The Foschini Group (TFG), for example, has worked to enhance the efficiency of its procurement processes in China, where much of its clothing is manufactured. One of the first moves was to reduce the number of Chinese ports through which products are shipped – from 20 down to 5. Up to 20 containers a day are shipped to TFG from these 5 harbours.
At the fashion end of the apparel market, what counts is speed to market and flexibility. Spanish retail chain, Zara, is a leader in this respect and tries to manufacture garments close to its major markets, often at its own factories.
TFG is emulating this and, in 2012, acquired Prestige Clothing, and its garment factories in Cape Town and Caledon. Both have since been revamped into state-of-the-art production facilities that can take garments from concept to production, in 2-4 weeks.
Other fashion retailers including Woolworths, Truworths, and Mr Price have also upped their local procurement markedly. “Higher up the value chain, where-speed-to-market counts, upwards of 80% of clothing is, today, locally produced,” says Johann Baard of Apparel Manufacturers of South Africa, which represents garment sector employers.
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