Closed economic environment: Clothing factories close down because

Closed down clothing factories
influence the consumer:


clothing factories close down there is a major impact that it has on the
consumer, employee, employer and economic environment:

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factories close down because they either they don’t get any more consumers in
their business or it gets too expensive to carry on running the business. The
reason for no more consumers buying that certain product is due to
international imports which are very cheap. China was a major clothing supply
for South Africa because the rand was stronger then. Having the rand’s value
weakened, makes it very expensive to import. If import prices increase then the
product in the store would also have to increase making it very expensive. Most
clothing factories target the middle class and if the product is too expensive
then the middle class won’t be able to afford it, making the income of the
business to decrease. Therefore, products that are manufactured in South Africa
are able to compete with imported products. For a business to pay rent fees,
water and electricity fees, expenses in the store and still be able to sell the
products at a reasonable price for the consumer can get challenging. As the
expenses of the shop increases the products that are being sold will also
increase in order to keep the business running. When the product’s price
increases then there won’t be a lot of consumers that will buy the product
because it will be too expensive for them to buy.






Closed down clothing factories
influence the employee and employer:


to the business closing down, the employee will suffer as well. The employee
will lose their job and won’t be able to make a living for themselves without
an income. It is estimated that about 16 700 jobs are under threat of losing
their jobs. This results to millions of employee’s that are bound to lose their
job. The people, who usually work in a store does not have a degree, which will
make it hard for them to find another job. Some people will never be able to
find a job again and will therefore suffer their whole life time. The Director
of Research Southern African Clothing and Textile Workers’ Union, Etienne Vlok
said: “About 15 years ago we had approximately 200 000 people in the clothing
textile industry and we’re down to about 19 000 now.” Employers lose their jobs
as well because they now have employees to produce their products and no
product to be sold.

the first time in 16 years Mr Price drop in headline earnings, they drop 10,4%
in their headline earnings. Edcon’s group sales has decreased 6,7% to R255bn.
After adjusting their earnings before interest, tax, depreciation and amortization
fell 45% to R1,4bn. In the past year TFG’s share price has shed 5.38% and has
declined 11,06%. The Mr Price Group’s share price has decreased 21,04%, where
the group value is R42,22bn. A lot of the clothing stores in South Africa are
going to close down if nothing gets done about this situation. South Africa
already has a very high unemployment rate and with this going on it is just
going to increase.





Closed down clothing factories
influence the economic environment:


Africa uses a lot of imported clothing because South Africans either don’t have
the equipment to make the clothing or, don’t have the right material or, the
consumers like international clothing more than the local clothing. When the
rand was stronger than what it is now then it worked out cheaper to import
clothing from China, China found a way to make the clothing in a much cheaper
way. Imported clothing can be more expensive than clothing that is locally













Proudly South African concept:


is a charity alliance with U.S.-based nonprofits and their African partners who
work to help children, families, and communities throughout Sub-Saharan Africa.
The organization seeks to influence procurement in public and private sectors.
They try to increase local production by influence consumers to buy local
products to produce job creation. Therefore the government can reduce
unemployment under the New Growth Path Plan.

is an acronym that lies at the heart of Proudly South African and its vision:

– Patriotism, Partnership and Productivity.

– Reindustrialization.

– Innovation and competitiveness.

– Domestic Consumption.

– Entrepreneurship, Enterprise Development, Economic Development and
Export                    Development.









order to reduce the percentage of unemployment in South Africa is to make as
many people as possible aware of local businesses. The more people who know
about local businesses the more people will buy products from these businesses.
South Africa can also reduce the amount of overseas businesses that are
exported here. By reducing the number of exported businesses, the local
businesses will be able to make more money and won’t go bank rapt.


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