |
1931.59 |
2256.47 |
1717.02 |
96.56 |
| 17/08/2024 |
NA |
NA |
NA |
NA |
| 24/08/2024 |
1966.96 |
2318.37 |
1717.02 |
98.25 |
4. Zambian Kwacha (ZMW) (buying)
Source: https://www.boz.zm/
| |
Euro € |
GBP £ |
US $ |
ZAR |
| 01/06/2024 |
28.45 |
33.32 |
26.17 |
1.39 |
| 08/06/2024 |
28.55 |
33.57 |
26.36 |
1.39 |
| 18/06/2024 |
27.73 |
32.80 |
25.90 |
1.41 |
| 23/06/2024 |
27.36 |
32.36 |
25.58 |
1.42 |
| 29/06/2024 |
26.42 |
31.22 |
24.69 |
1.35 |
| 07/07/2024 |
26.47 |
31.31 |
24.45 |
1.34 |
| 13/07/2024 |
27.85 |
33.17 |
25.57 |
1.42 |
| 20/07/2024 |
27.89 |
33.09 |
25.61 |
1.39 |
| 27/07/2024 |
28.37 |
33.61 |
26.12 |
1.43 |
| 03/08/2024 |
28.15 |
33.09 |
25.85 |
1.42 |
| 10/08/2024 |
28.48 |
33.25 |
26.10 |
1.42 |
| 17/08/2024 |
28.89 |
33.90 |
26.27 |
1.46 |
| 24/08/2024 |
29.03 |
34.18 |
26.06 |
1.45 |
5. Zimbabwe Dollar (ZWL$) (average) / Zimbabwe Gold (ZiG)
Source: Source: https://www.rbz.co.zw/
| |
Euro € |
GBP £ |
US$ |
ZAR |
| 01/06/2024 |
ZIG 14.40 |
ZIG 16.94 |
ZIG 13.31 |
ZIG 1.41 |
| 08/06/2024 |
NA |
NA |
NA |
NA |
| 18/06/2024 |
ZIG 14.45 |
ZIG 17.12 |
ZIG 13.48 |
ZIG 1.35 |
| 23/06/2024 |
ZIG 14.54 |
ZIG 17.21 |
ZIG 13.59 |
ZIG 1.32 |
| 29/06/2024 |
ZIG 14.64 |
ZIG 17.30 |
ZIG 13.70 |
ZIG 1.34 |
| 07/07/2024 |
ZIG 14.81 |
ZIG 17.48 |
ZIG 13.69 |
ZIG 1.33 |
| 13/07/2024 |
NA |
NA |
NA |
NA |
| 20/07/2024 |
ZIG 14.93 |
ZIG 17.74 |
ZIG 13.71 |
ZIG 1.33 |
| 27/07/2024 |
ZIG 14.96 |
ZIG 17.72 |
ZIG 13.78 |
ZIG 1.32 |
| 03/08/2024 |
ZIG 14.87 |
ZIG 17.53 |
ZIG 13.77 |
ZIG 1.32 |
| 10/08/2024 |
ZIG 15.04 |
ZIG 17.57 |
ZIG 13.78 |
ZIG 1.33 |
| 17/08/2024 |
ZIG 15.14 |
ZIG 17.75 |
ZIG 13.79 |
ZIG 1.30 |
| 24/08/2024 |
ZIG 15.36 |
ZIG 18.11 |
ZIG 13.81 |
ZIG 1.30 |
Note: For previous rates, see HERE
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (22 August 2024) - The average hide price remained 2.801/kg. The current price is 0.51% lower than the average price a month ago and 8.5% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R3.00. Price movements will be highly influenced by developments in the status of our animal diseases. 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, and Zama Sangweni, 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:
Tamar Shoe & Bag Repairs, Cape Town, W. Cape, SA. Repairer.
Tambudze Tanning, Kadoma, Zimbabwe. Wet blue tannery.
THIS WEEK LAST YEAR!
Formal: Still an uphill battle.
Travel goods: Getting back to normality.
Botswana retail: VAT rise hurt trade, but trajectory is up.
Namibia retail: Slightly up on last year.
READ IT HERE - S&V Weekly Newsletter Vol.9 No.35, August 28 2023
THIS WEEK FIVE YEARS AGO!!
Retail last week: Comment from 5 retailers on Saturday
Apparel newsletter publisher dies
Handbag trend seminar
Stock Exchange News Service (SENS) release
- Mr Price - results of AGM
- Woolworths final results June 2019
- Massmart interim results June 2019
READ IT HERE - S&V Weekly Newsletter Vol.5 No.35, September 2, 2019
NEWSLETTER ARCHIVE
All the past S&V Weekly Newsletters from January 2016 onwards are available in the newsletter archive.
VIEW THE ARCHIVE - CLICK HERE
CLASSIFIED ADVERTS
Agent seeks principals
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For possible opportunities kindly email contact details with brand/s available to targetdist@icon.co.za
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: Monday September 2, 2024. Ad and editorial deadline Friday 30 August.
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