While South Africa 'technically' hasn't slid into recession, the hushed tones around many a company water cooler feature the words "lay-offs", "liquidation" and "closure" a little too often for peace of mind. So with tough times just looking to get tougher, what is it you're doing with your money? Saving every last penny? Spending it on basic necessities as inflation is just forcing you to cough up more for everyday items? Throwing your chump change into your already over-extended bond so your kids won't be paying it off well into your grandchildren's life-times? MasterCard's inaugural Consumer Purchasing Priorities survey has found that while 81% of South African's are cutting back on discretionary spending, only 77% think saving is important. SA locals will, however, be likely to spend their hard-earned dosh on fashion and accessories (there's no need to look poor), their children's education (so the sprogs can get well-paying jobs and look after us in our old age), and buying or revamping properties (and then flogging them off for twice the original price, when the market bounces back, that is). The fashion industry should breathe a small sigh of relief at this, although it may be too late for some, as Renato Palmi points out. So if you're not happy to rest on your tailored laurels, Palmi gives some personal insight into how the clothing industry can stylishly stay out of the red this season.

Shan Radcliffe, Retail editor retailnews@bizcommunity.com Responses to this column welcomed in our new online editor's column archive.