The ReDress Consultancy - South Africa

Fitting in – slavish, sensible or sensational?

2009-10-19T17:58:00.001+02:00

Seasonal change cues fashion media editors to present the public with “must-have” and “no-no” listings, which, no matter how individualistic or judicious we might think we are, subtly compel us to reconsider the stock in our private wardrobes.

In these times of economic strain and budget adjustments, does “fitting in” with rapidly changing fashion cycles not pose challenges to designers and consumers alike? Are we prisoners of fashion dictates, or could we consider co-creating new looks with minimal expense? How can local fashion designers sustain themselves by working around and within global and local market forces?

Through aggressive marketing, our individual identity can become effaced by homogenised clothing, a veneer that suggests we are part of a recognisable whole. Trend forecasters, retailers and brand conglomerates launching new styles, fabrics, cuts and colours stoke the coals of peer pressure that conditions us to be seen in the latest ranges. As social beings, we are construed as a collective commodity travelling in a continuum of design renovation that is dictated by a few but embraced by the masses, often with little thought to suitability or personal imagination.

Being seen in the right brand wearing the "in" label of a particular designer neutralises our individuality and leads to a contradiction of the purpose of fashion: individual style portraying human uniqueness; instead, we become fashion clones.

By conforming to seasonal trends, are we not impeding the innovation and growth of young fashion designers emerging in the market? There are a few designers who have created distinctive aesthetics and have steadily built a brand following. These looks are not confined to the examples seen on catwalks at Fashion Weeks events; idiosyncratic, semi-mass-produced, wearable garments are also available.

The old saying, "catch them when they are young" can be applied to fashion education. For example, when experts visit fashion colleges and advise students on the latest European trends - as if these are the unassailably essential forms of good design and as such, critical to design success - are we not diluting their imaginative resources?

Both student and established designers are required to be in touch with global fashion directions, but is it a prerequisite to emulate these trends without any re-interpretation? The colours for 2009 are, according to the style forecasters, moving away from metallic finishes to a more earthy, subdued colour palette; ripped denim might resurge, and for younger women, appropriation of men's jeans (known as "The Boyfriend Jeans") will be in vogue and Deep-V-T-shirts and jerseys could be the 2009 new style for men.

We need to respect the genius of our learner designers, and support them in steering away from reliance on European trends. This information is available for reference, so rather than delivering lectures on trend templates, their curricula should cover instruction in sourcing, assimilating, and interpreting the data, with a view to redefining trends in the local context and according to their own design sensibilities.

Upcoming generations of South African designers can consult a wealth of historical fashion approaches to inspire new nuances for their ranges, not only through their designs but by the way they market and retail their creations. It is my sense that the edicts filtering down to young designers and into the consumer psyche of what can or cannot be worn should be challenged. It is time for fashion revolution and evolution.

The late 1950s and early 60s are a good example of this: young, energetic, visionary designers kicked against prevailing market prescriptions, sweeping aside hidebound retailing and manufacturing methods. Interestingly, even though the establishment was outraged at the audacity of these young artists, the two systems found equilibrium and co-operated in the realisation that the market was big enough to accommodate the diversity.

This period saw the rebirth of the boutique as a way of retailing fast, limited-edition, highly individualistic fashion. Led by Mary Quant, this fashion revolution saw new designers enter and disappear from the fashion scene as rapidly as new styles appeared in the boutiques. The survivors were those who developed solid business strategies and used experts to market their labels and outlets. Quant saw that the only way to thrive and move up the fashion value-chain was to develop a system of manufacturing that could produce limited ranges of quality garments in a timely and cost-efficient manner, and in so doing, she established business partnerships with CMTs and textile manufacturers who were willing and able to meet her needs.

In 1971, it was estimated that in the United Kingdom alone, there were 15 000 boutiques doing an annual business remit of £300-million. There was fierce competition between the boutiques, but this fostered an ethos of mutual respect and operational etiquette flourished in this sector. Each boutique offered a retail outlet for designers, and these outlets evolved into distinguished, quaint retail oases, establishing a reputation for a particular fashion flavour for a discerning market segment.

The boutiques offered an ideal opportunity for the supplier designers to interact with customers, get critical feedback and rapidly adapt, innovate and supply updated designs. They did not wait for received wisdom from textile manufacturers or trend forecasters. Instead, they created their own trends, and styles, allowing both young and old the space to explore and mix a variety of affordable, high-quality styled clothing to create their own personal fashion statements.

The key to fashion revolution is the alignment between CMTs, textile suppliers, independent designers and the financial sector supporting boutiques that present viable business plans.

South Africa’s fashion sector should spearhead this alignment process, by understanding global trends - much as a musician masters fundamental techniques and genres - and then improvising on these to recalibrate the degree and trajectory of fashion development along new lines of excellence.

Written by Renato Palmi

Fashioning fads, functions and fearlessness

2009-10-19T17:52:00.000+02:00

In the course of human development, fashion trends have mutated in line with changing social and economic contexts. Every decade, approaches to dressing have adapted to reflect prevailing political, psychological and environmental conditions, movements and interests. Bemusing styles propagated the process of fashion development, fostering innovation and signalling the disappearance of some design features – only for some to re-emerge centuries later.

As with any aesthetic epoch in history, our current responses to avant-garde styles appearing on the streets, or to fashion-art launched on international catwalks, range from shocked resistance to delighted amazement.

However, it is not phenomenal in itself for individual or groups of designers to storm through the boundaries of accepted norms, so establishing iconic identities and labels. Nor is our post-modern enlightenment always entirely new - antecedents for apparel rebellion can be traced back far earlier than we might realise.

According to fashion folklore, a trend of wearing less and less was orchestrated in 18th Century France by Mesdames Racamier and Tallient. One day in 1796, two young women took to the Paris streets in attire that was arresting, so to speak - one in a length of sheer gauze swathed across her body, the other appearing topless. Transparent clothing, worn without underwear and adorned with jewellery across the thighs and breasts, did not last long, though, as the moral authorities of the time apprehended any women who dared to wear such revealing garb.

The nobility of bygone eras also played a part in fashion evolution – such as Lord Raglan’s famous sleeve, and the cardigan being named after Lord Cardigan. The Duke of Windsor (King Edward VIII after his abdication) brought his distinctive necktie-knot into common usage, and was known for popularising turn-ups on trousers. The creasing down the front and back of trousers is credited to royalty. King Edward VII is said to have ignited the practice of unbuttoning the lower portion of a waistcoat, and the emergence of long coats is attributed to King Louis XIII wishing to mask his bandy legs.

The naming of fabrics has always been an important element in textile manufacturers’ marketing strategy, seeking to capture the sensory appeal created by the textile's colour and texture, and to resonate with contemporary lifestyles. Designers working with the new fabrics had to be inspired by such names. In the 18th Century, some odd examples emerged in this context: "Sick Spaniard”, “Unhappy Friend”, “Poisoned Ape”, “Sewerage”, Small-Pox” and “Carmelite's Paunch”. In 1961, a fabric dye called "Congealed Blood" became one of the colours most favoured by UK fashion designers.

Fashion concepts have often been constructed around weaponry and even used to hide weapons. A South African firm manufactured a brassiere designed to hold a small pistol. In 1959, a British tailor made suits with a "cosh-pocket” for local teenagers to carry a baton on their person. Teenagers in Glasgow during the 1920s and 30s embedded razor blades in the edges of their peaked caps. Men's double-breasted coats, with the left flap buttoned over the right, derive from 18th Century and earlier European styling to accommodate swords, and the buttoning of tunics was implemented to prevent the hilt of the sword from catching on the coat when drawn.

Wearing pants below the hips, exposing the top of the buttocks or underwear, is not unique to contemporary urban style. In 1964, the unzipped-trouser look was introduced in women’s clothing: shorts were unzipped in the front to reveal bikini underwear as an erotic teaser. The word “bikini” comes from the Bikini Atoll, the site of a nuclear weapon test – clearly analogous with shock value; it was reasoned that the excitement of the bikini, co-conceived by French engineer Luis Reard and fashion designer Jacques Heim in 1946, would be likened to a nuclear blast. Even the style of the modern bikini is not a modern concept: archaeologists have discovered murals in Sicily depicting women in the years 286-305 wearing items of skimpy clothing that we would currently identify as bikinis.

Scented socks and shirts were another novel idea, first launched in the 1950s. A Scotsman invented the masculine-scented shirt in 1953 as a sensory design feature to attract women. The early 1960s brought scented ties onto the market, offering a selection of pleasant aromas such as Mint, Orange, Strawberry and Leather. However, scented apparel could not compete with the innovative boom in male toiletries, and so faded from focus.

Fashion design has also been influenced by interest groups seeking to control the presentation of a “respectable” female image, believing that they had moral authority over codes of dress. Historical artefacts show that women wore bikini-type outfits while exercising, so today’s sportswear and beach-gear is really a reversion to 19th and early 20th and earlier Century costumes.

At least these design forms did not physically harm women or cruelly impede their natural physical motion, as did the corset or the “Bum Roll” (a strange fashion apparatus tied round the hips with a tape to create the illusion of ample buttocks). In the 1940s, the pneumatic brassiere was developed to enhance a small bust.

Pockets did not feature much on woman's clothing until the early 20th Century, but today, military camouflage and “cargo” pants with utility pockets are ubiquitous in women’s streetwear. In the 1930s, a short-lived fashion accessory for women was the knickers-pocket, used to hold a handkerchief.

During the 1950s, a group of French tailors produced a range of suits without pockets, offering instead a shoulder-bag as a menswear accessory; this idea was largely dismissed as impractical. But in the US, the magazine Esquire promoted an American version of the French male shoulder-bag called the "Side-Kick", describing it as a “saddlebag without the horse”. The promotion of the "Side-Kick" did not take off, as men did not want to be seen carrying any bag other than a briefcase.

In this Information Age, though, men and women use a "Side-Kick" of sorts: the backpack is an accessory adopted from the military as a form of everyday wear, and used by students and business executives alike to carry lap-top computers and other items needed to operate a mobile office.

With technology being a major factor influencing the contemporary design of pockets on apparel, fabrics and garments are designed to carry cell-phones, iPods, flash-disks and other wireless communications gadgets such as Global Positioning Systems and radio frequency tags.

Clearly, the future of garment design is in “smart clothing” - blending technology with fashion. But in principle, are we back to the future?

Renato Palmi

New plans for South Africa's clothing industry

2009-10-16T17:46:00.000+02:00

The South African clothing industry wage strike may be over however the battle relating to compliance and non-compliance will once again become a contentious issue within the apparel sector. According to news reports the apparel industry wish to make non-compliance a criminal offence. The focus seems to be in non-metropolitan areas. What about non-compliant companies within metro areas? The pressure to pursue companies that are non-compliant cannot be solely dependent on inspectors from the Bargaining Council or the union. The retails that use such companies as suppliers can play a vital role by stopping such procurement. Maybe there needs to be legislation in place to also "penalise" retailers for using non-compliant companies? The undertaking from provincial and local government not to use non-compliant companies must be monitored closely. I think it would be beneficial if a list of non-compliant companies could be made public.

CAPE TOWN — Employers and workers in the clothing industry have combined forces to lobby the government to recriminalise noncompliance with labour legislation.

This is because of the widespread flouting of the law in non-metropolitan areas, where employers pay less than the minimum wage and do not contribute to health scheme funds and provident funds.

The overstretched labour inspectorate has been unable to deal with the issue , which is so acute that compliant companies were being unfairly undercut, chief national negotiator for employer organisations Johann Baard said yesterday.

“Noncompliance in non-metro areas is a massive 80% of all the factories based there, which represent about a third of the total industry in the country. We think recriminalisation of labour legislation (particularly of noncompliance) which existed prior to 1994 will go a long way to address the problem.”

Recriminalisation would mean an offending company could be found guilty by a magisterial court and be penalised.

Baard said the wage differential for a qualified machinist between compliant and noncompliant companies was as high as R250 a week. These noncompliant companies were supplying the top five retailers and undercutting those who were playing by the rules, he said.

Baard said if the trend for companies to relocate to non-metro areas continued at the present rate, about two thirds of the industry would be based outside metropolitan areas in five years’ time. He stressed that the aim was not to eliminate the negotiated wage differential between metro and non-metro areas but to achieve compliance.

The agreement to lobby the government was reached at yesterday’s meeting of the clothing industry’s national bargaining council, where a wage deal was also signed between employers and the Southern African Clothing and Textile Workers’ Union (Sactwu), ending a two-week strike by 55000 workers.

To strengthen the role of the trade union in non-metro areas and assist it in combating noncompliance, the wage agreement includes a closed-shop provision for Sactwu in these areas. Sactwu was also empowered to institute noncompliance proceedings against noncompliant companies and to embark on protected industrial action against them. Furthermore, outsourcing to noncompliant companies would not be allowed in the industry and the parties undertook to enter into agreements with all provincial and local governments to limit their procurement to compliant companies.

Another critical issue for the industry covered by the wage agreement was the high level of absenteeism, especially in the Western Cape, which Baard attributed largely to substance abuse. The parties agreed on a strategy to address this, setting an interim target absenteeism rate of 5% by next September. They agreed that disciplinary action should not be used and that a study would be undertaken to measure the level of absenteeism.

At the meeting, Economic Development Minister Ebrahim Patel called on business and labour to enter into a longer-term social partnership for growth and decent work to lift the industry out of a slump which has seen the loss of more than 7000 jobs — nearly 11% — in bargaining council employment over the past 12 months.

Business Day: 16/10/09

Patel challenges clothing industry

15 October 2009 - 14:56

Author: Sapa

With the clothing strike settled, the industry had to face up to the bigger challenge of ensuring its own survival, Economic Development Minister Ebrahim Patel said. He was speaking in Cape Town after employers and union representatives signed an agreement formally ending the nationwide strike by some 55,000 clothing workers. "The realities are that we cannot compete on absolute wage costs with China," he said.

"The reality is, we cannot go back to very high tariff protection of the type seen before the mid-1990s. The reality is we cannot have industrial subsidies for the industry based on the model where you are on permanent life support from government." He said government had introduced a number of measures to support the sector, including some R500 million in either soft loans or grants to modernise the industry.

"I now wish to ask, what in turn will business and labour bring to a new growth strategy for the sector? What government does, alone, cannot transform the industry. It requires you." Patel said the industry held its future in its own hands.

Earlier, representatives of the SA Clothing and Textile Workers Union (Sactwu) and clothing employer organisations signed the strike-breaking agreement. Sactwu general secretary Andre Kriel said it provided for immediate increases of seven to 11.8 percent, depending on job category and geographic location. The increases were worth an annual R128 million, he said. The agreement also sets an absenteeism target of five percent, and says special committees will be set up at each workplace to monitor this.

It says the clothing industry bargaining council will set up a dedicated productivity unit to promote productivity issued in the industry, and will look into the feasibility of a training institute to improve workers' skills. Kriel said the union and employers had come out of the negotiations and strike with a deep respect for each other, and he hoped they could all now turn their attention to issues such as trade and industrial policy.

Negotiator for the employers Johann Baard said that despite the bruising negotiations, employers were committed to re-establishing constructive relations with the union. "We simply have to work together for the industry to survive and grow," he said. The truth was that South African clothing manufacturers were "out-subsidised" by the Chinese. The industry would have to think very hard about creative solutions to bring about a level playing field.

SACTWU signs wage deal

2009-10-16T17:11:00.000+02:00

15 OCTOBER 2009

SACTWU SIGNS R128 MILLION CLOTHING INDUSTRY WAGE DEAL
The Southern African Clothing & Textile Workers' Union (SACTWU) and clothing industry employers have today signed the 2009/2010 national wage agreement for the clothing industry. The signing ceremony took place at the Annual General Meeting (AGM) of the Clothing Industry Bargaining Council held earlier today. This now officially brings the national wage strike (which started on 15 September 2009) by 55 000 (fifty five thousand) clothing workers to an official end. The strike was partially suspended when a settlement of the dispute was brokered by the Commission for Conciliation, Mediation & Arbitration (CCMA) on 29th September 2009, but continued in some areas such as Botshabelo, Isithebe and QwaQwa until late last week.

The settlement is worth R128 million in increased wages which will be injected into the economy over the duration of the agreement. This is a welcome cash stimulus package for the industry and for the country. Wage increases will range from between 7% to 11.8% per week on the current minimum wage levels, depending on job category and geographic area. In areas such as Botshabelo, QwaQwa and Isithebe where the actual wage paid is much lower, wage increases will range between 18% and 22% per week. Increases will be backdated to 1st September 2009, the date on which the new wage levels were to take effect. Lower paid workers will get higher percentage increases.

The agreement also provides for the establishment of a clothing industry Productivity Institute, a Clothing Industry Training Board to further upskill workers, mechanisms to address non-compliance with the provisions of the industry agreement by some employers and a narrowing of the wage gap between metro area workers and non-metro area workers.

The trade union welcomes the settlement and now calls on its members to return the industry to full productivity as soon possible. SACTWU said "Clothing workers can expect the new wage increases in their pay packets with effect from next week'".

Fashion with a purpose -HIV/AIDS and Fashion

2009-10-11T17:39:00.000+02:00

South Africa:

Condoms are fashionable. That's the theme in a competition design students across the country are involved in. Students are encouraged to make fashionable garments from condoms for the competition.

The message organisers are hoping to get across in the process is that using condoms, to prevent the spread of HIV and Aid is a positive trend.

The slogan was coined by the health and design unit at the South African Clothing, Textiles and Worker Union.

Vimrashni Govender, events and information officer at the union's worker health programme, explains that many South African young people have been affected by HIV and Aids.

"We had to find a way in which to disseminate pertinent messages about sexual health, particularly prevention, so that they would be heard.

"The fashion competition... will surely grab the attention of South African youth and get them thinking about condoms in a positive way," she said.

Govender said many storyboard entries complete with business plans had already been received and, once the top 10 had been selected, the students would be handed their share of the 50 000 coloured and flavoured condoms donated by Masculan to begin creating the garments.

The winner, who will be announced on November 7, will receive R30 000 to action his or her business plan.This is an essential outcome of the competition, said Renato Palmi, the KwaZulu-Natal representative for the South African Fashion Designers Institute (Sadfi), a design unit of the union.

"At Safdi we want the youth to start thinking about design as a business, and to start thinking about themselves as designers within the larger industry," says Palmi.

As a registered member of Safdi the winner will be linked with registered manufacturers.

Palmi says: "As a transparent, national support network for designers Safdi is a membership based institute, open to applications from all designers and registered fashion students," adding that, it is vital to understand that this does not mean they will be joining the union.

"Over the years many fashion designers have asked SACTWU to take up their concerns, the union has now decided to provide a platform within its fold for designers to meet and be able to use the organisational capacity of the union to take forward their ideas. Safdi, through its association with the union, will be able to harness the wider power of organised labour," he said.

"This is a means of nurturing, not just the designers, but the industry as a whole," he said.

Published on the web by Tonight on October 5, 2009.

By Omeshnie Naidoo

South Africa implements duties on apparel imports

2009-10-11T17:30:00.002+02:00

October 2009

PRESS RELEASE:

SACTWU WELCOMES INCREASE IN DUTIES ON CLOTHING PRODUCTS

The SA Clothing & Textile Workers' Union (SACTWU) welcomes the increase in import duties on certain clothing products, published in today's Government Gazette. The increase follows an application to the International Trade Administration Commission (ITAC) by SACTWU, submitted in mid-May this year.

In almost all cases, the import duties on these clothing products have been increased from 40% to 45% - the upper level that South Africa has bound with the World Trade Organisation. The increased duties are effective as from today.

SACTWU welcomes the additional protection afforded to local jobs and industrial capacity, especially while the industry is in the midst of an extensive restructuring exercise. Increased duties, like other trade measures, will help to slow down imports and create some space for manufacturers to restructure and ensure the long-term viability of the industry.

While a wholesale increase of all clothing tariffs would have provided the widest assistance to the industry, avoided substitution of products by importers and made the tasks of customs control easier, SACTWU only applied for an increase in the duties of 35 clothing products in an effort to limit the use of trade measures to the absolute minimum.

This increase in duties is part of South Africa's efforts to deal with the impact of the global economic crisis as set out in the Framework for South Africa's Response to the International Economic Crisis, agreed at NEDLAC in February this year. The Framework calls for "... robust use of accepted trade measures to ensure that the crisis does not cause job losses in the real economy..."

This increase in duties is a welcome reverse in government policy, which previously (when Trevor Manual was still Minister of Trade & Industry) reduced tariffs faster and to lower levels than what our WTO obligations required.

International examples have shown South Africa can only successfully grow, create jobs and address alarming levels of inequality and poverty by protecting and growing its manufacturing industry and this increase in duties will assist in this regard.

The union leadership, on behalf of its 85 000 members, would like to extend its appreciation to the Department and Ministry of Trade & Industry, ITAC and the SA Revenue Services for fast-tracking this application, as per the commitment contained in the Framework Response.

Issued by Andre Kriel, SACTWU General Secretary.

See the list click here

SACTWU SUSPENDS WAGE STRIKE IN BOTSHABELO

2009-10-08T12:27:00.000+02:00

6th October 09

Last Tuesday evening, SACTWU announced that it had partially suspended its national wage strike by about 55 000 clothing workers, following the adoption of a recommended settlement agreement facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA). We specifically pointed out that this strike was suspended in all areas other than Botshabelo and Qwa Qwa for now, where there were still unresolved issues.

We now announce that we have met with the Botshabelo & Thaba 'Nchu Manufacturing Association (BTMA) yesterday, in Botshabelo. Arising from this meeting, the BTMA have provided SACTWU with firm written commitments which now places us in a position to announce that, after 14 working days strike action in the Botshabelo/Thaba 'Nchu area, almost 2 000 clothing workers have returned to work as from today. The BTMA has agreed to the following:

-the average actual weekly wage paid will be increased by 18.7% (wages are still very low and this will help to lift it substantially);

-the increases will be backdated to 1st September 2009;

-the employers will take steps to register the BTMA as an employers' organisation with the Department of Labour;

-the BTMA will pursue a goal for its members to become compliant with the legal wage levels and they will partcipate in a working group to pursue this objective (many employers in the area are paying wages which are below the legal minimum);

-the trade union will be granted a closed shop covering all companies and all workers in the area.

This suspension means that the national strike is now suspended in all areas other than Qwa Qwa and parts of Isithebe, where the union is urging about 3 000 members to remain on strike until we have won satisfactory commitments from employers in those areas.

Issued by:
Andre Kriel
SACTWU
General Secretary

Renato Palmi interviewed on Women’s Wear Daily

2009-10-07T14:42:00.000+02:00

Renato Palmi of the ReDress Consultancy who is known for his research, analytical evaluation of apparel and fashion policy directions and for his critique of the industries was interviewed by the international magazine Women’s Wear Daily.
Women's Wear Daily is often called "the fashion bible," Women's Wear Daily serves as the voice of authority, international newswire and agent of change for the fashion, beauty and retail industries.

South African Textiles Strike Ends
7 October 2009
JOHANNESBURG — Clothing workers in South Africa returned to work Thursday, two weeks after a nationwide strike organized by the South African Clothing & Textile Workers Union began, but problems persist for the industry.

Union General Secretary Andre Kriel said both sides had reached an agreement, with the assistance of the Commission for Conciliation, Mediation & Arbitration. At a press conference, Kriel said, “The union has always said it is better to find a solution to this situation than to have a strike.”

Some 55,000 workers had abandoned their posts at the factories and taken to the streets in protest against what was considered lower-than-acceptable wage hikes.

Speaking on behalf of the National Employers Caucus, chief negotiator Johan Baard, who is also executive director of the Cape Clothing Association, expressed satisfaction the strike was over and employees had returned to work. “We soon hope to be in a position to disclose full details of the settlement, but it is an arrangement that is mutually acceptable to all parties,” Baard said.

The strike came after negotiations between the union and employers failed. The union demanded a 7.9 percent wage increase, while the employers had insisted on 5 percent. Shortly after the strike began, the employers raised their offer to 8 percent. The union, however, rejected that offer, claiming it came with conditions that were unacceptable.

Analysts estimate a loss of around $13 million to the clothing and textile sector during the strike. One casualty was the 30-year-old clothing factory Rhein Fashions, based in the Western Cape, which was forced to shut down because it could not fill its orders. In the process, 52 workers lost their jobs.

Renato Palmi, a Durban-based analyst specializing in the fashion and textile industry, said while he understood the reasons for the strike on the part of the union, “strategically, it was wrong to do this.”

He explained that wages were low and there was a discrepancy in pay between metro and non-metro workers, which meant wages were dependent on whether one worked in an urban area or a nonurban area. The average take-home pay was the equivalent of about $53 a week.

Palmi cited canceled orders, lost hours of productivity, damaged relationships with suppliers and customers as among the impacts of the strike.

The clothing and textile manufacturing sector has a registered workforce of 230,000 people who are directly employed. Add to that a 200,000-strong workforce employed in related areas such as designers, resulting in an overall industry with annual sales of about $540 million, contributing 11 percent to the manufacturing sector and 16.2 percent to the annual gross domestic product of South Africa.

WWD Copyright ©2008 Fairchild Fashion Group. All rights reserved.

Swimwear and Lingerie beat recession

2009-10-06T09:45:00.008+02:00

The Story of the Bikini: A Short History

The bikini as we know it today entered the world in 1946 but archaeological documents and findings show that Roman gymnasts wore clothing that closely resemble the bikini. Was the 1946 invention truly new?

At the turn of the 20th century women who dared to swim took extraordinary lengths to conceal themselves on the beach. A contraption called the bathing machine which in essence was a wooden hut on wheels was developed to conceal women swimmers from praying eyes. The bather (always women) would enter the hut fully clothed, donned her swimming clothes inside and the hut would then be pulled either by horses or human to the edge of the sea where she would disembark and paddle close to the hut.

Over the years women began to exert their influence on society by wearing more daring swimwear. In 1907, Annette Kellerman a silent-film star was charged for indecent exposure for wearing a sleeveless tank suit. In the 1920 and even early 1930s some beaches had inspectors who would measure the bathing suits of women to ensure that they complied with specific regulations relating to how much human flesh could be revealed.

The two-piece swimsuit which consisted of a halter top and very modest bottom that covered the navel, hips and derriere arrived on the fashion in the 1930s and by the 1940s film stars such as Ava Gardner, Rita Hayworth and lana Turner

The "bikini" launched in 1946 is an explosive name. Louis Reard introduced the design four days after the US began to do atomic tests in the Bikini Atoll and in a cleaver marketing campaign he named his new creation le bikini. The first person to wear what was to become an iconic fashion item was a stripper named Micheline Bernardini. It would be some time for Reard's design to become integrated within the fashion lexicon. In 1950 American swimsuit mogul Fred Cole scorned the new style saying it was designed for Gallic women who have short legs. For the time being as far as Americans were concerned the traditional two-piece costume was preferred.

From its humble beginnings the Bikini has spurred an entire new fashion market where the costume has become a fashion statement. The current economic crisis is having an effect on the swimwear market but in comparison with other sectors of the apparel industry the effect is relatively small. It is estimated that growth in the global market between 2008 and 2014 will be worth US$ 13.25bn rather than the estimated US$ 13,85bn. Segmenting the sector it is estimated that women's swimwear represents 70% of the total global value. Men's swimwear equals 17% and the market for boys' and girls is 4% and 10% respectively. Analysts estimate that the London Olympics in 2012 will result in some growth of this market with 1,099m units being manufactured by 2012. The mature market previously ignored is now recognised as vital sector for growth.

Fashion designers have realised that swimwear is not just for swimming but has become a fashion statement and they are creating new styles and accessories to meet the needs of these fashionistas.

Another market that has seen relative little decline in this turbulent economic climate is the lingerie and underwear sector. When times are hard people still want to feel good. Both men and women are buying "feel good" clothing. Underwear sales through clothing specialists in the UK have increased by 19% to £379m between 2003-2008.[1] The Russian market is growing and the market in Asia has seen growth by 8% in the second part of 2008 compared to the global growth of 3% for the same period. Chinese consumers spend up to 8% of their clothing budget on lingerie and it is expected that these consumers will increase their spending to 10% by 2010.[2]

Technical innovation in design and textiles has resulted in new styles that promote durability and breathability coming onto the market. Coupled with touch, enhancement features and even memory foam consumers now have a wide choice of lingerie and underwear to meet their particular needs.

A report said that sales of underwired bras had increased by 10% in just 24 weeks and the value of the push up bra market has reached £80m. The market for men's underwear has also seen a growth in trade. [3]

HISTORICAL TIMELINE OF THE BIKINI BATHING SUIT[4]
1946: An explosive year. Bikini Atoll becomes no Bikini at all. In Paris, engineer Louis Reard quietly unveils a swimsuit of the same name. The world yawns.
1951: Bikinis, perhaps seen as an unfair advantage to the wearer (and as potentially dangerous to the health of some judges) are banned from beauty pageants after the Miss World Contest. The tasteful one-piece reigns supreme.
1957: Bikini-clad Brigitte Bardot frolics in "And God Created Woman," creating a hot market for the swimwear. Coincidentally, Hollywood markets 3D glasses in theaters.
1960: Brian Hyland sings "Itsy Bitsy Teenie Weenie Yellow Polka Dot Bikini," triggering a bikini-buying spree among American teens.
1963: The bikini meets a challenge in the generous form of Annette Funicello. The ex-mouseketeer's "Beach Party," with singer Frankie Avalon, leads to six sequels, including the memorably titled "How to Stuff a Wild Bikini" (in 1966). No special effects were used.
1964: The bi- ("two") kini becomes the mono- ("one") kini, in the eyes of designer Rudi Gernreich. The Vatican denounces the topless garb. An unrepentant Gernreich sells more than 3,000 suits in less than a season in Europe. More Americans go abroad.
1966: The bikini grows fur in "One Million Years B.C.," which catapults comely cavegirl Raquel Welch to stardom despite mixed reviews of the saggy screen saga.
1970s: Rio and St. Tropez produce the Tanga suit-- also called the Thong, the string bikini or "dental floss." The uncomfortable design becomes de rigeur for teen posters, muscle car magazines and boxing ring girls who announce the rounds.
1983: Carrie Fisher, as Princess Leia, wears an ornate version of the bikini (studded collar optional) in "Return of the Jedi." Even Yoda notices. The film is the most successful of the George Lucas trilogy.
1993: Score one for the "sports bikini." The hugging halter-top design becomes the rage, thanks to Volleyball queen Gabrielle Reece and MTV.

A History of Lingerie
In one form or another, women have worn garments to support, suppress or accentuate their breasts as far back as 3000BC. Therefore, the modern day bra has developed from Cretan women who wore a hip corset beneath their ceremonial dress, the surcoate worn over the clothes in the middle ages. Depending on the fashions of the time the corset has aided to give shape and definition to the woman’s figure, such as the boyish shape of the Elizabethan & 1920’s.

By the 1500’s the corset elongated the body, flattened and raised the bust while hiding the stomach and hips. When worn with the ‘farthingale’ the wearer had to walk in a sedate gliding fashion. This is also the era of the iron corset - some say worn by Catherine D’Medici’s court as there were strict regulations which correlated a woman’s position in court by her waist size, others say it was for correcting bone deformities.

The corset, commonly known as a ‘stay’, was made of linen with boning and stiffened with paste. Women were then ‘straight-laced’ into them, and the term became synonymous with the pious Puritan women of the 17th century. By the latter part of this century the corsets were more elaborate and it was fashionable to wear them on the outside as in medieval times.

The flamboyant dresses of the 18th century gave way to the simple empire line frock after the French Revolution of 1789. The look did not require heavy corsetry as it kept a more natural shape. The stay was lengthened to shape the hips and thighs, although it is said some ladies wore no corset at all.

By 1825 the high waistline of the Regency style had dropped to a more natural level and corsets became essential to show off an hourglass figure with a desired waist of 18 inches (or less). The Victorian era was the heyday of the corset and advances in design were made through out the century. New metallic eyelets ensured that the tight lacing required to achieve the hourglass figure need not damage the corset. The invention of the sewing machine meant the corset could be produced more quickly than with hand stitching and corsets could be sold ready made. A huge variety of fashion corsets were made and also corsets for maternity, safari, sports, golfing and riding, even for these activities lacing and boning was still used. As corsets were in such demand whalebone became scarce, leading to the use of buffalo-bone, cane, steel, and steam moulding in corsetry.

By the beginning of the 20th century a bust bodices could be worn as an alternative to the corset and this supported the entire bosom as a whole. It was in 1914 when American Mary Phelps-Jacobs, patented her design in the name of Caresse-Crosby. It consisted of two silk handkerchiefs tied together with ribbon to make straps and a seam in the centre front, due to lack of interest, a few years later she sold her idea to Warner’s for $1500-. In 1935 Warner’s introduced the first cup sizing with only A, B &C. Britain continued to use the junior and medium sizing until the 50’s. In 1939 the word bra was added to the English dictionary, it is worth noting the brassiere in French means an infant’s bodice or harness, therefore soutien-gorge is the correct French term for bra.

[1] Verdict
[2] Adsale Publishing Limited
[3] http://www.drapersonline.com/news/other-sectors/lingerie/recession-boosts-lingerie-sales/5006018.article
[4] Peoples Magazine

ReDress Terms and Conditions

2009-10-06T09:16:00.003+02:00

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Updated: August 2009

South Africa's Fashion Weeks –the future?

2009-10-04T19:07:00.003+02:00

So SA Fashion Week may have to search both the local and possibly international corporate landscape for sponsorship for the 2010 SA Fashion Week now that their headline sponsor of four years Sanlam has confirmed that they will no longer be supporting the oldest South African fashion week. Hopefully SAFW has already secured a replacement sponsor.

What does this mean for the industry?

Will we see further encroachment into South Africa's fashion sector by foreign investors such as the Arise Magazine and the media group This Day that are the major sponsors of SAFW opposition Africa Fashion International? What does this say about South African companies that we need foreign financial support to prop-up our fashion sector? Alternatively, what does it say about the returns and outcomes of SA Fashion Weeks for the sponsors of these events? Do SA corporations demand more accountability and some form of corporate governance relating to their sponsorship of these events?

Are we to see a change in the South African fashion week landscape and the birth of a monopoly as I foresaw and presented in Cape Town in 2008?

The current changes relating to South Africa's fashion weeks landscape is interesting and concerning. A study I undertook with a number of designers this year who have participated in one of the many fashion weeks resulted in a mix bag of responses from those saying that yes it was a great marketing and promotional platform but not very good on the business side, to others saying that there is still far too much emphasis on parties, glamour and no real follow-up after the lights had dimmed.

I also suspect some internal conflict with one of the major fashion week players. If there is no conflict then I have to ask why no sponsorship for Durban when the same company can find sponsorship for Johannesburg and Cape Town? A lack of a fashion week in Durban has resulted in Durban designers taking initiatives into their own hand by organising their own focused fashion events and I think this is great. They have been very vocal that they are doing this because of the demise of a Durban fashion week.

The growth of fashion weeks created a somewhat conflicting platform of promoting South African fashion. Many young designers were driven to participate in one of the fashion weeks that clutters our fashion industry with the illusion that if they participated in a fashion week they had "made it" in the industry? Hopefully they will learn some lessons from their Durban colleagues that they can organise, market and host and sell at their own fashion shows.

The future will be interesting.

CLOTHING INDUSTRY ALMOST BACK TO FULL NORMALITY AFTER SUSPENSION OF NATIONAL WAGE STRIKE

2009-10-02T12:35:00.000+02:00

South Africa:
1 October 2009

On Tuesday evening, the COSATU-affiliated Southern African Clothing & Textile Workers' Union (SACTWU) partially suspended its national wage strike by 55 000 clothing workers. This follows a recommended settlement hammered out with clothing employers, over three days of tough and intensive conciliation, conducted under the auspices of the Commission for Conciliation, Mediation and Arbitration. The trade union has called on its members to start returning to work as from yesterday, while we complete our strike settlement mandate-taking processes throughout the country. Indicative of their desire to be helpful to the industry, SACTWU members have heeded this call for a suspended return to work in a disciplined manner.

The trade union has now completed a survey of the extent of return to work. Based on information solely supplied by management representatives in all the companies surveyed, we announce that the industry has, in very short space of time, now been returned to almost full normality. Yesterday, 71% of members have reported for duty. Survey results thus far for today show that 91% of members are back behind their sewing machines. This means that just over 50 000 of the 55 000 workers who were on strike are back at work today. By prior arrangement, another 2 500 will return to work tomorrow and the balance will still remain on strike as there are some procedural matters that the trade union wishes to sort out for them. The workers who will still remain on strike are mainly in the Botshabelo- and QwaQwa industrial areas where wage under payments remain rife. There are small practical difficulties with the return to work at a few companies, but the trade union's Return To Work Rapid Response Team is dealing with these anomolies.

SACTWU expects to finalise its national mandate this evening and will make a formal announcement of the details of its mandate and the details of the agreement tomorrow.

Clothing strikers to return to work

2009-10-01T10:11:00.001+02:00

South Africa:

29 SEPTEMBER 2009 PRESS RELEASE: IMMEDIATEThe COSATU-affiliated Southern Africa

Clothing & Textile Workers' Union (SACTWU) announces that a recommended settlement which could possible end the 10 day national wage strike by 55 000 clothing industry workers has been reached. It was reached at a special conciliation session facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) held in Cape Town today, at the offices of National Bargaining Council for the Clothing Industry.Details of the recommended settlement will first be communicated to the trade union's membership as part of the union's settlement mandating process over the next two days, before it is publically released.

The trade union's negotiating team believes that the recommended settlement addresses all the core issues for which clothing workers have sacrificed so bitterly over the last 10 days of the strike, in particular the attempts by clothing employers to rob workers of their long fough for rights.The union has accordingly suspended the strike and will decide whether or not to call it off formally and fully once our internal mandating processes have been completed. In the interim, we call on our members to return to work as from tomorrow.

Illegal clothing found in Durban

2009-10-01T10:07:00.003+02:00

South Africa, Durban

South African Revenue Services raids net R60 million in illegal clothing

ARS announced this morning the that it had confiscated 400 tons of clothing and textile goods valued at R60m in Durban over a three day period last week and that this action was aimed at ensuring compliance with the Customs and Excise Act while protecting the local clothing and textile industry against unfair business practices. SARS said a total of 85 stores were raided, of which 47 were closed as they failed to provide proof of import declaration for the goods in their stores.

Comment: The consumer needs to know the names of these stores that we do not support them. I am assuming that most of the clothing confiscated also finds its way into the informal sector.

Congradulations to SARS ...next stop shopping malls.

SA Govt to tackle imports & Lesotho workers want more

2009-09-26T20:17:00.002+02:00

RECOMMENDATIONS by the National Economic Development and Labour Council (Nedlac) to combat customs fraud in clothing, textile and footwear imports could produce useful gains, but an over- zealous attempt to eliminate trade-related transgressions would do more harm than the problem itself, University of Cape Town school of economics professor Don Ross said this week.

SA’s clothing, textile and footwear manufacturing industries have been struggling to compete with cheaper imports for many years, but particularly so in the past couple of years when some large businesses have been forced to close. Suggestions to save the industry range from higher import tariffs to stricter control at borders.

Nedlac released its report last week after a three-month probe. It looked at all forms of customs fraud including under-invoicing, false declarations, misuse of duty rebates and corruption by officials. The report has now been submitted to the relevant Cabinet ministers.

Nedlac’s key recommendations were that customs officials be armed with a reference pricing mechanism so they could recognise under-priced imports, and that seized goods be disposed of in a way that would not disrupt the South African market. The task team considered having dedicated ports of entry for these goods but noted the South African Revenue Service and the Department of Trade and Industry were still preparing a policy on the issue.

Although customs fraud was generally punished by fines because this was the fastest method, the task team said criminal action should be pursued in certain cases, depending on the value involved. They also emphasised the need for stricter enforcement of rules of origin because Southern African Customs Union members were being used as conduits for imports at lower duty.

Some of the recommendations requiring legislative changes should be incorporated into the Customs Act, which is being revised, they said.

Ross said most of SA’s clothing producers, aside from some speciality firms that make high-value- added products for niche markets, could not compete with imports from Asia and Lesotho (see story below) even if all illegal activities associated with the border were eliminated .

Most of the border smuggling was of cheaper items, which were unlikely to be seen as a priority by customs officials dealing with drugs, arms and stolen goods, Ross said.

Nedlac’s suggestions of creating dedicated ports or sector-specific import permits could give rise to costs that would exceed the benefits they would produce.

“Of course it’s reasonable to co-ordinate and tighten up international monitoring of rules of origin. However, it should be borne in mind that all such rules are notoriously loophole prone, always and everywhere,” he said.

“We shouldn’t forget that among principal beneficiaries of under-invoicing and smuggling are poorer South Africans who save money on a non-optional consumption item that takes up a larger share of their expenditures than is the case for middle-class or rich people,” Ross said.
Ref: Business Day: C. Mathews. 26/9/09

LESOTHO Sept 09
MASERU – Workers in the apparel industry are demanding a M1,500 monthly take-home pay and a review of their working conditions.

Worker representatives from several major apparel factories in the Thetsane Industrial Area this week petitioned the National Assembly portfolio committee overseeing labour issues to seek a pay hike.

The workers, who represented Suntextiles, C&Y, CGM, Santikon and Tai-Yuan textile companies, handed the petition to portfolio committee clerk ’Mankopane Thabane.

However, Thabane could not receive the petition in person as she was said to be tied up in other office engagements. Portfolio committee chairperson ’Matšotetsi Mpesi was also reportedly ill.

Present in a show of solidarity were Lesotho Workers’ Party legislators Sello Maphalla and Rosa Lenea.

Factory Workers’ Union officials present at the handing over of the petition told Public Eye that it was the beginning of a larger campaign to force government to heed their requests.

“We agreed that only a few representatives will bring the letter of grievances to the House, but a massive show of force to see this petition attended to is in the offing,” said Seabata Likoti of FAWU.

He said factory employees work in the most disheartening conditions and had nothing to show for it, a situation he said needed redress.

The Labour Code Wages Amendment Order of 2008 puts the minimum wage for a textile general worker at M741; a textile machinery operator is paid M797, while a textile machine operator trainee earns M741 a month.

Employees with more than 12 months of continuous service with the same employer (trained machine operators) are set a monthly income of M839, while a textile general worker pockets M790.

In their plea for better working conditions, the workers also demand that: their terminal benefits be untaxed; that the six weeks’ maternity leave applicable for factory workers be reviewed to bring it in line with the three months enjoyed by other sectors; and that the labour minister should take familiarisation tours of the factories at least twice a year to appraise himself of the working conditions of the workers.

In addition the workers want their working hours be reviewed, with a view to shortening them to the normal eight-hour day starting from 8am to 5pm, and that their general working conditions, inclusive of machinery, clothing, cooling and heating systems, be standardised to ensure safety.

Ref: Public Eye Newspapers

South African Clothing Industry Strike: 2009

2009-09-25T09:31:00.003+02:00

News and Updates on the strike by SACTWU

26 September 2009: SACTWU to issue secondary strike notice to textile industry

The 10th National Congress of COSATU, which concluded yesterday, adopted a resolution in support of the 10-day old national wage strike by 55,000 clothing workers. The resolution authorised secondary strike action in those sectors which are linked to the clothing industry.

SACTWU has resolved to issue a secondary strike notice later today to the textile industry. This means that close to 15,000 textile workers, which have a nexus with the clothing industry, may go on strike next week in support of the clothing wage strike, should no settlement be reached this weekend.

Tomorrow, the CCMA conciliates the clothing wage dispute at the National Bargaining Council for the Clothing Manufacturing Industry in Cape Town in a high-level attempt to find a settlement between the trade union and clothing employers.

23 September 2009
COSATU CONGRESS ADOPTS SPECIAL RESOLUTION IN SUPPORT OF CLOTHING INDUSTRY STRIKE

SACTWU welcomes the development that the COSATU Congress has today pledged concrete support for the ongoing national clothing wage strike. The Congress has unanimously adopted a Special Resolution on the matter. The Congress has noted that
• 55,000 clothing workers across the country have been on a living wage strike since 15 September 2009
• Clothing workers are the lowest paid workers in the manufacturing sector, with a minimum wage of R326 per week for a machinist in areas such as Ladysmith, Botshabelo, Qwa Qwa, Isithebe, Caledon & Newcastle
• 80% of all clothing workers are women, mostly single parents supporting between 5 and 7 dependants on a very low wage
• Clothing retailers have made unprecedented profits over the last few years and even continue to make substantial profits during this recession
• The clothing industry employs large numbers of workers in some of the poorest parts of the country where few other job opportunities exist
• There is large non-compliance in the clothing and some other industries

The Congress has pronounced that it regarded the clothing workers' struggle for a living wage as just and the demands of clothing workers as reasonable.
The Congress resolved to:
• Call on clothing employers to grant the just and reasonable demands of striking clothing workers
• Campaign for a revision of employment law to criminalise non-compliance with collective agreements, including by those businesses which source from non-compliant companies
• Support clothing workers in their struggles, including authorising secondary strikes in all those sectors where a nexus exist with the clothing industry
• Instruct COSATU to coordinate support and solidarity across the affiliates, social movements and the broader society; as well as international solidarity.

20 SEPTEMBER 2009
SACTWU ACCEPTS CCMA OFFER TO HELP FIND A SOLUTION TO CLOTHING STRIKE
On Tuesday 15 September 2009, a 55 000 clothing workers embarked on a national wage strike in support of their wage demands. The clothing employers met at a national meeting of their negotiating team on that afternoon and the next morning submitted a written revised wage offer to the trade union. In brief, the offer is for an 8% wage increase tightly linked to certain conditions.
The conditions state that workers must agree to loose part of their wage earnings if they are absent from work, even in instances where such absence are legally authorised.
The employers have advised that their offer is open for acceptance until 06h00 today.
On Friday 18 September 2009, the trade union advised them that we have rejected their revised offer because it is not a new offer (the very same offer was tabled to and rejected by the union on 26 August 2009), because it does not provide for a decent increase for non-metro area workers (who are the lowest paid in the industry with a machinist's minimum wage at R326 per week) and because the conditionalities attached are not accepatble to our members.
We have no idea why employers have tabled the same offer which was already rejected three weeks ago when there was no strike.

We have earlier today received a letter from the Director of the Commission for Conciliation, Mediation and Arbitration (CCMA), offering to assist to resolve the dispute. The offer is made in terms of Section 150 of the Labour Relations Act (LRA).
This section states as follows:
"If the Commission is aware of a dispute that has not been referred to it and if resolution of the dispute would be in the public interest, the Commission may offer to appoint qa commissioner to attempt to resolve the dispute through conciliation"

The CCMA has also stated that there offer to assist is also because the clothing industry has been identified in the NEDLAC-agreed South Africa's Frameoiwrk Responce to the International Economic Crises as in need of special assistance, as well because it has received special mention in President Jacob Zuma's State of the Nation Address.

The CCMA has offered to appoint a senior conciliator to mediate the dispute at its Johannesburg Head Office from 10h00 on Tuesday 22 September 2009.

In terms of Section 150, the parties must consent to this process.SACTWU has accepted the CCMA's offer as we believe that even though our strike is growing stronger by the day, it is always better to find a settlement thereof. We have no idea whether the employers will accept the CCMA offer.

It is within the means of the employers to solve this dispute and the strike. We call on them to do so sooner rather than later. Our wage demand is reasonable and affordable.
Issued by SACTWU

Sunday, 20 September 2009
Does Sactwu leadership endorse intimidation?
Comment:
Chris Gina Sactwu's national organising secretary and Andre Kriel Sactwu's General Secretary were informed of the unruly and disgraceful behaviour of their members in Durban by ReDress. However neither have responded. Does their silence mean they indorse intimidation and threats of violence by their members? As one commentator said, "the ballot is a joke. The choice given to Sactwu members to say YES or NO to the strike is a sham. Just have one choice YES to the ballot because even if you say NO you are threatened by Sactwu strikers to not work."

Friday, 18 September 2009
Chaos: Textile workers strike fear
Sharlene Packree
CHAOS broke out in Durban when a group of striking textile workers went on a rampage and intimidated non-striking workers yesterday.
Workers are demanding a 7,9% wage increase, however, employers have offered a five percent increase.
The wage increase was due to take effect on September 1, but negotiations have been delayed. Armed with sticks and traditional weapons, a group of 40 workers entered the Ascot building in Umbilo and intimidated workers. The group ran into the building and verbally threatened workers. The SAPS flying squad were called in to disperse the crowd. A witness told The Witness that the protesters ran into offices threatening workers with vulgar language and wooden sticks. “It was scary. They were quite noisy and were armed with large sticks. We called the police who got rid of them,” she said, adding that it was unfair to threaten non-striking workers.
The Witness

18 September 2009
Clothing strike likely to continue
The clothing workers' strike was likely to continue in parts of the country even if agreement was reached on Friday afternoon to end the four day strike, the SA Clothing and Textile Workers Union (Sactwu) said. "It has come to our attention that there are still thousands of workers who are being paid below the legal wage rate. This means that the pay increase will mean nothing to them," Sactwu national organising secretary Chris Gina told media in Durban on Friday. It is Sactwu members went on a nation-wide wage strike on Tuesday, demanding a 7.9 percent salary increase in cities and an 11.5 percent wage hike in rural areas.

"Even if the last revised offer is accepted, workers who are underpaid will definitely continue with the strike," said Gina.

Workers in KwaZulu-Natal's Isithebe area and Free State's Botshabelo and Qwaqwa were expected to continue striking even if the revised offer was accepted.

"We want employers in those areas to close the gap that exists between their employees and those who work in the metropolitan areas."

The legal wage for a qualified machinist was R399 per week but in some factories in Isithebe, Botshabelo and Qwaqwa, machinists were earning as little as R126 per week.

"In Botshabelo, based on a survey of 19 factories jointly employing almost 2000 workers, the average actual wage paid to a machinist is R241 per week. The lowest paid in this area is R126 per week," said Gina.

The situation was the same in Qwaqwa and Botshabelo, he said.

Gina said it was sad that most garments produced in the three areas were apparently bought by retailers such as Edgars, Pep Stores, Woolworths and Mr Price.

"We have pleaded with them to source ethically but with very little success. No corrective action has been taken by them and they simply deny that they source their goods from these factories," he said.

A formal announcement on the outcome of negotiations on the last revised offer would be made by the union on Friday afternoon or Saturday morning, said Gina.

"We will call a media briefing as soon as discussions have been finalised."

18 SEPTEMBER 2009
SACTWU RESPONSE TO CLOTHING EMPLOYERS' "REVISED" WAGE OFFER
On Tuesday 15 September 2009, a massive 55 000 clothing workers embarked on a national wage strike in support of their wage demands. The clothing employers met at a national meeting of their negotiating team on that afternoon and the next morning submitted a written revised wage offer to the trade union. In brief, the offer is for an 8% wage increase tightly linked to certain conditions.
The purpose of this press release is clarify the trade union's response to the employers' revised offer. We start by explaining the details of the employer revised offer.
The details of the employers' revised offer (with explanatory notes by the union) are as follows:
An increase to total labour cost of 8% for metro and non-metro workers. (Their previous wage offer was a 5% wage increase which amounted to between R19 and R32 per week. The union is demanding a 7.9% wage increase for metro area workers with the same rand amount for non-metro area workers. The union demand equates to a weekly age increase of between R45 and R50).
The employers' revised wage proposal is conditional on the union agreeing to the following new terms of employment:
1. The 'aggregation of overtime' provision in the clothing industry main agreement shall apply without any exclusions. In other words, all forms of absence shall be taken into account for the purpose of making up the employee's full weekly hours before overtime rates are earned. (This means that workers' must agree that their overtime earnings must be docked if they are absent for any reason, even if that reason is a reason recognised in law such as when a worker has a legitimate sick certificate from a medical practitioner, or uses legal Family Responsibility Leave to attend the funeral of a close relative such as a spouse or child, etc. Currently, the exclusions enshrined in the main agreement and which the employers now want removed are as follows: time not worked as a result of legal industrial action; time not worked as a result of a public holiday declared in terms of the Public Holiday's Act; time not worked as a result of the employer having declared short time; authorised shop stewards' time off for trade union activities; time not worked as a result of any authorised absenteeism).
This proposal is not new and is part of the employers' immediate previous proposal. This proposal was previously rejected by the trade union and identified as a major stumbling block to a settlement.
2. A provision to be included in the agreement which provides for all forms of remuneration such as annual leave, annual bonus and the employer contributions to the workers' Provident Fund, to be calculated on actual attendance.
This is not a new proposal and was part of the employers' immediate previous proposal. This proposal was also previously rejected by the trade union and identified as a major stumbling block to a settlement.
3. The employers' support the trade union's proposal for the establishment of a Productivity Institute under the auspices of the National Bargaining Council for the Clothing Industry as well as the trade union's proposals to improve the compliance drive of the bargaining council i.e, making more factories comply with the terms and conditions set out in the national main agreement for the industry.
This is not new and has been agreed very early in the negotiations, about 6 months' ago already.
4. A process with clear timelines for the purpose of 'modernising' the industry main agreement in such areas as keeping exemptions to an absolute minimum, speeding up operational decisions at plant level, making provisions for shift work, flexible annual leave, limiting consultations at plant level to reasonable time frames and introducing dead lock breaking mechanisms where such consultations are stalled beyond such time frames.
This is not a new proposal and has been agreed to a few months' ago, on the following basis: that the trade union will also add its list of issues that it wants included in these post-negotiations discussions about the modernisation of the agreement, that 'modernising the main agreement' is not to be interpreted to mean down-ward variation in terms and conditions of employment, that the list of issues mentioned by the employers is not automatically agreed to but would form the subject of discussions going forward.
5. The employers have advised that their new revised offer '...is open for consideration and acceptance by the trade union and its members until Sunday 20 September 2009 at 06h00". They have advised that if the union accepts the offer, the increases would be backdated to 1 September 2009, which is the original implementation date when increases were due.
The trade union's Head Office has spent the last two and half days briefing its national- and regional leadership about the details of the employers' revised offer. We convened shop stewards' councils through-out the country to provide further feedback to our leadership in our branches and seek mandates directly from over 50 000 clothing workers employed in about a 1 000 workplaces spread throughout the country.
This mandating process has been completed for all parts of the country, except in the Western Cape. In the Western Cape, we expect that the mandating process will be completed by Monday before lunch-time.
We have, earlier today and before this press conference, advised the employers of the outcome of our mandating processes to date.
Our response, as we speak now, is as follows:
What the employers call "a revised offer", is actually not a revised offer. It is word for word the same as an offer that was tabled to the trade union at a Leadership negotiation meeting held three weeks ago, on 26 August 2009, at the clothing bargaining council offices in Cape Town. At that meeting, the trade union leadership indicated very clearly that such an offer would not be acceptable to our members. We are completely puzzled why, three weeks later, the employers table the very same offer which was rejected by the trade union as far back as three weeks ago.
In all parts of the country, other than in the Western Cape yet, our members have summarily rejected the employers' 'so-called revised' offer. Western Cape members will only be consulted on Monday.
In the Western Cape, we held a Special Regional Shop Stewards' Council meeting yesterday. Attended by over 600 shop stewards representing all companies where we are on strike. This meeting has also rejected the employers' offer, subject to what their members will be saying when they are consulted on Monday.
The problems with the employer offer, as identified by the trade union leadership and our members and conveyed to the employers as far back as three weeks ago are as follows:
a.. While 8% is acceptable as an increase for metro workers (provided the employers drop their conditionalities), it is not acceptable for non-metro workers as it fails to address the union's demand for the unacceptably wide gap between metro and non-metro wage levels to be narrowed. The minimum wage for a machinist in the non-metro area is R326 per week. On the minimum wage for a machinist of R326 in the non-metro areas, an 8% increase means a R26 per week increase for a worker who works in areas such as Caledon, Ladysmith, Newcastle, QwaQwa, Botshabelo, Isithebe and Despatch.
a.. The 8% is conditional to very stringent conditions which attacks workers legal right to authorised leave from work: workers are being asked to lose earnings for all forms of absences from work, even instances of authorised leave from work such as in the case of sick leave with a legitimate doctor's certificate or where a worker uses his/her Family Responsibility Leave to attend the funeral of his her close relative.
a.. The 8% is also conditional on very stringent conditions where, even when a worker has legitimate authorised leave, their annual leave-, annual bonus and very importantly, contributions to their retirement fund will be reduced. The last national strike in this industry was a three week strike which took place exactly 13 years ago, in September 1996. The main issue during that strike was for better retirement provisions for clothing workers. We cannot imagine that workers will now accept that the improvements in retirement fund provisions which they won through bitter struggle in 1996 will now be given up.
We will wait for the outcome of the Western Cape workers' mandate on Monday but, unless there is a miracle between now and then, we do not expect that our members will accept the employers 'revised offer'.
In fact, since the employers' have tabled their "revised offer", our strike has grown stronger. Hundreds of workers who up until now have not been SACTWU members have flocked to our offices to join the trade union. Most say they want to be part of the strike. It shows the deep concerns that workers have with the conditionalities attached to their wage offer.
It is within the means of the employers to solve this dispute and the strike. We call on them to do so sooner rather than later. Our wage demand is reasonable and affordable.
Issued by
Andre Kriel

16 September 2009
Cops use rubber bullets on strikers
Durban - Police had to use rubber bullets to disperse striking workers at a clothing factory in Danskraal near Ladysmith on Wednesday morning, KwaZulu-Natal police said. "At about 06:30 police had to use rubber bullets to disperse a crowd of striking clothing factory workers that were throwing stones at other workers that were working at the factory," said Inspector Nirvan Sibran. The SA Clothing and Textile Workers' Union (Sactwu) embarked on a national strike on Tuesday.
Sactwu is demanding a 7.9% salary increase in cities and an 11.5% wage hike in rural areas, where it says workers are earning "much less" than their counterparts in the city. Sibran said on Tuesday police were also called to the scene where they arrested 20 people for public violence. "Striking factory workers were demanding that the workers from the factory also join them with the strike. When the factory staff emerged from the factory premises strikers began to hurl stones at them.
"The police then had to intervene and arrested 20 people under the public violence act," he said. Sibran said the situation was calm at the moment.
"The 20 people that were arrested are expected to appear at the Ladysmith Magistrate’s Court between Wednesday afternoon and Thursday morning," said Sibran.
Referece: SAPA

THE Southern African Clothing and Textile Workers Union (Sactwu) today (September 17) accused police of manhandling its members, following the arrest of about 140 clothing workers, who are on a legal wage strike in Johannesburg.
“The workers were peacefully picketing in front of clothing factories in support of their wage demands,” the union said. It said based on initial information, police arrived and striking members offered to disperse. “Before they could do so, police started firing teargas and rubber bullets. “Louisah Modikwe, the Sactwu Organiser present at the time, was smacked and manhandled by a police officer. One worker has been taken to hospital,” the union charged. Sactwu added most of the arrested workers were female and had been locked up at Jeppe Police Station in Market Street in Johannesburg. The union said it was disturbed by developments. “We call on the police to act with extreme restraint when dealing with our members, who are engaged in legitimate, legally sanctioned industrial action and who are exercising their rights peacefully,” it concluded.
Reference: I-Net Bridge

16 SEPTEMBER 2009
PRESS RELEASE: IMMEDIATE -15h50
SACTWU RESPONSE TO CLOTHING EMPLOYERS' REVISED WAGE OFFER

The Southern African Clothing & Textile Workers' Union (SACTWU) confirms that it has this morning received a written revised wage offer from clothing employers, following the commencement of a national wage strike by about 55 000 clothing workers yesterday, 15 September 2009. The purpose of this press release is clarify the content of the employers' revised offer and the trade union's response thereto.

The details of the employers' revised offer (with explanatory notes by the union) are as follows:

An increase to total labour cost of 8% for metro and non-metro workers. (Their previous offer was 5% and the union was demanding a a 7.9% wage increase for metro workers and the rand equivalent for non-metro workers).

The employers' revised wage proposal is conditional on the union agreeing to the following new terms of employment:

1. The aggregation of overtime provision in the clothing industry main agreement shall apply without any exclusions. In other words, all forms of absence shall be taken into account for the purpose of making up the employee's full weekly hours before overtime rates are earned. (This means that workers' must agree that their overtime earnings must be docked if they are absent for any reason, even if that reason is a reason recognised in law such as when a worker has a legitimate sick certificate from a medical practitioner, or uses legal Family Responsibility Leave to attend the funeral of a close relative etc. Currently, the exclusions enshrined in the main agreement and which the employers now want removed are as follows: time not worked as a result of legal industrial action; time not worked as a result of a public holiday declared in terms of the Public Holiday's Act; time not worked as a result of the employer having declared short time; authorised shop stewards' time off for trade union activities; time not worked as a result of any authorised absenteeism).

This proposal is not new and is part of the employers' immediate previous proposal. This proposal was previously rejected by the trade union and identified as a major stumbling block to a settlement.

2. A provision to be included in the agreement which provides for all forms of remuneration such as annual leave, annual bonus and the employer contributions to the workers' Provident Fund, to be calculated on actual attendance.

This is not a new proposal and was part of the employers' immediate previous proposal. This proposal was also previously rejected by the trade union and identified as a major stumbling block to a settlement.

3. The employers' support the trade union's proposal for the establishment of a Productivity Institute under the auspices of the National Bargaining Council for the Clothing Industry as well as the trade union's proposals to improve the compliance drive of the bargaining council i.e, making more factories comply with the terms and conditions set out in the national main agreement for the industry.

This is not new and has been agreed very early in the negotiations, about 6 months' ago already.

4. A process with clear timelines for the purpose of 'modernising' the industry main agreement in such areas as keeping exemptions to an absolute minimum, speeding up operational decisions at plant level, making provisions for shift work, flexible annual leave, limiting consultations at plant level to reasonable time frames and introducing dead lock breaking mechanisms where such consultations are stalled beyond such time frames.

This is not a new proposal and has been agreed to a few months' ago, on the following basis: that the trade union will also add its list of issues that it wants included in these post-negotiations discussions about the modernisation of the agreement, that 'modernising the main agreement' is not to be interpreted to mean down-ward variation in terms and conditions of employment, that the list of issues mentioned by the employers is not automatically agreed to but would form the subject of discussions going forward.

5. The employers have advised that their new revised offer '...is open for consideration and acceptance by the trade union and its members until Sunday 20 September 2009 at 06h00".

Standing back: the only difference in the employers revised offer is that it has increased the total labour cost component from 5% to 8%.

The trade union's Head Office has spent the first half of today briefing its national- and regional leadership about the details of the employers' revised offer. We will now convene shop stewards' councils througout the country to provide further feedback to our leadership in our branches and seek mandates directly from over 50 000 clothing workers employed in about a 1 000 workplaces spread throughout the country. We anticipate that this mandating process will be concluded by late morning on Friday 18 September 2009. There-after, we expect to provide the employers with feedback, prior to their deadline of 20 September 2009.
Issued by Andre Kriel SACTWU General Secretary

16 SEPTEMBER 2009
PRESS RELEASE: IMMEDIATE

Yesterday 15 September 2009, 55 000 clothing workers embarked on a national wage strike in support of their wage demands. The clothing employers met at a national meeting of their negotiating team yesterday afternoon and have this morning submitted a written revised wage offer to the trade union. In brief, the offer is for an 8% wage increase tightly linked to certain conditions. Their previous wage offer was a 5% wage increase which amounted to between R19 and R32 per week. The union is demanding a 7.9% wage increase for metro area workers with the same rand amount for non-metro area workers. The union demand equates to a weekly age increase of between R45 and R50. This is a preliminary statement by the union in response the employers' revised offer: SACTWU is in the process of analysing the detail of the employers' revised offer. We will be consulting with our regions and branches througout the country for the most part of this morning. We will issue a more detailed press statement about our response by about lunch-time today. In the interim, the strike will continue today.
Issued by
Andre Kriel
SACTWU

CLOTHING STRIKE STARTS
15 SEPTEMBER 2009
PRESS RELEASE: IMMEDIATE
THOUSANDS OF CLOTHING WORKERS EMBARK ON NATIONAL WAGE STRIKE

The clothing industry came to a standstill today as tens of thousands of members of the Southern African Clothing & Textile Workers' Union (SACTWU) have commenced a national wage strike in support of their wage demands.

The strike commenced early this morning, when workers started the day with general meetings at their workplaces. By between 09h00 - 09h30 they had clocked out, held brief protest actions in front of their workplaces and then dispursed to go home because the union had called for the strike action to be in the form of a stayaway from work today.

By 12h30 today, the trade union had completed a survey to measure the extent of support for the strike. Nationally, a total of 336 factories jointly employing about 33 000 workers were surveyed. The preliminary outcome indicates close to 90% support for the strike. Extrapolating this result nationally, it means that about 55 000 clothing workers have embarked on national strike action today. This shows a massive rejection of the employers' wage proposals and solid support for the union's demand for a decent wage increase for clothing workers.

In the meantime, employers have issued a lock-out notice late on Sunday evening. The notice comes into effect this evening at 22h00. The purpose of the lockout is to force clothing workers to accept the employers' offer.

Clothing employers are meeting this afternoon to discuss their way forward. Last Friday, the trade union offered to suspend its strike action to allow for a further voluntary conciliation meeting tomorrow, but the employers have regretably declined to take up this offer (their precondition was that we should not embark on action today) and are only expected to discuss whether or not they should do so at their meeting later this afternoon. Whatever happens in their meeting later today, it appears that it would be too late to set up any proper logistics for such a voluntary conciliation meeting tomorrow given that employers are only due to decide later today on whether or not to accept the offer of a suspension of the strike action and a further conciliation meeting.

Clothing employers are currently offering a weekly wage increase of between R19 and R32 per week. This is equal to a 5% wage increase. But even this low offer is conditional on clothing workers agreeing to forfeit overtime- and other normal earnings for any form of absenteeism, even where such absenteeism is legally authorised. The trade union is demanding a 7.9% wage increase. Wage negotiations started as far back as April this year and the new wage increase was due on 1 September 2009. The trade union is of the view that its demands are reasonable and affordable, that it now only resorts to strike action as a last option because negotiations cannot continue inconclusively forever. Clothing workers are the lowest paid employees in the whole of the South Africa Manufacturing sector.

In the run up to the strike, the trade union had conducted a strike ballot among 46 600 clothing workers nationally, of whom 92% voted in favour of strike action in pursuit of their wage demands.

Issued by
Andre Kriel
SACTWU
General Secretary

South Africa : Retailers will move orders offshore due to strike – Palmi, expert

2009-09-23T12:04:00.004+02:00

September 23, 2009
Fibre2fashion talks to South African Apparel Industry Expert.

Last Tuesday, the South African Clothing and Textile Worker's Union (SACTWU) announced the beginning of an indefinite strike in the textile and apparel sector, to protest against not being given adequate wages, in line with hike in inflation rates.

Meanwhile, the South African textile and clothing sector too is going through one of its worst periods ever seen. Textile units are closing down with amazing regularity as they are not able to meet competition from import of Chinese textiles and clothing.

Fibre2fashion spoke to Mr Renato Palmi, researcher, author and apparel development specialist and also Director of Redress Consultancy, which provides, research, development, advocacy and Publications Company for the South African fashion, apparel and textiles industry sectors. It also conducts socio-economic research and local economic development work.

We began by asking him if the timing of the strike was correct under the current circumstances, to which he said, “In my opinion, this is not the right time, but I also fully understand the concerns of the South African Clothing and Textile Worker's Union (SACTWU) about the low payment and especially the discrepancy in wages between the metro (city) and non-metro (out-lying area) however to embark on a strike now I think is going to do more harm in the long-term”.

He said, “The long term consequence will be detrimental for the industry and I understand that the union is concerned about the low wages and that they are following the mandate of their members but any victory by the union will be short lived and overshadowed by the long term negative impact on the industry and consequently on the union's members. I think the options for the manufacturers are: (a) wait out the strike (b) retrench and restructure (c) move into the informal sector which is unregulated”.

He added by saying, “The ongoing strike is already have an effect on small business who are having to go back to their clients to inform them that they cannot meet delivery dates and the larger retailers that dominate the industry in South Africa will simply move their orders off-shore if local suppliers cannot deliver on time."

To another question on the actual reasons for the downfall of this very promising sector in South Africa, he explained by saying, “The reasons are numerous. Most of the industry blames cheap imports, however, records and research shows that cheap imports have always played a role in the South African apparel industry sector and it was assumed that implementation of the quotas on Chinese imports which has now ended would help the industry to restructure.

“The quota period was too short and it was implemented without any feedback from the stakeholders from certain sub-sectors of the industry and there was little policy as to how the industry could take advantage of this period, but again, the entire blame, however, cannot all be laid at the government's door as there was little initiative from within the industry to invest or restructure their production facilities.

Another reason is the lack of a cohesive developmental plan for the industry. The industry is extremely fractured with different sub-sectors pushing their own agenda. The unions are extremely strong, and with the high cost of labour, the unskilled workforce and the unreliability and the high absenteeism rate amongst workers, have made the industry globally uncompetitive. Having said this, it seems that government and industry are working closer to formulate proper policy and a large amount of funds have been allocated to be injected in the industry.

“My concern is that certain sectors of the industry are now chasing the money and within government itself there are not enough qualified people to manage this project and they are pushing their own agenda within the provincial space, which clearly indicates favouritism. Another reason is the lack of knowledge about the importance of the industry for South Africa by the consumers and ‘The Buy Local’ initiative is a dismal failure, along with which there is also massive fraud taking place in the industry, like illegal imports and under invoicing”.

Next we asked him, as to what according to him, should the government and industry do, to revive the lost glory, to which he replied by saying, “Even though it seems that the industry is in a state of confusion there is hope and so much potential for the industry. The key in my opinion is for the industry to work as a collective for the single goal of growing the industry to what it once was – to work in collaboration with the union to find middle ground and to work with the government.

“We also need more qualified people within the government who are dealing with this sector and since, it is an extremely complex industry and to just have government officials responsible for the reshaping and development of new policies will not work for which a closer collaboration with the apparel sector and the fashion sector is needed.

“A fundamental area is the development of skills. At the moment most school leavers who wish to enter the industry are lured to the fashion side because they see it as glamorous and while we see intake in this sector we see little intake into the important sector of the industry, which is the manufacturing side of textiles and apparels”.

To conclude the interview, we asked him whether the demands of the unions would be met and if not what would be the next course of action, to which he optimistically replied by saying, “The strike will soon be entering its second week and it seems that it is deadlocked and the main area that is preventing any further movement relates to the question of payment for absent workers and I hope for the sake of the collective that an agreement can be found soon”.

Reference: http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=77442&page=2

China rejects request for textile curbs

2009-09-16T06:24:00.002+02:00

South Africa

China does not plan to renew a voluntary two-year restriction on textile exports to South Africa imposed after unions complained that cheap imports were hurting local manufacturers, its ambassador said on Tuesday.

Zhong Jianhua said the quotas that ended at the start of this year had failed to bring about any improvement in the competitiveness of the country's textile sector, and so it would be pointless to drag them out further.

"There's no reason to extend that limitation on our own exports to South Africa because these two years did not bring about any benefit to both sides," Zhong told Reuters in an interview in Pretoria.

"The truth is that we have Chinese manufacturers who would not be happy to see that," he said. "You see, the last year was pretty bad for Chinese exports."

Quotas on Chinese textile and clothing imports to South Africa came into effect in January 2007 in response to union complaints about external competition.

At the time, retailers complained about the higher prices that would result from blocking Chinese textiles, and the central bank said they could add to inflationary pressures in the economy.

The SAPA news agency said the South African Clothing and Textile Union (SACTWU) was launching a strike involving as many as 60,000 workers on Tuesday to demand an above-inflation pay increase of between 7.9 and 11.5 percent.

South Africa has suffered a series of strikes in the last few months as unions in sectors ranging from mining to the state broadcaster have fought for better pay in annual wage negotiation talks with management.

Zhong said that although textile exports to South Africa only accounted for one percent of all such shipments out of China, any extension of the restrictions would send a major "symbolic message" to an industry that employs millions.

"We have strong resistance from the Chinese textile industry," Zhong said.
Instead, he said Beijing and Pretoria were investigating ways in which the two countries could marry Chinese manufacturing expertise with South African design and marketing skills to produce clothes that could appeal to Western markets.

Pretoria said in May it would give cheap loans to textile firms to help them compete internationally, and promised to crack down on illegal imports that have forced several South African companies out of business and made others cut jobs.

The government sees vehicle manufacturing and the textile industry, one of the biggest employers in Africa's biggest economy, as crucial to growth in a country now languishing in its first recession in 17 years.

By Ed Cropley
Reuters

Will strike unstitch the industry?

2009-09-14T19:51:00.006+02:00

South Africa

Interviewed on e-news 24 on the eve of a national clothing and textile strike by the South African Clothing and Textile Worker's Union (SACTWU) Renato Palmi said it was very disappointing that such action would be evoked.

The union confirmed that tomorrow (15 September, 2009) strike action would begin. The union had received a mandate to embark on strike action. The union stated 92% of the 46 000 of union members were in favour of strike action. The apparel manufacturing sector has offered a 5% wage increase with condition that they "forfeit overtime earning for any form of absenteeism, even when such absenteeism is legally authorised." The union is demanding a 7.9% wage increase which resulted in a deadlock.

In the TV interview it was stated that manufacturers claimed the issue was not money but the high percentage of absenteeism. Palmi responded by saying that it was strange that money was not a problem as the industry is under stress, cash-flows tight and profit margins even tighter but confirmed that the issue of absenteeism was a problem. "This is due to a number of factors such as HIV/AIDS and the fact that the majority of workers are women who are often the single bread winner and they have to deal with domestic problems resulting in them not arriving at work."

Asked what the consequences would be for the industry Palmi responded by saying the long term consequence would be detrimental for the industry. He said he "understood that the union was following the mandate of its members but the short term results would be overshadowed by the long term negative impact on the industry and consequently the union's members." Palmi said he saw the following options for the apparel sector:
(a) Clothing companies would wait out the strike.
(b) Clothing companies would retrench and restructure their work force and production facilities
(c) Clothing companies would close and possibly relocate elsewhere.
(d) Would see a migration of companies into the unregistered informal sector.

A further consequence of this strike action would be "unregistered companies in the informal sector that are not registered or unionised seeing a possible increase in orders. The immediate result for the apparel sector could see retailers cancelling orders, even fining suppliers for non-delivery and simply placing orders either with unregistered companies or moving more of their procurement offshore."

In a research study Palmi did in 2007 the results reflected that absenteeism was a major concern with 80% of the respondents saying HIV/AIDS was a concern and 96% saying that the high level of absenteeism could be a result of the pandemic. To read the full study click here.

Palmi stated that the low level of wages and the difference between metro and non-metro areas was a concern and he understood the position of the union however, he questioned if the industry could really afford a strike. "What this will result in is more imports and less locally made clothing. The effect of this strike can have a ripple effect throughout the entire industry and the various stations within the apparel value-chain will be adversely affected. He said he hoped that the strike would not be militant or result in damage. The unions cannot afford to marginalize the consumer, "they [the union] need to get the consumer on their side and to understand the importance of supporting locally made apparel."

Photos of union members participating in ballot. Click here
Responses, observations and comments on the strike are welcome.

Breaking news: 13h30 -15 September 09
Developments in Lesotho known as a haven for the apparel industry because of the abundance of cheap labour may see some radical labour changes that will place both South African and foreign apparel manufacturers in a precarious position.

Workers in the Lesotho clothing sector have petitioned the National Assembly portfolio committee that oversees labour. The workers are demanding a Loti 1,500 minimum wage which equates to R1491.00. This is according to the workers that beginning of a larger “campaign to force government to heed their request.” If the action taken by the workers is successful it may have enormous consequence for the apparel sector within the SADC region. Leotho may see a migration of clothing companies to other alternative localities and South African companies may find it not worth the expense to relocate to Lesotho.

The current starting wage in the South African clothing sector is for a general worker within the KwaZulu-Natal Metro region R 426 per week.

15 SEPTEMBER 2009
PRESS RELEASE: IMMEDIATE
THOUSANDS OF CLOTHING WORKERS EMBARK ON NATIONAL WAGE STRIKE

The clothing industry came to a standstill today as tens of thousands of members of the Southern African Clothing & Textile Workers' Union (SACTWU) have commenced a national wage strike in support of their wage demands.

The strike commenced early this morning, when workers started the day with general meetings at their workplaces. By between 09h00 - 09h30 they had clocked out, held brief protest actions in front of their workplaces and then dispursed to go home because the union had called for the strike action to be in the form of a stayaway from work today.

By 12h30 today, the trade union had completed a survey to measure the extent of support for the strike. Nationally, a total of 336 factories jointly employing about 33 000 workers were surveyed. The preliminary outcome indicates close to 90% support for the strike. Extrapolating this result nationally, it means that about 55 000 clothing workers have embarked on national strike action today. This shows a massive rejection of the employers' wage proposals and solid support for the union's demand for a decent wage increase for clothing workers.

In the meantime, employers have issued a lock-out notice late on Sunday evening. The notice comes into effect this evening at 22h00. The purpose of the lockout is to force clothing workers to accept the employers' offer.

Clothing employers are meeting this afternoon to discuss their way forward. Last Friday, the trade union offered to suspend its strike action to allow for a further voluntary conciliation meeting tomorrow, but the employers have regretably declined to take up this offer (their precondition was that we should not embark on action today) and are only expected to discuss whether or not they should do so at their meeting later this afternoon. Whatever happens in their meeting later today, it appears that it would be too late to set up any proper logistics for such a voluntary conciliation meeting tomorrow given that employers are only due to decide later today on whether or not to accept the offer of a suspension of the strike action and a further conciliation meeting.

Clothing employers are currently offering a weekly wage increase of between R19 and R32 per week. This is equal to a 5% wage increase. But even this low offer is conditional on clothing workers agreeing to forfeit overtime- and other normal earnings for any form of absenteeism, even where such absenteeism is legally authorised. The trade union is demanding a 7.9% wage increase. Wage negotiations started as far back as April this year and the new wage increase was due on 1 September 2009. The trade union is of the view that its demands are reasonable and affordable, that it now only resorts to strike action as a last option because negotiations cannot continue inconclusively forever. Clothing workers are the lowest paid employees in the whole of the South Africa Manufacturing sector.

In the run up to the strike, the trade union had conducted a strike ballot among 46 600 clothing workers nationally, of whom 92% voted in favour of strike action in pursuit of their wage demands.

Issued by
Andre Kriel
SACTWU
General Secretary

Streamlining for survival in the local clothing and textile industry

2009-08-24T12:19:00.003+02:00

By Judith King-King Commissions

Durban, South Africa

Apparel researcher and commentator Renato Palmi, in a TV interview on 22nd August 2009, observed that while the South African clothing and textile industry sector has long been under stress, the entire industry is not unravelling at the seams.

Palmi told e-News 24 there are a number of companies doing good business, surviving the onslaught of cheap imports, and navigating their way through the current economic crisis.

Asked by presenter Jeremy Maggs about the impact of cheap imports on the industry, Palmi said that these had resulted in job losses and factory closures, but that to persist in citing this lack of local competitive edge as a reason for failure was simplistic. “The industry has had to deal with cheaper imports for several decades, and will continue to face this challenge.”

On the demise of a number of large textile companies and the consequences for the industry, Palmi said that these companies had to restructure to become more globally competitive, and this would mean some down-sizing, but the outcome could be a more robust industry. “I firmly believe that the future of the local fashion, apparel and textile manufacturing sector lies with smaller operations - the trendsetters, the initiators of innovative networks and collaboration within the entire clothing industry value-chain,” he said.

Palmi noted that the state’s bail-out programme and the R6 billion allocated to the apparel sector implemented by the Industrial Development Corporation (IDC) is a noble and welcome gesture, but questioned whether measures like these were sustainable. He contends that these funds should not be going to companies that clearly have not invested in technology upgrading, production streamlining and skills development.

“This investment should be directed at viable operations to assist them in expanding their capacity and markets. In so doing, these companies would be in a position to absorb the workforce from companies that need to shut down, and what we could see is a more competitive, efficient and effective industry, albeit smaller.”

Companies being bailed out will still have to face cheaper imports, labour issues and rising operational costs “so how will the allocation of only R2.5 million for individual companies mitigate these issues and make a company competitive in the long term?”

Palmi explained that among the IDC’s bail-out objectives is a focus on skills training, rapid delivery time and product-related supply chain integration, with a focus on fashion design, pattern design and manufacturing integration. “It is clear that SETA training within the apparel industry is not working, otherwise skills-levels would not be as problematic as they are. As for design integration into the apparel value-chain, we need to look further upstream in the value-chain to the fashion sector,” he said.

“Many fashion design students are not adequately equipped with business skills or knowledge of the apparel value-chain as a whole. Unless we can find more synergy between design and apparel manufacturing, trying to address this issue within the frame work of the IDC’s programme will be flawed.”

“I also think that the entire bail-out process is a temporary solution. What should be happening, and is occurring in some quarters, is for the various sectors within the clothing and textile industry to come up with innovative mechanisms that will address the issues the IDC programme is intended to rectify, but the key is for this industry to implement its own programmes for a more immediate response that can minimise the drag of government red –tape.”

Palmi spoke briefly about a new project being initiated by a Durban-based fashion design college, Linea Academy, to address skills development within the apparel manufacturing sector. The programme aims to involve apparel manufacturers in this innovative concept, whereby they would identify their needs and Linea Academy would develop educational programmes combining fashion design innovation, business development and manufacturing skills to align with individual companies’ requirements.

He concluded that there were prevailing concerns within industry about the roll-out of the IDC bail-out programme. “There is a sense in some quarters that the initiative is well-intentioned but flawed, in that it will take time to see any tangible results.”

Issued by:

Where next for KwaZulu-Natal’s CTLF Sector?

2009-08-14T15:22:00.002+02:00

Did the 2009 KwaZulu-Natal Economic Recovery and Jobs Summit deliver any concrete response plans for the province’s clothing and textile sectors?

Labour, compliance, cheap imports, technology upgrading, the role of government and the dominance of the retailers in the apparel value-chain – these were the issues raised in the Summit’s session on the clothing, textile, leather and footwear sector. While several panellists presented some interesting proposals on these concerns, recovery and growth will depend on how these are formulated in ongoing consultation with stakeholders and whether they can be implemented in a fair and transparent manner.

KZN local government has allocated R70-million for rejuvenation of the apparel sector, but the panellists of industry representatives forfeited this valuable opportunity for the industry collectively to devise policy usage, management and accountability of this funding. Another gap in the dialogue resulted from the omission of KZN’s Department of Economic Development and Tourism in the panel profile, so these links were not explored in the discussions.

The objectives of regional policy development are to identify mechanisms for improving economic conditions within a specified geographical locality to enhance the overall economic development of a country.[1] To understand the context of these aims in relation to KZN’s apparel sector, a historical perspective is useful:

From 1960 to 1970, the rate of employment in the clothing sector equated to 6,7% per annum, exceeding the annual growth rate of 6,2% in the manufacturing sector for the same period. Natal (now KZN) reflected one of the highest employment growth areas during these years. By 1970, white workers in this sector decreased, with black weekly paid employees making up 29%, coloureds 47%, and Indians 19.[2]

During the 1989-93 recession, job losses amounted to some 420 000, while the South African Clothing and Textile Workers’ Union reported a loss of 17 700 jobs during the period September 1995 to February 1996.[3] In 1995, approximately 420 firms (300 being CMTs) were found in the metropolitan area of Durban.

In a study of the clothing industry on the KwaZulu-Natal South Coast in 1995 the issue of illegal imports was reported. Subsequent research shows that illegal imports have persisted as a major threat to the local apparel industry.

In his opening address to the Summit, the MEC for Economic Development and Tourism, Mike Mabuyakhulu, said that KZN had been hardest hit by the recession, with 117 000 jobs lost in the first quarter of 2009, and a further 57 000 in the second quarter of this year. A more encouraging statistic was the increase in jobs within the manufacturing sector during the second quarter, from 389 000 to 415 000. The MEC challenged the unions, saying that the future of their members depended on the choices and sacrifices they make in the present and urging unions and civil society to work closely with business leadership towards keeping companies afloat.

Nimrod Zalk, Chief Director of Industrial Policy-Department of Trade spoke on the role of tariffs in growing local industry capacities, and emphasised that KZN should engage with national programmes. Since Elaine Smith’s appointment as Director of the DTI’s apparel sector communications and momentum have been visibly energised, and it appears that the long awaited Customised Sector Programme (CSP) is starting to show some results in its implementation phase. Zalk put forward an admirable proposal for a national technology audit within the CTLF sectors so as to provide an industry baseline for upgrades, and to define which textiles South African can produce cost-effectively. This would inform new and highly beneficial trade policy development.

Zalk, said the immediate goal of government was to arrest the evaporation of jobs, but there is a perception in industry that its survival rests with the DTI. “This is not the case,” he said. “There needs to be a collective buy-in from all quarters.” He stated that the IDC has allocated R6-billion to rejuvenate the industry over the next two years. Other response plans include: increasing duties on specific clothing imports, reducing tariffs for textiles, dealing with illegal imports in collaboration with SARS, and providing incentives for companies to upgrade. Companies experiencing cash-flow difficulties would also be assisted, procurement issues - such as BEE fronting (and the role of co-operatives in this context) would be addressed, and solutions to strengthen the value-chain of local industry would be sought.

A policy brief issued at the Summit described procurement as an important mechanism to “support local companies in distress”. The document specifies the need to support SMME’s, co-operatives and BBBEE firms, to assist companies “contemplating the retrenchment of more than 50 workers”, and to ensure that fair labour standards are upheld. Relating specifically to the CTFL and fashion sector, the brief assures that South Africa would not be allowed to become “a dumping ground for low quality products from other countries.” A key policy principle involves “all clothing, textiles and footwear procured by provincial and local government and government institutions [being] manufactured locally [and] retailers should [be] encouraged to buy locally.”

Such statements are honourable and worthy of pursuing, but there is nothing new here - the industry has been trying to deal with these issues for many years.

The President of the Durban Chamber of Commerce and Industry, Clive Manci, stressed that BBBEE policies should not be abused. It is important for local government, particularly the Department of Economic Development,to be transparent in their policy formulations. This would entail ensuring the competence of staff tasked to make recommendations and implement these policies, in order to eradicate any coercion and bias that favours one sector and or a group of individuals and companies.

Zet Luzipho, COSATU’s KZN Provincial Secretary, believes that 50 000 jobs could be created as envisaged by President Jacob Zuma. The high level of corruption was slated, especially around procurement. “Workers are facing an economic death penalty ... and we must own up what we have and have not done,” he said.

KZN Premier, Dr. Zweli Mkhize, noted that industrial response plans must be clear and focused, and that businesses should look within to prevent job losses. His assurance that government is prepared to fight any form of corruption is welcomed: direction from within government will eradicate the perception that there is favouritism taking place with the CTLF and fashion sectors around tenders and facilitation of policy implementation.

Ebrahim Patel, Minister of Economic Development, said there were far too many people dependent on survival jobs and that government is committed to broad-based development for sectors that provide labour growth and manufacturing. He outlined a new six-point action plan, some elements of which affect the apparel sector, such as a job fund for retrenched workers, the role of SETAs in skills development, a crackdown on illegal imports, and support for distressed industry sectors.

Michael Lawrence, Executive Director of SA’s National Clothing Retail Federation, spoke elegantly about the retailers’ role in the value-chain, noting that smaller retailers were more vulnerable than larger retailers. He observed that these small operations might not have institutional memory of a global recession, and that they might not have contingency plans for an economic downturn. I frequently advocate that smaller retailers and independent designers should be in a position to respond more rapidly than larger institutions in terms of supply and demand; a typical weakness in this stratum is the tendency to waste capital on unnecessary expenditures when business is vibrant.

Lawrence said that the “big five” retailers did not make up 50% of retail sales, as there is a large informal sector that is unaccounted for. He observed that price is not the only factor governing support of local suppliers: retailers consider consistent quality, sustainability, capacity to supply to deadline, and clear understanding of current market dynamics. He said that most manufacturers had not “upped their game” to take advantage of geographical proximity to retailers. The discount market consists of roughly 80% of the entire market; South Africa’s demographics as linked to income distribution drive consumers to prioritise price as in their purchasing decisions. Style, colour, print type, touch/feel, and sizing are subsidiary considerations for consumers.

Lawrence identified delivery delays as a serious problem for retailers seeking to buy from local suppliers, with only 63% of delivery deadlines being met. He also cited the lack of flexibility as a stumbling block, and I endorse that this is a persistent challenge faced by our designers when trying to find local CMTs; I believe that SACTWU and the Bargaining Council could play a role in identifying and facilitating linkages between designers and CMTs to relieve this. Lawrence noted that relationships with suppliers are crucial to resolving this, acknowledging that retailers sometimes place enormous strain on the value-chain and suppliers. He urged suppliers to be pragmatic in communicating to retailers about what can and cannot be done, as only through open dialogue could the flow-through in the value-chain be enhanced. I reiterated this point, saying that no time should be lost in adopting a relational approach to sustainable and supportive production in the apparel sector.

John Comley, CEO of Eddels Footwear, gave an inspiring talk that tracked the success of his business. This had entailed recalibrating the company’s systems for rapid response, quality control, and flexible process. While he recognised the challenges faced by companies around wages, he felt it was inappropriate to compare South African labour conditions with the low wages paid in China: many Chinese apparel workers live on site, whereas our employees have to cover high travel expenses. Noting that the apparel and footwear sectors are labour-intensive and very crucial for both the provincial and national economy, he urged all role-players to invest in invigorating these industries.

SACTWU’s Deputy General Secretary, Andrew Kriel, pointed out that these industry sectors currently employed about 200 000 people, with KZN making up about 40% of this figure. He said the industry generated some R41-billion in annual sales and that women made up nearly 70% of the workforce. The Union monitors job losses and factory closures on a daily basis, and 65 companies (24 in KZN) had closed since the onset of the economic crisis. The loss of a further 10 000 to 15 000 jobs in the clothing and textile sector can be anticipated if current economic conditions prevail. “There is no way that we can compete with a country like China which subsidises its industry,” he said, adding that the unrelenting loss of jobs is extremely detrimental to South Africa’s social fabric of the country, and that the industry’s demise cannot be contemplated. In regard to illegal imports, the Union is focusing on eradicating this scourge and is highly supportive of the actions taken by SARS and the DTI to this end.

Kriel revealed a disturbing feature of the growth in apparel co-operatives, many of which have been found to be formed so that business owners can manoeuvre around registration and labour laws. He said the law will be changed to stop this abuse of labour legislation and exploitation of employees.

Len Smart, ED of Natal Clothing Manufacturers Association, observed that the industry had shrunk considerably since 1994 due to the high volume of imports and the low support of local suppliers. In 1990, KZN had employed 65 000 people in the industry and roughly 55 000 of these were located in the Durban Metro; there are now 24 500 people in the Metro area, resulting from the migration of companies to non-Metro areas. A startling statistic showed that more people were employed in Lesotho’s clothing sector than in South Africa.

Smart noted that buyers have continued to drive down prices. In 2000, for example, the production price demanded for a standard garment was R9.50, while the same garment in 2009 was forced to be produced at R4.50. He said that even if companies did meet the unrealistic prices demanded by buyers in the retail sector, the industry could not realise volumes in orders as labour and management were not adequately skilled to monitor and implement quick response production measures. “It is imperative for the industry to get to 60 and 70 days’ turn-around to meet the demands of retailers if we want them to buy local and if we are to compete with foreign companies,” he said.

Labour is the highest cost in production, and unregistered operations in the informal sector accounts for a large sector of the industry, yet policies being formulated and implemented by the Department of Trade and Industry pertain only to registered companies. Does this not provide an incentive for companies to register and comply with the Bargaining Council standards? Smart confirmed that the issue of co-operative registration within the apparel sector was very disturbing and that in KZN, 57 companies have taken this route. Within KZN, the percentage of registered clothing firms was minuscule compared with the number of unregistered companies operating in both the formal and informal sectors.

On the issue of illegal imports, Smart presented recent statistics showing that goods valued at about R16.5-billion had been imported into the country, but only R6-billion had been declared. “There are jeans coming into this country being declared for under R2.00,” he said. This problem was discussed at length, and one delegate asked Nimrod Zalk why illegal importers were not being disclosed to the industry. Zalk responded that procedures for this would need to be followed and that “even the DTI is not privy to such information.” Delegates then questioned how retailers would be able to monitor their supplier base without access to such information; there was agreement that naming these companies should be integrated into the legal process so that retailers could react appropriately to ensure that their supply chain is ethically managed.

Conclusions and Recommendations

The Summit generated significant information-sharing, which was valuable, but many of the issues have languished on the shelf of ineptitude and friction for too long. The CTFL sector will remain endangered unless the following survival tactics are deployed:

The industry needs to see that there are capable people within government institutions that are responsible for implementing policies.

We need to deal quickly and effectively with the abuse of legislation being perpetrated by co-operatives. The impression was that the development and creation of co-operatives was a central focus for the KZN Department of Economic Development and Tourism. We cannot afford the discord arising from government pushing for co-operative formulation, while the unions and industry see such organisations undermining the sector.

There seems to be discrimination against smaller operatives that are not compliant whereas non-compliant larger companies have the capital resources to contest the Bargaining Council in the courts. There is an urgent need for the Bargaining Council and smaller CMT operatives to find the middle ground in their dispute relating to unnecessary harassment and compliance.

Instead of strike action that would do more harm to the industry and their members, unions should find alternative mechanisms for dealing with their grievances.

I propose that the industry unites to conduct a two-day workshop to review the issues discussed at this Summit, and other lingering problems that were not addressed during the session, so as to formulate a response plan that can be understood and implemented by all. This would indicate industry’s commitment to action, and would go some way towards obviating the current fragmented and selective approach to sectoral policy development.

This Industry Indaba should also cover the following specific concerns raised by delegates at the Summit session:

1. Action against illegal imports.
2. Action relating to tax breaks at provincial and local level.
3. Action on incentives to increase competitiveness (especially for the footwear industry).
4. Sufficient representation on the KZN Advisory Council.
5. Review and amend the incentives in the CTCIP relating to value, time period, and cost-sharing percentages.
6. Enforce the buy-local campaign for CTFL goods at all levels of government (officials to lead the way by wearing clothing designed and made in South Africa).
7. Fund the CTF clusters to the equivalent Rand values of the budget for co-ops.
8. Clarify how the IDC rescue package for struggling firms will be operationalised and how it is to be integrated into the total restructuring framework for the CTFL sector.
9. Immediately remove the legislative obstructions currently preventing the IDC from offering effective assistance – in other words, change the Act which is causing delays and inefficiencies; or alternatively, if this is a long and convoluted process, government should look to provide alternative funding mechanisms in the short term.
10. Ensure fast-tracking of processes designed to provide rescue funding.
11. Review the current tariff review process.
12. Implement proposed skills development initiatives and increase the funding sources over and above the CTFL SETA contribution.
13. Develop a training provision infrastructure to cope with the demands of the sector and the retrenchment package proposal by government. This specifically refers to technical skills provision, especially in textiles.
14. Record and follow up on the additional issues raised by SACTWU in their submission to the Summit.

[1] Trevor Bell ‘South African Regional Industrial Development Policy: Critical Issues,’ Transformation, 32 (1997), 1-30 (p.2).
[2] National Productivity Institute, ‘ Summary of Findings’, Productivity of the Women’s and Girls’ Clothing Industry in South Africa (South Africa NPI, 1971)
[3] Simon Roberts ‘Monetary policy Within Macroeconomic Policy: An Appraisal in the Context of Reconstruction and Development,’ Transformation, 32 (1997) 54-78 (p.55).

Written and researched by Renato Palmi
Final edit: Judith King: King Commissions
@ 14 August 2009

China fashion retail market

2009-08-14T09:34:00.001+02:00

International, local and regional fashion players are now filling up the space between the high-end/low-end fashion offer in China’s apparel retail sector.

H&M's newly opened Qianmen Avenue store in Beijing is rumoured to be taking CNY1m ($146,000) a day, Zara's aspirational collections are flying off the rails and Gap is gearing up for a 2010 entry. China's fledgling fashion middle market is growing fast.

The Chinese womenswear market was worth just over $31bn in 2008 and is expected to make annual growth of 10% a year for the next five years, reaching $46m in 2012 according to Howard Abe, partner at AT Kearney in Shanghai. The middle market part of this sector is doing even better.

"The mid-market has been growing at about 30% a year or more over the past five years," he says. "What's interesting about brands such as Zara and H&M is that they have a retail model that is closely tied to the market. They price competitively and they are clearly looking at the Chinese consumer and adapting."

Retail spending in China was up 15% in the first quarter of 2009 to CNY2.94trn ($430.4bn). Though there has been a slight slowdown in sales it hasn't been as bad as retailers were expecting, he says. "Retailers were very concerned in January and February, but the perceived drop hasn't been as bad and there is still double-digit growth.

"There is easily enough demand, and demand is increasing all the time. With the increasingly affluent consumer, if even 1% of 1.3 billion people can afford it, that is a massive market. The greatest challenge is not enough of the right product, the right sizing, the right location and the right managers."

Owing to the one child policy (which focuses family resources on one person), the high number of students and the new generation of white collar workers, 18-to-30-year-olds are one of the strongest consumer groups in the Chinese market.

Paul French, chief China analyst at Access Asia, says the "upper middle market" of international brands has been fuelled by the increase in young women going into white collar jobs. He says that foreign brands are still perceived as having more credibility for impressing bosses and colleagues.

A typical Chinese office worker would aspire to dressing in Zara or H&M, would carry a Louis Vuitton handbag and would wear some jewellery, he says. "They tend to go for basic colours… they don't want to stand out. Zara is popular because its cut is narrow, which suits the Chinese."
A taste for simplicity is backed up by AT Kearney's research. Monochrome colours made up 54% of the womenswear market in 2008. This trend is predicted to continue and in 2012 monochrome fashion will be worth an estimated $24.9bn, compared to colour at $21.1bn.

However, it is still a small percentage of the population who can afford to shop in the middle market. "In the urban cities, where 41% of the population live, there are many different consumer segments and only about 10% of those actually shop at these type of shops," says Abe.

"The average household in Shanghai spends about $3,000 on fashion products and of that $1,000 goes on apparel," he adds. Surveys show that consumers are most interested in value and quality.

Plenty more retail space is coming on line, according to Stead. "We look at a basket of 16 Chinese cities and at the end of 2008 there was 18.1 million sq m of retail space of a varying quality. At the end of 2010 we expect a further 7.5 million sq m in those 16 cities," he says.

May Lawrence, director at PricewaterhouseCoopers in China, says that many tier-one cities are now saturated with brands and tier-two cities are seeing the most growth. But she emphasises that retailers really need to understand the differences in consumers between provinces.

"The difference in sizing and colours between regions and cities requires a high level of awareness and sophistication to make the offer localised," she says. "Good brands will localise the design and colour and have to understand the social demographics."

Improvements in infrastructure as the Chinese government pours massive investment into road, rail and air travel mean that it is easier for retailers to transport product and for consumers to travel. For example a two-hour car journey from Beijing to Tianjin now takes just 29 minutes on the newly opened bullet train.

For Chinese brands competing in the middle market Abe says there are several challenges. "Competition is tighter and they are having to step back and say 'how do we differentiate our apparel?' Branding is still very much a foreign concept. Branding (in the Western market) means your consumer experience - there's nothing like that here."

Lawrence from PWC adds: "The biggest challenge is brand building, particularly for local brands. Getting the customer value proposition is key… all the other things filter down once you get that right."

French agrees: "Chinese companies don't know how to do branding and they don't want to pay." Instead he believes Chinese companies and entrepreneurs will buy brands. They have already bought local licences for Kappa and the whole of Tacchini and he predicts it won't be long before some major luxury labels are Chinese-owned.

Linking up with a brand ambassador who is popular with the Chinese is vital for marketing. H&M plastered the streets of Shanghai with billboards of Kylie Minogue before opening.

French says that Topshop could build a great business in China with the Kate Moss collection as the model is already a hugely popular style icon. Other Western celebrities popular with the Chinese include Victoria Beckham and Catherine Zeta Jones.

Perhaps the biggest problem facing some European and US retailers is underestimating the amount of involvement and expertise needed to understand the Chinese market and consumer.

2007 market share of top 10 branded womenswear sellers
· Etam - 8.27%
· Only - 7.77%
· Vero Moda - 6.79%
· Esprit - 4.61%
· Tangy - 1.54%
· Girdear - 1.51%
· E-Land - 1.36%
· Hua Xin - 1.04%
· Etam Weekend - 1.03%
· Zup'er mei - 0.62%
· Others - 65.46%

Ref: LIZ MILLER, WGSN 22.05.09

World Retail Congress 2009

2009-08-14T09:28:00.001+02:00

Speaking at last year's World Retail Congress, retail tycoon Sir Philip Green, head of Arcadia and Bhs, told delegates the sector was to face an "acid test". Green said: "Now it's dark out there, let's see who can find the light at the end of the tunnel. In easy times, we get carried away. Now we're going to discover if what we are doing has stability and legs."

He was right. The economic crisis has resulted in high-profile retail casualties and has impacted deep into the retail supply chain. More than one year later, global retail leaders and industry experts gathered for the third and final WRC in Barcelona before the event moves to Berlin next year.

Speakers at the WRC, including heavyweights from Deloitte and Mirae Asset, predicted the recession would begin to end in late 2009 with the US and China dragging the world out of the downturn.

· Some economists already see green shoots although Deloitte's Dr Ira Kalish said the economic crisis will have a lasting effect on the retail landscape, with fewer major retailers in each channel.

· The US will see its economy experience structural change, moving away from a consumer spending model towards one focused on exports, investments and government spending.

· Until recovery begins to bear fruit retailers are having to navigate precarious situations. However the feeling among delegates was that the big shocks have happened. There was optimism that the worst is now over; global retailers felt they are at least able to plan for the future, with better visibility of the situation they and their companies face.

Consumers are making long-term changes in attitude as a result of the recession. David Roth, CEO of WPP's The Store, said the consumer has been through three stages of grief brought on by the worldwide recession: rage and acute distress; acceptance; and moving on.

Retail has become more about educating consumers as shoppers seek out ways to validate the shopping experience.

Jim Stengel cited a tie-up between US retailer Ann Taylor Loft and Procter & Gamble. The retailer, recognising that the trend for disposable clothing was over among customners, sought out a way to help shoppers create new outfits from investment pieces they already had. Part of that involved the reuse of clothing. The retailer worked in P&G's washing detergent brand Tide to promote its new Total Care products, including endorsement from Tim Gunn.

Instead, it is being replaced by a model based on social engagement, according to Michael Jary, worldwide managing partner at OC&C Strategy Consultants.

· Consumers have a desire to have an emotional engagement to the purchase process, he argued. Brands and retailers should therefore adjust to this consumer desire and change the way they develop.

· Matt Rubel, president and CEO of Collective Brands Inc, which runs US footwear retailer Payless ShoeSource, cited the example of eco range Zoe & Zac, which targets a 16- to 30-year-old customer. As the collection ties into issues that this consumer group cares about, it commands a 12% higher price than other brands.

· In another example, the company's prosaic dyeable shoe offer was rebranded from 'custom colour' to 'moment of celebration and unforgettable moments', focusing on weddings and proms. It was designed to replicate a cosmetics display in store, and in-store designer Leila Rose validated the 64-colour palette. Prices went up but sales grew by 150% in the first 90 days. Rubel said: "The strategy that we use is this: we build platforms for our brands that tie in with emotional occasions in people's lives".

During the slowdown, the aspirational customer can no longer afford - or no longer even wishes to aspire to - luxury, she continued. As a result, the brands that catered for that market will suffer, but at the same time the luxury market is "going back to haute couture and its principles" of personalisation, artisan-made, exclusivity and quality.

Consumers still want luxury products, but are not prepared to compromise on a 'halfway-house' of a pseudo-luxury brand. Consequently, brands such as Hermès, Burberry and Prada will still be desirable, as consumers prefer brands with a recognised, authentic heritage.

The notion of trading up that was popular before the recession is also still continuing now, said Lanciaux, but now raising the price of goods as well is no longer possible. "Trading up means removing fake," she added. "Consumers today prefer to buy semi-precious stones rather than zirconium."

The retail journey is becoming more fragmented. Consumers are moving between online research, social networking sites, mobile networks and stores before they purchase. According to research presented by IBM, 50% of UK consumers and 46% in the US switch from store to internet when purchasing from a brand.

Borders Inc CEO Ron Marshall said: "It is about having a conversation and building a relationship with the customer online that feeds back into the stores. You need to take each medium, look at its specific strengths and play to those. Online content reaches out and touches people, in-store you can stage events that bring those people in to your stores in a different and very real way." The retailer holds music and author evenings in stores, which evolve through online book and music clubs. Events such as its midnight Twilight club, where it opened at midnight on the day the teenage vampire movie was released on DVD, led to more than a million hits on social networking sites. "You can talk to customers in a way that no one else can - it's incredibly impactful," he said.

Understanding the role of retail in a local or regional market and adapting to suit local needs can pay dividends for a wide range of retail businesses and formats.

Vittorio Radice, CEO of Italian department store chain La Rinascente, said: "With stores in some of the world's most beautiful cities it's important to realise you are part of the fabric of their being and that you should try to give value to that by making your store in some way unique to its location. It is then that you can start a winning formula for your business." US consumer electronics retailer Best Buy, which has expanded into Canada, China, Europe and Mexico, focuses on 'local' in its approach to customer-centric retailing. Bob Willett, CEO of Best Buy International, said the retailer analyses local demand to co-create (with customers and the local team) services and solutions for that market.

According to a Havas 2009 survey of 22,000 consumers across 10 markets, consumers are still concerned about sustainability and are not losing sight of the issue despite economic pressures. Four-fifths of those surveyed would reward rather than punish brands that adopt sustainable practices; almost half (48%) are prepared to pay more for sustainable product; and two-thirds would go out of their way to find out more about companies' social and environmental practices.
"It is fundamental, not elemental to business," said Champniss. A firm's ability to thrive and survive will depend on the integration of sustainability across traditionally siloed company structures. One approach is to recognise sustainability's similar characteristics to IT: it is inherently horizontal, it has the potential to become universal, and it is a basic business-driver adding to brand value, just as IT has done. "

Although bruised and battered by the economic events of the past year, retailers were reminded that crisis can create advantage. Dr William Fung, managing director of the world's largest sourcing company, Li & Fung, explained to delegates that the Chinese character for crisis is the same as the one for chaos, and includes two elements - one meaning 'danger' and the other 'opportunity'.

Ref: A.CARR, L.HALL, A.JOBLING, A.RUMSEY, J.WARKENTIN
28.05.09. WGSN

Renato Palmi interviewed for SABC TV3 business programme

2009-08-07T13:12:00.003+02:00

Renato Palmi, director of ReDress and project and marketing director of Linea Academy was flown to Johannesburg for a television interview relating to BEE within the clothing and fashion industries for the TV programme Africa Inc.

Africa Inc. is a South African business magazine programme produced and presented by journalists Siki Mgabadeli and Nikiwe Bikitsha that investigates the complex issues that surround and drive the country's Black Economic Empowerment (BEE) policies.

Africa Inc. is a unique view on black economic empowerment, 15 years into democracy. The show attempts to draw a comprehensive picture of the complex issues that drive BEE forward.

Africa Inc. is produced and presented by journalists Siki Mgabadeli and Nikiwe Bikitsha, who traverse the length and breadth of South Africa to bring perspectives on the country’s empowerment experiment.

Tinged with the glamour and sophistication that go hand in hand with the world of business, Africa Inc. brings you conversations with business moguls and top decision-makers including Tokyo Sexwale, Nku Nyembezi-Heita, Kgosi Leruo Molotlegi and Saki Macozoma.The show speaks to the power-players, the dealmakers, the beneficiaries and the critics of Black Economic Empowerment.

When:

SABC TC3

Tuesday nights

20h00

South African Designer chosen for French Fashion Competition

2009-07-31T17:28:00.006+02:00

Thokozani Freedom Mbatha known as TK owns the South African menswear fashion label BLACK PEPPER will be the only South African representative at the Culturesfrance competition "Africa is in fashion!"

Thokozani who hails from KwaZulu-Natal said he is extremely honored to represent his country where he will have the opportunity to showcase both his designs and label and demonstrate the creative talent South Africa has when it comes to fashion design.

Thokozani says he is "both an artist and businessman” who realizes that fashion is as much about business skills as it is about creative talent. He says, “I came across this great opportunity by chance when a friend informed me of the competition. I looked at the entry requirements whilst pondering whether I should spend time, energy and some resources into meeting the requirements for this competition. I then decided that this would be a fantastic opportunity not only for me and my label but for South Africa, and Africa as a whole. The requirements to enter did not only consist of a storyboard. I had to meet and complete volumes of paper work such as security clearance and other tedious documentations.”

Thokozani then submitted his storyboard and the documents in April and forgot about the event. On the 6th of July while he was still rejoicing about his success in the July fashion event (he was one of the finalist at the Fashion Challenge) he was looking over the Culturesfrance website and was surprised to find his name as one of the 10 finalist chosen from Africa and the only South African designer. In due course he was officially informed by the organizers.

He will be flying to North West Africa where all the 10 entrants chosen will undergo the elimination round at a fashion show. From the 10 entrants the top three as part of this development initiative undertaken by France will receive a two month internship in Paris at one of the famous global fashion houses. The goal and objectives is for these young designers to bring back to their respective country the skills and network opportunities to develop their own range and business and to give input into the local fashion industry by dissemination of the skills they learnt.

In describing his collection Thokozani says, “As for my designs I did menswear. The theme of the competition is Transition and I interpreted this in my own approach and philosophy where the past, present and future flow and blend in one direction with each city having its own character that is ancient and modern.”

“This combination brings a new dimension and increases and broadens the horizon and prospective of each culture and one’s own interpretation of culture" said TK. "My label BLACK PEPPER …moves with confidence in its own traditional ethos and is flexible to blend with cultural changes and behaviors’ taking place throughout global cities thereby creating its own identity within an ever transforming space …” He says “My designs will transform the wearer into a universal individual who will blend into the global changes and transitions taking place not only in fashion but in culture, economics and politics ….”

Thokozani says he is designing ten items that reflect urban chic and the fabric/palette consists of natural colours which are influenced by his African culture.

BLACK PEPPER is a well known label based in KwaZulu-Natal. TK has participated in numerous fashion events. . TK says that education is extremely important and last year he took time off from his business to travel to Italy where he studied at the NUOVA ACCADEMIA DE BELLE ARTI MILANO where he undertook an intensive course in fashion marketing and merchandising that gave him an insight into international trends and developments. “I am in the fashion business to make beautiful but sellable clothing and to have a successful business I am both a creative artist and business person.”

TK is an example of someone who has a set goal and objectives and works hard. He knows that he needs to have a solid understanding of all the various aspects that contributes to a successful fashion business. It is a credit to him that in these tough economic times his label and reputation is growing both locally and now internationally. Written by Renato Palmi

FULL NAME: THOKOZANI FREEDOM MBATHA
LABEL: BLACK PEPPER
CONTACT NUMBER: 031-3320924 (OFFICE) CELL: 0799939722
EMAIL: mbathathokozani@yahoo.com

Africa is in fashion! 3rd edition of the competition for young African fashion designers. Initiated by Culturesfrance, the competition "Africa is in fashion!" enables 10 young African fashion designers, selected from applications presented to a jury of professionals, to present 10 items of prêt-à-porter or haute couture each. After the fashion show, this year on the theme of “transition”, three prize-winners will be chosen and they will receive prizes in the form of residencies in a fashion house, a prize of aid to creation and/or aid with the production of a collection, as well as support in the international distribution of their work. Once again, in association with FIMA, Culturesfrance reaffirms its support for the development of design and fashion industries.

The selection committee* appointed to choose the 10 candidates invited to compete in the special evening event “L’Afrique est à la mode !” (Africa is in fashion), which will take place in Niamey in the framework of FIMA (International Festival of African Fashion: October 25th – Novembers 1st, 2009), met on June 24th. Chosen from around sixty quality candidates from 25 African countries, 10 young fashion designers will present 10 costumes during the evening event.

The selected fashion designers are:
BARKA Salah – Tunisie
MAGNE CHOUPA Joëlle – Cameroun
CLAASEN Chakirra Mathilda – Namibie
DIOP Mariam – Sénégal
HARIRA Hamidou Seydou, dite Harira – Niger
ISILDA DA CONCEICAO GIBOTE Mbaga, dite Isis Mbaga – Mozambique
MBATHA Thokozani Freedom, dit Black Pepper – Afrique du sud
MBATSOGO Charlotte – Cameroun
RACHAEL MUTINDI Maithya, dite KI2 Fashion – Kenya
SSENKAABA Samson, dit Xenson - Ouganda