>But manufacturers’ export trade has been all but destroyed by the rise of low-cost production in China, while sales to local retailers have been declining, though less dramatically, for the same reason. Not surprisingly, manufacturers’ loss of market share with the big domestic retailers led to a strained relationship between the two. And then suddenly, Woolworths, Foschini, Truworths and Edgars Consolidated Stores announced they were forming a partnership with some Western Cape manufacturers.Half way through the launch to mark retailers joining the Cape Clothing and Textile Cluster, a fax was read out from Mr Price, stating their intention to join a similar body in KwaZulu-Natal. But if retailers can buy cheaper in China, why bother with local manufacturers?When asked if retailers had joined simply out of wanting to look good, Cape Clothing and Textile Cluster chief facilitator Justin Barnes said as retailers there probably was some public relations value in joining, but the primary reason was that it made business sense.Barnes said local producers could offer retailers quick response times and small batches of particular items that the geographically distant Chinese manufacturers couldn’t.This suits high fashion retailers that change their fashion lines more than a couple of times a season and like to make orders at short notice, depending on what items are moving fast at that point in time. Local retailers might also want to reorder a small batch of a particular item that has sold faster than expected. Chinese manufacturers tend to operate more in bulk orders. This “turnaround time” reason is a common thread that runs through the responses of Woolworths, Truworths and Mr Price.But interestingly, both Truworths clothing chain deputy managing director Tony Taylor and Woolworths chief executive Simon Susman argued that it had taken more than common interest to bring the two parties together They noted that without the persuasive powers of Barnes and his B&M Analysts colleague, director Mike Morris, it was unlikely the two parties would have come together..Susman said it had taken courage for competitors to come together and share information, though competitive information wouldn’t be shared.. Taylor joked that he “felt scared just walking into this building”..Barnes has also been attributed with having played a key role in the recent success of the automotive sector, through his ability to get sometimes competing companies to co-operate for the good of the sector..The intention of the partnership is that retailers will lend expertise in supply chain management to manufacturers, as well as commit some of their financial resources..Taylor stressed that they were hardly giving producers a blank cheque, and Barnes said manufacturers had to offer retailers world-class service that was also value for money..Morris said that the department of trade and industry had previously told manufacturers to stop moaning and calling for protection until they had got their own house in order and started to speak with one voice..The manufacturers might have a way to go, but they have at the very least piqued the interest of the powerful retailers, which have the expertise and resources to help.They noted that without the persuasive powers of Barnes and his B&M Analysts colleague, director Mike Morris, it was unlikely the two parties would have come together..Susman said it had taken courage for competitors to come together and share information, though competitive information wouldn’t be shared.. Taylor joked that he “felt scared just walking into this building”..Barnes has also been attributed with having played a key role in the recent success of the automotive sector, through his ability to get sometimes competing companies to co-operate for the good of the sector..The intention of the partnership is that retailers will lend expertise in supply chain management to manufacturers, as well as commit some of their financial resources..Taylor stressed that they were hardly giving producers a blank cheque, and Barnes said manufacturers had to offer retailers world-class service that was also value for money..Morris said that the department of trade and industry had previously told manufacturers to stop moaning and calling for protection until they had got their own house in order and started to speak with one voice..The manufacturers might have a way to go, but they have at the very least piqued the interest of the powerful retailers, which have the expertise and resources to help. .Source: ifashion.com.za
Date:4/11/2006
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