- The Chief executives of South African retailers have revealed that the energy crisis in China, spiraling shipping costs, and Covid-19 supply chain disruptions are persuading them to look at manufacturing products locally.
- More than half of South Africa’s clothing textiles, shoes, and leather products are sourced from abroad, mainly from China.
- To tide over the logistics challenges, South African retailers are also exploring other sources outside China, such as India.
The Chief executives of South African retailers have revealed that the energy crisis in China, spiraling shipping costs, and Covid-19 supply chain disruptions are persuading them to look at manufacturing products locally. More than half of South Africa’s clothing textiles, shoes, and leather products are sourced from abroad, mainly from China. To tide over the logistics challenges, South African retailers are also exploring other sources outside China, such as India.
The Foschini Group (TFG) which owns the @Home homeware brand is planning a major shift to local manufacturing to counter supply chain issues and to improve lead time. The company plans to spend about R575 million over the next three to five years to build local manufacturing capability. With soaring shipping costs, TFG wants to manufacture furniture locally in South Africa instead of importing them. It is also adding clothing and jewelry to its local sourcing list. TFG sources 72% of its clothes locally. It is planning to increase local production to 30 million pieces a year within four years, up from 11.5 million currently.
Norman Drieselmann, chief executive of South Africa’s Retailability, which owns retailer Edgars said that the group is planning to expand its local vendor base. He added that the company has started to engage more actively with India as an alternative, particularly for fabric sourcing. Woolworths, another leading retailer that sources about 30% of its fashion, beauty and home products from China, also is making arrangements to buy more locally.
