The falling ZAR is not all doom & gloom

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User121314

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A large portion of our one business entails the sale of branded clothing.

Caps, T-Shirts, Golf Shirts, Formal (work) shirts & various jackets. Some we import ourselves, others we purchase from other importers.

The falling ZAR, together with the 45% import duty imposed on clothing items has forced us to re-look at where we source from, as the increasing input costs of landed goods are pricing a large number of items too high.

Upshot is we've sourced manufacture of t-Shirts & Golf Shirts in Africa. Some here in south Africa, some from other countries with trade agreements that do not dictate import tariffs.

Bottom line - for less expensive clothing local IS lekker again - as an example we can now supply our clients with a 180 gram golf shirt, including their logo embroidered in left chest position starting from R99-00 each excl. VAT. For comparative purposes imports of the same weight start from R134-00 each!

We've placed orders with local manufacturers in excess of R1,3 million for delivery of clothing to us by end March. That's money staying inside South Africa, benefiting locals, rather than being sent to China.

That cannot be an altogether bad thing :).
 

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