South Africa’s clothing sector battles global disruption
By Adrian Ephraim
South Africa’s clothing and textile industry stands at a crossroads. With 200 000 retail staff and significant manufacturing operations, the sector faces unprecedented challenges from offshore online giants and structural inefficiencies that threaten its survival.
Michael Lawrence, Chair of the National Clothing Retail Federation (NCRF), paints a sobering picture of an industry under siege. “Shein and Temu and others are welcome to the game,” he says, but the welcome comes with a warning – these platforms could cost South Africa over 34 000 jobs if current trends continue.
Global disruption in South Africa clothing industry
Chinese e-commerce giants Shein and Temu have fundamentally altered the competitive landscape. Lawrence acknowledges their sophistication: “There must be real hard cash behind all of that because they’ve got some very smart business models.”
These platforms leverage artificial intelligence for personalised pricing and have established integrated supply chains. “They’ve got design copying which does not happen from people. It’s actually digitally generated,” Lawrence explains, highlighting the technological gap South African retailers face.
Five years ago, the NCRF signed a master plan to boost local manufacturing. The results show promise – participating retailers increased average local content sourcing from 35% to just over 46%. “And average means some people are even over 50%,” Lawrence explains.
However, fundamental challenges persist. Lawrence describes manufacturing as burdened by “legacy equipment” and outdated models. “Most of our manufacturing sector has legacy equipment that needs to be sweated 20 hours a day, not six hours a day.”
South Africa clothing sector scale and skills gap
Manufacturing operations need significant scale to justify quality management. “You’re really optimised at about 150 staff members. Ideally you want about 300,” Lawrence says.
The sector also suffers from operational constraints. Manufacturing facilities operate limited hours while service industries remain open weekends. “We have a million service industries that are open on a Sunday. But manufacturing closes down Friday at 12:00,” Lawrence says.
The skills shortage is equally critical. “Who goes to high school these days and says I want to work in clothing manufacturing? Nobody,” Lawrence says bluntly. This contrasts sharply with competitive markets where workers actively plan entrepreneurial ventures while employed.
“We need people who know how to work numbers, who can walk into a factory and put together logic sequences necessary for optimising machinery,” he explains.
Lawrence criticises the regulatory environment as “unnecessarily burdensome,” advocating for the government to act as facilitator rather than transactional player. “Business does not work like that. We need an environment that gives a lot more flexibility.”
Regional opportunities for South Africa clothing sector
Despite challenges, Lawrence sees potential in regional expansion. The federation sources from Madagascar, Mauritius, and other SADC countries. “We still sell in excess of 2 billion units of clothing in this country collectively,” he notes.
The African Continental Free Trade Area presents opportunities with over a billion consumers, while seasonal differences between hemispheres could enable export-focused manufacturing models.
Entrepreneurship gap in South Africa’s clothing industry
Lawrence identifies a critical entrepreneurship deficit compared to competitive markets. In countries like Vietnam and Cambodia, workers systematically plan their businesses from day one. “By age 30, they know everything about running a factory and can show they know everything,” he explains.
In contrast, “my average 30-year-old in this country is only interested in joining a union for a set salary.”
The industry needs genuine entrepreneurs, not just self-employed individuals. “We need people who can prove entrepreneurial skill. I actually think there is money” for the right ventures, Lawrence believes.
For entrepreneurs entering the sector, Lawrence emphasises the importance of long-term planning. “Nobody’s going to give you an order for the next six months. Someone’s going to give you an order for 18 months. That’s your space.”
Lawrence’s vision requires addressing structural issues: modernising equipment, improving operational flexibility, developing skills, and creating enabling environments. “It’s never too late,” he insists, but success demands coordinated action.
Manufacturing needs to move beyond limited operational hours and embrace technologies that allow 20-hour daily operations. The sector must also develop fabric manufacturing capabilities once product manufacturing establishes clear input demands.
“We’ve got roads that run, but the government must fix the potholes,” Lawrence concludes. “We need proper substantive dialogue on how to address this as a problem at scale.”
