INDUSTRY ASSOCIATION DRIVE TOWARDS EXPORTS TIKZN EXPORT WEEK 2015

The Clothing sector The decline in local production is blamed on two factors: The continued growth in imports and; The strengthening of the South African rand (R) against US$ The decline in local production is blamed on two factors: The continued growth in imports and; The strengthening of the South African rand (R) against US$ The industry is suffering from years of neglect in the areas of technology and skills transfer. Local Production Decline –impact on increased imports SA – 25 th Importer of Clothing worldwide (Source: Comtrade Data) Local Production Decline –impact on increased imports SA – 25 th Importer of Clothing worldwide (Source: Comtrade Data) Increased imports figures – largely due to growth of middle class (access to larger disposable income) Origins of SA Clothing Exports

Industry Drivers Retail GroupClothing StoresNumber of stores TurnoverComment EdconEdgars, Edgars Active, Jet, Jet Mart, Legit 738R 23.8 billion—19% from women‘s wear, 12% from men's wear and 15% from children's clothing. Retail sales of clothing: R10.9 billion. 30% share of the SA Clothing and Footwear market Woolworths HoldingsWoolworths670R 21.2 billion, of which R 7.3 billion from clothing and homewear 14.5% market share for clothing & Footwear TruworthsTruworths, Identity, Uzzi, YDE 770R6.2 billion FoschniniFoschini, Donna Claire, Fashion Express, Exact!, Total Sport, Due South 1 539R8.1 billion, of which R 6.5 billion from the clothing divisions Mr PriceMr Price, Mr Price Sport, Miladys 588R 9.5 billion, of which R 6.7 billion from apparel brands PepkorPep and Ackermans1741N/APep is the largest single brand retailer in SA.

Background of KZNFC Provide support to the fashion design sector in the province with a focus on emerging and youth designers Recognizes the importance of alignment within the sector. Recognizes that a multi-sectorial commitment to value chain alignment is important for strengthening the social, economic and creative talents of emerging and established fashion designers Strategic programmes for junior, emerging and established designers with a focus on previously disadvantaged individuals.

Industry Association & Exports Promotion BENEFITS Providing Market intelligence and advice, e.g. identification and information on new products and new markets; Facilitating exports by matching potential exporters with foreign buyers; Providing In-Market Support; Providing access to markets through Investment and Trade Initiatives, Outward Selling Mission and National Pavilions BENEFITS Providing Market intelligence and advice, e.g. identification and information on new products and new markets; Facilitating exports by matching potential exporters with foreign buyers; Providing In-Market Support; Providing access to markets through Investment and Trade Initiatives, Outward Selling Mission and National Pavilions Improvements Provision of enabling environment for emerging business e.g. Manufacturing base Skills transfer: involvement of retired skilled people to resuscitate the industry Investment on textile businesses, and accessibility of textiles to design businesses Promotion of locally manufactured products. Proactive involvement and participation of CMT’s with local designers Recognition of emerging design businesses as crucial elements in the value chain Improvements Provision of enabling environment for emerging business e.g. Manufacturing base Skills transfer: involvement of retired skilled people to resuscitate the industry Investment on textile businesses, and accessibility of textiles to design businesses Promotion of locally manufactured products. Proactive involvement and participation of CMT’s with local designers Recognition of emerging design businesses as crucial elements in the value chain

KZNFC Industry association drive towards Exports OrganizationEnterprise Development InitiativesOutcome TIKZNExport Promotion and Awareness, Trade Platforms (Source Africa, etc.) Emerging exports – design businesses in Namibia & Botswana DTIExport Readiness Assessments, Trade and International Fashion Showcase AFWL – EU Export of 14 design businesses DACInternational Design Indaba, International Fashion Showcase GFDW – 2 x designer showcase & export opportunities Brand SAInternational Showcase & Trade platforms AFWL – EU Export of 14 design businesses The Fashion Agent Local & International representation of designers, Buyer initiatives Edgars X Collection (4 KZN Designers)