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SowetanLIVE reports that spiralling shipping costs and Covid-19 supply chain disruptions are accelerating a shift by SA retailers to end their heavy reliance on Asia and move to source products locally.
More than 50% of SA’s clothing textiles, shoes and leather products are imported, mostly from China, putting SA’s retailers at the mercy of forces beyond their control. While the government launched a programme in 2019 offering tax incentives to source goods locally, the recent problems arising out of Asia have added urgency to what had been a slow shift, four top retailers in SA told Reuters. “Most furniture in SA is imported. We are looking at options to manufacture more here, particularly at the moment when shipping costs are up 400%. It is even more of a reason, if you needed one” said TFG CEO Anthony Thunström. TFG, which sources 72% of its clothes locally, said earlier this month it wanted to locally manufacture 30-million pieces a year within four years, up from 11.5-million now, and was adding furniture and jewellery to its growing local list. Thunström said a lot of TFG’s jewellery was already made in SA, but he wanted to further increase local sourcing. TFG said earlier in November it would spend a further R575m in the next three to five years to build local manufacturing capability. The owner of British women’s wear brands Hobbs and Whistles and SA’s @Home homeware brand wants these products to be manufactured locally on a quick turnaround basis to improve lead times and be competitive against global chains
- Read the full original of the report in the above regard by Nqobile Dludla at SowetanLIVE
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