The South African Clothing, Footwear and Textiles Industry
The South African Clothing, Footwear and Textiles Industry
Where to from here?
EXECUTIVE SUMMARY
"Welcome to Ghost Town."
The title of an article published in the Clothing industry Pursuit magazine. Dimbaza once a thriving hub of clothing and garment factories now lies deserted with 110 of the once 120 active factories mothballed, 5000 job losses in 18 months.
Unfortunately this is not an uncommon story but rather one which is becoming all the more frequent as the local Clothing, Footwear and Textiles industries are ravaged by the competitive global juggernaut, China!
But surely this could have been avoided the lament rises.
The truth is that global move to free trade and the effects of a rampant Rand in recent years have all but blindsided an industry which for years existed in a artificial vacuum, blissfully ignorant to the slumbering global forces that would change the market for ever.
And laments there have been! COSATU have held national strikes, Retailers have diplomatically fended off local procurement commitments and the government has steadfastly remained stoic help yourself and we will assist the continued view. A divided sector in a time when division is not only ill-advised but tantamount to suicide!
Where to for here?
This discussion analyses the contributing factors and outlines policy recommendations, vital to the survival of the sector in ANY form.
CONTENTS
EXECUTIVE SUMMARY 2
1. INTRODUCTION 4
2. CONTEXT 4
2.1 Formation of the South African Clothing, Footwear and Textiles Industry 4
2.2. The current reality is bleak! 4
3. CONTRIBUTING FACTORS 6
3.1. Overview 6
3.2. Trade liberalisation 6
3.3. Local Competitiveness 8
3.4. Less protectionism and compromised competitiveness = more imports 9
3.5. Reasons for Chinese dominance of world markets 9
4. REACTION FROM STAKEHOLDERS 10
4.1. SACTWU and COSATU 10
4.2. National Retailers Response 11
4.3. Governments response 12
4.4. China 's response 13
5.
Where to from here?
EXECUTIVE SUMMARY
"Welcome to Ghost Town."
The title of an article published in the Clothing industry Pursuit magazine. Dimbaza once a thriving hub of clothing and garment factories now lies deserted with 110 of the once 120 active factories mothballed, 5000 job losses in 18 months.
Unfortunately this is not an uncommon story but rather one which is becoming all the more frequent as the local Clothing, Footwear and Textiles industries are ravaged by the competitive global juggernaut, China!
But surely this could have been avoided the lament rises.
The truth is that global move to free trade and the effects of a rampant Rand in recent years have all but blindsided an industry which for years existed in a artificial vacuum, blissfully ignorant to the slumbering global forces that would change the market for ever.
And laments there have been! COSATU have held national strikes, Retailers have diplomatically fended off local procurement commitments and the government has steadfastly remained stoic help yourself and we will assist the continued view. A divided sector in a time when division is not only ill-advised but tantamount to suicide!
Where to for here?
This discussion analyses the contributing factors and outlines policy recommendations, vital to the survival of the sector in ANY form.
CONTENTS
EXECUTIVE SUMMARY 2
1. INTRODUCTION 4
2. CONTEXT 4
2.1 Formation of the South African Clothing, Footwear and Textiles Industry 4
2.2. The current reality is bleak! 4
3. CONTRIBUTING FACTORS 6
3.1. Overview 6
3.2. Trade liberalisation 6
3.3. Local Competitiveness 8
3.4. Less protectionism and compromised competitiveness = more imports 9
3.5. Reasons for Chinese dominance of world markets 9
4. REACTION FROM STAKEHOLDERS 10
4.1. SACTWU and COSATU 10
4.2. National Retailers Response 11
4.3. Governments response 12
4.4. China 's response 13
5.
References: 1. Carbaugh, R. (2004). International Economics. USA. South Western 2. No author specified 3. Inggs, Margie. (2005, July 14). Draft paper offers remedies for clothing and textile industries. Business Report. http://www.tralac.org/scripts/content.php?id=3617 6. Andile Ntingi (2005, June 27) http://www.busrep.co.za/index.php?fSectionId=561&fArticleId=2532604 12. Alide Dasnoi (2005, January 31) 14. Benita van Eyssen. (2005, May 20). Southern Africa helpless as China aims to clothe the world. Business Report.