One supplier to retail chain stores said late deliveries are resulting in cancellations of orders. He said that most deliveries of garments this year have been late and the company is "losing credibility with the retail buyers." Fast fashion (rapid changes in fashion designs), which is the global norm, requires retailers to stock new designs in their shops quickly and effortlessly. If local producers cannot meet the narrow delivery times, there is no doubt that South Africa will see a rapid increase in imported apparel.

Even though retailers may source from foreign suppliers, the consequence of job losses - in every manufacturing sector - will result in a diminishing consumer base. With the added impact of interest rate increases and the limitations inherent in the new Credit Act, apparel retail turnover has already declined.

The power shortage will have a detrimental effect on South African fashion. The cost of local design-intensive clothing sold in private fashion boutiques will increase. With the majority of consumers spending less on clothing or seeking low-cost high-design apparel, national sales of clothing made by South African designers may decline rapidly.

A retailer based in KwaZulu-Natal reported in December 2007 that they had lost "many business hours. all plans for expansion had been halted and overhead reduction strategies were being devised to offset the added cost per garment due to late deliveries and the cost of running generators. The respondent reiterated the point that if the situation persists, the company will be forced to find foreign suppliers and it is already reducing their orders from local suppliers. The company had incurred a loss of nearly R2-million in sales during December and January due to the power shortages.

One manufacturer who also owns fashion boutiques said that she has had to restructure her production in line with Eskom's load-shedding schedules. She said that all her staff would have to learn how to do beading and other handwork during the power cuts to maintain productivity.

South Africas clothing, textile and fashion sectors are labour-intensive, employing mostly women who are often the sole breadwinners of households. The doubled stress of an electricity price-hike of just under 15% due in April is, literally and figuratively, a disconnect with the payment of R57-million in bonuses to Eskom's top management over the last three years. The consequences of Eskom's and the government's inept management for South Africa's apparel industry and all its affiliated small business operations will be both shredding and shedding.

* Eskom is the company that supplies South Africa's electricity.

* Respondents participated in the survey on condition of anonymity.

About the Author:

Renato Palmi
ReDress Consultancy-SA
Business Development, Research and Publishing
(Apparel Industries)

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