CAPE CLOTHING & TEXTILE CLUSTER
The Cape Clothing and Textile Cluster (hereafter the CCTC) was launched in 2005 in response to the considerable pressure the industry was facing as a result of trade liberalization and increased global competition. The aim of the Cluster is to assist clothing and textile firms to bolster their competitiveness. The Cluster operates as a Not-for-profit Company (NPC), governed by an executive committee and numerous Technical Steering Committees (TSCs). The service provider of the cluster is Benchmarking and Manufacturing Analysts (BMA), who are responsible for the management and facilitation of the cluster. BMA is also the service provider to the CCTC’s sister cluster, the KwaZulu-Natal Clothing and Textile Cluster (KZN CTC). The activities of these clusters are synergised and therefore enable a national development strategy to be executed for enhanced competitiveness of the clothing and textile industry in South Africa. With support from five of South Africa’s largest retailers, the Cluster has been able to establish and entrench programmes designed to assist local firms’ development by accumulating economies of scale through group activities and shared resources. The benefits of clustering include: • The generation of a critical mass of resources • Shared learning • The rapid diffusion of ideas • Collective action and risk sharing • Reduced costs • Enhanced ability to compete on a global platform
Cluster facilitation services are provided by Benchmarking & Manufacturing Analysts SA (Pty) Ltd (B&M Analysts), an organisation that provides high value, specialised support services to drive sustainable industrial development. Over the past 15 years B&M Analysts has developed methodologies and skill sets that allow it to play a unique role in relation to supporting the competitiveness of value chains and the growth of industrial sectors. These services are tailored to support the industrial development goals of government organisations, private sector organisations, and public-private partnerships (PPP). B&M Analysts is a verified Level 2 B-BBEE contributor under the Codes of Good Practice for Broad-Based Black Economic Empowerment (B-BBEE).
Contents Announcements and Recent Events
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Feature Article – Key Lessons from the CCTC’s 2014 KZN Best Practice Study Tour
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Cellular manufacturing: Experiences from Eddels and Zorbatex
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WCM Workshop Series TRACE SME Development Programme
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SA Cottons onto Fast Fashion The Clothing Bank Expands to Midrand Polo SA not Polo Ralph Lauren New Alliance to Boost US-Africa Apparel Trade
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ANNOUNCEMENTS AND RECENT EVENTS A New Addition We are pleased to announce that Fatima Munshi joined the CCTC team in March 2014. Fatima has been working with the KZNCTC (our sister Cluster in Kwa-Zulu Natal) for three years and brings new ideas, initiatives and a wealth of knowledge and experience to the CCTC. Fatima is also currently studying towards her MBA at UCT GSB. She has hit the ground running with her work at the CCTC and looks forward to meeting all the Cluster members in the next few months.
Benchmarks
Quick Response (QR) Training There have been two QR Training workshops for manufacturers held this year with another to follow. The course is the only one of its kind in South Africa, introducing participants to the theory and the practical challenges of implementing a Quick Response operating model in both manufacturing and retail environments. Participants are required to attend all three days of the training and are given the option of completing three assignments which count towards a competency certificate in Quick Response.
World Class Manufacturing (WCM) Workshop Series
The annual World Class Manufacturing Workshop Series kicked off in February with the Executive SesThis year started full steam ahead with African Nature, sion. The workshop series is broken down into three PepClo, Impahla Clothing and Freudenberg’s process sessions aimed at executives, management and superbenchmarks. Firms that have been participating in the visors respectively with one workshop in each of the benchmarking process for several years have had their months of February, March and May. progress tracked annuallly and it is great to see their improvements. Firms that have just begun their bench- The CCTC’s ‘World Class Manufacturing Training for Exmarking process stand to gain a lot of insight into their ecutives’ was presented by Rob Stewart, Chief Facilitator of the CCTC. The session highlighted the current performance. state of the industry and the increasing relevance of WCM towards remaining competitive within a global setting. The intention was to provide a high level overview of WCM to ensure new or prospective members were familiar with the principles of World Class Manufacturing while also offering current members an opportunity to review their lean understanding.
The CCTC’s ‘World Class Manufacturing Training for Managers’ was presented by Matthew Fletcher, Executive of the CCTC. The workshop focused on the three core principles of World Class Manufacturing – Justin-Time, Total Quality Management and Continuous Improvement. The intention was to provide managers with the tools to better enable World Class Manufacturing in their firms.
Annual General Meeting (AGM) The 2013/14 CCTC AGM was held on 3 April at Bloemendal Restaurant, Cape Town. Professor Justin Barnes, the Chairman of B&M Analysts, opened the event stressing the importance innovation and broadening market access to ensure the sustainability of South Africa’s clothing and textile industry. Chairman of the CCTC, Bobby Fairlamb MD of K-Way, addressed the general council expressing the benefits of the Quick Response Training and other upskilling initiatives of the Cluster in the past year. The guest speaker, Gary Knight, the Managing Director of SCT Supply Chain Solutions, presented on the importance of strategic logistics and subsequent supply chain management for gaining competitiveness in the manufacturing industry. Knight stressed the direct gains through cost reduction as well as the indirect competitive edge that is created with improved supply chain management. Furthermore, emphasis was placed on the imminent requirement for logistic strategies to be aligned with overall firm goals at a boardroom level in order for firms to progress and compete with lower cost imports.
Feature Article – Key Lessons from the C Overview of the 2014 CCTC KZN Best Practice Study Tour
Robust group discussions held at the close of each day provided a space for the attendees to reflect on the key lessons learnt from the factory tours as well as critically think about what was observed during the day. The range of staff positions held by the various attendees included CEO through to line-manager levels which provided for healthy group discussions, covering different technical and strategic topics with regard to implementation of lean manufacturing in the different factories that were visited. Some of the highlights of the trip included exposure to:
The annual CCTC KZN Best Practice Study Tour was held from the 19th to the 21st February with 16 attendees representing 10 of the CCTC member firms participating in the tour. The group partook in factory tours and group discussions with senior management at five of the KZNCTC (the CCTC’s sister Cluster) member firms’ facilities. Hosts included one of the country’s leading dyehouses (Dyefin Textiles), shoe manufacturers (Eddels Shoes), towel manufacturers (Zorbatex), workwear • Valuable value chain lessons: Dyefin provided ex(Durban Overall) and clothing manufacturing (Celrose posure to the technical aspects of the upstream Clothing) operations. Apart from flights, all costs were dyeing and finishing activities that take place in the covered by the Cluster. clothing value chain where a number of key lessons with regard to the handling and treatment of fabrics were learnt –particularly for those individuals who had not previously been to a dyehouse • State of the art machinery and the associated benefits, particularly with regard to flexibility, investment in new, world class machinery can offer firms • Vertically integrated operations and the associated opportunities for firms to increase the product offering to their customers by providing additional value adding services such as packaging and distribution
CCTC’s 2014 KZN Best Practice Study Tour a company turnaround was undertaken after a management buy-out in 1997. Under the new ownership, the company adopted lean manufacturing elements with a strong focus on creating ‘rapid-response’ manufacturing capabilities. As one of the country’s leading shoe manufacturers today, their successful turnaround driven by commitment and successful implementation of lean manufacturing has been underpinned by an exemplary ‘change management’ process. This process incorporated the initial ownership change in 1997, “Lean is a Culture issue” One of the most powerful lessons that was learnt on followed by strengthening of the relationship between this year’s tour was the important role the ‘right’ com- management and labour, a keen focus on skills developpany culture has with regard to successfully progressing ment and an innovative incentive scheme (to name but along one’s Lean journey. In particular, Eddels Shoes, a few elements). Durban Overall and Celrose were three stand-out exA critical outcome of this process (which was achieved amples in this regard. over years, and not overnight) is the exceptional morale In an article titled, ‘Lean’ is a Cultural Issue, published that has become a well-known feature of the organiin the Journal of the Institute of Management Services, sation: essentially the process successfully broke-down Atkinson (2010), explains that firms stand little chance the ‘us’ versus ‘them’ mentality that existed at the firm of successfully implementing ‘Lean’ unless they give ad- (which still exists currently in many other manufacturequate attention to establishing the ‘right culture’. This ing facilities in South Africa). There were numerous visis of particular importance when trying to drive change ible elements in place that entrenched the lean culture in an organisation. This article will be anchored by the on the factory floor. This included up-to-date Visual lessons learned from Eddels whilst drawing on the oth- Performance Management boards and numerous motivational boards positioned throughout the factory to er factories visited to supplement these findings. boost employee morale. The South African footwear sector came under severe pressure in the 1990’s as a result of the flood of imports experienced as the country liberalised its economy after years of isolation and protection from international competition. During this time Eddels experienced significant downsizing and faced imminent closure before Overall, two key lessons resonated at a number of the firms visited. The first was the importance of creating the right company culture (driven from the top) in order to successfully implement lean manufacturing and second, from a technical perspective, the advantages of successfully implementing cellular manufacturing systems in the clothing and textiles environment.
Such significant change is often heavily resisted by people in an organisation, eroding the intended outcomes that drive the initial need to change. So how has Eddels so effectively limited the resistance to change? The answer lies in their understanding of the importance of buy in from people, who are in essence the change agents: “Changing mind-sets requires the need for management to make the change relevant to those that need to implement it” (Senior Manager at Eddels) Atkinson (2010) argues that in order to create the right culture, commitment from senior management is key: “Failure to win over the ‘top team’ will result in cynicism from their direct reports and others. It’s true that there is no change to lean without leadership” Eddels, Celrose and Durban Overall were exemplary examples exhibiting how senior management had completely bought into the principles of lean manufacturing and had actively driven these principles downward to the shop floor. As one member of Durban Overall’s senior management team explained: “Top management need to drive change from the top down…but you cannot rely on a pure trickle-down to the shop floor, a more deliberate effort is required from senior management …once it has reached the grass roots level it filters back up from the bottom and it was only then when we realised we had successfully instilled the lean culture in the business” This highlights Atkinson’s (2010) second point that stresses the important role line management plays as a ‘change agent’ to ensure lean in instilled (or ‘trickles down’) to the factory floor.
Cellular manufacturing: Experiences from Eddels and Zorbatex Simply, as Kumar & Sampath (2012) explain (with reference to others), the cellular layout divides the manufacturing floor out into small individual units called cells which operate exclusively for a certain task (i.e. manufacturing the specific component or sub-assembled component of a final product). In cellular layouts, a series of “mini-factories” are built, where each cell acts as an individual module which may be capable of producing a range of different products. The cellular manufacturing layout takes advantage both of the principles of single unit flow and small batch production and, at High levels of worker moral coupled with a highly skilled the same time, provides the space for greater flexibility workforce are two contributing factors to the excepthan more traditional ‘functional’ layouts. tional success the company has had with regard to effectively implementing cellular manufacturing on their The cells seen at Eddels were impressive particular- shop floor. ly with regard to the low levels of inventory (work-inprogress) at each cell and the ability for each cell to ensure quality was maintained at each stage of the production process. Arguably the most impressive aspect of Eddels’ cellular manufacturing system was that each cell operated as a self-directed team, with a ‘representative’ (not leader) who would act on behalf of the cell to raise issues or concerns when need be. The level of decision making and autonomy each cell exhibited allowed the company’s middle and senior management levels to focus on higher level management activities without being bogged down with micro-management issues on the factory floor.
Zorbatex, a more capital intensive, vertically integrated towel manufacturer was another one of the firms we visited that had successfully implemented a cellular manufacturing system. Their cells were located at the end stage of their production process where typically more labour intensive activities such as cutting, embroidery and packaging occur. Each cell had an elected ‘cell leader’ and like Eddels, operated with a degree of autonomy that afforded middle and senior management the opportunity to focus on higher-level management activities. Interestingly, in Zorbatex’s case, the successful implementation of cells at the final stage of their production process had alleviated their previous troubles with balancing their production line by ensuring flow by acting as a pull system.
An established lean culture: a prerequisite for successful implementation of lean processes The importance of ‘culture’ and the benefits of the effective use of cellular manufacturing were highlighted as two key learnings from the 2014 CCTC KZN Best Practice Study Tour, but are they totally independent of each other or is there a relationship between the two? Atkinson (2010) explains that organisational culture will “determine the success of Lean or any other change initiative”. This article therefor concludes by adding that the two key highlights of this year’s Best Practice Study Tour, exemplary lean culture and the benefits of successful cellular
manufacturing were not coincidental or isolated characteristics of the firms in which they were exhibited. For example, the lessons learnt from both Zorbatex and Eddels would strongly suggest that a well-established lean culture acted as an enabling agent or foundation for the successful implementation of ‘lean’ production processes such as cellular manufacturing, which in turn have had positive impacts on the operational competiveness of each of the two firms.
References Arkinson, P. (2010). ‘Lean’ is a Culture Issue. Journal of the Institute of Management Services. Summer 2010 Kumar, B.S. & Sampath, V.R. (2012). Garment Manufacturing Through Lean initiatives –An Empirical Study on WIP Fluctuation in T-Shirt Production Unit. International Journal of Lean Thinking. Vol 3(2), 1-12
WCM Workshop Series
tact Roslynn Manuel at roslynn.manuel@bmanalysts. The final session of the WCM Workshop Series will be com or (021) 552 0240 held in May and will be for supervisors. The dates for this training will be announced shortly. This workshop will be similar to the one held for management, but altered to be relevant for team leaders and supervisors. It will cover the three pillars of World Class Manufacturing and lessons on how to incorporate these tenets into their teams and workplace. The consultants completed all the scheduled expert support days for the first group of SME firms. The firms If you would like to find out more information or enquire received lean manufacturing training and coaching speabout this workshop, please contact Stephen Wright at cific to their individual needs and were provided with stephen.wright@bmanalysts.com or (021) 552 0240 the necessary tools and knowledge to drive their own lean journeys going forward. Generic project deliverables included:
SME Development Programme
TRACE
Freudenberg Nonwovens further showed their com- • Value Stream Map: A value stream map was drawn up for each firm identifying areas of waste. mitment to World Class Manufacturing by beginning • Waste Summary: Each firm received a waste sumthe yearwith the first TRACE programme for 2014. Rosmary, clearly highlighting the wastes present in the sano followed closely and concluded their TRACE prosystem. gramme in April. Berg River Textiles in Paarl will see their first group of learners start TRACE towards the • Deployment Plan: A deployment plan was developed for each firm, providing a roadmap and projend of April. We are confident that they will extract ect plan for implementing improvements going huge benefit from this undertaking. forward.Other: Waste walks, problem solving, roles and responsibilities, pull systems. TRACE stands for Team Responsibility and Competitiveness Evaluation and is a unique training course offered A new set of firms are currently being sourced to take by the CCTC focussing on the essentials of leadership, part in the 2014 SME programme with the programme management and World Class Manufacturing for Suset to launch in May. 2014 sees the launch of a new pervisors and mid-level management. TRACE is MERSECMT development programme (BOOST) which will reTA accredited and awards successful graduates credits place the existing SME programme. Owing to the huge towards an NQF level 3 qualification, making it the only success of the SME Development programme, the excourse of its kind in South Africa. ecutive committee has decided to allocate more funds towards an enhanced programme focussed on supportIf you would like to know more about TRACE or enquire about participating in one of the courses, please con- ing the development of small CMTs which provide the invaluable flexibility and responsiveness required by the
local industry. March has seen the start of two months of selection and assessment of participants with the programme kicking off in May. Four phases are envisaged, including: BasicMeasurement, Lean Manufacturing, HR & Financial Management and finally, Marketing. Each phase will be two-fold including both introductory workshops and on-site expert support. If you are interested in participating in the course, please contact the Fatima Munshi on Fatima@bmanalysts.com or (021) 552 0240
CTCIP Peer Group Session
The first of the highly effective 2014 knowledge sharing ‘Peer Group Sessions’ of the CTCIP took place in April. These are closed sessions reserved for participants of the CTCIP and consist of detailed factory tours and guided knowledge sharing workshops which focus on refined aspects of Lean or World Class Manufacturing. If you would like to find out more information or enquire about joining the CTCIP, please contact Stephen Wright at stephen.wright@bmanalysts.com or (021) 552 0240
JUNE Benchmarks
The Cluster plans to benchmark the following three firms in June: - Waltex - Bri-Clo - ELTex
July Benchmarks The Cluster plans to benchmark the following three firms in July: - GenCon - Rossano - Cotton Traders
SA Cottons onto Fast Fashion
Increased orders
Edcon has increased local and regional orders to cash in on the benefits of a quick response. For the 2013 winter season, Edcon said 32% of Edgars and discount merchandise was sourced from local and regional suppliers. The Foschini Group was one of the first major retailers to begin sourcing locally, which it did in recent years. It said the slightly higher cost of local manufacturing is offset by providing larger volumes to domestic manufacturers and increasing efficiency. Local demand Lawrence said South Africa has among the highest imGoing hand in hand with the increased demand for loport duties on fabric and clothing in the world. cally made goods is the emergence of fast fashion – the “When a finished clothing item attracts 45% at cusindustry has to supply goods to meet the latest trends toms, it should be possible for it to be made cheaper quickly to maximise sales and grow profits. locally,” he said. Johann Baard, executive director of Apparel ManufacFor K-Way, a South African outdoor apparel and hiking turers of South Africa, said: “You can only do that if you
INDUSTRY NEWS
South African clothing manufacturers are benefiting from retailers’ growing demand for locally made goods as fast fashion takes root. The industry, once in a bloodbath, has also stabilised as a result of government incentives that kicked in five years ago. But locally produced clothing is not just good for job creation, it makes business sense too – so much so that retailers are sourcing almost a third of their clothing from local suppliers to respond to trends as they happen. Gathering statistics is difficult because of the large quantity of illegally traded clothing, but an estimated 25% to 30% of locally sold clothing is manufactured domestically, according to Michael Lawrence, executive director of the National Clothing Retail Federation of South Africa. The federation is not allowed to gather trading data as it is deemed anticompetitive, but “what we have established is that, in real rand terms, there has been an increase in purchasing from local manufacturing in the past five years”, he said. The quantity of locally produced clothing sold in South Africa has remained at the 25% to 30% mark, although it has dipped below that at times. But demand has grown – it has “gone up dramatically in the past 10 years”.
can respond to point-of-sale trends and adjust your styles and colour ranges from one day to the next … and you can only to that if you have a supply chain on your doorstep.” He said the result is high stock “turns” or inventory turnover, as demand is based on what the customer wants and is not predetermined by retailers. “And the higher stock turns you generate from that, the higher profit to your business – higher than making the call beforehand where you get the cheapest source.” Major retailers agree: local manufacturing enables a quick response to the market and trends; lead times, from design to delivery, are shorter and markdowns are reduced. Truworths, which sources about 35% of its clothing locally, said: “The major advantage of working locally is the speed at which we can develop product with the local supplier and the shortened lead time from design to delivery.”
gear brand owned by outdoor-adventure store Cape Union Mart, there were always advantages to local manufacturing but the government incentives have been a lifesaver. The company bought the K-Way factory in 1981, which made losses in early years. “[Then] the rand was quite strong and, in many of the cases, the East was a cheap and efficient supplier. Skills and innovation in the South African industry were not that sophisticated to keep up with what we needed,” said Cape Union Mart executive chairperson Philip Krawitz.
most part, but its implementation has been thin, according to Justin Barnes of the KwaZulu-Natal and Cape clothing and textile clusters. He said the principal reason for developing a quick-response programme was because “that’s the way the whole world is going”. The retailers in Europe that are growing rapidly are those buying large quantities from proximate suppliers in southern Europe and Turkey. Those buying from Asia are losing market share, Barnes said. “In Asia they can buy cheap, but they are buying what they think the customer wants 12 months before they buy it. The QR [quick response] model mitigates all of Government incentives “Everyone tried to persuade me to close our factory. that risk; you only produce what the market consumes.” The executive director renamed it Philip’s Charity – Cost pressures that’s how it existed for several years.” But the government introduced incentives in 2009 that, Baard said there are mounting cost pressures overseas, subject to meeting the criteria and rules of the system, particularly in the coastal south of China. Chinese priallowed it to offer conditional grant finance to increase vate-sector wages rose by 14% in 2012 and global recompetitiveness in the sector and encourage cluster- tailers are looking elsewhere as a result. This presents a “window of opportunity” for South Afriing. “The investment incentives absolutely transformed it ca, said Baard. But one big competitive issue remained: for us,” said Krawitz. The K-Way factory could afford to duties of up to 22% on fabric, which was the single bigbuy the best machinery available and the result was a gest input cost. Despite this, the local textile industry “highly profitable” and stable entity that is producing has continued to shrink. garments of “outstanding quality”. Garth Strachan, chief director of industrial policy at the But the most important change, according to him, was department of trade and industry, said the incentives moving from an adversarial relationship with the union have worked relatively well but there are still problems to a co-operative one. because of high input costs. Local suppliers are unable “Productivity has little to do with labour [and] every- to supply the fabric required at competitive rates. thing to do with management,” Krawitz said. “While we look at saving textile companies, we are keen K-Way has doubled its operations and the number of to ensure input costs to clothing companies are relapeople it employs since 2004. tively competitive. “We are working with clothing manufacturers, textile companies and the unions to see if further tweaking of incentives could achieve a lower cost of inputs,” he said. Poor implementation There has been a lot of talk of quick response for the
Industry pins hopes on incentive agreements
South Africa launched its employment tax incentive programme this month but efforts to implement similar schemes, aimed at encouraging companies to employ young and new workers, have been running in the clothing manufacturing sector since 2011. The results have been mixed so far but employers, at least, say they point to a possible shift in approach to wage negotiations that includes productivity and performance. In 2011 a wage agreement, hailed as a landmark at the time, was struck between the South African Clothing and Textile Workers’ Union (Sactwu) and clothing companies that were party to the clothing manufacturing national bargaining council. It allowed employers to take on young or new workers at wages reduced by 30%, provided the companies could grow the number of jobs by 15%. But only 350 jobs were created, chiefly in the Western Cape, in about 700 factories nationally, and the deal was cancelled in 2012, according to Sactwu general secretary André Kriel. A wage model that had “failed so spectacularly” could not be continued, he said. But another version, which was started in September 2012, is being tried. It allows compliant companies to hire new workers at 80% of the starting wage but it has a compulsory productivity incentive that allows workers to earn the full wage, and potentially more, provided they meet productivity targets.
Too early to tell
combined will result in new employment growth.” According to Apparel Manufacturers of South Africa executive director Johann Baard, the poor response to the 2011 scheme was owed to two major factors. First, there was unhappiness among workers receiving the lower wage on the same production lines as those receiving the full wage; and second, there were cases of good machinists who earned the entry-level rate yet outperformed their counterparts and who insisted after a few weeks on being paid the full wage. “When these problems emerged, they served as a disincentive for factories to take up the deal,” he said. Although the scheme’s initial results were “disappointing”, the fact that 350 more people were employed who might otherwise not have been is a positive sign, Baard said, especially in a sector in which one worker
supports an estimated six dependants. Despite these lacklustre beginnings, unions are increasingly understanding that employees equate to members and that the fortunes of companies and workers are “joined at the hip”, he said.
Market punishment
“If we don’t work together, the market will punish us,” “It is much too early to say whether this will be success- he said. ful to help grow jobs,” Kriel said. “In this model, we are The industry is at a crossroads, where business as usual more interested in what productivity gains can result, would hasten the downward spiral of a shrinking manuwhat the consequent competitive advantage improve- facturing footprint, he said. ments are and, yes, ultimately, whether these factors More innovative approaches to collective bargaining
and wage negotiations, including an emphasis on productivity and increased performance at plant level was needed and these types of deals were an important step in this regard, Baard said. But the unions are being more circumspect and the uptake has again been slow. “We will take stock of the overall effect at the end of this year,” Kriel said. – Lynley Donnelly Date: 24 January 2014 Source: Mail & Guardian Written By: Lisa Steyn
The Clothing Bank Expands to Midrand The Clothing Bank (TCB), founded in February 2010 in Cape Town, has opened a Gauteng branch in Halfway House, Midrand. It has received a R1.5 million start-up loan from Woolworths and is joined by Edcon as clothing supply partner.” TCB provides unemployed mothers with training, skills and support so they can become self-employed businesswomen. In four years, it has trained over 431 women whose businesses have generated collective profits of R14.6 million from re-selling over 1.1 million surplus garments in Cape Town’s townships. Over the last four years, founding sponsor Woolworths has donated 708,000 garments worth R42.5 million. Since 2012, Edcon has donated clothing worth R15 million. It is now Edcon’s largest beneficiary and receives merchandise from 80% of its stores in the Western Cape. The Gauteng branch will assist an estimated 100 women in its first year. The programme follows the holistic approach pioneered in the two Cape Town branches
and includes over 500 hours of practical training in areas such as money management, business skills and life skills and access to merchandise. Patron of TCB, Dr Precious Moloi-Motsepe said, “I have always believed that the transformative power of education, training and mentoring is crucial for unlocking the potential for women to empower themselves and support their families. I am proud and inspired to be associated with the work of TCB.” Co-founder and former Woolworths’ head of financial management, Tracey Chambers said, “TCB’s motto is don’t give a woman a fish. Teach a woman to fish and teach her how to sell her fish. Empowering women to be self-reliant is at the core of what we do. Our objective is that each woman should earn at least R3 500 per month. Our Johannesburg branch is part of a larger expansion project to open a further six branches over the next three years, supporting over 1000 women a year.” It also extends support to NGOs in need of clothing. “We are continuously looking to build relationships with new suppliers that have excess product within their supply chains that could be sold by our traders,” adds Chambers.
Meeting BBBEE targets
TCB helps meet the need for viable entrepreneurial opportunities amongst South Africa’s underprivileged women and responds to the overwhelming demand by South African retailers and the business community for successful social enterprises to collaborate with to meet their BBBEE targets for enterprise development
and socio-economic development. However, according to Chambers, with the new revised BBBEE scorecard coming into effect from 11 October 2014, many companies are uncertain how to comply. “We now advise companies on how to earn points for enterprise development, socio-economic development and skills development to ensure their contributions are fully recognised under the revised codes. If the demand for services like this continues to grow, we will certainly look at opportunities to expand in to other provinces.” Speaking at the launch, Zinzi Mgolodela, Woolworths’ head of transformation reiterated its support, “The company is proud to have been the founding supporter of TCB. We have contributed to women’s empowerment and improved the lives of ordinary women through this innovative programme. It allows women to develop life skills and support their families and communities.” As a non-monetary partner, Edcon will also contribute to the skills development programme through its Growing Hope Campaign. Representing Edcon, Mercia Maserumule, CSI manager for transformation and corporate affairs said, “We are pleased that TCB not only gives unemployed women a chance at earning a living but also empowers them with skills to run their enterprises. The opening of the Johannesburg branch will enable them to extend their reach and empower more women. It is testament to the saying ‘Educate a man and you educate one person; educate a woman and you educate a whole nation’.” For more information, go to www.theclothingbank.org. za. Date: 3 March 2014 Source: BizCommunity Written By: BizCommunity
Polo SA not Polo Ralph Lauren Global marketing gurus have done a brilliant job of marrying lifestyle aspirations with premier luxury brands. Wearing a pair of Gucci sunglasses, donning a Guess T-shirt, clutching a Louis Vuitton bag, all topped off with a spray of Chanel No 5 epitomises an elitist way of life that millions aspire to. But there is more to it than the prestige. Whether justified or not, there is a perception of quality associated with top global brands, some of which have been around for more than 100 years. So when the price tag for a single item is more than some people spend on food a week, customers must feel it is well worth forking money out for. But what happens when the iconic brand you are buying is not actually what you think it is? Like finding out that Polo in South Africa has no link to the multi-billion-dollar Polo Ralph Lauren brand in the US. Like the Cape Town businessman who first alerted me, my colleagues were peeved when I broke the news to them. They had all either bought Polo products - or wanted to- and had assumed that the items sold locally were part of Ralph Lauren’s classic international range. It is an easy mistake to make. The two brands share a name and a similar range of premium goods. But, more significantly, they use an almost identical motif: a polo player on a horse. The key difference between the two motifs is that on the local Polo products the horse runs to the right. The Ralph Lauren horse runs to the left. It turns out that Polo South Africa - which was founded in 1976 - owns the local trademark rights to the word “Polo” and the horse motif.
Ralph Lauren, who launched the famous Polo brand in 1967 and boasts stores in the world’s major cities, is barred from selling any of its own Polo goods, except perfume, in this country. Does this blurred distinction not have the potential, at best, to confuse consumers or, at worst, mislead them? Cape Town businessman Rob Laurie learned that Polo South Africa was not linked to the US brand only last year when taking a visiting French businessman to a local Polo store. The associate “lost his luggage and I had to take him to buy some Polo clothing, which is virtually all he wears”, said Laurie. When the visitor told Laurie the Polo garments in South Africa were “not genuine [not Polo Ralph Lauren]” , Laurie dismissed him as being “a typical French snob” and didn’t give it another thought. But when two business associates later backed up the Frenchman’s claims, he contacted Polo South Africa, which confirmed the two brands were unrelated. “Of concern to me is the price of the products, which are pitched at international levels, but the consumer is not aware of the situation,” said Laurie. “This should be brought to the attention of consumers, who can then make their own choice as to whether they want to buy the product.” Polo South Africa sells its classic golf shirt in its standalone stores for R700. A long-sleeve men’s shirt at its Rosebank, Johannesburg, shop was selling for R899 this week, a pair of men’s leather shoes for R1790, and women’s jeans ranged from R499 to R899. All the labels say “Made in China”. Ralph Lauren’s classic Polo golf shirt costs $85 (about R905). On the US company’s website, jeans are listed as starting at $98 , flip- flops go for $20, men’s dress shoes for $1350 and suits start at $1495 (about R16000). I asked the LA Group, which owns Polo South Africa,
why it would choose to produce a brand so similar to the US version? If the name and motif were not “borrowed” from Polo Ralph Lauren, was it just an incredible coincidence? I got nowhere with group legal adviser Rae James, who refused to answer such questions either by e-mail or on the telephone, saying they had “no relevance”. Instead, she reiterated her e-mailed statement that Polo South Africa has a “use agreement” with Ralph Lauren that entitles the company to use the Polo trademark in Africa and prevents Ralph Lauren from trading in the same territories. “To differentiate the product, it was agreed that the polo pony would face differently,” the statement read. The trademarks were registered and owned by the company throughout Africa, she said, and had been used for more than 35 years. “There’s nothing more to it,” said James when I asked for more details. When I suggested there was, asking
whether she did not think Polo South Africa was misleading consumers, she said the company was unaware of any market confusion. A simple query on where the local garments were made went unanswered. While ducking my questions, which she described as “aggressive”, James warned that if I published anything
untrue there would be “repercussions”. The threat was repeated in an e-mail from an attorney representing the company, who described certain words used by me and Laurie as defamatory. Ralph Lauren, which is rumoured to be interested in opening stores in this country, declined to comment. Polo South Africa sells its products through at least six stand-alone stores as well as in selected Stuttafords, Edgars and John Craig branches countrywide. On the Edgars website, the local Polo logo is listed under “international” brands, alongside the likes of Levi’s, Billabong and Jeep. Stuttafords, which sells Polo Ralph Lauren perfume and Polo South Africa garments, lists Polo Ralph Lauren’s logo alongside top names such as Prada, Gucci and Guess in its “brands” listing. Then there is the Branded website. The independent retailer of premier brands in Gauteng dedicates a page to the Polo South Africa brand with a link that takes users to Ralph Lauren’s website. When I called two Branded stores asking whether the Polo products it sold were the US Ralph Lauren products, one admitted it was a local brand. The other said it was Polo Ralph Lauren. Ditto for three John Craig stores phoned: one said the product was local, another suggested it came from Poland and another said it was Polo Ralph Lauren. And Polo South Africa thinks there is no confusion. Update: The headline on this story was changed to reflect Polo South Africa is not fake but there is no link to the multi-billion-dollar Polo Ralph Lauren brand in the US. Date: 10 March 2014 Source: Times Live Written By: Megan Power
New Alliance to Boost US-Africa Apparel Trade A new alliance has been formed with the aim of expanding trade and investment in the cotton textile and apparel sectors between the United States and sub-Saharan Africa. The United States Agency for International Development (USAID), the American Apparel & Footwear Association (AAFA), and the African Cotton & Textile Industries Federation (ACTIF) are to work together to promote Africa as a reliable sourcing destination for international buyers. They also plan to explore opportunities to promote US trade and investment in Africa. “Africa is poised to make great strides in economic development in this decade with our combined GDP growing by 60% by 2020,” notes ACTIF’s chairman Jaswinder Bedi. “This partnership with USAID and AAFA will ensure that both the United States and Africa participate in this growth story.” With support from USAID, AAFA and ACTIF will exchange information on market and import/export policy, guidance on requirements and best practices, and the promotion of joint solutions to address market constraints. “Sub-Saharan Africa is a growing player in the global apparel and footwear marketplace,” adds AAFA executive vice president Steve Lamar. US President Barack Obama last year emphasised the need to spur economic growth, trade, and investment in Africa. However, he also said that while AGOA (the African Growth and Opportunity Act) - which is set to expire in September 2015- needs to be renewed, “work needs to
be done to make it more effective.” USAID principal adviser for Africa, Oren Whyche-Shaw, believes the new USAID-AAFA-ACTIF partnership will “take advantage of growing opportunities in the global marketplace and create jobs and income on both continents.” Date: 31 January 2014 Source: Just Style Written By: Leonie Barrie