Next stop, South Africa
Dec 01, 2018 ｜ by Liang Long
Under the unified arrangement of CNTAC, the Third ATF Show/China Premium Textile& Apparel Trade Show - South Africa organized by Sub-Council of Textile Industry, China Council for the Promotion of International Trade (CCPIT TEX) and Messe Frankfurt Exhibition GmbH (South Africa) are taken place in Cape Town International Convention Center, South Africa on November 20 - 22, to deepen economics and trade relations among China, South Africa and other countries in the African region, and to carry out the Belt and Road and “going global” transnational layout strategy of textile industry.
It is worth mentioning that this China Premium Textile& Apparel Trade Show-South Africa (CPT) and South Africa Textile, Apparel and Footwear Exhibition (ATF) are taken place at the same place and at the same time. This exhibition sets up an important commercial trade information platform for domestic enterprises to understand South Africa and explore the South African market; hence, numerous domestic well-known enterprises are attracted for active participation.
Develop new markets, profit from South African market
This year marks the 20th anniversary of the establishment of diplomatic relations between China and South Africa. For the past twenty years, mutual political trust between the two countries has been continuously enhanced, and bilateral relations have achieved a “three-step leap” from partnership, strategic partnership to comprehensive strategic partnership. At present, China's textile and apparel enterprises have significantly accelerated their “going global” pace, while African Growth and Opportunity Act (AGOA) has been extended to 2025. Meanwhile, textile and garment industry enhances the cooperation with Africa about production capacity cooperation among international community, opportunities in Africa are naturally the focus of much attention for Chinese enterprises, which has become an important fulcrum for Chinese enterprises to explore the African market.
Although South Africa has the largest textile industry in Africa, the local garment can only meet 60% of domestic demand. Besides, the demand of consumers on textiles is characterized by diversification and small quantity, their demand on varieties is similar to that of developed countries, so the market potential is tremendous. In terms of tariffs, the European Union exempts 95% of South Africa's imports from tariffs. The vast majority of goods of South Africa, as one of major beneficiary countries of AGOA issued by America, can export to US market with tariff exemption. In addition, South Africa also has the youngest average age of population all around the world, namely 19 years old per capita; the growth rate of middle class is the highest in the world; urbanization rates are the fastest growing throughout the world. Besides, this country owns enough labor, labor and raw material costs are lower; the economic development level is relatively high, with complete infrastructure, abundant resources; both the gross domestic product and foreign trade turnover rank first in Africa; all these factors form great temptation for China's textile and garment enterprises to explore Africa market.
Especially in recent years, South Africa, by virtue of advantages of comprehensive strategic partnership with China, being one of BRICS and Chinese policy of “One Belt and One Road”, has been China's largest trading partner in Africa for eight consecutive years since 2009. The figures show that Africa plays a significant role in the textile, garment and footwear industries in the future ten years.
Speaking of the first exhibition, the manager of Guangzhou Dide Clothing Co., Ltd., Luo Yanji says: “Since we have cooperative customers in South Africa, and the investment in South Africa has been booming in recent years, we sign up for the exhibition, to further consolidate the existing customers and understand the investment and market environment there for further expansion”. She continues to say: “In recent years, our products are mainly exported to Europe and the United States, while cowboy wear and thin knit sweaters are mainly exported to South Africa every year, although the volume is not large, but basically stable. Therefore, through this exhibition, we have chance to understand the local market for adjusting strategies and exploiting new markets.”
Innovative service level, perfect matchmaking
Since it was successfully held in 2016, China Premium Textile& Apparel Trade Show-South Africa has held two sessions, which has obtained the attention of numerous international customers. This China Textile Exhibition and South Africa Textile, Apparel and Footwear Exhibition (ATF) are taken place at the same place and at the same time; and the exhibition area reaches 5000 square meters, nearly 100 Chinese enterprises participate in the exhibition, and the number of professional visitors are expected to exceed 5,000. According to the previous exhibition data analysis, professional visitors mainly consist of manufacturers, buyer's shop/retailers, importers/traders, service providers and department stores; fabrics, men's wear, shoes, hats and luggage, outdoor sportswear, women's wear and other categories are main focus. Hence, the innovative achievements of yarn, shell fabric, accessories, garment, apparel, footwear, bags and suitcases, CAD, e-commerce and other fields are showed emphatically. There are four exhibition area for business docking and field acquisitioning. In addition, the sponsor holds investment meetings, business forum and a series of activities during the exhibition, to further improve the service level, establish a business platform and help the visitors to achieve perfect docking.
During the nearly 100 enterprises participating in the exhibition, garment enterprises account for 30%, shell fabric enterprises account for 15%, home textiles enterprises account for 35%, and shoes & bag enterprises account for 20%. These enterprises are mainly from Zhejiang, Jiangsu and Fujian, most of them belong to export-oriented enterprises.
When it comes to the feelings of the participation, LuoYanji is very satisfied with the service of the sponsor. She expresses: “We have been paying attention to CCPIT TEX, which establishes various platforms and international exhibition for “going global” of enterprises; through this exhibition, we contact with numerous buyers and merchants, especially know the development information and market trend of local textile and clothing brands, so that we can timely understand the information, carry out accurate docking, and develop the South African market more smoothly.”
Furthermore, for the manager of Shishi Shanrui Import& Export Co., Ltd., Yang Zhongmou who participates in the exhibition for the first time, although he has never been to South Africa, he still know something about the South African market through years of long-term cooperation with several customers there. He says: “Under the leadership of CCPIT TEX, we have taken participation in textile exhibitions held in many countries, such as America, Germany, Russia and so on, which positively promote our exploitation in local market, so we sign up early for the South Africa exhibition.” He expresses that they are full of confidence to enter the South African market by virtue of years of experience in export trade, cost performance, quality and other advantages.
The fourth ATF Show/China Premium Textile & Apparel Trade Show-South Africa sponsored by CNTAC, and presented by CCPIT TEX and Messe Frankfurt Exhibition GmbH (South Africa), Jiangsu United Asia International Exhibition Group, Zhejiang Broad International Convention& Exhibition Co., Ltd., and CCPIT, Ningbo Branch will be taken place in Cape Town International Convention Center, South Africa on June 12-14, 2019, to promote Sino-African trade persistently and drive the Chinese enterprises to carry out “going global” strategy. On the occasion, the fair will be taken place together with the SOURCE AFRIC exhibition which has a 20-year history of holding exhibitions and is an international procurement platform serving exhibitors outside Africa (except China). These three expositions will become an unparalleled industry event in the African market through cooperating with upstream and downstream of the industry.
“The ownership of ATF project had been changed at the end of 2017, it has been taken over by Messe Frankfurt Exhibition GmbH since 2018 totally. As the third largest exhibition company in the world, we attach great importance to the emerging market of South Africa, and an important strategy of our company is to make an arrangement in South Africa in advance. I believe that we will bring more colorful and wonderful exhibitions to the South African market depending on our global experience in organizing exhibitions jointly with CCPIT TEX.” As the CEO of Messe Frankfurt Exhibition GmbH (South Africa), Konstantin says. In future, by virtue of the strong resources, publicity and appeal of CCPIT and Messe Frankfurt Exhibition GmbH, and by means of SOURCE AFRICA database, the fourth exhibition will be a strong alliance and become a mainstream textile& garment procurement platform in Africa definitely.
Implementation of “going global” strategy slowly but surely
After several decades of developments, China's textile industry has entered a new stage of transnational layout. As the international advantage of the existing supply chain is challenged by the rigid increase of cost in China, the industry urgently needs global distribution of production capacity and transnational cooperation of high-quality resources to create new advantages for international competition. Therefore, Africa, especially South Africa naturally enters into the vision of China's textile industry due to its potential for industrial transfer after Southeast Asia. Hence, we are supposed to thoroughly understand ourselves and South Africa market, and go ahead steadily and surely. “Although our company is small, we have been devoted to export trade for more than ten years, our cotton clothes are mainly designed for 1-12 years old children, and our main market is in Japan and Europe and the United States.” The general manager of Nantong Zhuoqi Import& Export Trade Co., Ltd., Zhang Qiang continues to say: “We have participated in several exhibitions under the leadership of CCPIT, whose extraordinary arrangement and diligent services set up an excellent platform for knowing local market and expanding trade, so we would like to participate in South Africa show to learn more about the South African market and prepare for the next step.
In an interview, Zhang Qiang expresses: “More than ten years of foreign trade experience has laid a solid foundation for product quality and quick response of enterprises, so we are full of confidence for investment in South Africa. Currently, “going global” is the general trend. The enterprise must pay more attention to internal competitiveness, improve product quality, combine customer demand based on self-positioning, and find the breakthrough point of bilateral cooperation, to expand the business scope and move steadily. For example, our company is specialized by the products deserted by large enterprises and small companies, to seek our own positioning and advantages in the fierce market competition”.
During this participation, they bring different styles of kids wear in four seasons combining the local climate characteristics of South Africa and limited online information. Zhang Qiang says that they will have deeper understanding on South Africa market, which will be helpful for adjusting product design and style, and actively adapting to local market.
At this point, Luo Yanji also suggests that the enterprises must figure out the characteristics of local market and be based on their own product positioning, to open up the market specifically and pointedly. The product price must be not too high, and the style should be concise to conform to local fashion trends. Meanwhile, there are certain risks for “going global”, especially including local political stability, exchange rate changes and product quality, thus it must make a comprehensive consideration and avoid a risky move.
“South Africa supports the internationalization of RMB, Many Chinese Banks have branches there. Besides, it cannot be settled in RMB in a large amount of trades, which is a good news for foreign trade enterprises. So far, South Africa is not only one of the top destinations for Chinese investors to invest in Africa, but also an important spring-board for Chinese investors to enter the whole African continent because of its remarkable influence.” The relevant responsible person of CCPIT TEX also says in an interview: “The investment in South Africa has broad prospects, but it is necessary to act prudently, analyze the advantages and disadvantages and make a decision with a purpose.”
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