By Nqobile Dludla JOHANNESBURG, Oct 7 (Reuters) - South Afr
By Nqobile Dludla
JOHANNESBURG, Oct 7 (Reuters) – South African vogue group TFG TFGJ.J plans to extend funding at its two clothes factories within the Western Cape because it continues to cut back its reliance on China and different worldwide suppliers hit by the COVID-19 pandemic.
The proprietor of the Section Eight and Foschini ladies’s clothes manufacturers mentioned on Wednesday it’s going to add extra flooring house and make use of a further 530 staff this yr and 5,000 by 2025.
5 years in the past, TFG sourced 70-80% of its merchandise from the East. It at present produces about 35% of its garments domestically, or round 16 million items, and mentioned it intends to extend this considerably over the subsequent few years.
The pandemic and related lockdowns have ripped a gap by way of the garment manufacturing sector, with many retailers cancelling orders as they closed shops around the globe, resulting in the shuttering of hundreds of factories and big job losses.
There may be additionally discourse amongst retailers about bringing some sorts of manufacturing again to their home markets, the place governments are trying to revive native industries.
“Now we have confirmed that we could be extra worthwhile as a retailer with domestically manufactured items than with imported items, regardless of loads of typical knowledge on the contrary,” TFG Chief Government Anthony Thunström mentioned.
“Native permits us to calibrate inventory into our system with a a lot shorter lead time than we ever have been capable of up to now.”
The normal lead time for internationally sourced clothes gadgets is 150 to 180 days in comparison with 42 days on common when domestically produced, TFG mentioned.
Nonetheless, the success of native manufacturing depends on the proper economies of scale, material availability and abilities wanted to supply particular merchandise like heavy winter clothes, which aren’t available in South Africa but, Thunström added.
(Reporting by Nqobile Dludla; Modifying by Kirsten Donovan)
(([email protected]; +27115952816; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.