Newsletter No. 20 01 June 2018
Click on any ad to go to the advertisers website…
TFG to add six stores in Australia in October
By Nick Hedley
Picture Katherine Muick-Mere
The TFG Australia business is performing better than expected, says CEO Doug Murray.
TFG plans to open six stores in Australia under one of its South African brands in October, says group CEO Doug Murray.
“For competitive reasons, we’re not saying which [brand], but we’ve already got stores signed up,” Murray, who will step down as CEO in September, told Business Day.
The TFG Australia business, which comprises the recently acquired Retail Apparel Group (RAG) and some G-Star Raw outlets, was performing better than expected and new stores were planned, Murray said.
“RAG is really trading well…. For the eight months we had it, turnover growth was up just over 14%,” he said. Trading since the end of TFG’s financial year to March had been “ahead of expectation – and we expected a similar level of growth”.
“So we’re very thrilled with RAG’s results, and that’s not driven by any obscene markdowns. Gross profit is growing at a faster rate.”
The owner of the Markham and Foschini brands said on Thursday group turnover rose 21.4% to R28.6bn in the year ended March. Headline earnings were up 9.6% at R2.5bn.
However, the group’s share price closed 7.4% lower at R180 as the result was below market expectations, said Bjorn Samuels, an equity analyst at Argon Asset Management.
Meanwhile, Murray said TFG London, which includes Phase Eight, Whistles and the recently acquired Hobbs brand, was “running ahead of our expectations as well”.
“Their big focus this year is now getting shared services across the three brands and getting a TFG London platform. That will put us in a position where, like in SA or Australia, bolt-on acquisitions will be very doable. In the UK, once we get the back office platform in place, and that’s started, there’s a lot of good businesses and brands there that we can bring our model to.”
Murray said online sales now contributed 33% of TFG London’s sales, 3.5% of sales in Australia and just 1% of sales in SA.
The group aimed to “digitise” the South African business by boosting online sales and using technology to have “a single view of the customer”, in addition to other uses. Online sales in SA could reach “5% to 10% over the next few years”.
Samuels said TFG Africa’s clothing division was performing better than its listed peers, and the recent court ruling concerning SA’s affordability regulations could boost credit growth at TFG Africa.
“We believe TFG is the better positioned apparel retailer in SA, given its diverse portfolio of brands which serves customers across the various [living standards] groupings,” he said. Business Day
New cotton ginnery to come up in Kenya’s Kwale country
A cotton ginnery is going to come up at a cost of Ksh 90 million (approximately $886,000) at Kinondo village in Kwale county in Kenya. It aims to revive the country’s’s cotton industry by improving farming, ginning and garment production. Base Titanium Limited will construct the ginnery with the help of the Kwale Pamba Viazi (PAVI) farmers cooperative society.
The ginnery has been launched by Adan Mohamed, cabinet secretary for industry, trade and cooperatives. It will feature 6 gins with a capacity to process up to 1,800 kg of cotton per day and capable of producing about 600 kg of lint each. The unit is expected to process cotton produced by over 10,000 farmers by the end of next year.
The business centre in which the ginnery is located will also have offices, warehouses, manufacturing and distribution facilities, storage facilities, demonstration plants and more.
Base’s cotton programme has been implemented by Business for Development, and it has partnered with Cotton On, an Australian apparel company, that purchases cotton from PAVI cooperative which is meant to organise and support farmers participating in agricultural livelihood programmes, said a Kenyan broadcasting service.
Kenya has a potential to produce 700,000 bales of lint through rain-fed cotton production and close to 200,000 bales of lint through cotton grown on irrigated land, annually, as per the ministry of agriculture of the country. However, the country only produces 20,000 bales of lint every year. The number of cotton farmers in the country has also gone down from 200,000 in 1980s to 30,000 now.
Kenya imports 80 per cent of the lint for its domestic requirement while the country’s ginning machines and textile mills operate under capacity.
Replicating the Kwale ginnery in other cotton producing areas of Kenya can lead to a generation of 760,000 new jobs in the cotton value chain F2F
Ghana makes tax stamp compulsory on imported textiles
To curb illegal imports, Ghanaian authorities will put a tax stamp on textiles entering themcounty beginning June 1, 2018. And from September 1, after a 3-month grace period, traders will not be able to sell textiles that do not have tax stamp, minister of trade and industry Alan Kyerematen announced after a meeting with representatives of local industry.
The step would ensure that all imported textiles are regulated, and it may also force foreign companies to shift their production base to Ghana, Kyerematen told mediapersons after a meeting with representatives from Textile Manufacturing Companies and Industrial Commercial Workers Union of Ghana.
The shifting of manufacturing to where demand is, would also mean more revenue and employment for Ghana, the minister added.
The minister, however, made it clear that the government does not intend to put a complete ban on textile imports; it only wants to manage/restrict imports so that domestic manufacturers are not pushed out of the business.
The tax stamp, that would be put on every piece of fabric entering the country, would be issued by the ministry of finance. The government constituted anti-piracy task force would have power to seize textiles that do not have tax stamps. F2F
Rob Fletchers talks to EFI who are looking to capitalise on an increase in demand in the textile print market by launching its new EFI Reggiani COLORS printer
By Rob Fletcher
Boasting a top speed of 560sq m/hr, the device can print in up to 12 colours in a row and users can place the 12 colours in a high-productivity 6+6 configuration for what EFI describes as “superior imaging at much faster throughput speeds”.
A continuous ink recirculation system ensures outstanding reliability, according to EFI, and lets users print with a wider variety of inks, including special inks, inks of different chemistry types, and chemistry for special treatments all at the same time.
Speaking to FESPA.com about the new EFI Reggiani COLORS, Adele Genoni, vice-president and general manager for EFI Reggiani, said that such is the flexibility of the printer that it will enable print service providers to expand into a number of profitable markets.
“EFI Reggiani COLORS plays an essential role in the fashion industry, and an expanded gamut gives textile producers that competitive advantage,” Genoni said. “The printer therefore provides superior imaging at much faster throughput speeds, improving production workflows and including the ability to move to greener, environmentally friendly processes.
“It is for industrial textile producers, particularly those working doing applications with very demanding colour requirements.”
Genoni added: “The Reggiani COLORS can print a broader range of colours as well as use different types of inks making it a much more versatile production option. So, textile manufacturers can grow their business by producing designs that their competitors cannot produce cost-effectively.”
Although the EFI Reggiani COLORS will not be on display at the FESPA Global Print Expo 2018 in Berlin, Germany, next month, Genoni said the manufacturer will showcase a range of other kit that can help printers expand their business.
“We will be exhibiting the EFI Reggiani FLEXY, a digital printer equipped with a brand-new Dynaplast system which provides the ability to print complete on a wide variety of fabrics, ranging from knitted and woven to low-and high-stretch materials,” Genoni said.
“Visitors at FESPA will experience the complete textile workflow. From design to digital print, showing visitors the advanced benefits of garment workflows featuring EFI Optitex design and digital software, EFI Fiery digital front ends and EFI Reggiani inkjet printers.
“This workflow makes it easy to collaborate globally and reduces the cost of both sample making and the manufacture of small-lot apparel. It is already revolutionising the fast fashion market by reducing the need to ship expensive samples around the globe, speeding up the design and manufacturing process.”
To find out more about the FESPA Global Print Expo 2018 and to see the other companies that will exhibit, visit: https://www.fespaglobalprintexpo.com
For free entry use code FESJ801 when registering.
The Paper Dress
Photo: Courtesy of StyleSixties
What started as a marketing promotion for a paper company became a flash-in-the-pan fad during the 1960s. The paper dress, usually printed with bright, geometric patterns, was a rapid success, but as the dresses were literally made with paper (and nothing else), they were not sustainable purchases. A woman could get away with wearing the dress one time at most before it ripped and became relegated to the waste bin. Talk about fast fashion!
To Advertise………………….. Click here to see fact sheet with advertising rates.
Please remember to send me your news so that we can share it with all our readers in the weekly newsletter.
Although editorial is neither guaranteed nor implied, suitable editorial for consideration may be submitted to: