Cape Union Mart battles against rising imports
Outdoor clothing manufacturer K-Way‚ which is part of Cape Union Mart‚ has invested R2m in equipment and machinery to gain an edge over imports from the East‚ which are putting strains on local clothing‚ textile and footwear manufacturers.
"Cheap and often illegal imports from Asia and China have compelled domestic manufacturers to step up performance‚" said Cape Union Mart chief executive‚ Andre Labuschaigne.
K-Way employs about 190 people and has increased the size of its factory's by 700m² at a cost of more than R3m‚ to enhance production capabilities.
Local manufacturers are competing with the Asian market's low prices where labour costs are lower allowing large production runs. Asian producers are also supported through export subsidies offered from local authorities.
However‚ price is no longer the only determining factor of competitiveness in the industry says Labuschaigne.
"These markets offer low-complexity products and we cannot compete with them on price without sacrificing quality. However‚ we make the best top-end technical adventure clothing using the latest production methods and have also improved our operational capabilities‚" Labuschaigne claimed.
"Over the past eight years demand for K-Way products has increased substantially with sales rising more than five-fold," he said.
The Cape Union Mart Group stocks major local brands including‚ Old Khaki‚ Sparks and Ellis and owns Poetry -- a lifestyle concept store for women.
"We will continue to encourage government to scrap or lower import duties on fabric while it finds solutions to bolster the local textile industry. This in turn would see further growth of the manufacturing sector‚" Labuschaigne said.
Source: I-Net Bridge
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