The New Trade Act Benefits South Africa'S Clothing Industry.

A new business model, that is, "fast feedback" on market demand, is expected to be given to South Africa.

The power needed to avoid large-scale imports of clothing from Asia.

Major domestic retailers import raw materials from the Asian market, and Asian countries benefit from traditional low labor and other input costs and mass sales.

In the past 20 years, the import from Asia has not only reduced the employment of the clothing industry in South Africa, but also forced several domestic producers to withdraw.

Once held in Durban

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At the joint meeting, Barnes, an analyst at B&M, praised the new model, saying that this mode promoted the pformation of Inditex, a clothing retailer, from a regional Spanish Company to an international retailer.

B&M's analysts provide R & D assistance to apparel clusters, and get financial support from government agencies and entrepreneurs in Kwazulu to develop a support forum.

Barnes explained that according to the "quick response" fashion retail mode, once the retailers confirm the sales trend, only a small proportion of seasonal stock is purchased from the Asian producers in the 6-9 months before the season, and then the remaining department is purchased from the local manufacturers during the season.

Domestic producers can benefit from this pattern, because they can quickly cater to the high demand of local retailers in season.

In the past, retailers bought large quantities of their seasonal demand from Asian companies, almost 9 months before the season, so they had to invest a lot of money.

However, after countering promotional expenses, discounts and remaining inventory liquidation, they only get a small profit at the end of the season.

Besides, in the season, if the fashion mode changes, retailers will be in trouble.