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South Africans need to start understanding the benefits of supporting local manufacturers, even if it may cost a little more.
Pick ‘n Pay is just one of the local businesses planning to source 60% of its products locally by 2028.
The decimation of the local textiles industry in SA opened the door for cheap Chinese imports. As most of the local clothing retailers get their fashion from China, remaining competitive in the market will be a challenge.
For the most part, the government import tax on clothing and textiles can ensure that some pricing can even out, but we cannot compete with the cheap labour in Asian countries.
Labour Laws
The South African labour laws are restrictive in themselves. It is difficult for entrepreneurial companies to get staff to try and improve local clothing production, as retrenchments and the CCMA threat are real concerns for companies.
Fair Price
Consumers will need to decide on fair pricing. Do we want to pay a little bit more for an item, knowing it is supporting a local family? Or pay less to a large corporate, knowing it is from China? It is a question that the consumer can only answer.
Customers already below the breadline may not have the opportunity to take a stand against the cheaper Chinese imports. Affordability will always trump ethics in that situation.
Price vs. service vs. delivery
Ideally, customer service, speed of delivery, and of course, the ethical question of dealing with a local manufacturer all come into play when selecting a supplier.
The cheapest option may not be the best option. You cannot get the best quality, lowest price, and fastest delivery. You can pick 2 of the 3, but you never get the trifecta.
Benefits of the pandemic
The shutdown of imports and exports forced most companies to look for alternative options. It gave entrepreneurs and local suppliers to get a foot in the door to some larger retailers. If we can continue the trend of supporting the local economy, local labour, and of course, SMMEs all benefit.
Bizcash offers companies finance solutions that can help you grow your team, train staff, and enter into new markets?
Please speak to our team to find out more about how we can help you. Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.
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