From the Desk of Executive
Director, Nerisha Jairaj
Dear members,
As March 2024 draws to a close, it’s time for another newsletter to keep you in the loop. Let’s kick off with a dose of inspiration! As we journey through the footwear industry, let’s embrace determination. Despite obstacles, let’s rise, dust ourselves off, and press onward. Like a rainbow after a storm, brighter days await beyond every challenge. Together, let’s channel resilience, creativity, and passion to achieve remarkable success. Though the path may be tough, our unwavering perseverance will turn obstacles into stepping stones toward greatness.
Read below for exciting updates and collaborative opportunities.
Best regards,
Nerisha Jairaj Executive Director, SAFLEC
Table of Content
- Topic 1: WORLD NEWS (AS PER WORLD FOOTWEAR NEWS)
- Topic 2: IF YOU ARE NOT A SAFLEC MEMBER YOU ARE LOSING OPPORTUNITIES!!!
- Topic 3: Hong Kong Trade Show
- Topic 4: Trade Flow Seminar for SMMEs
- Topic 5: Sustainability and the Footwear Industry with William Wong
- Topic 6: Sustainability Initiative Beneficiaries
- Topic 7: SOCIAL MEDIA
- Topic 8: UPCOMING EVENTS
Topic 1:
WORLD NEWS (AS PER WORLD FOOTWEAR NEWS)
Global slowdown in the international footwear trade
A sluggish demand in two of the main areas for footwear consumption, the US and Europe, resulted in a global slowdown in international trade throughout 2023. Check the snapshot of the performance of the main players with the figures known so far. Given that most footwear exports come from Asia (83.9% in 2022), we decided to look at this continent first, starting with China, which exports more than 70% of its production and whose footwear exports rose to a new record high of 58 billion US dollars in 2022. This Asian giant has seen a decline of 3% in volume and 13% in value from January to November 2023, as compared to the same period of 2022; the value per pair has also fallen significantly by 10%.
The available data for Vietnam is not encouraging either: having become the world’s second-largest exporter of footwear over the past decade, Vietnam’s value of footwear exports fell by 17% year-on-year over the same period. Indonesia followed a similar trend. The value of its footwear exports fell by 20% between January and September 2023, on a comparable basis to the same period of 2022: a year marked by significant export growth of around 25%, exceeding the 10 billion US dollars mark.
A highlight was well to the 6th largest export in terms of volume, India, which saw a 17% increase in export volume and a 30% growth in export value in 2022. The data available for the first ten months of 2023 shows that the country experienced a decline of 11% in volume and 17% in value, with the value per pair falling by 6% year-over-year during this period.
On the American continent, Brazil, whose footwear production mainly supplies its domestic market, had also seen significant growth in exports in 2022. However, this trend came to a halt in 2023: from January to November, its footwear exports dropped by 9% in volume and 14% in value, with the value per pair down by 6%, as compared to the same period of the prior year.
From January to September 2023, footwear imports from the 27 countries of the EU countries decreased by 11% in volume year-over-year, reflecting a diminishing consumption of shoes in the region. But perhaps the most significant data about consumption comes from the US, which was the destination for one in every five pairs of internationally traded shoes in 2022, with a global share of 20.5%. In the first eleven months of the year, US footwear imports fell by 30% in both volume and value, as compared to the same months of the prior year.
While we still need to wait for the final data in 2023, it’s safe to say that in a year marked by high inflation and a higher cost of living, there was definitely a slowdown in the global footwear trade, and perhaps a bit of an adjustment after the general recovery to pre-pandemic levels.
Topic 2:
IF YOU ARE NOT A SAFLEC MEMBER YOU ARE LOSING OPPORTUNITIES!!!
Connect with SAFLEC and open the door to a wealth of opportunities within the South African footwear and leather sector. As a member, you’ll unlock essential resources, exclusive events, and networking opportunities. With SAFLEC, you can seize the opportunity to expand your presence in global markets through funding and supportive programs. Engage in collaborative ventures with industry pioneers, stay ahead of trends, and help shape the future of our trade. Don’t just observe the excitement—be an integral part of it. Elevate your career and influence by joining SAFLEC today! Reach out to prenisha@saflec.co.za to get started.
Topic 3:
Hong Kong Trade Show
South Africa marked a significant milestone by participating in the finished goods sections of the APLF trade show this March, securing an impressive 2 million rands worth of business. Notably, our leather members independently funded their presence in the leather and raw materials sections, including Mossop’s and Thurling Investments and this added to the South African presence. The personal inclusion of South Africa in the opening ceremony provided a substantial positioning boost. Moreover, the invitation extended to our Executive Director, Nerisha Jairaj, to speak at the Global Summit underscores the positive reception South Africa has received internationally. Our ongoing efforts in awareness, positioning, and promotion are yielding promising results. Now, with manufacturing members fully embracing and delivering, we are poised for even greater success.
Topic 4:
Trade Flow Seminar for SMMEs
At SAFLEC and EFLC, our commitment to hosting informative sessions like the recent seminar on 13th March at SAFLEC offices with Martin Cameron from Trade Advisory underscores our dedication to empowering businesses with the tools they need to thrive, both in local and international markets. These sessions are instrumental in fostering a focused approach to business growth by providing members with invaluable insights and strategies.
By delving into topics such as identifying realistic export opportunities, strategic thinking, and cost-effectiveness, our seminars equip attendees with the knowledge and skills necessary to navigate the complexities of both local and international trade. This focused approach not only enhances the competitiveness of member firms but also enables them to capitalize on lucrative opportunities in global markets while simultaneously strengthening their presence in local markets.
Furthermore, by addressing upcoming suggested topics by our 11 attendees, such as the AfCFTA, compliance, and international company setup, we will ensure that our members stay ahead of the curve and are well-prepared to tackle emerging challenges and opportunities in both local and international markets.
Ultimately, these sessions play a pivotal role in fostering a culture of continuous learning and improvement within our community. By arming businesses with the knowledge and resources they need to expand into both local and international markets with confidence, we contribute to the sustained growth and success of our members’ enterprises. Don’t miss out on more of our training and informative sessions!!!
Topic 5:
Sustainability and the Footwear Industry with William Wong
The recent webinar titled “Sustainability in the Footwear Industry” gathered considerable attention with over 18 companies in attendance. Facilitated by William Wong, a renowned expert in global footwear sustainability, this event provided a crucial platform for members to explore pressing sustainability issues in today’s market.
In an age where sustainability is paramount and consumer behaviour is shifting towards purpose-driven purchasing, it is imperative for businesses to adapt and innovate. William Wong’s expertise, including his roles as Founder/Executive Vice President of the Federation of Hong Kong Brands and his involvement in various advisory councils and associations, brought invaluable insights to our members.
The seminar aimed to enrich attendees by shedding light on the importance of sustainability in the footwear industry and exploring strategies to meet the evolving demands of the modern consumer. By fostering discussions on sustainability practices and trends, we empower our members to not only stay relevant but also lead the way in shaping a more sustainable future for the industry.
Topic 6:
Sustainability Initiative Beneficiaries
The eThekwini Footwear and Leather Cluster, managed by SAFLEC, has propelled green initiatives to new heights, marking a significant milestone in our commitment to sustainability. This initiative supported three manufacturers in the industry by providing a small springboard to incorporate and develop greener products. The process involved establishing Terms of Reference (TOR) and issuing a call for proposals to the member base in the region, which were rigorously adjudicated by a project steering committee. To ensure transparency and accountability, external auditors will monitor and evaluate the implementation of funds (R 50 000) according to the proposals received.
Upholding governance is our top priority, we are dedicated to overseeing the progress and success of the project. Funding is limited for such projects said SAFLEC the manager of the program, but we believe every small bit helps. This particular project is funded by eThekwini, and we are most grateful on behalf of our industry especially this year when our funding falls short of every other year with our portion of Tech fund on a 12-month holiday. Congratulations to the three awarded companies for their dedication to advancing sustainability in the footwear industry which we firmly believe will help grow exports.
Topic 7:
SOCIAL MEDIA
Our social media platforms have been hitting record breaking hits. Our last post obtained over 160 000 likes, boosted to followers in the rest of Africa, Europe, Middle East, and North America. We encourage you to take advantage of our efforts to promote you.
Send us content to push your company and brands. Also like, follow, and forward our links to your contact lists. Let’s build the following globally, so that we can show the world our capability.
Twitter: @SAFLECEXPORT
Facebook: @SAFOOTWEAREXPORT
Instagram: @saflec_team
Youtube: SAFLEC
Topic 8:
UPCOMING EVENTS
SAFLEC/EFLC & USAID ATI-APS Grant Opportunity Webinar
18 April 2024
ARSUTORIA One Week Durban Workshop
06 – 10 May 2024
Streamlining the Process of Obtaining VET Permits and Mitigating Potential Hurdles Webinar with Dr Soni of the Department of Agriculture
May 2024
ARSUTORIA One Day Cape Town Workshop
13 May 2024
Atlanta Shoe Market
10 – 12 August 2024
Atlanta Shoe Market
10 – 12 August 2024
NEC Birmingham
01 – 04 September 2024
UZCHARM
15 – 17 October 2024
Imagine if Colonel Sanders had given up, we would never have experienced the joy of KFC’s finger-lickin’ good chicken. Consider if Isaac Newton had abandoned his pursuit; we wouldn’t have the marvel of electricity lighting up our lives. These examples remind us that greatness often arises from perseverance in the face of challenges. Till next month my fellow Foot fellowship!!!!!
