Who Owns Whom

The Footwear Industry

Nina Shand | South Africa | 26 February 2018

The South African Footwear Industry

The South African footwear industry, a sector that includes the manufacture, wholesale, import and retail of shoes, slippers, boots and safety shoes, is proving resilient in the face of tough economic conditions and is worth approximately R54.9bn. The manufacturing sales value of the industry was estimated to be worth R5.5bn in 2016, up from 4.5bn in 2014. The industry is well-organised and represented by the Southern African Footwear and Leather Industries Association (SAFLIA) and the South African Footwear and Leather Export Council (SAFLEC), which promotes, facilitates and networks South African-made footwear internationally. SAFLIA statistics show that 193 footwear manufacturers employed 11,937 people.

A Net Importer

According to the South African Footwear and Leather Industry Association (SAFLIA), the local market demand for footwear is 248 million pairs. Although local manufacture increased 10% from 60.8 million pairs of shoes in 2015 to 66.8 million pairs in 2016, an estimated 73% of all footwear items are imported. However footwear imports decreased in volume terms by 7.6% to 181.1 million pairs, from 196 million pairs in 2015. China is still responsible for nearly 90% of all the footwear imported into South Africa.

Report Coverage

The report on the South African Footwear Industry discusses the domestic industry, recent developments and factors influencing the success of the sector. The report profiles 57 companies including retailer, Edgars which closed its Shoe Gallery stores in 2017 citing challenging trading conditions, and Steinhoff Africa Retail Ltd (Star), a new independent company established to run all Steinhoff’s Africa businesses. The company, owner of Pep, Ackermans and Shoe City, acquired Tekkie Town in November 2016 and then listed on the JSE in September 2017. Also profiled is BBF Safety Group whose Bagshaw Footwear division is set to increase its national and international footprint following an investment of R16m into state-of-the-art moulding equipment.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 16
4.1.2. Regulations 17
4.1.3. Enterprise Development and Social Economic Development 19
4.2. Continental 20
4.3. International 23
5. INFLUENCING FACTORS 26
5.1. Economic Environment 26
5.2. Government Support 27
5.3. Customs Concerns 27
5.4. Delays in SABS Testing 28
5.5. Technology, Research and Development (R&D) and Innovation 28
5.6. Labour 31
5.7. Cyclicality and Seasonality 33
5.8. Environmental Concerns 34
6. COMPETITION 35
6.1. Barriers to Entry 36
7. SWOT ANALYSIS 37
8. OUTLOOK 37
9. INDUSTRY ASSOCIATIONS 38
10. REFERENCES 38
10.1. Publications 38
10.2. Websites 38
APPENDIX 1 40
Government Support Programmes 40
COMPANY PROFILES 43
A J CHARNAUD AND COMPANY (PTY) LTD 43
ADIDAS (SOUTH AFRICA) (PTY) LTD 45
ASMALL AND SONS (PTY) LTD 48
AST SAFETYWEAR CC 50
AVI LTD 52
BATA SOUTH AFRICA (PTY) LTD 56
BBF SAFETY GROUP (PTY) LTD 59
BIG BLUE 61
BLUE FALCON 188 TRADING (PTY) LTD 64
BMT STREETFEVER CC 72
BOLTON FOOTWEAR (PTY) LTD 75
CAPE UNION MART INTERNATIONAL (PTY) LTD 78
CAPRINI FOOTWEAR (PTY) LTD 83
CHIC SHOE MANUFACTURERS (PTY) LTD 85
CITY EXPRESS STORES (PTY) LTD 87
CORRIDA SHOES (PTY) LTD 89
DENED CC 91
DICK WHITTINGTON SHOES (PTY) LTD 94
DODOS SHOES (PTY) LTD 96
EDCON LTD 99
EDDELS SHOES (PTY) LTD 103
FAST FOX FOOTWEAR (PTY) LTD 105
FOSCHINI RETAIL GROUP (PTY) LTD 107
FRAME LEISURE TRADING (PTY) LTD 111
FRANCO CECCATO (PTY) LTD 113
HI-TEC SPORTS DISTRIBUTORS (PTY) LTD 115
HOLDSPORT LTD 117
HOUSE OF BUSBY (PTY) LTD (THE) 123
HOUSE OF MONATIC (PTY) LTD 126
HTC STORES (PTY) LTD 129
JADE E-SERVICES SOUTH AFRICA (PTY) LTD 132
JUDY'S PRIDE FASHIONS (PTY) LTD 134
L A GROUP (PTY) LTD 136
LABORA SHOES (PTY) LTD 138
MASSMART HOLDINGS LTD 140
MICHELLE FOOTWEAR (PTY) LTD 146
MODEL EXTENSION (PTY) LTD 148
MOREGOLF (PTY) LTD 150
MR PRICE GROUP LTD 153
NIKE SOUTH AFRICA (PTY) LTD 157
OLYMPIC-FLAIR (PTY) LTD 160
ONE STEP AHEAD CC 162
ONSHELF INVESTMENT SEVENTY THREE (PTY) LTD 164
PALM FOOTWEAR MANUFACTURERS (PTY) LTD 166
PICK N PAY RETAILERS (PTY) LTD 168
PUMA SPORTS DISTRIBUTORS (PTY) LTD 173
QUEENSPARK (PTY) LTD 176
RAGE DISTRIBUTION (PTY) LTD 180
REBEL SAFETYGEAR (PTY) LTD 182
RETAILABILITY (PTY) LTD 184
REXVIEW INVESTMENTS (PTY) LTD 186
SHEZI INDUSTRIAL HOLDINGS (PTY) LTD 188
SHOPRITE HOLDINGS LTD 190
SMILEY'S FOOTWEAR (PTY) LTD 195
STEINHOFF AFRICA RETAIL LTD 197
TRUWORTHS LTD 201
WOOLWORTHS (PTY) LTD 204