NEWSLETTER ISSUE NO 1 – August 2024

Table of Content

• Topic 1: WORLD NEWS (AS PER WORLD FOOTWEAR NEWS)
• Topic 2: Productivity SA & ILO Capacity Building Program
• Topic 3: Atlanta Shoe Show Report: A Promising Start for South African Footwear Manufacturers
• Topic 4: SAFLEC AGM Recap: Industry Challenges and Strategic Directions
• Topic 5: IF YOU ARE NOT A SAFLEC MEMBER YOU ARE LOSING OPPORTUNITIES!!!
• Topic 6: SOCIAL MEDIA
• Topic 7: UPCOMING EVENTS

Topic 1:
WORLD NEWS (AS PER WORLD FOOTWEAR NEWS)

Pakistan Footwear Export Drop

In the twelve months to June 2024, Pakistan’s footwear exports fell by 9.22% in value and 4.12% in volume, as compared to the previous year. Leather footwear exports took the biggest hit

According to the Pakistan Bureau of Statistics (PBS), the country shipped 21.51 million pairs of shoes between July 2023 and June 2024, generating 162.0 million US dollars. These figures reflect a drop of 4.12% in volume and 9.22% in value, on a comparable basis to the prior fiscal year. The leather footwear segment has taken the biggest hit in fiscal 2023-2024.

Pakistan exported 9.51 million pairs of leather shoes, worth 124.9 million US dollars, in the twelve months to June, down by 7.93% in volume and 12.07% in value, as compared to the same period of the previous year. This segment accounted for approximately 77% of the total value exported.

Although to a lesser extent, the other footwear segment also underperformed, with full year exports declining by 1.05% in volume (11.85 million pairs of shoes) and by 2.39% in value (34.3 million US dollars), on a comparable basis to the full year 2023-2024. Meanwhile, canvas footwear exports increased by 15.64% in volume and 110.45% in value year-on-year.

NEWS as reported by FN USA

JD Sports CEO Says ‘Nike Will Be Fine’ as the Retailer Continues to See Q2 Sales Grow in North America

On the company’s second quarter 2025 earnings call on Thursday, JD Sports chief executive officer Régis Schultz told analysts that “Nike will be fine” following a question regarding the beleaguered brand’s new product innovations.

“They are doing the right thing,” Schultz added. “They are moving in the right direction. It just takes time to do that in the market, and that’s where we believe they are on the right path.”

This sentiment follows JD’s announcement earlier this month that it has expanded its relationship with Nike by offering the Nike Connected Membership program to its U.S. customers. The move made JD the sportswear giant’s first global partner for the popular loyalty rewards program after successfully launching in the UK in 2022, the company said at the time.

Topic 2:
Productivity SA & ILO Capacity Building Program

LAST CALL OUT – LIMITED SPACES

SAFLEC and EFLC, in collaboration with Productivity SA and the ILO, have launched a comprehensive workplace capacity-building program to boost export production. The initial phase is now underway, and we are actively seeking companies to participate. SAFLEC has issued a nationwide invitation for interested companies. If you haven’t yet responded and wish to join, please reach out to Christel at 0834422379. This fully funded initiative offers a unique opportunity for companies to enhance their operational capabilities and achieve greater success in the export market. Don’t miss out on this chance to be part of an impactful program.

Topic 3:
Atlanta Shoe Show Report: A Promising Start for South African Footwear Manufacturers

For the first time, 10 South African footwear manufacturers exhibited at the Atlanta Shoe Show, marking a significant milestone for the industry. Despite challenges with stand positioning due to late approvals from the Department of Trade, Industry and Competition (DTIC), the show proved to be a valuable platform for networking and business development.

One of the key highlights was the connection with the South African Chamber of Commerce in the USA, which has committed to assisting with B2B meetings in the future. This support will be crucial as we work to expand our footprint in the U.S. market.

Additionally, our manufacturers engaged with several retailers and distributors, including a promising inquiry from a supplier for Walmart. The retailer is exploring opportunities to reduce its reliance on Chinese footwear, aiming to source 40 %from other countries, down from the current 90%. This shift presents a significant opportunity for South African manufacturers.

To capitalize on this interest, samples have been sent for industry review, and we are optimistic about the potential for further discussions and collaboration.  It’s a long way and much to negotiate.  Exports are never an overnight thing.

Overall, the Atlanta Shoe Show has opened new doors for South African footwear in the U.S. market, and we look forward to building on these connections in the coming months.

Topic 4:
SAFLEC AGM Recap: Industry Challenges and Strategic Directions

The SAFLEC Annual General Meeting (AGM) took place on 22 August at the Coastlands Sky Hotel, with a full house in attendance. The key focus of the meeting was the challenging environment the footwear industry is currently navigating. Both the Chairman and Executive Director emphasized the need to explore alternative markets, drawing inspiration from Portugal’s experience in overcoming similar challenges. They highlighted the importance of shifting towards higher-quality footwear to stay competitive.

Dr. Jay Irkhede provided a detailed report on export progress, commending SAFLEC for its remarkable performance. An analysis spanning over a decade revealed consistent growth, particularly in global markets.

SAFLEC actively engaged the attendees, inviting them to brainstorm and provide insights on how the organization can better support the industry. “We work for you,” they affirmed, reinforcing their commitment to the members.

This year’s event was notably scaled back, excluding the traditional gala dinner due to budget constraints. SAFLEC’s TechFund portion has also been placed on a 12-month hiatus as a result from SAFLIA last AGM. The leadership stressed the need for vigilance in financial management, emphasizing the organization’s reliance on membership contributions and the direct risks to grant funding.  It has been very difficult this year. The Techfund served as Footwear members’ contribution.  We have had no contribution toward footwear membership this year. SAFLEC remains dedicated to supporting the industry and is committed to finding innovative ways to navigate the current economic landscape.

Topic 5:
IF YOU ARE NOT A SAFLEC MEMBER YOU ARE LOSING OPPORTUNITIES!!!

Join SAFLEC and unlock a world of opportunities in the South African footwear and leather industry. As a member, gain access to vital resources, exclusive events, and networking platforms. With SAFLEC, seize the chance to expand into global markets through funding and support initiatives. Experience the thrill of collaborating with industry leaders, staying ahead of trends, and shaping the future of our craft. Do not just witness the excitement—be a vital part of it. Elevate your career and impact by becoming a member of SAFLEC today! Contact prenisha@saflec.co.za

Topic 6:
SOCIAL MEDIA

Topic 7:
UPCOMING EVENTS

Autumn Fair Birmingham
01 – 04 September 2024

Zambia and Zimbabwe Outward Mission
September 2024

MICAM/Simac
September 2024

Export Seminar with Nedbank September
September 2024

Fashion World Tokyo
15 – 17 October 2024

Ivory Coast
October 2024

QIMA compliance for sustainable fashion into UK and Reach Compliance Webinar
October 2024

Australia – November 2024
15 – 17 October 2024