INDUSTRY ASSOCIATION DRIVE TOWARDS EXPORTS

TIKZN EXPORT WEEK 2015

The Clothing sector

The decline in local production is blamed on two factors: • The continued growth in imports and; • The strengthening of the South African

rand (R) against US$

The industry is suffering from years of neglect in the areas of technology and skills transfer.

Local Production Decline –impact on increased importsSA – 25th Importer of Clothing worldwide (Source: Comtrade Data)

Increased imports figures – largely due to growth of middle class (access to larger disposable income)

Origins of SA Clothing Exports

Industry Drivers

Retail Group Clothing Stores Number of stores

Turnover Comment

Edcon Edgars, Edgars Active, Jet, Jet Mart, Legit

738 R 23.8 billion—19% from women‘s wear, 12% from men's wear and 15% from children's clothing. Retail sales of clothing: R10.9 billion.

30% share of the SA Clothing and Footwear market

Woolworths Holdings Woolworths 670 R 21.2 billion, of which R 7.3 billion from clothing and homewear

14.5% market share for clothing & Footwear

Truworths Truworths, Identity, Uzzi, YDE

770 R6.2 billion

Foschnini Foschini, Donna Claire, Fashion Express, Exact!, Total Sport, Due South

1 539 R8.1 billion, of which R 6.5 billion from the clothing divisions

Mr Price Mr Price, Mr Price Sport, Miladys

588 R 9.5 billion, of which R 6.7 billion from apparel brands

Pepkor Pep and Ackermans 1741 N/A Pep is the largest single brand retailer in SA.

Background of KZNFC

Provide support to the fashion design sector in the province with a focus on emerging and youth designers

Recognizes the importance of alignment within the sector.

Recognizes that a multi-sectorial commitment to value chain alignment is important for strengthening the social, economic and creative talents of emerging and established fashion designers

Strategic programmes for junior, emerging and established designers with a focus on previously disadvantaged individuals.

Industry Association & Exports Promotion

BENEFITS• Providing Market intelligence and advice, e.g. identification and information on

new products and new markets; • Facilitating exports by matching potential exporters with foreign buyers; • Providing In-Market Support;• Providing access to markets through Investment and Trade Initiatives, Outward

Selling Mission and National Pavilions

Improvements

• Provision of enabling environment for emerging business e.g. Manufacturing base• Skills transfer: involvement of retired skilled people to resuscitate the industry• Investment on textile businesses, and accessibility of textiles to design businesses• Promotion of locally manufactured products.• Proactive involvement and participation of CMT’s with local designers• Recognition of emerging design businesses as crucial elements in the value chain

KZNFC Industry association drive towards Exports

Organization Enterprise Development Initiatives Outcome

TIKZN Export Promotion and Awareness, Trade Platforms (Source Africa, etc.)

Emerging exports – design businesses in Namibia & Botswana

DTI Export Readiness Assessments, Trade and International Fashion Showcase

AFWL – EU Export of 14 design businesses

DAC International Design Indaba, International Fashion Showcase

GFDW – 2 x designer showcase & export opportunities

Brand SA International Showcase & Trade platforms

AFWL – EU Export of 14 design businesses

The Fashion Agent

Local & International representation of designers, Buyer initiatives

Edgars X Collection (4 KZN Designers)