EDDELS SHOES/CELROSE CLOTHING: A Cut Above in SA Fashion

There is real, and realistic, hope that the South African fashion industry could bounce back resiliently from the challenges it has been posed by Covid-19. Heavily burdened consumers have meant that South Africa’s clothing industry has not escaped the impact of the pandemic, with retail sales in the SA clothing and textile industry reaching the worst decline ever recorded in 2020, falling 6.9% overall. This is, according to StatsSA, also the sole year of contraction, barring a decline in sales of 3.2% in 2009 at the height of the global financial crisis.

The local clothing, textile, footwear and leather (CTFL) value chain saw markedly constrained demand for retail goods, exacerbated sector-wide by several plant closures and associated job losses in the past year, which in turn reduced local capacity to produce. Retailers continued to face a range of operational challenges, such as supply chain disruptions causing delays and further losses due to shipping challenges, port congestion and rising logistical costs. This impacted local suppliers as contracting order books placed significant strain on many businesses in the supply chain.

LOCAL IS LEKKER       

Heeding the lessons learned and shifting to fully support the local market, while avoiding the readopting of pre-pandemic practices, will be the key to patching up this partially tattered sector, opines Maryne Steenekamp, Head of Stadio School of Fashion (SOF). “The local fashion industry has indeed taken a knock, however, we can emerge stronger if we continue to embrace the ‘local is lekker’ ideology, especially when it comes to our supply chain, alongside consideration for the environment,” she advises.

“Since the start of the pandemic it’s been difficult to import clothing and textiles from Asia, which means that we should use this as an opportunity to focus on our local industry and keep it alive. We can support local designers by seeking out ‘Made in South Africa’ garments and fabrics. As designers and producers of garments, we need to realise that the more we contribute to our local supply chains the more cost effective it will become compared to imports from China. This means that we can safeguard our local economy and become more competitive.”

This is also where the Retail Clothing, Textile, Footwear and Leather Master Plan, signed by government and local retailers in 2019, comes in. Implemented in earnest in 2020, it aims to increase the proportion of locally manufactured products sold in-store from 44% (in 2018) to 65% by 2030, while simultaneously creating jobs. Thandi Phele, acting deputy director-general of the division for industrial competitiveness and growth of the Department of Trade, Industry and Competition (DTIC), clarified that manufacturers have committed to ramp up productivity and invest in production.

“Even though the industry was under pressure, clothing imports took a bigger hit than locally manufactured clothing as retailers are buying goods more locally and local manufacturers are benefiting from this. Government has also committed to creating an enabling environment for investment in the South African clothing, textile, footwear and leather industry, through strategic tariff support, appropriate manufacturing incentives, and clamping down on illegal imports,” he thoroughly outlined.

“A masterplan was important because of the history of the sector and over the last few years the sector had suffered because of a decline in manufacturing. The rationale behind the Masterplan was therefore based on the industry’s major contribution to the SA economy; the fact that South African retailers purchased products worth R70 billion in 2016; and the fact that imports of around 50% typically dominate clothing, textiles, and footwear and leather product purchases.”

This local focus is music to the ears of John Comley, CEO at Eddels Shoes and Celrose Clothing. For many years in the textile sector the overwhelming appeal of homegrown manufacturing has been loudly vaunted, with key figures citing its superior quality and affordability as well as a flexibility otherwise not available, alongside notable job creation. Historically, the pull of enviable pricing from the East has been too strong for some retailers to resist; the tide now seems to be turning considerably in favour of domestic fashion.

DOMESTIC CHAMPIONS

Celrose has been at the forefront of the South African sartorial game for nearly 80 years, offering quality garments at competitive prices since 1946. Based in Tongaat KZN, just 40 minutes north of Durban, the importance of manufacturing locally is stitched directly into the fabric of both Eddels Shoes and Celrose Clothing, according to Comley. “Manufacturing and great manufacturing companies are vitally important for the future of this country,” he enthused previously.

Celrose as we know it today was established in 1975 as the manufacturing arm of the Edcon group, opening its main manufacturing complex to both ramp up capacity and incorporate specialist equipment into a state-of-the-art warehouse. In 2006, Edcon divested and Comley was appointed as CEO, with investments in technology, modern processes and new managerial processes helping to turn substantial losses into big profits within the decade.

“We work extremely hard on product diversity and flexibility, to become the first name in the customer’s mind,” Comley revealed. “Not only will they get top service quickly; they will also get guaranteed quality and after sales service and support.”

Comley was already well-known in industry circles for having revived Eddels, a shoe factory in Kwa-Zulu Natal where Celrose is located, by introducing at his arrival in 2000 innovative worker-participation and incentive schemes to enhance both productivity and profitability. Situated in Pietermaritzburg, Eddels is a shoe manufacturer that has been providing South African consumers with quality footwear for not far short of 120 years. The company is famous for kitting out faithful customers in brands such as John Drake, QC, Riccardo, Aeroflex and Freedom, making in excess of 3000 pairs per day.

These two local heroes now look toward a future being brightened by a confluence of factors, all accelerating a shift by South African retailers away from a reliance on Asia and to source products locally. Spiralling shipping costs and Covid 19 supply chain disruptions meet with the significant progress already made in line with the R-CTFL master plan, and Eddels Shoes and Celrose Clothing will be at the forefront of the fightback. “After all,” as Comley put it best, “as a businessman, a captain of industry and as a citizen, you’ve got to determine your own success.”