CLOTHING & TEXTILES INDUSTRY

The South African clothing and textile industry is marked by the use of natural, human and technological resources to grow its standing as a preferred international supplier. While the industry may be comparably small, it is well-placed to achieve this vision over the next decade and the Western Cape is a vital pillar.

In fact, sales of manufactured textiles were worth around R25bn in 2017, with finished textile products accounting for some R14bn (The Textile Industry in South Africa Report, 2018). With a location quotient of more than two within the city, clothing and textiles is Cape Town’s strongest manufacturing comparative advantage industry (by some margin).

This sector of the manufacturing industry in the Western Cape lies predominantly in the clothing, textiles, footwear and leather pillars (CCTC, 2017). While Cape Town does tend to focus more heavily on the production of wearing apparel and on high-fashion items, the industry continues to be a major employer in the Cape Town economy. In fact, this sector employs over 28,863 individuals – making the city the second-largest employer within the manufacturing sector.

The Mother City is also the most labour-intensive sector outside tourism and the primary sector, meaning that the job return on investment tends to be higher than in other sectors (City of Cape Town, 2016).

“For decades the clothing and textiles industry has been a key job creator and a key sector in our economy and as the city’s enterprise and investment department it is one sector that we really are hoping to get behind to ensure that the industry can bounce back and reach its full potential.” Lance Greyling (City of Cape Town Director of Enterprise Investments).

Growth of the Clothing & Textiles Industry in Cape Town

The South African market demand increasingly reflects the sophistication of First World markets and the local clothing and textile industry in Cape Town has grown accordingly. This has included the expansion of a full range of services – from natural and synthetic fibre production to non-woven, spinning, weaving, tufting, knitting, dyeing and finishing.

The apparel industry in the Western Cape has also undergone significant technological change and has benefited from the country’s sophisticated transport and communications infrastructure.

The high concentration of retail head offices in Cape Town, (including Woolworths, the Foschini Group, Truworths, Pep and Cape Union Mart, among others) means that retailers and manufacturers can coordinate their activities to ensure the quickest possible response to changes in customers’ tastes and preferences. The added presence of a burgeoning fashion design industry within the city further enhances this edge within the global market.

Cape Town’s clothing and textile industry is well served by organisations such as Clotex and the Cape Town Fashion Council, which operate at different points in the value chain but share the common vision of seeing the growth of the clothing and textiles industry within the city. The strong collaboration in the industry’s value chain and the presence of large and dynamic manufacturers in the city enable it to more easily adopt quick-response models than other regions in the country.

While, in terms of trade, Cape Town’s clothing and textile industry imports more than it exports, in recent years exports have flourished. Between 2014 and 2015 exports grew by 12.6%, driven by strong increases in exports to Namibia (Cape Town’s largest export market for clothing and textile products). Exports to the United States, under the African Growth and Opportunity Act (AGOA), has increased by 53.2%, making it the fastest-growing of Cape Town’s top export markets (Wesgro, 2016).

Cape Town’s Clothing & Textiles Competitive Advantages

A large amount of government activity and support focuses on improving industry competitiveness, while other interventions focus on boosting local demand. This is also to ensure the creation of efficiencies throughout the value chain, from supplier to retailer. These include the Clothing and Textiles Competitiveness Programme (CTCP) and the establishment of a number of regional and product-specific clusters.

For example, the Cape Clothing and Textile Cluster is a partnership between the Western Cape provincial government and 16 regional manufacturers. South Africa’s four major clothing retailers (Edcon, Foschini, Truworths International & Woolworths) are also a part of the cluster. The aim of this entity is to improve the competitiveness of the clothing and textile industry in South Africa and the Western Cape, so as to ensure continued success. Some of these competitive aspects include:

• The city’s proximity to major retailers (with head offices in Cape Town), as well as local designers and manufacturers creates a vertically integrated value chain. One that is better able to respond to fast-changing fashion trends.
• There is a strong tradition of Cut-Make-Trim (CMT)-related skills (especially seamstresses) in Cape Town. This ensures a continuing legacy of quality and craftsmanship.
• The ease of access to the Port of Cape Town results in cheaper transportation costs for textile inputs.
• The sector is also well-organised and supported through a number of government-funded sector bodies.
• The Department of Trade and Industry offers incentives and assistance through its Clothing and Textiles Competitiveness Programme and the Competitiveness Improvement Programme.
• Cape Town is a design hub, with many of the major fashion designers, as well as skilled talent basing themselves in the city.

As trade barriers fall and regional integration takes hold, South Africa will continue to grow from strength to strength in terms of clothing manufacturers and factories in Cape Town. Contact us today for more detailed information, or read up on Cape Town’s Clothing & Textile industry frequently asked questions.