South Africa Clothing Market Analysis Report - Cheap Imports Continue to Flood the Market, with Escalating Power Cuts Limiting Retail Trade

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Feb 13, 2024, 10:30 ET

DUBLIN, Feb. 13, 2024 /PRNewswire/ -- The "Clothing Industry in South Africa 2023" report has been added to ResearchAndMarkets.com's offering.

South Africa's clothing industry has shown resilience in the face of rising inflation, pressure on disposable income and global supply chain challenges. Clothing manufacturers face rising costs of manufacturing inputs, freight, fuel and wages and falling consumer disposable income due to an economy that is not growing.

Local retailers are focusing on local manufacturing to bring prices down and shorten lead times to bring fashion to the market. Government regards the clothing and textile sector as a strategic industry with a potential for significant job creation, and has introduced initiatives aimed at improving domestic textile products, processes, and delivery efficiencies.

Cheap imports continue to flood the market. Escalating power cuts limit retail trade and result in significant increases in operating costs. The breakdown of rail, port and road infrastructure, particularly the backlog at ports, threatens the industry which has stock sitting at sea while fashion and high trading seasons march ahead.

Opportunities

A growing young youth population ensures high demand for clothing.

Growth in online shopping means new companies can sell online without having store presence. If manufacturers can cut lead times and introduce short production cycles, they can establish a significant advantage for retailers who source their products locally. Low barriers to entry for designers and entrepreneurs. The shift to local manufacturing has the potential to create jobs.

Challenges

Difficulty competing with the flood of imports on cost.

The heavy reliance on imported materials make South Africa's clothing manufacture and retail vulnerable to international events, supply chain disruptions and exchange rate volatility. The rising cost of living, and unemployment levels have reduced the amount that consumers spend on clothing.

Power cuts causing huge additional costs for retailers to stay open and reduced sales as people stay away from shopping centres during blackouts. South Africa's relatively small size mean relatively less economies of scale.

Trends

Increased demand for and supply of cheap imported products due to financial hardship and pressure on disposable income. Increased local manufacture as retailers increase their localisation targets. Opportunities Quick response and better stock management resulting in more local manufacture.

Outlook

The trading environment in South Africa's clothing sector is expected to remain challenging in the year ahead with blackouts resulting in escalating costs and in many cases limited production and sales hours.

Consumers face rising fuel, electricity, food prices and interest rates, which will continue to affect disposable income. A weakening economy and high levels of unemployment have seen South Africans adopt value conscious shopping behaviours which have led major retailers to opening a lot of stores in the low priced segment.

The drive to source products locally has led to increased investment in capacity for local manufacturing and benefits to retailers in terms of sourcing products quickly and reducing their reliance on international supply chains.

Report Coverage

This report on the clothing industry in South Africa includes clothing manufacture and retail and discusses the size and state of the industry, progress on the masterplan, key issues and trends, notable players, and influencing factors such as the power crisis and ports backlog.

There are profiles of 87 companies including major retailers such as Mr Price, Woolworths, TFG, Truworths and Pick n Pay, manufacturers such as Prestige Clothing and Trade Call Investments Apparel, and school and workwear companies including Gem Schooling, Grand Uniforms and Jonsson Workwear.

COMPANY PROFILES

Allwear
Ashwood Holdings
AST Safetywear
AVI
Baywear Clothing
Blue Falcon 188 Trading
Cape Mohair
Cape Union Mart International
Catheryne Gayela Fashions
Celrose
Charnaud and Company
City Express Stores
Colbar Clothing
Davinscot Tongaat
Durban Overall
E'tem Fashions
Fashion United
Foschini Retail Group
Frame Leisure Trading
Franz Falke Textiles
Fredock Trading
FrontierCo
Gauteng Uniform Supplies
Gelvenor Africa
Gem Schoolwear
Gina of Charles Street
Grand Uniforms
GSM Trading
Hashtag Works Group
Hi-Tec Sports Distributors
Holdsport
HTC Stores
Imagemakers
Jacques Hau
Jade E-Services
Jadine House
Jo Borkett Fashions
Jonsson Workwear
Judy's Pride Fashions
Junit Manufacturing
K-Way Manufacturers
Karma Clothing
Kingsgate Clothing
Kitsch Kool Properties
L A Group
Lancashire Manufacturing Company
Levi Strauss
Lontana Apparel
Mary's Fashions
Massmart Holdings
McCullagh and Bothwell
McIver Apparel
MoreGolf
Morgan Pillay Clothing Manufacturing
Mr Price Group
Ninian and Lester
Pepkor Holdings
Pick n Pay Retailers
Planet 54
Prestige Clothing
Pretty Girl Fashion Group
Prikell Clothing
Qualification Schoolwear
Queenspark
Rage Distribution
Retailability
Seamless Technologies
Select M Stores
Shoprite Holdings
Shugaz Fashion and Textile
Simply Work Wear
Sirdicks
Sparks and Ellis
Suzi Products
Sweet-Orr and Lybro
Team Clothing and Gifts
Tiger Uniforms
Trade Call Investments Apparel
Triton Clothing Manufacturers
Truval Manufacturers
Truworth
Twin Clothing Manufacturers
Ubunye Uniforms
Umoja Embroidery
Venda Clothing Manufacturers
Woolworths

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY

2.1. Industry Value Chain

2.2. Geographic Position

2.3. Size of the Industry

3. LOCAL

3.1. State of the Industry

3.2. Key Issues

3.3. Key Trends

3.4. Notable Players

3.5. Trade

3.6. Corporate Actions

3.7. Regulations

3.8. Enterprise Development and Social Economic Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS

6.1. Unforeseen Events

6.2. Economic Environment

6.3. Electricity Crisis

6.4. Input Costs

6.5. Environmental Issues

6.6. Labour

6.7. Technology, Research and Development (R&D) and Innovation

6.8. Competition

6.9. Ownership Structure of the Industry

6.10. Barriers to entry

7. INDUSTRY SUMMARY

8. OUTLOOK

9. INDUSTRY ASSOCIATIONS

For more information about this report visit https://www.researchandmarkets.com/r/f02138

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