South African Government To Build Industrial Parks To Promote The Development Of Leather Footwear Industry

The chairman of South Africa's international footwear and Leather Industry Park recently visited two other government representatives in Britain to visit the SATRA in the UK to discuss how to make use of the resources of the technology center to help South Africa's shoe industry and leather production revival.

Jaywant Irkhede, director of leather and footwear division of South Africa's Ministry of industry and trade, and Thabo Sepuru, senior director of Materials Technology Laboratory of South Africa Standard Bureau, met in Britain for several days.

Irkhede introduced the status quo of South Africa's footwear industry and leather production, emphasizing South Africa. Ministry of industry and trade In the next 5 years, we will substantially increase our production capacity and global competitiveness.

In order to develop lagging industry To reverse the loss of work and increase the trade deficit, the South African government set up a new leather and footwear industry development command group in 2011. Rob Davies, a South African Ministry of industry and trade, commented recently that South African footwear and leather industry are at a low level of domestic market share and export because of the latest technology investment and adoption.

In addition, South Africa The utilization of domestic raw skin resources is not enough. In response to this situation, Davies announced that it would spare no effort to support the South African leather and shoemaking industry. South Africa's Ministry of industry and trade will invest about 26 million 200 thousand US dollars to build multiple industrial parks to enhance the competitiveness of the country's shoemaking and leather industry.

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The innovation of garment production enables fashion companies to place manufacturing centers around target consumers to improve their reaction speed. Accordingly, the report recommends that "fashion companies must adopt new cost tracking frameworks to control costs and provide incentives for key production partners to improve productivity."

The report pointed out that the choice of supply areas was to maintain low labor costs as the primary consideration so that product prices could remain competitive, and when a country's labor costs increased, fashion companies had to shift their production areas.

"Perhaps this migration will soon be over. Cheap labor has become increasingly scarce and low cost countries are decreasing. To cope with this trend, fashion companies must make full use of existing equipment to improve production efficiency, speed up the expansion of the market and eliminate the pressure of labor cost management.

BCG believes that the current challenge requires market companies to examine their production processes and production partners from three strategic perspectives.

1. Innovation: Innovation in garment production allows fashion apparel companies to place production facilities closer to the market, increase their responsiveness to the market and better manage the demand for raw materials. Even if the cost advantage continues, such as power failure, telephone and Internet network breakdown, the report may cause additional costs and obstacles to the supply chain, the report said.

In severe cases, harsh production conditions were fatal. The collapse of the building in Sarwar, Bangladesh in 2013, fully confirmed this. Political instability is also a potential threat in many areas. " The current fashion cycle is shortened, but in the emerging low-cost countries (such as Burma and Ethiopia), the production cycle is longer. This contradiction makes people start looking for new ways to obtain low-cost supply. "Their cost advantages are spanient and may be eroded by the increase in non labor costs."

2. cooperation: increase cost spanparency. New technology and new technology, from digital design, 3D printing, to waterless dyeing and automatic tailoring, are cutting production costs and accelerating turnover. A new clothing pricing method beyond the standard labor cost model allows fashion companies to set up a new benchmark for apparel production in minutes, which helps them compare the suppliers in different regions to select the most efficient ones.

The disadvantage of China's rising labor costs is offset by the advantages of higher productivity. In a comprehensive sense, competitiveness is not lost to Philippines and Kampuchea, which are cheaper in terms of labor costs.

3. value added: raw material management. Fashion companies are also better managing raw materials through one or more of the four main methods.

A) "material engineering management" helps companies and suppliers to optimize fabric selection and production processes. B) "combinatorial complexity simplification" refers to the integration of resources, using a simpler combination of yarn counts and weights to reduce the complexity of raw materials. C) "value chain adjustment" requires companies to better arrange production time so as to distribute production burden evenly rather than relying on unstable speculation as before. D) and supply chain integration can help fast fashion companies increase production or spanform into new styles.