NEWSLETTER ISSUE NO 1 – July 2024

Table of Content

• Topic 1: WORLD NEWS (AS PER WORLD FOOTWEAR NEWS)
• Topic 2: Productivity SA & ILO Capacity Building Program
• Topic 3: ARSUTORIA One-Week Virtual Handbag Workshop
• Topic 4: SAFLEC/EFLC & DTIC Manufacturing Support Program Guidelines Workshop
• Topic 5: Vietnam CIFA
• Topic 6: Korea Import Fair
• Topic 7: SAFLEC AGM
• Topic 8: IF YOU ARE NOT A SAFLEC MEMBER YOU ARE LOSING OPPORTUNITIES!!!
• Topic 9: SOCIAL MEDIA
• Topic 10: UPCOMING EVENTS

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

UK Retail: Are the winds starting to blow in retailers’ favour?

Last year saw footwear production and exports decline by 6% and 9.1% respectively, according to data published in the World Footwear Yearbook 2024, as recently released by APICCAPS, the Portuguese Footwear Association

Drop in global footwear production

In 2023 global footwear production decreased by 6% to 22.4 billion pairs, the lowest point in a decade when discounting the pandemic years of 2020 and 2021.

There had been a loss of 1.5 billion pairs, following a drop in consumption in the main markets, as represented by the United States (-749 million pairs), China (-398 million pairs), and the European Union (-399 million pairs). Last year, 14 billion pairs were exported worldwide, down by 9.1% over the previous period. Despite the decline of 6.1% in the value of exports, the $168 billion registered in 2023 was the second-highest level on record.

NEWS FROM FDRA

Shoe Store Sales Retreat again in May, Reinforcing Earlier Outlook for Another Weak Year in 2024

Seasonally adjusted shoe store sales sagged -5.4% in May from a year earlier, lower thirteen of the last fifteen months. By the numbers: At a seasonally adjusted $3.156 billion, shoe store sales retreated to the lowest May in four years, since the early days of the pandemic.

The weak May showing concurs with economic signs for some time suggesting retail footwear sales may struggle to gain much traction in coming months. We maintain our earlier downbeat assessment for retail footwear demand to remain flat-footed well into 2024.

Topic 2:
Productivity SA & ILO Capacity Building Program

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:
ARSUTORIA One-Week Virtual Handbag Workshop

With the consistent rise in handbag and general goods exports, SAFLEC/EFLC identified a crucial opportunity to empower our members with advanced industry knowledge. We hosted a prestigious global season’s workshop on handbags and leather goods, conducted by Maria Christina Rossi, an esteemed expert formerly associated with Versace and Valentino in Italy. This workshop provided in-depth insights into the latest trends and colours for the 2025/26 seasons, ensuring our members stay ahead of the curve.
More than 10 companies benefitted from this comprehensive online webinar, gaining essential understanding to innovate and adapt to market demands. By participating, these companies are now better equipped to align their products with global trends, driving their success and competitiveness in the international market. This initiative underscores SAFLEC’s /EFLC commitment to fostering growth and excellence within the industry.

Topic 4:
SAFLEC/EFLC & DTIC Manufacturing Support Program Guidelines Workshop

The recent funding workshop organized by SAFLEC and EFLC introduced the dtic Manufacturing Support Programme (MSP), designed to enhance competitiveness and investment in the manufacturing sector. Developed against the backdrop of MCEP and MIP, MSP aims to aid sectors impacted by COVID-19, civil unrest, and flooding. Effective from 1 April 2024, MSP targets operational efficiency, transformation, employment creation, and localisation. Key components include competitiveness improvements, green technology, and capacity expansion. Mandatory conditions and eligibility criteria ensure applicants are registered entities compliant with B-BBEE, with projects leading to job retention and creation. The MSP offers up to a 20% reimbursable grant, encouraging significant industry growth. In addition, the seminar also addressed the Black Industrialist Programme, which aims to increase the participation of black-owned businesses in the mainstream economy. This program, launched by the dtic, offers funding, market access, and non-financial support to black industrialists. Funding through this program covers capital investments, feasibility studies, and business development support. The program has been instrumental in funding nearly 800 black industrialist businesses and entrepreneurs, contributing significantly to job creation and economic growth​ (The DTIC)​​ (Gov.za)​.

These funding opportunities are essential for businesses looking to expand and enhance their operations, providing the necessary support to drive industrial growth and economic transformation in South Africa. For more detailed information on the Black Industrialist Programme, you can visit the dtic website​ (Gov.za)​.

Topic 5:
Vietnam CIFA

SAFLEC Engages at Exclusive CIFA Gathering

SAFLEC attended the CIFA conference, an exclusive event for select footwear associations and councils. Membership is by invitation only, with a three-year initiation period, and SAFLEC is now in its final year. SAFLEC was identified and approached after speaking at SIMAC trade event in Italy, where Director Nerisha Jairaj was called to speak on the changes on consumer buying behaviour and how it was affecting retail buy as well as its impact on manufacturing globally. The consumer is dictating she said, and online is the KING. Bespoke and original and purposeful buying is the new norm. The e-world and social media and AI is the new way. This calls for change. And unlearning and re-learning. Those who don’t move with this change will face major challenges. Country bodies must figure out how to support their members to navigate and survive through this difficult period. The key word is survival, as we want our industries to exist and not to close. The economic and geopolitical as well as logistics cost and challenges are not making things any easier. The CIFA conference, dominated by the Asian continent with Turkey and SAFLEC as the only non-Asian members, offers insights into global trends, challenges, and opportunities. With over 80% of global footwear production and exports controlled by CIFA members, these interactions are crucial for benchmarking, networking, and strategizing exports. Additionally, gaining knowledge about competitors enhances SAFLEC’s ability to stay competitive in the international market and to understand what we can expect in the coming years.

Topic 6:
Korea Import Fair

SAFLEC Engages at Exclusive CIFA Gathering

SAFLEC/EFLC members recently exhibited in Korea, focusing on the vibrant market for handbags and leather goods. Korean consumers show a significant preference for handbags and leather accessories over clothing and footwear, making this a strategic move for SAFLEC. This exhibition offered a prime opportunity to showcase South African craftsmanship and design to a market that values high-quality, unique leather products. Attending such events allows SAFLEC to gain valuable insights into consumer trends, understand competitor offerings, and enhance South Africa’s export strategies in the leather and footwear industry​ (TheKoreanGuide)​ . We happy to announce that one of our exotic handbag manufacturers is in progress with a request for over R 2m and all the participants made sales at the event, which not a usual occurrence as sales normally take a while to negotiated and not all participants are successful a trade event. This was the first time we walked away with all 10 members achieving success.

Topic 7:
SAFLEC AGM

SAFLEC Engages at Exclusive CIFA Gathering

We are pleased to announce that the SAFLEC and EFLC Annual General Meeting (AGM) will take place on the 22nd of August at the Coastlands Hotel, starting at 3:00 PM.

This year, we are focusing not only on the official business of the AGM but also on a valuable brainstorming session where your insights and ideas will be at the forefront at helping us strategies. Your participation is crucial as we navigate these challenging times together.

While we have made the prudent decision to forgo a gala dinner this year due to budget considerations, we believe that our networking event, complemented by cocktails and snacks, will provide an excellent opportunity for meaningful connections and discussions. This is more than just an AGM—it’s a chance to collaborate, share knowledge, and strengthen our community.

Your attendance is vital, and SAFLEC strongly encourages all members to join us. Together, we can ensure a prosperous future for our industry.

Topic 8:
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 9:
SOCIAL MEDIA

Topic 10:
UPCOMING EVENTS

Atlanta Shoe Market
10 – 12 August 2024

Autumn Fair Birmingham
01 – 04 September 2024

Fashion World Tokyo
15 – 17 October 2024

DRC Inward Mission
August 2024

Mozambique FACIM
August 2024

Zambia and Zimbabwe Outward mission
Sept 2024