Prepare for When Sport Is Normal Stock for Outdoor-Starved Shoppers Uplifting Stories from Local Companies Vol 41 Nr1 Autumn 2020

Southern Africa’s business-to-business magazine for the sport, outdoor and leisure industries • Vol 41 No 1 • Autumn 2020

Prepare for when sport is normal Stock for outdoor-starved shoppers Uplifting stories from local companies Vol 41 Nr1 Autumn 2020 www.sportstrader.co.za

Regulars Highlights: People and brands on the move 4 News about people in the industry. Life after Covid-19 Trade shows Stock for outdoor-starved shoppers Rescheduled dates of shows and expos IBC Uplifting stories from local companies Industry Prepare for when sport is normal On the cover Barlow leaves Cape Union Mart Hunting is becoming a Kennith Barlow pays tribute to all the people who Life after Covid-19: clothing and 10 helped him during his 32-year career. popular pastime amongst 28footwear trends women, as visitors to the Hi-Tec enters new era What are the predicted trends? Some seem a stands dedicated to women An enthusiastic new team outlines the future of bit far-fetched. at Huntex can attest. 16 the ‘new Hi-Tec’. Wildebees, the South African born and bred camouflage Bounty Brands not in business rescue clothing acknowledges this 20 The distributor says they are not connected to with a range specifically the Coast2Coast entities under business rescue. aimed at women. The Polo brand battle continues With camouflage clothing After three court cases, the SA owners of the Polo currently a fashion trend, it 22trademarks are fighting on to retain the registration. is safe to say that this will also be popular with women Life after Covid-19: future retailing who have no plans to go 38 International predictions of what the future of hunting. retailing could look like. For trade enquiries, please Life after Covid-19: trade benefits contact the local distributor Government assistance and other business Crown Footwear on 031 40 relief packages. 700 1601. Can Jonty Rhodes again work his magic and introduce For some 2020 began with a cushion thousands of new cricket players to the game? See p38. Photo supplied. 42 Some retailers reported good sales over the Publisher: Nicol du Toit December-January holiday period, which could Editor: Carin Hardisty provide some cushioning during lockdown. Others, Sport Managing editor: Trudi du Toit sadly not. Features: Carin Hardisty, Trudi du Toit The state of cricket at school Design: Carin Hardisty, Trudi du Toit Several schools report that the year started Photography: Nicol du Toit 30 with a renewed interest in cricket, mainly due to Advertising: Nicol du Toit enthusiastic coaches and teachers, plus Jonty Subscriptions: Carin Hardisty Rhodes has a plan to introduce thousands of Printing: Tandym youngsters to the game. Distribution: InsideData

Sports Trader is published quarterly Selling cricket balls in bulk by Rocklands Communications cc. 33 Why more expensive cricket balls can actually Reg. No: 1997/057165/23. save a school or club money. Members: N. J. & G. C. du Toit & Product knowledge: boots and balls C. Hardisty Contact details: 35 A feature you can use to train your staff about PO Box 12197 Mill Street 8010 the best way to sell team sport boots and balls. 22 Rocklands Avenue, Vredehoek, Kennith Barlow takes a nostalgic trip after 32 years with Cape Union Mart. See p10. Photo Trudi du Toit. Life after Covid-19: Sport resumes Cape Town 8001 When life gets back to normal certain months Tel: 021 461 2544 Fax: 021 461 2549 44will be jam-packed with rescheduled sports Website: www.sportstrader.co.za Apparel and footwear events. Will you be prepared? Facebook: SportsTraderMagazine Twitter: @SASportsTrader Mr Tekkie and House of Busby Blog: sasportstrader.wordpress.com The executive teams of the two companies have Outdoor Advertising: [email protected] 8 joined forces. Editorial: [email protected] Life after Covid-19: going outdoor Subscribe: [email protected] New MD for Bata SA 26 Once the Covid-19 pandemic ends, people will A South African with strong footwear roots long to leave their homes and get out into nature, Publication information: The 9 title and contents of Sports appointed. whether hiking, camping or fishing. Will you have Trader are protected by copy- the right products to sell them? right. It is a business to busi- Skechers fêtes SA retailers ness publication compiled to 12 Top Skechers executives explained the way inform, entertain and educate forward during a Cape Town conference. retailers, distributors and manufacturers of sports and out- FILA shows the way door equipment, footwear and 14 New styles and runway news from FILA. Will you have the right clothing. It is available only to stock to meet the members of the sport, outdoor Jobs created with local manufacturing needs of your outdoor- and activewear industries and 24 An initiative of government, local clothing starved customers post is published quarterly. and footwear manufacturers and big retailers Covid-19? See p26. © Rocklands Communications. promises to create thousands of jobs. Photo supplied.

Sports Trader :: 2020 Autumn Sport :: p1

We considered making this magazine all about the Covid-19 crisis and the impact on the industry. But then decided, NO! You, as well as us, don’t need a reminder of the dire consequences of the pandemic and lockdown for retailers and their suppliers who were already under stress pre- corona. We’ll rather focus on pleas- ant memories, stories about positive people in the industry and look forward to what trading could be like when we reach Life after Covid-19. All photos: NICOL DU TOIT Let’s remember the good times! Remember the absolute joy when Roger Federer and Rafael Nadal came to Cape Town and a record crowd of 52 000 raised a record-breaking $3.5-m for the Roger Federer Foundation during the 6th Match in Af- rica? He founded it to raise funds for pre-school education in Africa.

Above: Rugby hero Siya Kolisi escorts Trevor Noah off the court after the doubles match in which he played with Federer against Bill Gates and Nadal.

Left: With Federer’s Afrikaans- speaking South African born mother Lynette.

2020 Autumn :: Sports Trader

p4 :: Industry People & Brands FILA tennis stars perform Reilly Opelka, who is also the third-highest ranked American mens’ singles player. Last year, the 22 year old captured his first ATP title in New York, reached the semi-finals in Tokyo and Basel, and got to the third round in Wimbledon. He also reached a career-high of #31 in October and finished second on the ATP Tour Ace list and represented the US in the 2019 Davis Cup Finals in Madrid. “He is one of the sport’s brightest young stars and will be a mainstay of American tennis for years to come, as evidenced by Changes at ASICS EMEA his tremendous 2019 season,” said Gene Yoon, Global Chairman at FILA. DONAVON SHEHAB, former ASICS SA key Sofia Kenin. Photo: Ray Giubilo. The brand has a rich history in the accounts manager (above), has moved world of tennis, having sponsored tennis from Cape Town to Amsterdam, where he WITH SOFIA KENIN winning this year’s stars such as John McEnroe, Monica Seles has been appointed Sales Manager Dis- ladies singles Australian Open title and and Björn Borg, among others. tributors Emerging Markets, working at the Metropole de Lyon, FILA now boasts Nowadays, FILA is a sponsor of the BNP the ASICS Europe head-office. with four players among the top 10 wom- Paribas Open, the Tennis Hall of Fame en’s players on tour, the first time in the Open, the Rogers Cup and Coupe Rog- brand’s history. They are Ash Barty, Karo- ers, the Western & Southern Open, the lina Pliskova, Kenin and Kiki Bertens. Kenin is the youngest women’s Austral- Reilly Opelka. ian Open champ since Maria Sharapova Photo supplied. beat Ana Ivanovic in 2008. She is 21 years old and Sharapova was 20. She has achieved a number of firsts on the journey to the title: this was the first time that Kenin has reached a Grand Slam quarter final (never mind a semi- final or final), it’s the first time that she is in the WTA Top 10 and she is the highest ranking American player of any gender on the tour after the win. Alistair Cameron (above), who earlier FILA boasts with four players among the this year resigned as CEO of ASICS EMEA, top 10 women’s players on tour, the first is familiar to many people in the South time in the brand’s history. They are Ash Porsche Tennis Grand Prix, the Argentina African sports industry as he has been Barty, Karolina Pliskova, Kenin and Kiki Open, the Cordoba Open, the Rio Open, a keen visitor to the country where he Bertens. the Brazil Open, the Rakuten Japan Open made many friends. FILA has also signed a sponsorship agree- and the Junior Orange Bowl International He first got to know the Southern Af- ment with World #38 men’s tennis player, Tennis Championship. rican market more than a decade ago when he was EMEA head of New Balance, and more recently as head of ASICS Eu- PUMA signs Jamaican champion while training for high jump: the land- rope, and always expressed a fondness ing mat was wet, which meant it was PUMA HAS signed Tajay Gayle, who they difficult to do a safe landing, and his for the country. hope will be the next Jamaican super- coach suggested he does long jumps in- He left ASICS to go on sabbatical at the star to rule the athletics landscape. He stead. He fell in love with the sport and end of November, when Carsten Unbe- is the first Jamaican athlete to win first the rest, as they say, is history. haun, Häglofs CEO, took over from him. place in the long jump at a World Ath- “After more than 10 years with this letics Championship, which he beautiful Japanese performance brand, achieved in Doha in October. it is time for me to leave the company “Tajay is one of the best and be home with my family in the UK,” young talents out there,” says Cameron messaged. Pascal Rolling, Head of Running Cameron has been commuting between Sports Marketing for PUMA. the UK, where his family is based, and the “He shares all of our brand val- ASICS Europe head office in Amsterdam. ues, making him the perfect “Since 2009, Alistair has led the busi- new addition to our roster of ness in what has been both an extremely Track and Field athletes.” challenging and changing time in our The 24 year old long jumper industry,” says Hokuto Nakano, Director found his discipline by mistake ASICS Corporation.

Sports Trader :: 2020 Autumn Industry :: p5 on the move

School of Speed athletes photographed by Mark Sampson. PUMA on the move ONCE INTERNATIONAL ATHLETICS resume again, South Africa’s top athletes will wear kit supplied by PUMA, which becomes the official Athletics SA sponsor in April this year. They will wear the brand in all World Athletics (formerly IAAF) events, Red Elephant wins gold sales award but not at the Olympics. JUSTIN SCHUNKE (above left) and Wayne Hinde (right) of Red PUMA is no stranger to athletics: the brand sponsors Usain Elephant Imports, the South African distributors of Ashaway Bolt and the Jamaican team, amongst others. In South Africa, strings, received a Gold Level Award for growing sales volumes it has built a strong relationship with schools athletics through more than 100%. The award was awarded at the brand’s inter- the School of Speed initiative launched in 2016, with Bolt as national 2020 Sales Awards. principal. The aim of the programme is to identify exceptional “Red Elephant made some nice inroads in South Africa,” says young South African track and field athletes and offer them ac- sales manager of Karakal International, Steve Gallienne. cess to elite training. Under an agreement between the Karakal and Ashaway Once the Europe- brand principals Red Elephant distributes both brands locally. an soccer season resumes Sergio Agüero Ledlenser helps Doctors without Borders (right) will be one LEDLENSER, distributed locally by Awesome Tools, has donat- of the prominent ed €3 000 to Doctors without Borders in addition to its earlier players to take to donation of 130 headlamps and 107 flashlights in 2019. The the field in PUMA’s brand is also now the NGOs 2020 Partner-Company and they eye-catching SPARK handed over the cheque and a custom engraved X21R flash- pack, featuring ONE light early March. 20.1 and FUTURE “We’re very excit- 5.1 soccer boots. ed and honoured to “It all starts with be an official 2020 a spark, that is partner of Doctors how players be- without Borders,” come champions,” says Thomas Will- says Pep Guardiola, Manchester City’s coach. “They are the ing, Ledlenser CEO. players that can change a game in an instant and the PUMA “This is right in line SPARK pack is for the players who want to be the spark.” with our announce- And when the soccer club leagues resume, the players from ment to intensify PSV Eindhoven will be wearing kit supplied by their new spon- our commitment to sor, PUMA. The Dutch soccer club had won the European Cup this admirable organisation and make a substantial contribu- and UEFA Cup, 24 league titles and nine domestic cups. tion to help people in need.” “PSV Eindhoven is one of the most proud and prestigious Many areas where Doctors without Borders work don’t have a clubs in Europe, with an incredible football history,” says Jo- reliable power supply, so Ledlenser’s headlamp and torch con- han Adamsson, PUMA Director of Sports Marketing & Licensing. tribution is important to their ability to work — especially the Off the field, PUMA has entered into an unique collaboration headlamps as they enable the doctors to work without an added with First Mile to create a sports- thing in their hands. Their lights can also be dimmed, allowing wear range which is made from the doctors to get the right lighting conditions. The €3 000 will, recycled plastic (left). for example, be used to pay for vaccines and medicine. The collection includes shoes, tees, shorts, pants and jackets and each item is made from at least 83% (up to 100%) sustainable Dunlop supplies official TSA ball yarn that originates from plastic DUNLOP AND TENNIS South Africa (TSA) have renewed their sponsor- bottles. ship deal and Dunlop continues as the official ball supplier from January First Mile works with waste rec- 2020 until the end of 2021. Dunlop, which has been TSA’s official ball for lamation networks in Haiti, Hon- the two previous years, is locally distributed by Srixon Sports SA. duras, and Taiwan and has already As TSA’s official supplier, Dunlop balls will be used for selected TSA used 96-m plastic bottles repre- tournaments, the four international tournaments hosted in South Af- senting 40 tonnes of plastic waste rica, the TSA junior national training camps, as well as for the Growth- to create income opportunities point Centres of Development Excellence in Atteridgeville, Durban, Cape Town and Soweto. and reduce pollution. The plastic bottles are sorted, cleaned, shredded and turned into yarn that is used to create products.

2020 Autumn :: Sports Trader

p8 :: Industry

Left: Willem Wait and Bernard Mostert celebrating their ppointments as CEOs.

Right: Dawie van Niekerk, Mostert, Braam van Huyssteen and Gert Claassen

Photos supplied. Mr Tekkie and House of Busby join forces Some Mr Tekkie executive team members have now joined the New House of Busby executive team

n an unique development, the New neur Braam van Huyssteen, Tekkie Town businesses. House of Busby and Mr.Tekkie have founder and former Steinhoff/Pepkor di- The two divisions in the CAVICO group formed an alliance and are working rector and Mr. Tekkie founder/owner. distribute some of the world’s best- closely together to develop their He is also a friend of Michael ten Hope, known top end and lifestyle brands, in- family of businesses. another entrepreneur who co-founded the cluding Diadora, through CAVI Brands. IThis partnership has seen Bernard Mos- CAVICO Group, which is the majority share- New House of Busby represents brands tert appointed as CEO of the New House holder in New House of Busby. With more like SDM Eyewear (with Selwyn Moss in of Busby and Willem Wait as the CEO of than 30 years’ experience of growing the charge), Frasers luggage and footwear Mr.Tekkie. presence of top health, beauty and well- and apparel brands Guess, Aldo and Ste- “It offers a wonderful opportunity as ness brands in South Africa through compa- ve Madden. the products are so different that there nies he owns, Ten Hope knows more than a “Mike (Brown) is doing excellent work can be no cannibalisation,” says Mostert. little about successful trading. at Frasers,” says Mostert. “He has been “We can contribute plenty of shared ex- “We are extremely lucky that our com- there since September (2019) and the re- perience and expertise.” panies are both owned by dedicated en- sults are already visible.” We refers to colleagues Dawie van trepreneurs,” says Mostert. “The team The best is that both companies are Niekerk, Michael Brown, Gert Claassen works well when reporting to an entre- trading very well despite the challenges etc. who have walked a long, long road preneur — now we report to two,” adding offered by the economy and load shed- through a few battle grounds together. that it is wonderful that the two owners ding, he adds, and complement each The group is known by several names: have the same outlook and values. other as none of the New House of Busby Tekkie Town executives is one; the Spe- brands feature in Mr. Tekkie. They rep- ciality Division management team is resent two different consumer segments. another after Steinhoff appointed them ‘We are extremely lucky The Brandmania House of Busby brand to bring the retail chains in the division that our companies are outlet stores, which they are aggressively back on track after Tekkie Town became both owned by dedicated expanding, therefore has no impact on part of the division following the now no- Mr. Tekkie, and vice versa. torious share-swap. After they left Stein- entrepreneurs.’ Steering two companies in two provinc- hoff/Pepkor about 18 months ago they es — New House of Busby is based in Jo- became the Former Tekkie Town share- hannesburg and the Mr. Tekkie headquar- holders who were fighting to get their Last year, after the team’s much-pub- ters is in George — towards one another company back. And a little more than licised walk-out at Steinhoff/Pepkor, Ten is hard work, concedes Mostert. a year ago they became the Mr. Tekkie Hope offered Mostert and Van Niekerk But, a main contributor to their suc- founders. the CEO and COO roles at the New House cess, he says, is that they have managed Throughout the group’s retail journey of Busby. They initially declined because to appoint and empower young people Mostert had been CEO of a company or they wanted to rest and regroup follow- who embrace opportunities and make division, Van Niekerk’s strength had been ing the implosion of Steinhoff and their the most of it. operational — he is now Head of Retail subsequent legal battles with Pepkor. “This morning I listened to an inter- and Property at New House of Busby — Mostert was appointed to the Busby view Oprah Winfrey conducted with Pres. Brown’s niche is merchandising (he is board in February this year as vice-chair- Mandela twenty years ago, where he said now the GM of the House of Busby lug- man and became CEO in December last our main responsibility is to make use of gage division, which includes Frasers) year. During his time as a non-executive the talents available to make the coun- and Claassen is a boffin at opening and director he identified several opportuni- try a better place. That is what we stand fitting out new stores. ties for the Busby and Mr.Tekkie teams to for: to use the talents of young people to Leading the group narrative is entrepre- share their resources and optimise the empower them.”

Sports Trader :: 2020 Autumn Industry :: p9 Experienced MD for Bata SA he new MD of Bata South Africa, Michael Wyatt, has a CV brimming with experience that better qualifies him to lead a major South African footwear company than most other people. Over nearly two decades he gained comprehensive experience that Tcovers all facets of the footwear industry — from design and production to brand management, sourcing, wholesaling and retailing, and that was locally and abroad. Since joining Bata SA a decade ago, he has worked with all the Bata brands available in South Africa across all the various departments, in South Africa and various international markets. His breadth of experience positions Wyatt well to deliver results in the unique South African retail environment, the com- started as a footwear designer in 2001, after which he grew pany says in a statement. Apart from fulfilling the role of man- and developed his skills in the positions of Product Developer aging director of the Durban-based company, he will provide and Designer, and Collection Buyer. support to Alberto Errico, Bata Africa President. Over the past In 2010 he joined Bata as Sales and Sourcing Manager and year Errico has been balancing his role as both the president for within two years he was promoted to Wholesale and Brand Bata Africa and the MD for Bata South Africa. Manager for Tomy Takkies. One of his achievements was the South African born and bred, Wyatt was recently transferred establishment of a full creative, design and product range for back to South Africa from Central Europe, where he had been the brand. the Bata Board Director for the region consisting of the Czech “We are excited to welcome a devoted Bata member like Mi- Republic, Slovakia and The Netherlands and MD of Bata in the chael Wyatt to lead the Bata SA team,” says Errico. “Bata SA Czech Republic and Slovakia for the past two years. had a very successful 2019, and with Michael driving the team Four years prior to that he had been appointed Bata mar- and carrying out the rock-solid strategy that we have in place keting director for Australia and New Zealand, and six months for 2020, we are anticipating a great year ahead.” later as MD of the region. In 2016 he was promoted to Regional He is passionate about sharing the great story of Bata and its Brand Coordinator for Bata Industrials Protective in the APAC heritage, as well as growing local markets and production, adds region, consisting of Singapore, Thailand, Indonesia, Malaysia, Wyatt. “To be able to come back to South Africa is a goal that I Vietnam, Australia and New Zealand. realised and I look forward to contributing wholeheartedly. Our It was, however, in South Africa that he got to know the local love for the nation of South Africa drew my wife and I back with footwear industry from inside out. His career in the industry a vision of making a difference at the local level.”

2020 Autumn :: Sports Trader p10 :: Industry No more ‘Kennith from Cape Union Mart’ or more than three decades The modern outdoor look of the stores, Kennith Barlow, general man- Snapshot of Barlow’s career developments like the ground breaking ager of Cape Union Mart and 1988 - 89: Casual worker as matriculant world-class Adventure Centres in the Tread & Miller and outdoor and first year of varsity. V&A Waterfront and Century City, the Old merchandise director, was 1990: Compulsory army service. Khaki and Poetry stores, bear testimony fondlyF known as Kennith from Cape Union 1991: Joined company full-time. to his vision as a retailer. Mart. Now, for the first time in his working 1992: Part of team to open the V&A Water- Lazarus also taught him a lot about life, he will be identified as Kennith Bar- front store, weekend manager. buying after he was promoted to foot- low, family man and father of four. 1996: Footwear buyer at head-office. wear buyer in the headoffice. When After taking a reflective break from the 2003-4: Completes MBA, partly sponsored travelling together, Lazarus would look company he first joined 32 years ago as by Cape Union Mart. at a product in terms of what it could a casual while still at school, he will ex- 2005: Open 1st Old Khaki store; GM till 2009. become, not what it is. “He would sug- plore what he wants to do with the sec- 2005: Merchandise Director of the Outdoor gest if you change this or change that … ond half of his life. He is adamant that he Division. and it would bring the product to life. It never wanted to leave Cape Union Mart 2008: GM Cape Union Mart. was amazing learning from someone like to go to another company and therefore 2015: GM of Tread & Miller. him.” deliberately didn’t actively explore oth- Brian Murphy, current group COO, was er options while still employed. which he completed in 2003-4. another senior colleague that played a Among the many possibilities he is con- “Moving forward and growing are in- big role in his career. “Through his retail sidering is training and mentoring young grained in the culture of the business,” knowledge and the way he took action people, as this form of assistance he re- he says. Krawitz has two plaques against he became one of my mentors through- ceived at Cape Union Mart is among the his wall: one says if the rate of change in out my career,” he says. “He also showed things he appreciates most about working the company is not equal to or greater me the ropes in negotiating.” for the company. Always passionate about than the rate of change in the market, While Lazarus inspired his creative part, training and developing young talent him- the company will be left behind. Like- “Brian (Murphy) fed my business side, by self, he beams with pride when talking wise, if the rate of change of the indi- showing how to bring it all together and about how well his teams have done. vidual is not equal to or greater than the get the best price and speed of action to rate of change in the company, then the the market.” A corporate with family values individual will be left behind. When Barlow started as a casual worker “I cannot speak highly enough of the fam- Ironically, this culture of encouraging in 1988, Cape Union Mart consisted of ily [the Krawitz company owners) and the personal growth and learning could have three stores with a wonderful old-fash- great opportunities they have given me, planted the seed with him to explore new ioned army and navy trading store at- and the true love they have for the peo- horizons outside the company, where he mosphere. Clothing, footwear and equip- ple in the company,” says Barlow. “Cape had been part of the top management ment were stacked on wooden shelves Union Mart is a corporate company that structure for quite a few years. He has al- and blue carpet tiles on the floor. still has the values of a family business.” ways thrived on challenges and constantly Arthur Krawitz, son of Cape Union Mart ”I was so lucky to have ended up in such wants to learn new things, he says. founder Philip and father of the cur- a great company at such a young age with rent chairman, Phillip, kept an eye on so many opportunities to grow.” Praise for his mentors the salesmen on the floor. “He insisted One of the things chairman Philip Kra- The company always pushed boundaries, that we must always have three things witz has really driven is a culture of Barlow recounts, and one of his personal in our pockets for survival: a pocketknife learning, he adds. The company partly mentors throughout his career was Crea- to cut things, change for a phone call sponsored his B.Comm studies and MBA, tive Director Ken Lazarus (now retired). and I think a piece of string to tie things Sports Trader :: 2020 Autumn Industry :: p11

Left: Barlow, on the right, with his colleague Evan Torrance (on the left), whose career ran a par- allel course for a time, after they became directors in 2005. In front is his mentor Ken Lazarus and Martine Vogelman, a 4th generation of the Krawitz family. Right: On the summit of Mount Elbrus in 2012. He also summitted Mount Kilimanjaro. Images supplied.

Popular Kennith Barlow recounts his inspiring 30-year journey with Cape Union Mart, from a casual scholar to general manager and director, and pays tribute to the people who helped shape his career and the company culture of encouraging learning and pushing the boundaries down,” recounts Barlow. ranges and planning ranges, and making In the early 1990’s the stores in the Group growth in Barlow’s time friends across the world. company founded in 1933 started get- 1988: Three Cape Union Mart stores The group now has more than 315 ting a new look, thanks to Lazarus. The 2005: Old Khaki chain launched stores across 5 chains. Which begs the first store he opened in the Blue Route 2008: 1st Adventure Centre opened in question: why did they succeed while so Mall was decked out in wood and had an V & A Waterfront many other retailers failed? unique outdoor feel to it, which inspired 2008/9: Poetry chain launched a whole new look and feel in the group’s 2015: Tread & Miller chain launched Why did they succeed? stores. This became a turning point in 2015: Keedo chain acquired They succeeded because of their unique Cape Union Mart’s history as a chain, Bar- 2020: More than 315 stores in 5 chains team with an unique outlook and set of low believes. skills, he believes. When the Victoria Wharf shopping cen- “For us it is all about DARE: Delivering About six or seven teams of Cape Union tre in the V&A Waterfront opened in Awesome Retail Experiences. We look 1992, Cape Union Mart opened a store in Mart employees climbed the mountain at the whole retail experience from our the mall, which Barlow ran as weekend kitted out in K-Way gear and equipment customers’ point of view. What do our manager — tiny, compared to the modern from their stores. “At one stage there customers see in terms of merchandise spaces, yet a modern flagship in the early were over 50 Kili summiteers working and the friendliness of our people? nineties. for the company,” recounts Barlow. That “We do a lot of training and develop- Lazarus had mooted the idea of creat- sadly came to an end when the rates be- ment of people and growing people.” ing a chain of concept stores featuring came prohibitively expensive. Attending the annual long-service their Old Khaki outdoor-lifestyle cloth- In 2012 Barlow also planted the Cape awards is an amazing experience for him ing in 1999, but the idea was originally Union Mart flag on Mount Elbrus, Russia’s because there are so many of the people developed as a store-in-store concept in highest peak. who celebrate their service in 5-year in- the Cape Union Mart stores. “But, there Barlow was also appointed outdoor divi- crements that have been with the com- was just so much potential for it to live sion merchandise director, in addition to pany for more than 25 years. in its own space and we decided to open running Old Khaki. “We could not have achieved anything the stand-alone Old Khaki stores.” After a few years, he was appointed without the fantastic people in the organi- In 2005 Barlow led a team to open the general manager of Cape Union Mart. A sation. There are so many good people who first Old Khaki store, and was appointed colleague, who was part of the team to had been given the space to flourish.” general manager of the rapidly growing open the women-focused Poetry stores, One of the most telling memories he chain, which now has about 70 stores. took over as Old Khaki general manager. has illustrates how the family values and That was an exciting and momentous Always looking for new concepts, the love for people drives the company. Years period in Barlow’s life. executive team decided to open a new ago, the K-Way factory made huge losses chain with a footwear focus and be- and Philip Krawitz was advised by his Climbing Kilimanjaro and Elbrus cause of his experience as a footwear board to close the factory. The company and the family invest a lot buyer, Barlow was asked to lead a team He invited the executive team to his into its people for training courses and to launch the first Tread & Miller store in home and all of them also advised him coaching. In 2004, Barlow and former 2015. Under Barlow’s guidance as gener- to close the factory. “He looked up with Communications Director Evan Torrance al manager, it quickly grew to more than tears in his eyes and said guys we employ completed their MBA studies — sponsored 30 stores. 250 people who support 250 families and by the company — and the following He enjoyed the challenge, even though even though it is making a huge loss, I year became part of a company team to he had a big portfolio as Cape Union Mart can’t do that,” recounts Barlow. “For summit Mount Kilimanjaro, before both and Tread & Miller general manager as me, that is the essence of the company.” joining the executive team and being ap- well as group merchandise director. He Subsequently, the factory was turned pointed directors in 2005. This prompted especially enjoyed travelling to trade around and it nowadays manufactures the joke that you had to go up the moun- shows in Germany and the US, looking at the bulk of the K-Way apparel styles ... tain before getting promoted. new equipment, footwear and clothing vindicating Krawitz’ support.

2020 Autumn :: Sports Trader p12 :: Apparel & Footwear

Dan Levy, Skechers VP International Sales, Donald Gedye, Group Director: Sports at TFG, Marvin Bernstein, Skechers Managing Partner, Barry Selby of the Athlete’s Foot in Cape Town and Archana Das, GM of Skechers distributor Brand-Folio LLC, at the Skechers conference in Cape Town. Photo: Trudi du Toit. Skechers keeps growing and it’s not done yet Skechers has achieved double digit growth in South Africa over several quarters — reflecting the brand’s global growth, says Managing Partner Marvin Bernstein, who attended the brand’s retail conferences in Cape Town and Johannesburg, reports CARIN HARDISTY.

South Africa has a substan- This means that Skechers can be in any all about that. We’re lifestyle at the core, tial population and I see it as category that’s trending, make the prod- so the world is becoming our wheelhouse. an opportunity,” says Marvin uct important to consumers, whether It’s become a lifestyle fashion world and Bernstein, managing partner it’s in footwear or apparel, present it to everyone is wearing sneakers.” at Skechers Sàrl who oversees them through extensive marketing, and Skechers now has more than 3,000 styles the“ footwear leader’s markets outside the they will buy it. and internationally they have more than United States. “As our brand gets bigger Skechers, for example, also makes out- 20 showrooms with over 20 different foot- and bigger, we’re growing here at phe- door products and they showed their new wear categories. “When you’re in life- nomenal rates — achieving double digit hiking and trail products at ISPO earlier style, you can be in any category that’s growth in nearly every recent quarter.” this year, where they attracted the at- “We love South Africa. It’s a great place tention of even the large retail chains. with wonderful people,” he added. Bern- “The outdoor and trail look is trending, Marvin Bernstein stein is no stranger to our shores, having but you have to have technical product BERNSTEIN HAS WORKED with Skechers visited the previous Skechers distributor too that legitimises the rest — this in- chairman Robert Greenberg for close to several times and he even spent his honey- cludes our award-winning running collec- 50 years in several businesses, including moon in South Africa. “This place has just tion, innovations in children, and com- LA Gear, the US athletic footwear busi- developed tremendously over the years.” fort in our core offering.” ness that Greenberg co-founded before Overall, there is huge growth in the com- These categories are on the street as Skechers. “It’s been a long time,” he pany. “The reason for this is that we’re fashion, and they’re just getting bigger muses. “I’m very lucky because he’s a brilliant guy, and it’s nice when you can big branded, we’re on trend, we advertise and bigger. And that’s what the busi- work with somebody who knows you the heck out of it, and we’re moderately ness is about: lifestyle. Bernstein adds, well and you know them.” priced. The product is good quality and “What’s happening now, which is really For the past 20 years, Bernstein has value. A lot of people underestimate our important, is that the world is really talk- been keeping an eye on the Skechers potential — especially in emerging mar- ing lifestyle. All of a sudden it’s a life- international markets from Switzerland. kets. With us, the sky is the limit.” style thing, not a sweat thing. “Skechers is doing good and we’re still And he points out that it’s not just one “There were times when I would go into a having a lot of fun. We think there’s still category that drives the whole company, global sports retail buying group and they a lot more to grow.” “We are a true lifestyle brand,” he says. didn’t understand lifestyle — and now it’s

Sports Trader :: 2020 Autumn Apparel & Footwear :: p13 trending and they’ll buy it from you. nology breeds fashion. It always has. We back a lot from retail, which creates tre- “There are more and more people, promote features such as Max Cushioning mendous opportunity for us.” even in the athletic specialty and sport- along with our fit stories like relaxed fit, It’s cheaper to do go direct, he jokes. But ing goods world, who are taking us out wide fit and arch fit. That’s what helps why not do all of it? “We do it: our ecom- of silos and putting us all together as a Skechers stand apart.” merce business is growing tremendously brand, because they realise that Sport around the world with various online re- Lifestyle is a silo.” Skechers identifies opportunities tailers, we have our own ecommerce Comfort is a really big deal for the brand, While some brands choose to solely focus store, we have a huge wholesale business with its different insoles as well as the Max on the digital realm and move away from and we have over 3 550 retail stores.” Cushioning and Arch-Fit features. “We’re the television, Skechers is still a big believ- Skechers has a good, better, best strate- backed into the comfort shoe business,” er in the medium. “We are on social me- gy as well as a premium strategy, but they he emphasises. “The first 10 seconds af- dia, but why do you give up TV?” he asks. don’t turn anybody away, Bernstein ex- ter you put on a shoe are crucial: you feel “People just go oh no, that doesn’t work, plains. “We love independent retailers.” good or you don’t feel good wearing it. and everybody overreacts, so we let them Sometimes chains will have specific re- Usually, if it’s comfortable, you buy it, and do that and take advantage of it. If they quirements, such as wanting to hit a cer- consumers love the comfort that is includ- all run away, the space becomes cheaper.” tain price point, and Skechers will work ed in every pair of Skechers.” This is just one of many opportunities with them to put together an offering. Technology is such a small piece to Skechers has identified. “Skechers sees a Most of the good products go to all retail- the brand, he said, “People make a big lot of white space that other companies ers, however. “We try to get everybody deal out of it, but it’s not. Only around don’t necessarily go for.” the best products.” 10% of our consumer base use the foot- The direct-to-consumer approach from The brand also expects to grow the num- wear for its intended end use. The rest the likes of Nike and adidas has also ber of its mono stores in South Africa, ei- of them wear it because it’s cool. Tech- helped Skechers grow. “They’re pulling ther as franchises or company-owned. SA retailers fêted by Skechers (former USSR countries) and Africa, where they achieved 35% growth. In South Africa they achieved 40% growth. They sent a strong contingent from the Dubai head-office: general manager Archana Das, supported by Aarathi Mohandas (kids shoes) and Aparna Chesakat (active and sport active), also gave presentations in Cape Town, with Brand-Folio Director and founder Roy Gomez joining them in Johannesburg. Local product information was provided by Waseem Mayet. Skechers is now also introducing a clothing range and accessories like sunglasses and during the presentation and at the evening party, models showed off the new ranges to best advantage. Local marketing insights were provided by Refiloe Musandi- wa, who gave examples of how they lived up to the Skechers motto Unseen. Untold. Unsold. by creating visibility through sponsorship of the Melrose Walk and the Little Charmers Kids Event, window collaborations with retailers like Sportscene and Skechers’ Refiloe Musandiwa, Waseem Mayet and Rinki Chellani enjoying promotions on social media. They also collaborate with various the fashion show. Photo: Trudi du Toit. local influencers who promote the brand to their thousands of social media followers. SKECHERS ROLLED OUT the welcoming mats for their South In 2019 they entered into a partnership with influencer Kim African retail customers in Cape Town and Johannesburg earlier Jayde, the MTV Africa Producer who was featured by Forbes as this year. Apart from better insight into the brand, founded by one of their 30 Under 30 influencers, who became a Skechers chairman Robert Greenberg and his son Michael in 1992, the ambassador. local retailers got a hands-on introduction to the new Spring- Summer styles featured in a 206 page catalogue for the local market, were entertained by a mentalist, drummers, fashion Skechers and Goodyear partner models and bountiful good food and drinks. SKECHERS AND THE GOODYEAR RUBBER & TIRE COMPANY have Managing partner Marvin Bernstein and Vice-President of In- partnered to use the rubber tech- ternational Sales Dan Levy were the star attractions. Bernstein, nology in select Skechers’ styles in charge of all international business outside the US, helped across multiple of the brand’s foot- the Greenberg’s build Skechers into a global brand with annual wear categories for men, women sales exceeding $5-bn. Bernstein, for example, emphasises the and kids. The outsoles offer -in company’s belief in advertising and how pleased they are with creased grip on various surfaces, the strategies of some brands that limit their supply to retailers stability and durability for long- … which leaves more shelf space for Skechers, which will hap- lasting wear. pily supply all retailers. The rubber contains a special pol- The international business, trading in 170 countries, now rep- ymer with a sustainable, bio-based resents more than half of total Skechers sales. The international oil made from soyabeans and that sales grew 22% last year and in many countries — including India is also used in some of Goodyear’s with its vast population — Skechers is #1. Their 52% growth in top performing tires in the US and Canada. Initially the partnership was only for footwear in the GOrun line, but India to become the biggest brand was, for example, made pos- 2020 Autumn :: Sports Trader sible by the withdrawal of Nike and adidas from 200 retailers. it has now been extended to include walking. Certain of the athletic The local Skechers distributor, Brand-folio LLC, is also respon- lifestyle, trail and work footwear for men and women, as well as kids’ shoes will also feature these outsoles by the end of the year. sible for the distribution of Skechers in the Middle East, CIS

2020 Autumn :: Sports Trader p14 :: Apparel & Footwear Exciting start to 2020 for FILA The year kicked off with im- pressive launches and events for FILA. Photos supplied.

of two photographers from the Condé Nast Social Talent Agency: Emanuele Ferrari and Raffaele Marone,” says Laurence Slotsky of FILA’s local distributor, 1721 Distributors. “Two different visions to interpret a new chap- ter of the historic Biella company.” ILA had a full and busy first It forms part of a “double project quarter with events and conceived by Vogue Italia”. launches keeping eyes firmly Nero includes clothing, shoes and focused on the brand. accessories for men and women and The year kicked off with is influenced by street culture, he ex- K-popF group BTS, which is sponsored plains. “The collection explores inno- by FILA, singing in the new year at the vative fabrics and avant-garde work- Countdown Stage in Times Square as part manship with sequins and high quality of ABC’s Dick Clark’s New Year’s Rockin’ finishes, in a design that combines Eve on 31 December 2019. They per- oversize shapes and bold details.” formed a medley of their hit songs live in front of an estimated 1.5-m people and Milan Fashion Week New summer underwear a further 1-bn watched proceedings on FILA also took part in the Milan Fashion FILA expects that consumers will love their devices at home, says FILA. Week in February to showcase their Fall/ the brand’s underwear (above) so much The brand went all-in to gain as much Winter 2020 collection and as hosted an they’ll want to show it off to the world. exposure as possible from this audience. “immersive presentation on the brand’s “Young consumers from 18-24 years old It booked billboards in prime locations, Point of View of Winter theme, weaving are looking for newness and want to be which took on two roles: it both adver- in inspiration of the brand’s historical hip and cool. They want to make a state- tised the brand and the FILA x BTS part- legends into notions of snow and ice”. nership, and it served as a thank you to ment by showing off the brand,” says The presentation took the form of a walk the fans there and at home. The bill- Slotsky. through experience in which there were boards were visible not only while BTS They previously introduced a limited several touchpoints and other formats in was performing, but throughout the live range of FILA underwear in South Africa, which the collection was showcased. “A broadcast of the show including Post but the Summer 2020 range that is cur- real true live experience,” says Slotsky. Malone and Sam Hunt. rently launching features stretch sporty In keeping with the theme, the re- The best spots from which to see the ball underwear in more than 150 styles for nowned mountaineer, Everest summitter drop are between 43rd and 59th Streets men, women and children. It’s made from and FILA ambassador Reinhold Messner, and 43rd to 50th Streets at Broadways, 95% cotton and 5% elastane for comfort. joined the event. says the Times Square Alliance — The men’s range features boxers and and FILA had billboards up between briefs while ladies have sportsbras, 44th and 45th Street, between 45th bralettes, thongs, briefs and tangas to and 46th Street, The Cube on 42nd choose from. There is also a range of Street and 8th Avenue, and on the socks and the kids’ underwear range is Times Square Trio in the middle of a takedown of the adult designs. Times Square. FILA also handed out around 400 free Trendy Sandblast FILA x BTS branded fleeceblankets to FILA launched its trendy Sandblast fans in the Times Square vicinity to sneaker (top left) in South Africa dur- keep them warm against the cold. ing March, shortly before the lockdown. At the time, Slotsky said that Nero launched in Florence “the ever popular sandblast is selling FILA wasn’t only involved in the off the shelves like hot cakes”. ball dropping: it’s new Nero line The footwear has a basic, clean line, was dropped at the Pitti Uomo which is where the trend is moving, he fashion fair in Florence that took added. “The traction at store level is place in January. similar to the early days with Disruptors.” The Nero line (right) for Spring/ It’s available in multiple colours and Summer 2020 is “told through the lens upper materials.

Sports Trader :: 2020 Autumn Advertorial :: p15

South Africa launches global activewear range

Fila’s iconic global range of activewear and workout apparel is being launched in South Africa and will be available for Summer 2020.

ILA is a world famous sports- brand is well known globally as one of wear company founded in Italy the most aspired brands in tennis, bas- in 1911. Endorsed by famous ketball, trail, outdoor, skiwear, athletics F sportsmen and women, the and wellness. Iconic everywhere, FILA South Africa, has now also launched the global range of functional mens and ladies workout and activewear apparel, delivering Sum- mer 2020. All of the apparel pieces in the new collection is based on great FILA design concepts, incorporating the latest comfort breathable fabrics for sport. “Consumers want fabrics that have good moisture control and shape the body with stretch for comfort,” says Lau- rence Slotsky of local distributor 1721 Distributors. “Wearing clothes that perform as great as they look can be the difference between a so so workout and an shorts, sports bras, tights, and cycling amazing one.” shorts and singlets. The FILA imported apparel ranges are Additionally, there are also accessories focused on running, workouts, wellness, such as socks and caps. and even casualwear. For more info contact 1721 Distributors They consist of technical t-shirts, on 011 630 4000. p16 :: Apparel & Footwear Aged 45 Hi-Tec SA enters a new era

The new executive team appointed at Hi-Tec SA at the end of last year is ready and eager to tackle the challenges the brand may face in the fast-changing modern trading environment. This will be based on the business culture introduced by founder Frank van Wezel.

nergetic. Dynamic. Innova- with what we’ve accomplished.” tive. Young. Diverse. Hungry. ‘The CEO of a company is The three months that Van Wezel spent This is how the new senior the best paid and most in Cape Town after the reshuffle before management team at Hi-Tec glorified PA in the busi- he returned to the Netherlands was a South Africa characterises ness. You need to assist valuable experience. theE new era the company entered with In future, the decision making and im- a management reshuffle at the end of everyone to your best ca- plementation phase will have a much last year. pacity so that they can be shorter time span and “we will be one Although, it is not really new. It is a the best human beings in of the few companies that will within a return to the pillars on which Frank van the business.’ couple of months decide and implement Wezel founded the company in 1974, an ERP system for the whole organisation namely fun, proud, hungry and honesty, successfully.” which will again become part of the busi- we ask a lot from people, but we also do An ERP system integrates all the main ness culture, they say. a lot for them.” functions of a company, from HR, fi- “We’ve incorporated a performance He believes that management is respon- nance, procurement, planning, sales, culture using those pillars,” says CEO sible for creating a good atmosphere, a customer relations, etc. Gary de Vogel (see p18). This will not culture where people can be pushed to During this changeover period they set only be the criteria used to measure how the limits revenue wise, business wise, milestones for the coming year, which people perform in their work, but will but in a nice and fun way. means that they don’t have to consult cover all facets, for example, how peo- The new Hi-Tec will be different, but every day because they know what they ple speak on the phone, and how honest- the DNA will always remain the same, want to achieve and how they want to ly they convey information to customers adds De Vogel. “We are gearing up for achieve it. … not saying there is a week’s delay when 2025 and customers will experience a you know it will be two weeks. new professionalism and service levels in Product offering “We have an amazing team,” he says, our product offering and marketing.” Hi-Tec SA incorporates hero styles from praising the support he received. “I al- They agree that they are fortunate that the international ranges and the interna- ways say the CEO of a company is the they only have one person to persuade tional brand in turn uses some of the lo- best paid and most glorified PA in the instead of a whole executive board. cally developed value price points. business. You need to assist everyone to “Frank (van Wezel) is a fast decision They are very flexible and will adopt your best capacity, so that they can be maker and we are also quick decision their offering to their customers’ needs, the best human beings in the business. makers,” says De Vogel. “The number of which is nowadays much more focused on “That’s where Adolf (Stoffberg, ap- decisions we have made in the last three lifestyle. pointed COO) and I really compliment months that Frank had been here is abso- The new consumer is an urban person each other, we both place people first — lutely at a new level. I am very pleased who engages in what De To p18 Sports Trader :: 2020 Autumn

p18 :: Apparel & Footwear

You also have to understand each indi- The new Hi-Tec era from p16 vidual market — for example, that legitimate footwear can be sold in some open Vogel calls lazy activism with an outdoor- market stalls, but that only counterfeit crossover, in other words, he adopts an The modern consumer is sold at other market stalls. This under- outside/indoor lifestyle. adopts a lifestyle of ‘lazy standing requires travelling and spending “On a typical Sunday he (or she) will go activism’ with an outdoor- time in a country to see how and where up the mountain, then return to have a crossover trade happens. Retailers are also not braai, or drive out to the winelands etc. easy to find … but, it is still an unsaturat- wearing the same pair of shoes.” ed market for South African distributors. People no longer go hiking with heavy Brand strength “Frank sets high targets for percentage hiking boots, technical backpacks, trek- Despite the challenging economy the Hi- growth — double-digit is the least he ex- king poles etc, adds Stoffberg. “Instead, Tec brand is very strong and their forward pects every year — and to give him that, they wear comfortable low-cut shoes on orders have been off the charts, says De you have to think outside the box,” ex- hikes, which they can wear with their Vogel. In addition, 2019 was one of their plains De Vogel. That means that growth jeans etc. when they socialise or go to best years in terms of sales. “The Hi-Tec cannot come from South Africa only. work.” sell-through and re-orders have been “In Africa the biggest challenge is The Hi-Tec DNA is redefined in a modern amazing and some stores re-ordered two the infrastructure, or lack of it,” adds to three times,” he adds. way because there is a lot more techni- Stoffberg. He characterises Hi-Tec as a very opti- cal features in normal day to day wear, mistic brand — which sounds about right COVID-19 challenge which links back to the technical core of with someone like Van Wezel at the helm. But, that pales beside the coronavirus, the brand, says De Vogel. The Duca del Cosma golf brand, ac- which has become the world’s biggest Sport and other activities have very quired by Van Wezel in 2016, sells into challenge. Hi-Tec is cushioned because much become part of socialising, adds a much tougher market as it is more a good portion of their ranges had been Coetzee, who uses the example of guys premium product, says Stoffberg. “The shipped before the Chinese New Year and going to play soccer in the early evening distribution in the golf market is mainly they always have some extra stock avail- and then socialising for the rest of the aimed at tourist-driven areas.” But, they able, says De Vogel. evening ... wearing casual lifestyle shoes are busy working on a few high-end life- It will, however, have a negative impact and clothing. style opportunities for fashion retailers. on out of ordinary orders where the sell- The new Hi-Tec apparel range has been For Magnum (the work and safety foot- through had been so good that they had developed by “an amazing apparel man- wear brand) 2018 was the biggest year to re-order, which they might not be able ager (Izelle Nel) who has the know-how by a long shot and they are still getting a to replenish. where to find manufacturers and fine- lot of enquiries from people like police or The benefit of a streamlined company tune the quality with the price,” says De security officers, says De Vogel. with a fast decision making ability is that Vogel. they can cancel shipments or redirect “She has been phenomenal for us, and African market orders without much delay, should their has really defined our purchasing and Exports into Africa also increased quite task force of five people appointed spe- sourcing and also product assortment by a bit, says De Vogel, who was originally cifically to stay in daily contact with the keeping the heritage in our brand, but sent to Hi-Tec SA to sell into the African Chinese factories advise this. combining it with modern features and market (see opposite page). But, he ac- They therefore anticipate stock delays newness. In the near future you’ll see lot knowledges that it is often a tough sell of weeks, instead of months. of beautiful new refreshed Hi-Tec cloth- because you have to adopt customized (The interview was conducted before ing coming in.” strategies for each country. the State of Disaster was declared).

Some Hi-Tec lifestyle ‘hero’ styles to keep in mind

HI-TEC’S NEW Calisto sneaker ticks all the boxes a consumer might ask for from a lifestyle sneaker fit for all urban outings, whether outside and inside, as described above by Gary de Vogel. It has a fash- ionable full suede leather upper with a comfortable padded nylon lining, a moulded EVA footbed, as well as a gum rub- THE ULA ber bucket outsole. Available in sizes 6-12 is an ever- in three colourways (right and below), ur- green local hero ban consumers are bound to fall in love from Hi-Tec. The Ula Ultra was in- with Calisto. troduced at the end of last year, and will remain sought-after by your customers for the forthcoming spring/ summer. It features the popular Ula design with an updated M-D Traction outsole for improved grip for outdoor adventures. It looks good enough to be worn when your customers socialise, go to the beach or walk in nature.

Sports Trader :: 2020 Autumn Apparel & Footwear :: p19

After five years with the audit company, he decided it was time for Meet the new Hi-Tec team a change and went for an interview at Hi-Tec, who was looking for a finance and operations manager. “I loved the brand, and it was really speaking to me,” he recounts, but he was not yet convinced that it was the right move for him. He went for a second interview with CEO Edward van Wezel (Frank’s son) and COO Martin Binnendijk, whose young and vibey approach appealed to him. Then Frank (van Wezel) walked in and asked him where he had stud- ied … and upon hearing that he had gained his masters degree in ac- countancy at the Nyenrode Business University, which had awarded him (Frank) a lifetime achievement Award and introduced him to his wife Caroline, Van Wezel declared: “Hire him!” Intrigued, De Vogel accepted the position because he thought “I really, really want to know this man better”. At the end of 2016 Van Wezel sold Hi-Tec International, but retained Hi-Tec South Africa, based in Cape Town. When he again encountered De Vogel in the Amsterdam office at the beginning of 2017, he sum- marily asked him to come and work for him in Cape Town. Again, an international travel-weary De Vogel found this an intriguing prospect and within a few days he was on a plane for his first two-day visit to Cape Town. Within the first four hours he knew he wanted to work in CEO Gary De Vogel Cape Town. YOUNG AND PASSIONATELY committed to take the brand to the He had by then learnt the Hi-Tec way of making quick decisions. next level, Gary de Vogel’s route to becoming CEO of Hi-Tec SA is testi- De Vogel subsequently met and married an Afrikaans woman, is add- mony to Frank van Wezel’s legendary fast decision making. ing Afrikaans to the many languages he speaks and had several ad- In 2015, after De Vogel had been appointed an audit-leader at De- ventures travelling in Africa as Hi-Tec SA Director: Africa. In November loitte Nederland in Den Haag, he decided that he was more interested 2019 Van Wezel appointed him CEO of Hi-Tec SA when Mickey Mallett in working in business than doing the scrutiny from the outside. left the company after 28 years, 15 of them as CEO.

COO Adolf Stoffberg THE SKILL SETS of the senior management team compliment each other very well, says enigmatic and unflappable Adolf Stoffberg, who was appointed to the newly created position of COO of Hi-Tec as well as Duca del Cosma at the end of last year. He has been with Hi-Tec SA for about ten years and gained experience in various portfolios: key accounts, as national key accounts manager, product manager for the business and then again Hi-Tec SA key accounts manager when Van Wezel sold the international business. After Duca del Cosma became part of the stable, he was appointed general manager of the brand in South Africa. Gary’s natural ability is more on the financial side, his is on the commercial side, but there is a very good cross over, says Stoffberg. “While Gary is naturally financial, he understands commercial very well, while I am naturally commercial, but I understand the financial side.” When you start merging the skills sets you strengthen the team and they now have a very strong open-minded structure, he adds.

CFO Esme Coetzee ESME COETZEE, who was promoted to CFO at the end of last year, is the backbone of the company, because she has so much experience and we all learn from her, says Stoffberg. She works with all the nuts and bolts on a daily basis and knows all the challenges, he adds. After 28 years with Hi-Tec she certainly has a good understanding of what works and what will not work. Prior to joining the brand she started her career in finance with Standard Bank, founded and ran a business with her ex-husband and worked for Everite. Over nearly three decades with the company, she has also experienced the many changes in the industry and can talk with nostalgia about the days of SASGAM (SA Sporting Goods Agents and Manu- facturers Association) where mutual debtors, discounts and other issues affecting the industry were discussed and the famous cocktail parties during the annual SASGAM trade show. The anti-counterfeit committee formed by the brands after the turn of the century could perhaps be a way for brands and distributors to work together again, she suggests. Just a pity that the previous initiative came to an end when the officer to whom all the counterfeit goods were reported, was caught selling the confiscated goods illegally!

2020 Autumn :: Sports Trader p20 :: Industry

Bounty Brands NOT in Business Rescue

The C2C entities currently in Business Rescue have no shareholding in Bounty Brands, says its CEO

ontrary to some rumours, tioner, but unfortunately it did not arrive bination of high net worth individuals, Bounty Brands, local distribu- at the time of publication. fund managers and other financial insti- tor of the clothing and foot- “As a private equity business, the C2C tutions,” says Rabe. “None of the C2C wear brands Diesel, Hurley, Group raised acquisition funding from a entities under business rescue have any Jeep apparel and footwear, large number of commercial lenders, as shareholding in Bounty.” CSuperdry and Vans, is NOT in business well as private individuals,” Rabe re- The brands in the Bounty Apparel divi- rescue, assures Group CEO Stefan Rabe. sponded to a written question. “C2C is sion all have multinational owners and Nor does Bounty Brands owe any money now unable to meet its repayment ob- Bounty Brands is their South African to former brand owners/distributors, he ligations and I expect that some of the agent (wholesale distributor). says. claims you refer to have arisen out of The first footwear brand to become Some of the former distributors, how- such funding arrangements.” part of Bounty Brands in 2014 was Vans, ever, feel differently. “The question formerly distributed by Chappers Sports one needs to ask all the previous own- Direct, whose founder Nigel Chapman ers of the brands [aka the distributors] is The current owners con- became the Bounty Apparel MD. whether they have their money and they sist of a combination of This was followed by the acquisition must explain what has transpired in their high net worth individuals, of Hurley and Musgrave Agency’s Jeep individual cases,” says a source. fund managers and other clothing. In 2016 Bounty Brands acquired “Who has the brands and who has the Footwear Trading, which had the licens- money?” asks another. “Why has Bounty financial institutions. None es for Diesel, Levis and Jeep footwear made various settlement offers to the of the C2C entities under brands in South Africa. This brought the five vendors, if they don’t owe them business rescue have any revenue contribution by the group’s ap- money for the brands and companies shareholding in Bounty. parel and footwear brands to over R1-bn. they purchased, and are enjoying the Bounty retained the services of some profits?” of the original owners of the local brand Unfortunately, none of the former dis- C2C is a Malta-domiciled private eq- distributorships — e.g. Chappers Sports tributors wished to disclose more infor- uity investment company, mainly known Direct, Musgrave Agencies and Footwear mation on record. for its investment in the listed multina- Trading — for a period of time “to facili- According to the Western Cape High tional pharmaceuticals business Ascen- tate a responsible handover of the brand Court roll, some former owners of Mus- dis Health, which was expanded through relationship, but all of these arrange- grave Agencies, whose Jeep clothing be- various acquisitions in the health sector. ments ended some time ago,” says Rabe. came part of Bounty Brands, is currently Apart from Bounty Brands Holdings, C2C In 2018 Bounty Brands consolidated the in litigation with Bounty Brands. Unfortu- also had interests in unlisted consumer four apparel and footwear businesses nately, none of the parties want to com- companies Marlin Brands in Australia and into one, operating from one distribution ment on the nature of the litigation. Kronso in Poland. center in Cape Town. The division’s name What could have contributed to the When the Ascendis share price dropped was changed to Bounty Brands Apparel. view that money is owed is that four divi- in 2018 due to low growth and high debt, The brands are predominantly distrib- sions of Coast2Coast (C2C), the private C2C founder Gary Shayne and related en- uted to retailers, but Bounty Brands have equity firm that founded Bounty in 2014, tities experienced financial difficulties. their own concept stores to ensure that was recently placed in Business Rescue They sold most of their shares in Ascendis the full range of the various brands is and the Business Rescue Practitioner had and Shayne resigned from the board. presented to the market. been in contact with various creditors. To further raise funds, they also sold “We segment our brands to ensure that Sports Trader was promised informa- C2C’s majority shareholding in Bounty we have products available to a wide tion about the affected C2C divisions and Brands Holdings in February 2019. range of retailers, including independ- creditors by the Business Rescue Practi- “The current owners consist of a com- ents,” says Rabe.

Sports Trader :: 2020 Autumn Advertorial :: p21

Iconic boot brand Blundstone celebrates 150 year milestone

lundstone has a history of Never War II period, Blundstone was at the forefront of team remains dedicated to innovation in design Standing Still and a heritage that machine-made footwear, pioneering the develop- and production. As a consequence of their dedi- now stretches over 150 Years. Since ment of safety footwear. cation, Blundstone now oversees a global supply 1870 it has made the toughest, no- Blundstone began exporting its products in chain bringing together the best ideas, compo- nonsense footwear for work and play. 1969, establishing itself internationally in the nents and designs in the creation of their unique BIn 1853, brothers James and Thomas Cuthbert- South Pacific, Europe and North America. Blund- product range, from the iconic elastic-sided son set sail aboard the Corramandel from England stones are now found around the globe and were boots to safety footwear and the women's heeled bound for Melbourne, Australia. Blown off course, introduced by Emu Creek Trading cc to the South boot. With a commitment to sustainable develop- however, the ship arrived in Hobart Town, Tasma- African market in 1995. ment, Blundstone maximises the use of recycled nia, where the brothers set up shop. Using the As in Australia, Blundstone, or Blunnies as they and recyclable materials in its manufacturing and skills and knowledge gained from the British foot- are affectionately know, proved to be a popular minimises the use of raw materials, chemicals wear trade, they started a business making shoes. choice within the South African farming commu- and fossil fuels. It’s a sustainable, living legacy. Around the same time John and Eliza Blund- nities. Versatile and durable this humble elastic stone arrived in Hobart where John, an expe- side boot range evolved into the choice boot for “We have grown to become one of the world's rienced boot manufacturer, set up business. By all sorts of purposes — heavy work, light work, most recognisable boot brands. Our history, herit- 1902 his company, John Blundstone and Son, had hiking, playing, rainy days, sunny days, city, coun- age and people have helped shape the way our been formed. try, etc. Blundstone can go anywhere and do any- boots have evolved; perhaps it takes a unique In 1932 the Cuthbertson brothers purchased thing and looks great every step of the way. place to inspire the development of a unique John Blundstone and Son, merging their manufac- Today still the company continues to be a 100% boot.” turing operations under the Blundstone name and Australian family-owned company, Hobart is still For trade enquiries contact Emu Creek on steady expansion followed. During the post World the home of Blundstone, and the development Tel: 011 467 1000 or [email protected]. p22 :: Industry

Battle of the Polo brand continues After three court cases the legal use of the Polo trademark is still not resolved, as appeals are pending.

he legal battle between the The LA Group withdrew their urgent The LA Group then applied for leave LA Group and Stable Brands court interdict against USPA, and were to appeal this verdict that expunged 40 over the rights to use the Polo ordered to pay costs. plus of their trademarks, meaning that and Polo Pony trademarks is Score: 1-0 in favour of Stable Brands who the judgement was suspended until the becoming interestinger and could continue promoting and selling appeal was heard between 17 to 21 Feb- Tinterestinger. Despite three court deci- their USPA garments. ruary 2020. Their petition to appeal was sions against them — with costs — the LA Instead, the LA Group asked the courts denied by the Pretoria High Court on Feb- Group remains on the offensive and now that the USPA trademarks first regis- ruary 21 this year. Again with costs. threatens to take their case against the tered in South Africa in 2007 should be Score: 3-0 in favour of Stable Brands, loss of their Polo trademarks right up to cancelled and expunged from the trade- with the LA Group remaining vulnerable the Constitutional Court. marks register — which backfired when to legal action for using the cancelled Both companies have issued statements trademarks and again taking an expen- explaining the situation, which can be sive hit. very confusing for retailers, caught in the ‘The dismissal of the LA “The dismissal of the LA Group’s appli- middle. Therefore, to recap the ebb and Group’s application for cation for leave to appeal reinforces the flow of the legal battle so far: leave to appeal the can- strength of the original judgement and It started last year when the LA Group cellation of their Polo order and aids the continued growth of applied for an urgent interdict to prevent trademarks, reinforces the the U.S. Polo Assn. (USPA) brand in the Stable Brands from selling the trade- region,” said J. Michael Prince, president marked U.S. Polo Assn. (USPA) garments strength of the original and CEO of USPA Global Licensing, after in South Africa. judgement’ the decision. To clarify: just like SA Rugby, Cricket “We look forward to bringing new and South Africa, FIFA, the NBA and numer- exciting designs to the marketplace and ous other sport federations, USPA gave Stable Brands launched a counter-appli- to educating the South African people licenses for fashion/lifestyle garments cation to have the LA Group’s Polo trade- about the authentic connection between to be manufactured bearing their logo, marks cancelled and expunged from the the USPA brand and the exciting sport of which is two polo players with mallets register. polo.” in action on ponies. These garments are The November 29 2019 Pretoria High They reiterate in a press statement sold in about 180 countries and Stable Court judgement went against the LA that USPA “has an absolute right to use Brands was appointed their exclusive li- Group. The judge ruled that more than those trademarks in commerce, despite censee for South Africa in 2018. 40 of their local Polo trademarks must be the strenuous efforts and attempts of The LA Group claimed that the logo of expunged from the register and that the LA Group to claim otherwise and block the sport’s governing body — founded in word Polo cannot be trademarked. USPA’s famous brand from being offered 1890 in the US — was a copy of the South He also had a few choice words about the to the South African market.” African polo player and pony trademarks, confusion caused by the similarity to the in- The strenuous efforts they refer to, no which is often confused with the interna- ternational Polo Ralph Lauren trademark. doubt, include reference to two letters tional Polo by Ralph Lauren logo. Again the LA Group was ordered to pay the LA Group sent to customers. The South African Polo shirt brand was costs. Shortly after their appeal was denied founded in 1976 by Graham Joffe and Score: 2-0 in favour of Stable Brands, in the High Court on February 19th they some of his former Monatic colleagues whose trademarks remained on the wrote to customers, explaining that they who registered trademarks that con- register and an expensive loss for the are petitioning the Appeal Court, and fined the use of the global Polo by Ralph LA Group, who lost registration of their failing that, the Constitutional Court, for Lauren trademark to linens and cosmet- trademarks and therefore became vul- leave to appeal the cancellation of their ics in South Africa. In 1998 the LA Group nerable to a challenge from a rival brand trademarks. bought the Polo and pony trademarks to cease selling garments bearing any of This means that until these appeals pro- from them. their now cancelled trademarks. cesses had been exhausted, To p28

Sports Trader :: 2020 Autumn Advertorial :: p23

Boardriders is a leading action sports and lifestyle company that designs, produces and distributes branded apparel, footwear and accessories for boardriders around the world. Our apparel and footwear brands represent a casual lifestyle for young-minded people who are inspired by a passion for outdoor action sports.

This year sees the completed companies integration between New Pier Trading (Pty) Ltd and GSM Trading (Pty) Ltd in South Africa, bringing together some of the most coveted brands in the industry. New Pier Trading, born and bred in Durban with the Quiksilver brands, and GSM Trading, out of surf mecca Je reys Bay, housing the Billabong brands, have been erce rivals for over 25 years but will now be part of the same family.

Boardriders now encompasses Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, VonZipper, Dot Dash, Xcel, Kustom and Palmers brands.

Under the direction of General Manager, Jethro Jewell, the company will continue to be a driving force in the action sports and lifestyle retail space in South Africa. “We are extremely proud to be custodians of these iconic brands under one roof in South Africa. The product speaks for itself and we will continue to share each aspirational and authentic brand story with our customers and consumers.” said Jewell.

The Boardriders South Africa HQ base of operations is located in Durban at Lion Match Oce Park with close warehousing and distribution.

For Trade enquiries please contact Dane Patterson: [email protected] For more information on Boardriders brands: www.boardriders.com To shop online in South Africa: www.boardriders.co.za p24 :: Apparel & Footwear

Local manufacturing the answer to unemployment?

A Masterplan to increase clothing and footwear local content in retail from 28% to 66% by 2030, to which some of the biggest retailers have already committed, promises to have massive impact on job creation in local manufacturing over the next ten years, reports Trudi du Toit

ome positive news to lift the gloom pairs in a single year, cautions Whitehead. Or, in this time of uncertainty: one If local manufacturing if a big retailer suddenly wants 30 000 pairs of of the remedies President Cyril grows 5.5% per year until a style for all their stores, it cannot be done Ramaphosa proposed in his 2020 2030, employment in the overnight. State of the Nation speech (SONA) Some of the biggest fashion retailers at the toS curb our high unemployment rate was to value chain can grow by time — e.g. Edcon, Woolworths, TFG, Tru- promote the purchase of locally manufactured 121 016 jobs to 333 162 worths and Mr Price — agreed to comply with goods. This is not a pipe dream but a tangible the R-CTFL MP. For the buyers at these chains reality, especially in the local footwear and centage of imports (61%), followed by textiles there will now be a different key performance clothing industries. (56%) and clothing (54%). indicator (kpi) to consider — instead of just Even before his speech, years of extensive The target for retailers would be to increase looking at margin and the lowest price, one of research and consulting culminated in a Re- their local footwear and clothing content from the kpi’s going forward will be local content. tail — Clothing, Textile, Footwear and Leather the current 28% to 66% over the next ten years Task teams to oversee Masterplan (R-CTFL MP), which was signed on until 2030. That means increasing purchases “What is exciting is that the Masterplan is not the 6th November 2019. of locally manufactured footwear and clothing According to the Statistics SA September just a document,” says Whitehead. Govern- to R69-bn, compared to R31-bn worth in 2016. 2019 Quarterly Employment Survey (covering ment will establish a number of task teams Is this a realistic target, especially in foot- the period to 30 June 2019) 87 000 people to drive key interventions and establish a Pro- wear? we asked Noel Whitehead, chairman of were formally employed in Clothing Textile grame Management Office (PMO) and an Ex- SAFLIA (South African Footwear Leather Indus- Footwear Leather (CTFL) manufacturing — 44 ecutive Oversight Committee (EOC) to imple- tries Association). 700 in clothing, 26 000 textile, 9 100 in foot- ment the plan. One of the tasks will be to hold It is doable, says Whitehead, but it is going wear and 5 300 in leather jobs. If informal quarterly meetings to track progress of local to be a hard ask, because it will depend on manufacturing is added, the number of jobs in stock purchases. factors like human capital, skills, as well as CTFL grow to 235 000. The CTFL retail sector While all the bigger fashion retailers agree modern machinery. The growth in manufactur- add about another 120 000 jobs. that it is important to support local manufac- ing volumes will have to be gradual, but if we In the foreword to the R-CTFL MP Minister turers, they all still compete in the market of Trade and Industry Ebrahim Patel estimated can grow local footwear manufacturing by 2% and don’t want to give away their competi- that if local manufacturing could grow 5.5% per year, there can be significant changes. “If tive advantage. Information from retailers will per year until 2030, employment in the value we can manufacture 5-m pairs more in a year therefore be collated and a consolidated over- chain can grow by 121 016 jobs to 333 162 — and another 5-m over the following 2-3 years, view given to the group, reporting the growth with manufacturing accounting for 73 549 of it will have a massive impact,” he says. in local support from all the retailers, without these new jobs. It is envisaged that this lo- SAFLIA estimated that approximately 40-m them knowing who did what,” says Whitehead. cal content growth could be achieved by in- of the 210-m pairs currently imported could There have already been some positive creased government procurement, and by be manufactured locally, especially stuck-on, moves, he says. “Some of the bigger retailers technical niche markets, workwear, corporate stitch-down and welted styles. Certain cat- already approached us (at Bolton Footwear) clothing and retail sales. egories, like athletic spikes, cheap slippers, or to view our capabilities and find out what we In 2016 CTFL retailers purchased about R70-bn some styles for international athletic brands, are busy with.” Some of them have agreed to worth of goods, of which the bulk (R43-bn) was cannot be made locally due to lack of local introduce locally made testers, which they’ll clothing, followed by R12.7-bn worth of textiles, volumes or skills. Although some styles of an try out over the next few months and some of R11.6-bn footwear and R2.6-bn leather prod- international brand like PUMA are manufac- the retailers already gave positive feedback. ucts. More than half (55%) the value of these tured locally. Government has a vested interest in the purchases, namely R39-bn, came from imports. We cannot expect to grow local manufac- footwear manufacturing industry, and their Footwear was the category with the highest per- turing from the current 60-m pairs to 100-m support through the new R-CTFL MP with a Sports Trader :: 2020 Autumn Apparel & Footwear :: p25 vision for 2030, will assist our industry going forward, says Whitehead. The Production In- SAFLIA chairman Noel Whitehead. Photo: Trudi du Toit centive Programme (PIP), an initiative of the Department of Trade and Industry (DTI) has greatly assisted many manufacturers to renew and extend ageing infrastructure, and a new Footwear Leather Industry Cluster (FLIC) is up and running. Further support from the government will be crucial for the successful implementation, for example, by stepping up the prevention of illegal imports. When several stores in rural towns all sell exactly the same cheap and illegal items, one can be sure that they bought it from the same under-invoiced container load, which Whitehead likens to an organised crime network. A lot of work is being done at customs and by SARS to try and stop under-invoicing and false invoices, he explains. SAFLIA has assisted them by expanding the description of another 21 tariff subcodes. They have also been asked by SARS to assist with the training of customs porter and the clearance process will go much Since the Department of Trade and Industry and excise officers at ports. faster if the invoices and waybills tally. (DTI) started stepping up the clampdown on To facilitate the clearing of containers, South SARS can also focus more on importers with under-invoiced or counterfeit goods in the African importers of legitimate brands in good a history of incorrect or under-invoicing. Like- middle of last year, the average price of im- standing can apply to SARS to be registered as wise, it will be easier to spot illegal imports ports — and duty paid - has also been increas- a Preferred Trader. This means that the cus- if brands and goods registered to a legitimate ing, says Whitehead. toms officials will have a list of the brands and importer is found in a container destined for South African retail chains also have a legiti- goods for which you are the sole licensed im- another company’s warehouse. mate concern that they are To p28 Footwear manufacturing stats and facts AFTER A GLIMMER of hope amid growth in adds SAFLIA Executive Director Jirka Vymetal. with the value of the 189-m pairs representing 2016, the past few years have not been good This followed a 1.7% drop in production in 2017 R7.6-bn. for footwear manufacturing. “The 2018 year to 66-m pairs compared to 2016, when local Imports from Vietnam have increased to 11-m under review was definitely worse than 2017 production increased by 10% to 67-m pairs. The in 2018 from 9.7-m in 2017, but the imports from for various reasons,” Noel Whitehead said in his latter was the highest number of pairs pro- Indonesia, the country with the third highest chairman’s message in the 2019 SAFLIA Annual duced locally since 1999. import volumes (4.3-m) remained the same. Report. He mentioned one of the longest and In 2018 the number of pairs imported (211-m) Not surprisingly, the most expensive import- worst strikes in the industry’s history and the was the highest since 2010, and represented ed footwear (R495 per pair), come from Italy drop of 13% (8.7-m pairs) in production to 57-m 79% of total footwear available — although this (4th highest imports). The 1.1-m pairs imported pairs from 2017 to 2018. percentage was considerably lower than the represent R548-m in value. In some factories productivity was down 83% that imported footwear represented of all However, over the two years, exports picked considerably in 2018 compared to the previous footwear volumes in 2005. up, namely the 4 402 pairs exported in 2016 year, which could be a result of the month- grew by more than 400 in 2017 to 4 878, but long strike. For example, In 2018 the 18 South Imports about half the price then dropped down to 4 129 in 2018. African factories with the capacity to produce “Another significant observation is that the Interestingly, in 2018 the biggest local pro- more than 1-m pairs of shoes per year made average ex-factory price per pair produced in duction category was for women and girls about 34-m pairs — which is 3-m down from South Africa is R101.23 and the average price shoes (25-m pairs), in particular with synthetic the 37-m produced in 17 factories during 2017. per pair of imports is R56.46,” says Vymetal. uppers (12-m pairs) and with fabric uppers and The 94 factories that make fewer than 50 000 “We are busy engaging with the DTI and ITAC running shoes (6-m). Shoes with leather uppers pairs per year yielded 3.6-m pairs in 2018, which to see if any trade remedies need to be, or can accounted for more than half (11.7-m pairs) of is also considerably less than the 4.7-m pairs be, put in place.” the 22.3-m pairs of men and boys shoes manu- produced by 78 factories in 2017. The highest number of footwear pairs im- factured locally. Of the total number of foot- But, good news amid the bad: by March 2019 ported (94.4-m) have outsoles and uppers of wear manufactured locally (57-m pairs), 21.4-m formal employment in the footwear industry rubber or plastic (tariff code 64.02), followed (37.5%) had synthetic uppers and 19-m leather had increased by 2.2% (209) to 9 852 compared by 91.4-m pairs with uppers of textile material uppers. to March 2018. Unfortunately, the Green Cross (code 64.04). The latter represented the high- This means that a third (33%) of the shoes factory closed later in the year and several oth- est value for imports, R4.6-bn, followed by manufactured locally in 2018 had leather up- er companies retrenched people. code 64.02 imports valued at R4.3-bn and then pers, compared to ten years ago when leather Three factories in the country employ more shoes with uppers of leather, which contribut- uppers represented nearly half (48%) of the than 500 workers — they employ 1 749 workers ed R2.8-bn for the 14-m pairs imported at R200 footwear manufactured. Over the past ten between them. Most factories (118) are, how- per pair. years fabric uppers grew from less than 1% to ever, small, and employ fewer than 19 workers, Since 2010 the percentage of footwear im- more than 13%. but they provide work to 1 939 people. ports that came from China have also been Most (76.8%) of the total locally manufac- However, what is of great concern is that reduced from 93% to 89% of imports. The price tured footwear is produced in KwaZulu Natal, while local production dropped by 8.7-m pairs per pair imported from China (R40.51) is, how- and stuck-on footwear represents the highest in 2018, imports grew by 3.3-m pairs or 1.6%, ever, the lowest from all ten import countries, volume in all regions of the country.

2020 Autumn :: Sports Trader p26 :: Outdoor Cater for the post- COVID-19 outdoor itch

The the COVID-19 lockdown forced everyone indoors, but by the time restrictions are relaxed avid outdoorsmen will have started to climb the walls to get a bit of exercise in. Retailers can make the most of this by making sure you stock the right products

ports Trader went to print ing in the form of the Dri-Tec membrane, “With Ruigor Active bags [your customer] shortly before the lockdown which is also breathable to keep feet dry can be active and stay active,” says the in South Africa came into ef- and comfortable. The V-Lite 365 foam cre- brand. fect, but we predicted that ates an ultra-light, high rebound and im- Even though they are aimed at the out- outdoor-lovers would go cra- pact absorbing underfoot experience and door-lover, the backpacks are also full of zyS being cooped up indoors for at least the M-D Traction outsole improves grip features useful for everyday life, such as a three weeks! In a way, this could be good during up- and downhill walking. variety of compartments, dedicated built- news for retailers as when consumers are The external TPU heelcounter provides in laptop sleeves and a variety of pockets. allowed to get back into nature, retailers support, a rustproof hardware lacing sys- Other practical features include comfort- will have customers running to stores to tem a secure fit, the gusseted tongue able straps, ergonomic designs and reflec- stock up on gear to help them have more keeps dirt out, a lightweight and dura- tive elements to help the user be seen. fun outside. After all, by then they would ble fork shank is there for flexibility and The latest addition to the Ruigor have had some time to dream about new stability and the removable moulded EVA range available in South Af- products that might be missing from footbed offers extra cushioning. rica is the 29 laptop back- their current set up. “The OX-Trail Racer is the rebirth of pack, available in blue/ With the outdoors being trendy and V-Lite engineering and innovation to grey (right) or red/grey. clothing and footwear not only bought create a lightweight shoe without com- “An active lifestyle to go roughing it, but nowadays looking promising on quality and performance,” deserves just that lit- good enough to also be worn in town, says Hi-Tec. “These trail runners were tle bit more attention these will be sought-after items among designed to dominate the light trails and regarding comfort and outdoor fundies and comfort-lovers alike. allow your customer to look good doing ease of use. To sup- With South Africa going into the winter it.” They recommend that your customer port the user in all months consumers will want closed shoes chooses a size bigger than usual when possible ways during and layers of clothing. buying these trail shoes. his activities, this Ruig- The shoe has a high-performance nylon or bag with extra light Footwear ready for anything upper with a no-sew support structure materials, premium straps, and ergonomic Hi-Tec’s Altitude Lite 3 Mid WP is ready that adds stability and creates a snug design is fully optimized for his dynamic to tackle everything and anything your fit, flex grooves enhance the natural mo- lifestyle,” explains the brand. The 28l pack customer can throw at it, says the brand, tion of the foot, and “the 12 mm drop, has a reflective stripe on the back, a sleeve adding that the boot has all the features deep lug and MD-Traction propriety out- that can fit a laptop up to 15.6”, is made that consumers have loved in the previ- sole ensures performance delivered every from Polyester and is water repellent ous Altitude generations. “All in a newer time, everywhere”. It also has an impact- Medalist’s range of packs, also distribut- look and feel.” absorbing CMEVA midsole for long lasting ed by De Wet Sports, features hydration-, It boasts with a technical weave mesh cushioning and comfort, has a V-Lite light- day and hiking packs. upper that keeps the boot lightweight, weight design, comes with speed and nor- The hiking pack, Nomad (left), has a comfortable and flexible. mal laces, and is easy to take on and off. 38L capacity, a large main compartment, Another in the Altitude fam- two front utility pockets and mesh/nylon ily, the Altitude Infinity (left) Backpacks to keep active water bottle pockets. The S-curve waterproof men’s hiking boot A backpack is one of the most versatile shoulder straps and back is comfortable, durable, items consumers can buy: it can be panel are made with packed with technology used for outdoors, urban outings, breathable mesh pad- and designed for even to carry items to work. ding. The straps have outdoor lov- The Ruigor range of backpacks are an adjustable ster- ers, says Hi- very popular and doing very well for num strap and the Tec. Infinity them, says distributor De Wet Sports. back panel has a hip has a leather The Active range is made from light- belt for stability. upper that is wa- weight, but high quality materials The three hydra- terproof, durable and comfortable. so as not to impede the user’s tion packs (Boost, Each boot also has additional waterproof- enjoyment of the outdoors. Jetpack and Sier-

Sports Trader :: 2020 Autumn Outdoor :: p27

Photo supplied by Omnico. ra) each comes with a 2L reservoir. Boost symbol templates, an East/West declina- Lighting products fulfill an essential role and Jetpack have compression straps and tion scale and meridian lines. in being prepared, both for expected as Sierra S-types, and the former two also Things can quickly take a turn for the well as unforeseen circumstances. have dedicated bike tool organiser pock- worse when in the outdoors and your HiLight’s 500 lumen torch (below) is ets. Jetpack has a 12.5L carrying capac- customer should be prepared with the USB rechargeable and comes with a dif- ity and Sierra 10L. means to attract attention and get help. fuser that can collapse for easy storage Sierra also has various additional fea- The emergency whistle from Atka is “a and that can be used to soften the beam tures: an insulation layer in the bladder must have item for all bush walkers, and is ideal for camping or reading, says compartment, a waist pocket with zips, campers and boating enthusiasts,” says the brand. and chest straps with a safety whistle that Awesome Tools. The whistle is made from Bonus: the diffuser can also be used as will help attract the attention of nearby a strong plastic, has a pealess chamber a drinking cup. people should the user be in trouble. and comes with a bonus Nite Ize two-in- The torch itself features a durable, heat- Pac-Lite in the daypack range can fold one S-Biner. dissipating, CNC machined aircraft-grade up into its own small pocket, which means Weather conditions can be unpredictable aluminium construc- it’s ideal to take with when your cus- and can change very quickly. Your custom- tion, four modes tomer goes travelling — the pack doesn’t er therefore needs to be prepared for this (500lm, 180lm, take up as much space as a pack normally eventuality. Not only will the Atka emer- flashing 40lm might. It’s a 20L pack, also made from gency all-weather thermal blanket protect and strobe ripstop with a mesh back, mesh/nylon from the elements, it is also made from 500lm) and water bottle pockets and has a bungee reflective Mylar, making it easier to be includes cord gear stash on the front. spotted. The lightweight and waterproof a bar blanket folds up small enough to fit in a bracket Help them stay safe shirt pocket, yet opens up to 140x210cm. that can Awesome Tools also has sev- “It will keep [the user] as warm as toast be assem- eral items in the Atka range in the cold and reflect the sun in hot bled without that outdoorsmen can use to climates to allow cooling,” says the need for tools. help keep them safe while away the brand. Since it’s designed The removable battery has a charge of from civilisation, for example a com- to retain body heat, the blan- 2000mAh and the torch comes with a mi- pass, emergency lightweight blankets ket can also be used to treat cro USB cable. and whistles, and a signal rescue mirror. shock patients. The Sensor 140 headlamp by HiLight The Atka AC10 folding compass (right) Another item to help the user can also recharge devices via a USB port. features everything your customer will be seen is signal rescue mirror. The one In addition, it features four modes (high, need to orientate himself and make sure by Atka comes with a neck lanyard and medium, low and SOS flash) and also has he’s going the right way. star aim indicator and has quick and easy a hand sensor. The headlamp is impact- These include a liquid encapsulated instructions printed on the back of the resistant with a 140lm capacity and a 35m global needle, clinometer, magnifier, a mirror. beam. HiLight is distributed by Omnico. lock down sighting/signal mirror, index line with a movable bezel, luminous di- Lighting When things need cutting rection arrows and a north needle, ruler Talk about being able to see: lighting is A good knife is useful for home and away and compass scale base place, orienting another important part of being outdoors. — and Smith’s Pack Pal 2-Step- To p28

2020 Autumn :: Sports Trader p28 :: Overflow

Manufacturing Post-corona from p25 outdoors expected to comply with local content percent- cont. from p27 ages, but have to compete with international retailers like H&M, Decathlon, etc. who were Combo knife (right) even comes with a Two safety locks avoid accidental blade clo- allowed trading licenses to sell imported goods built in knife sharpener, with carbide and sure and the Thumbs Up lock at the back of without constraint. This is an issue government ceramic sharpening slots and a diamond the handle makes it easy to open the blade by can address over time, says Whitehead. sharpening rod. The moving the thumb. Organised labour will also be involved and flip-out knife In addition to the vari- they will be asked to be flexible by, for ex- features a 3.5” ous blade lengths and ample, not work short time in May and June 420 stainless blade, handle treatments in the and then want to work overtime in October, liner lock, ambidextrous range, the LD21 style (bot- November and December. thumb studs and a revers- ton left) also has a corkscrew, Impact of weak economy ible pocket clip, and it’s bottle opener and serrated blade, 7.9” long overall when open. which will be appreciated by your We must face it that the South African economy Smith’s is distributed in South customers on the go. It can also be clipped is going to be dismal during 2020-21 and “if the Africa by Awesome Tools. on to a lanyard or keyholder. footwear industry as a whole is just going to The spork is an all-in-one uten- look at trying to beat the economy, we’re going sil set and “a great way to save Portable power to be in trouble,” says Whitehead. Some out- space on utensils when camping,” Despite what some might think, cellphones of-the-box thinking would be required … which says Atka. The brand’s spork (left) aren’t only useful for posting Instagram he suggests should include local sourcing. is made from durable food-grade pics. They fulfil a variety of functions such About 9-m fewer pairs were manufactured plastic, includes two knife blades as GPS, activity tracker, a means to call locally in 2018 than in 2017 and the locally for added flexibility, and comes in for help, etc. But they also run out of bat- manufactured pairage will be even lower in bright green, yellow and orange as tery quickly if used a lot. Your customer 2019, he warns [see sidebar: Footwear manu- well as black. will therefore do well to carry a product facturing stats and facts]. This downturn over RUIKE (top and below) is a new hi- that can recharge the battery. the past two years was across all categories tech brand of folding knives avail- The Red-E Power Traveller (below) is a 10 and can be blamed on the weak economy able in South Africa and despite the 000mAh fast charging power bank that has that reduced consumer buying power. many technologies used to manufac- two in- and four outputs, three of which People simply wear their shoes a bit longer ture the blades, they are available from and buy cheaper styles, which especially im- are cables that are integrated in the de- R & S Traders pacts on more expensive imported brands. This vice, folding up neatly to store away in at a price your places strain on retailers who have expensive the sides of the power bank. These three customers will shoe styles and brands on their shelves, with the are a micro-USB, USB Type-C and a eight appreciate. result that they will probably replace these with pin Lighting cable. It also has a handy The mechanical more affordable lines that might sell faster. battery indicator so properties of the steels Effectively, over the past 3-4 years more that your customer have been improved by footwear manufacturers closed down than can easily see how cryogenic treatment, new ones opened, which includes the signifi- much charge is which makes them harder, tougher, cant impact of the closure of the Green Cross left in the power wear and corrosion-resistant. The Sand- factory after 44 years in 2019. “The scary part bank. vik steels ensures high edge sharpness is that at the same time the percentage of Omnico distributes and stability in retaining the edge. imports had grown even though the total vol- Red-E in South Africa. umes of footwear purchased dropped,” says Whitehead. These imports were mainly for the restored”. cheaper end of the market. Polo brand from p22 To be fair, in the same letter the lawyer acknowledges that the judge had ruled Load-shedding their trademarks remain on the register that more than 40 of the LA Group’s Load-shedding has had a severe impact on the and no other brand may request the re- trademarks should be expunged from the footwear manufacturing industry, says White- moval of garments bearing these marks trademark register. head. While some manufacturers have genera- from stores. But, she makes reference to a court case tors, not all enjoy the benefit. The LA Group, however, does not lack to be heard between 17 and 20 February “If you have load-shedding in the middle of confidence that the court will eventu- 2020 challenging the legality of the USPA the day, the collective agreement says that ally rule in their favour and remains on trademarks and the counter-application you have to pay employees for the first hour, the offensive to deter any competition — against her client’s Polo trademarks … the second hour is short time. Workers there- from registered trademarks, or not. but failed to point out that the case in fore lose an hour, and the employer loses an For example, a week before their ap- question was to hear the LA Groups’ peti- hour.” peal to prevent the removal of their tion to appeal the 29th November judge- This is not good news for an industry under trademarks was denied, the sheriff deliv- ment that cancelled their trademarks. strain as all parties lose, but the unions have ered a lawyer’s letter to a store stocking Which they lost (as explained above). been open to suggestions for dealing with the the USPA garments. The Adams & Adams It is, however, clear from their stated situation. An obvious problem is when load- lawyer warned that her client (LA Group) plans to appeal right up to the Constitu- shedding occurs in the middle of the day, as intended to institute proceedings against tional Court that the LA Group intends to factories can start earlier or work later if they them “as soon as the USPA trademark fight until the bitter end. It can therefore know load-shedding will be in the morning or registrations are removed from the Reg- still be some time before their is a final late afternoon. ister and their client’s registrations are decision about the use of the Polo logo.

Sports Trader :: 2020 Autumn Industry :: p29 Good growth in wearables The future described by many sci-fi writers is here, and we can wear it in our shoes and clothes! Whether heating, cooling, cause of complex approval procedures.” lighting or measuring bod- In terms of printed electronics, Quah ily functions such as pulse — and ATO-gear are, for example, develop- many innovations in the tex- ing a running shoe insole that’s printed tile sector today come from with electronics: pressure sensors record technology,”“ says Dr. Klaus Hecker, Man- the biomechanical movement pattern of aging Director of the Organic and Printed the foot from touch down to roll and the Electronics Association (OE-A). data can be transferred to a smartphone The wearable technology market is cer- via Bluetooth. tainly making an impact and is set to grow The idea of real-time performance by $35.48-bn between 2020 and 2024, es- tracking using sensors on athletes isn’t timates research company Technavio. DuPont display their printed technology. new, but Tobias Meyer from the sensor There is an enormous potential in smart Photo: LOPEC trade show. specialist IEE suggests taking this even textiles, says ISPO. “Especially since the further. You can, for example, “share use of printed electronics in clothing You can, for example, re- the running routes of celebrities with TV makes the integration of technology small- cord and share the run- channels or fans,” he suggests. er, more practical, and more natural.” Ski jackets don’t have a big market in In fact, the Centre for Nanotechnology ning routes of celebrities South Africa, but technology such as and Smart Materials (CENTI) in Portugal is with TV channels or fans Schöffel’s Intellitex Heat System could working on an intelligent fibre, the yarns be of benefit to other products sold here: of which consist of three components silver inks, for example, to print fine the sensor inside the ski jacket checks the and are also “intended to become min- heating elements on outdoor clothing difference between the temperature that iature size electrical devices that serve, — a technique used in the outfits of the the wearer set it at and his body temper- for example, as sensors for monitoring US team’s at the 2018 Winter Olympics. ature and keeps it adjusted correctly. If body functions, or collect energy via so- These new printing materials, under the it gets too cold, heat is pushed into the lar functions,” says ISPO. name of Intexar, can go through up to 100 carbon nanotubes in the jacket. This is all Additionally, researchers at the Insti- washing cycles. powered by a normal powerbank. tute of Textile Technology (ITA) at RWTH “There's no question that the potential Descente has a similar jacket, but in- Aachen are working on improving the market [for smart wearables] is huge,” stead of a powerbank it uses removable durability and washability of smart tex- says Hecker. “Now it's important to devel- solar cells that power the ceramic heater tiles. This will help make items made op intelligent business models arising and that’s integrated in the ski jacket. As a with these textiles more sustainable for bring together completely new players.” bonus, they can also be used as a power- everyday use. Because the sports market runs in half- bank to charge mobile phones. DuPont has developed stretchable and year cycles, for summer and winter, With the rate in which companies are electronically conductive printing mate- it’s also easy to quickly implement new developing the necessary technology the rials that are integrated into textiles us- smart products in this industry, he adds. options for ways to incorporate smart ing the standard industrial processes. “The automotive sector or the medical technology into wearable devices or Manufacturers can use the carbon and industry are much more conservative be- clothing are near endless.

US athletic active- and footwear sales here wasn’t any significant growth in increase while women’s and kids’ declined in ness because it affords them greater mar- athletic footwear sales in the US dur- the low single digits. gin (off-set somewhat by greater costs). T ing 2019, reports NPD. Kids performed The weather wasn’t as cold as before, so Through DTC, brands can better control their the best, but even then it was in single digits, sales of outerwear tops were down com- assortments and brand message than they and the top five brands in women’s footwear pared to the previous year, but sweatshirts can with their wholesale partners. But is this all showed negative growth. “The women’s improved slightly. true growth for the brand or simply a shift business remains the industry’s greatest Undershirts and –wear with performance in retail margin dollars from their wholesale challenge and its greatest opportunity,” says features, however, grew sales. partners?” Matt Powell, NPD’s vice president and senior He gives an example of selling a shoe DTC industry advisor for sport. DTC grows, but at what cost? at 40%, which Powell says will still give the The biggest of the footwear categories, brand a greater margin than if it was sold During 2019, 19% of all athletic shoes sold sport lifestyle, saw increased sales in the through a wholesale partner. “So, they can high single digits, with casual athletic-in- in the US were direct to consumer (DTC), afford to be aggressive in pricing without spired sneakers driving sales. NPD’s Consumer Tracking Service found – an hurting margins. But of course, these promo- In the US activewear market sales declined increase of 17% over the previous year. This is tions weigh heavily on the brands’ wholesale in low single digits during 2019. “There is a a stark contrast to other channels only grow- partners, who do not have the extra margin malaise around apparel in the U.S., but ac- ing 2%. “So, virtually all the annual growth cushion.” tivewear continues to outperform fashion the industry achieved came from DTC,” re- For the report, NPD looked at full price apparel.” marks Powell. brand stores, brand outlets and brands’ of- Men’s activewear experienced a small sales “Brands are happy to grow their DTC busi- ficial websites.

2020 Autumn :: Sports Trader p30 :: Sport

Photo supplied by The Jonty Rhodes Way (see p38)

The state of school cricket There is a glimmer of hope for cricket retailers as some schools report a growing interest among their learners … especially when enthusiastic coaches inspire them

ricket seems to be gaining 7% of the respondents reported a declin- have 5-7 teams dropped to 14% from interest from learners — in ing interest. 20% a year ago and those with 3-5 teams many schools, at least. Sad- This is quite different to the responses dropped to 21% from 32%. ly, other schools report that we received last year, when 32% of the Schools who only have one or two first fewer learners are now play- schools reported that there was much teams grew to 29% from 24%. ingC cricket, compared to last year, or five less interest in cricket than five years ago years ago. … but, interestingly, an equal number of Depends on teachers and coaches Sports Trader again did a survey of respondents last year said that there was What is heartening, is that the reason cricket-playing schools to determine if much more interest in cricket than five given for growth in cricket interest by interest in the sport is declining or grow- years before. most respondents (29%) is the contribu- ing. We are very grateful for the teachers tion made by an enthusiastic teacher or or coaches who responded — most re- More or fewer teams coach. Last year, even more respondents quested to remain anonymous, but sev- As can be seen in the chart on p32, the (36%) indicated that the interest and ex- eral agreed to be quoted. percentage of respondents whose schools citement generated by a coach or teach- This year the cricket interest in their have many teams — more than seven, er inspired players. schools remained the same as last year, in other words, multiple teams per age Conversely, where respondents report- 36% of the respondents reported, but group — grew to 36% from 24% a year ago. ed lack of interest from teachers, inter- more than a fifth said there is much more This comprises the highest number of est in cricket declined. interest in cricket in their schools than respondents. This is heartening, because this is a fac- last year, as well as five years ago. Only But, respondents whose schools now tor that a retailer could influ- To p32

Reasons cricketEquipment growth/decline supplied by (percentages) school Par�cipa�on compared to 5 years ago Reasons cricket growth/decline (percentages) 100 45 90 40 45 4035 40 80 3530 35 70 25 30 60 3020 25 50 2515 20 10 15 40 20 5 10 30 15 0 5 20 0 10 10 0 5 0 About the Much more This year LessThis yearthan LessThis yearthan Much less same than 5 more muchlast yearmore muchlast yearmore than 5 years ago interest interest interest years ago

2020 2019 2020 2019 2020 2019 2020 2019

Sports Trader :: 2020 Autumn

p32 :: Sport Reasons cricketEquipment growth/decline supplied by (percentages) school ParNumber�cipa�on cricket compared teams to per 5 years school ago Reasons cricketEquipment growth/decline supplied by (percentages) school 100 45 90 40 100 45 4035 80 90 40 3530 35 70 3525 80 30 30 60 3020 70 25 50 2515 60 20 2510 15 40 20 5 50 30 20 10 15 0 40 5 20 1015 30 0 10 10 20 0 5 10 05 0 0 About the Much more This year LessThis yearthan LessThis yearthan Much less Moresame than 7than 5 5-7 Teamsmore muchlast 3-5 year moreTeamsmuchlast yearmore 1-2 First teamsthan 5 teams years ago interest interest interest years ago

2020 2019 2020 2019 2020 2019 given by a small percentage (7%) of re- Cricket at school cont. from p30 spondents. ence by, for example, offering assistance Providing equipment to coach at a nearby school where there is The reason given for It is accepted by all that schools would no teacher or coach available ... or think growth by most respond- buy balls for matches and practice, and out of the box about ways to generate ents is the contribution this year all the respondents confirmed interest through weekend workshops, in- made by an enthusiastic that they supplied cricket balls (also see viting prominent cricketers to the store, the article on balls on the next page). or even, if space permits, set up nets in teacher or coach What is interesting, though, is that few- the store and invite school cricketers to er schools are supplying other equipment come to the store for coaching. due to too much competition from other that could be bought by individual play- That way, one of the biggest problems sport. ers than in 2019. facing sport retailers, namely, coaches Not just from rugby, though. For example, half of the respondents selling directly to players and by-passing “Cricket is dying at our school,” says say their schools supply cricket helmets retailers, could be counteracted. Andrew Gifford from Norkem Park High. and pads for players — compared to 64% Another reason why this is heartening “We are a former Model C school and our who last year said their schools supplied is that interest in cricket is no longer de- demographics have changed substantial- these items. Now, 43% of respondents’ pendent on inspiration from the national ly. Our boys are now keener to play soc- schools supply other protective gear, team heroes, like a few years ago. Only cer and basketball.” compared to 56% last year. 7% respondents believe the performance Another reason given by 43% of the re- And 36% said they provide bats for their of the Protea teams is a reason for growth spondents for the decline in cricket in- cricket teams — considerably down from in cricket participation in their schools. terest is that it is too time-consuming. the 56% of schools who supplied bats last This is a factor that retailers have no An anonymous respondent from a small year. control over, and to be frank, the current school say that they “offer too many op- If this indicates a trend that schools are state of cricket can not remotely claim to tions and students tend to choose those now expecting players to provide their be inspirational. On the other hand, Siya activities requiring little commitment, as own equipment, this will mean that a re- Kolisi creates near-hysteria anywhere he academics is generally their priority.” tailer would, for example, sell at least goes and would most certainly inspire Another reason given for declining in- 12 kits per team to individual players, quite a few youngsters to play rugby. terest in cricket should be of concern to instead of selling two of each per team “Cricket in general is suffering under all sports: more than a third of the re- to a school. the big influence of schoolboy rugby and spondents say that the learners in their Some schools, however, provide all the hype around it,” says Handro le Roux schools are simply not interested in par- the equipment for beginners in the U9- of Boland Rugby. ticipating in sport. teams, for example, but only provide No wonder 29% of the respondents said Lack of funds — or interest — to keep team gear like balls, scoreboards, stumps cricket interest in their schools declined up cricket facilities is one of the reasons and bowling machines for other teams.

Jonty Rhodes aims to inspire 25 000 new cricketers Jonty Rhodes will always be remembered by 2022, through an online coaching plat- for some of the almost impossibly ener- form, combined with school coaching and getic saves he made as a Protea cricketer. high performance camps. Will his skills and energy now save cricket Ryan Maron (on the right of Jonty), foun- at retail? While retailers who are concerned der of the School of Cricket Excellence and about a drop in cricket sales wonder if the a Cricket SA Level 3 coach and former WP game can be sufficiently revived at school player, is the director of the project. They level, Rhodes is doing something positive will be assisted by Jamie Rood, who has ex- to develop a potential new market. perience of founding and running startups, During the first term of this year he initiat- and Mpho Sema, an architect with a special ed a pilot programme in 10 under-privileged interest in entrepreneurship and community schools in the Western Cape and Gauteng development. to introduce the Jonty Rhodes Way (JR They estimate that about 34% of their costs Way). This project aims to introduce 25 000 will be for cricket gear. The golf brand Swagg previously disadvantaged people to cricket recently became their clothing sponsor.

Sports Trader :: 2020 Autumn Sport :: p33

Cheap cricket balls can be expensive Often purchasing decisions are based on price, which is fine for certain products, but not sport equipment such as cricket balls, writes CARIN HARDISTY

uring a match, the cricket to also be used as a good training ball, stitches, while one for practise matches ball is furiously nicked and which saves buying additional balls for or training sessions have around 55. pounded by the pitch and bat training, Jajodia points out. Because the thickness of the string and, despite this, it needs to In addition, the ball needs to be replaced changes the range of the seam, it also retain its shape. less often during a match. An internation- has an influence on how much movement D“By the nature of the game, the cricket al level cricket ball, for example, is made the bowler can get off the seam. ball takes a lot of pounding and there- to last over 100 overs and keep its shape Additionally, some balls have six rows fore needs to be properly constructed,” and bounce. Schools and clubs won’t re- of thread and others have four. Six rows advises Dilip Jajodia, the owner of the quire quite such a high calibre, but this is make the seam more pronounced and Dukes cricket ball brand that is locally something to keep in mind. easier for fast bowlers to grip. It also distributed by Opal Sports. A lot goes into making a cricket ball. For helps a ball to retain shape for longer and “Unfortunately, consumers generally do a start, a properly constructed one needs makes the ball tighter. Both the hardness not like spending a great deal on cricket to be fully hand stitched and takes three and firm seam have an affect on how the balls.” and a half hours to make. ball moves in the air and on the pitch. While the initial outlay for a good ball “Retailers should make their customers Cricket balls need to be shiny for the might be more expensive, spending a lit- aware of the time it takes to manufac- bowler to get spin. To get this shine, the tle more to start with, will save the con- ture a cricket ball,” advises Jajodia. leather is treated with a synthetic grease sumer money in the long run. Retailers should also source from a that stops the ball from soaking up too proper manufacturer and “not just an much water when used in wet conditions. Why does the quality matter? importer, who probably has no control When comparing the colour of the ball’s An inferior ball will go soft and out of over how the ball is manufactured. It’s outer, a darker red indicates that the leath- shape quicker, which will make it more best to support a reputable brand.” er was soaked in the grease for longer. difficult for bowlers to control and for The grease creates a shine and polish batsmen to hit boundaries, says Jajodia. How to identify a good ball that contributes to how much swing the A high quality ball will retain its shape So what should retailers look for in a ball bowler can get from the ball. and firmness, which is essential to pro- when recommending one? After the ball has been stitched togeth- vide the right playing qualities. The devil is in the detail: higher qual- er, it is given another polish to make it Additionally, a cheap, hard ball can ity balls use a finer string for stitches shine even more — and this is the polish break bats and hurt players. that allows the manufacturer to fit more that players work on during the game. On the other hand, if the ball is of good stitches around the circumference. quality, it should still be in a good enough Generally, a ball used in a five day test What keeps it together condition after being used in a match match, for example, will have around 80 It already takes a trained eye to To p34

2020 Autumn :: Sports Trader p34 :: Sport

Cheap cricket balls end up expensive cont. from p33 notice these details, but there are other The leather tells a story even more nuanced details to look for. Some things, however, the retailer won’t The construction, for example: balls be able to see with his naked eye with- with a four piece construction will be of out taking the ball apart. Here he has to higher quality than those made of two trust the information given to him by his pieces and are also better suited to use supplier. during matches and training. Two piece Among the hidden pieces of information balls are only really appropriate for use are the materials used in the outer and while training. core and how they contribute to the ball. With a four piece construction, pieces The outer is made from leather, but are stitched together to form two hemi- keep in mind that not all leather is spheres (the seams of the two pieces equal. It’s important that the manufac- that form a hemisphere are stitched on turer chooses the right part of the skin: if the inside so as not to make an additional the leather is too weak and stretchy the raised seam). ball could lose its No matter if it’s a shape quicker. four- or two-piece if the ball is of good quality Dukes, for ex- construction, there it should still be in a good ample, uses the are now two hemi- enough condition after be- middle four strips spheres that need of leather from to be stitched to- ing used in a match to also the back of the gether. Here the be a good training ball. cow (the belly, for seam is stitched on example, is too the outside. soft) and ensures that the four quarters On a four-piece construction the inner on each of the strips have consistent seams are rotated at 90 degrees to each strength and density. other when the hemispheres are sewn to- By making a ball from a consecutive gether. This rotation helps the ball keep piece of leather it will be easier to con- its shape for longer. trol and maintain an even thickness.

Dukes considered the first true cricket ball THE ORIGIN OF the Dukes cricket ball has been traced all the way back to 1760, when Duke & Son established a workshop in Kent, England. Prior to this, the family business had been bootmakers and the cricket part was a sideline business. In 1775, they presented their first six-seam cricket ball to George Prince of Wales, who was later to become George IV and was a huge cricket fan. They received a Royal Warrant from him. “Some cricket experts, such as the well-known cricket writer Earnest Ward, consider the Dukes treble-sewn ball to be the first true cricket ball, arguing therefore that Dukes invented the cricket ball,” writes British biographer Gary Cox in his book Cricket Ball. An interesting piece of family history is that Timothy Duke I, the brand’s original mas- ter cricket bat maker, is also the great-grandfather of H. G. Wells, whose father, Joseph Wells, was an accomplished professional cricketer for the West Kent Club and Kent County Cricket Club. H. G. Wells writes in his book, Experiment in Autobiography, that his father “clean bowled four Sussex batsmen in four successive balls, a feat not hitherto recorded in country cricket”. In addition to inheriting Dukes, Timothy I’s grandson Joseph had also inherited a china shop from which he sold both china and cricket items. This combination didn’t work too well. As of 1987, Dukes belongs to Dilip Jajodia who also owns the Morrant cricketing brand, which is now run by his son Sunil. As a youngster Jajodia had dreamt of a cricketing career, but unfortunately an injury put a stop to these, leading him instead to the business world: first as a chartered accountant and later a chartered insurance practitioner. The combined passion for cricket and a solid background in business has lead to the expansion of the Dukes brand outside of the Eng- lish borders. Today it’s available in several markets, including South Africa (distributed by Opal Sports) and is the official ball for England, West Indies and Ireland. Over the years, the Dukes ball has received a lot of praise from cricket players and com- mentators alike. Comments such as that it holds its shape longer than rivals, that seamers like how much sideways movement they get, and even from batsmen enjoying the feel of the ball on impact show that the brand has found favour among many. “[Cricketers] like how its snug, hand-stitched seam and surface finish, which polishes like a patent leather shoe, empowers pace bowlers and forces batsmen to earn their runs,” writes Gideon Haigh in an article for The Australian (Bring on the Dukes: with cricket balls, not all is as it seams).

Sports Trader :: 2020 Autumn 35

Visit Sports Trader’s website for more product knowledge: www.sportstrader.co.za Recommending boots and balls

f all the products a retailer • Hard ground pitches are harsh (very may sell to rugby and soc- Our cut-out-and-keep series to dry grass, dirt, gravel, etc.): cer players, their boots and assist retailers with product ◦◦ Players will want boots with extra balls have the biggest influ- knowledge comfort, fewer pressure points and ence on their performance. enhanced traction. Words: Carin Hardisty. Compiled with It’sO therefore important to consider all ◦◦ Studs won’t penetrate this surface the help of www.5-a-side.com, www. the options carefully before recommend- efficiently, so players will want boots footballbible.com, www.greenfields.eu, ing the right ones. with short, evenly distributed studs blog, kitbag.com, mikasasports.co.jp/e, In team sports such as rugby and soccer across the entire outsole so as to dis- www.prodirectsoccer.com, www.soc- the two major equipment items players cer.com, www.sportsandsafetysurfaces. tribute the pressure — since the studs need are the balls, naturally, and boots. co.uk, www.sportsmanswarehouse.co.za don’t sink into the ground, each stud Boots may as well be classified as equip- point creates a pressure point. ment considering how vital the right pair ◦◦ The sole plate should also be made is to the player’s ability to perform. from a harder TPU so that it is more Before you can start to recommend ei- durable. ther, however, the retailer needs to find ◦◦ The soccer ball will also need to be out what surface the player will be likely durable for use on this terrain, other- to use the boots or ball on. wise it will get damaged quickly. Rugby and soccer are both winter • Artificial turf (a carpet made from sports. This often means dealing with dif- synthetic fibres that create a surface ficult pitch conditions and extremes such resembling firm ground): as muddy or rock hard ground — another ◦◦ Since the soccer player’s studs or factor you need to keep in mind when blades can’t sink into the ground recommending boots or balls. these boots are made specifically to • On a soft, grassy playing surface: help with traction. ◦◦ Rugby players will want longer studs ◦◦ The blades or studs are usually made that sink into the ground so as to get from rubber and made to be dura- extra traction and help prevent the ble. They are densely concentrated, boots from getting stuck in the mud. compared to those on normal soccer Typically, there will be four metal boots, and resemble rubber dimples. studs in the forefoot and two on the These improve traction. heel, but sometimes plastic studs are ◦◦ The outsole can also be patterned for added for even more traction. extra grip. ◦◦ Soccer boots will need fewer studs ◦◦ Boots have durable rubber outsoles than for other pitch conditions. that have a low profile and are de- ◦◦ In general, soft ground boots will signed to keep the feet close to the need to be made from stronger ma- ground, which will help to reduce terials and stitching to cope with the slipping. added force of kicking. ◦◦ Because the surface is hard, boots ◦◦ Soccer match balls for soft ground should use shallow conical studs or also have extra cushioning in the heel. can be made from leather or syn- blades. ◦◦ Turf trainers have very durable, rub- thetic. The ball will need to keep its ◦◦ Rugby boots for firm ground tend to ber outsoles and are slightly raised, shape and have a good bounce. have more studs moulded into the but don’t offer as much grip as their • On firm ground that has good traction: sole. Because they cover more space, boot counterparts. ◦◦ Studs shouldn’t dig too deep as the they distribute the body weight more boot can get stuck in the terrain, even. This can facilitate speed and Blades and studs which doesn’t give way as easily make it easier to quickly change di- They might sound like dangerous gothic as soft ground. Rather, these boots rection. accessories, but blades and To p36

2020 Autumn :: Sports Trader p36 :: Sport

Recommending boots and balls cont. from p35 studs are actually there to protect the ▪▪ Their boots tend to have six studs: • Thermal bonded: the panels are ther- player from hurting himself by giving him four at the front and two on the mally glued together and bonded with more grip. heel. heat. Helps to retain shape and, be- • Screw-in studs, which can be re- Similarly, soccer players also have a va- cause there are no stitches, it means placed, are useful for players that riety of requirements: a low water uptake. Used for more ex- might want to replace them as needed, • Striker: lightweight shoes; pensive types of balls. but if they’re not screwed in right they • Midfielder: cushioning, because of how The inner lining material determines might fall out or otherwise get lost. much he runs; how responsive the ball is. • Blades are fixed in place, so they • Defender: strong outsoles to withstand • Premium match balls will have several layers (often four): polyester for dura- won’t fall out, but aren’t changeable. attackers’ kicks; bility and responsiveness and cotton for ◦◦ Usually blades are used by players • Goalkeeper: boots that will give him softness; who want more speed: they penetrate traction and allow him to move quickly. and exit the surface faster than studs • Cheap soccer balls will only have about would, but still give some grip and also What’s in a soccer ball? two layers of polyester, making them harder to control. improve the turning capacity. The outer is made from synthetic leath- Bladders are usually butyl or latex. The placement of studs will determine er, with a PVC or PU coating. • Latex bladders are soft and responsive: what benefits they provide: • PVC: more affordable and durable than ◦◦ Used for premium balls; • Forefoot: better traction; PU. Used for street or training balls. • Midfoot: these dig in and provide add- ◦◦ Do not retain air and shape as good as • PU: softer and more responsive. Used ed traction for faster acceleration at butyl bladders. for higher-end match balls. the start of the run; • Butyl: durable and good air retention. ◦◦ A glossy coating will help reduce • Backfoot: used for balance to keep the ◦◦ Can become deformed easily; water uptake, as well as scuffing on foot stable on the ground and also sup- ◦◦ Less responsive. softer PU balls. ports the heel. The number of panels affect how the Training vs match balls Positions determine the boots ball moves through the air. Fewer panels It’s also a good idea to ask your customer mean: Often soccer boots tend to be the go-to if he’ll be using the soccer ball to train • A more aerodynamic and faster ball; for both rugby and soccer players, with with or to play matches. He might not • Fewer seams, which can create a the major difference between rugby and even realise there’s a difference be- rounder shape and lessen water up- soccer boots being the heel and feel. tween the two. take. • Rugby boots have a slightly raised Training balls tend to be made from Panels are put together by machine or heel, which reduce the pressure on the material that will last quite a while, be- , or a Achilles tendons, calf muscles, ham- hand stitching thermal bonding, cause they’ll be put through a lot of use. strings and back; combination of bonding and machine They’re usually machine stitched and • Soccer boots tend to focus more on stitching: have a cover with a thin layer of foam, providing the player a good feel of the • Machine stitched: usually used on making the ball harder to touch. The ball ball than protection for the foot. training or budget balls. Strong, con- will normally also have a stiff feel. sistent stitch, but exposed and shallow, Because of these, the ball will feel In the end, to determine the best boot which means not much performance different to a match ball, but it’s also for the job, the retailer needs to know benefit; cheaper. what position the player has in the team. • Hand stitched: seams are deeper, giving Match balls, on the other hand, are Rugby forwards, for example, need ex- more aerodynamic stability and pro- made for quality and not necessarily to tra ankle support from higher-cut rugby tects stitches from wear. Also puts the last long. They are usually handstitched boots and a protective upper, but soccer ball’s surface under greater tension than and have a thicker layer of foam under boots will work for rugby players in kick- machine stitched, giving greater power. the PU cover. ing positions who want a better feel for the ball. What else do the different positions need? What say international bodies? • Rugby: ◦◦ Forwards: in addition to ankle sup- IN ADDITION TO knowing what players will • Circumference around the length: 740- port, they also need good traction need, based on their playing positions and 770mm; the ground condition, a retailer also has to from their boots so that they can • Weight at the start of play: 410-460g; be up to date on what rules the interna- push off, a secure-fitting heel, and • Air pressure at the start of play: 65.71-68.75 tional bodies, FIFA and World Rugby, have kilopascals (kPa). durable uppers; in terms of what players may use. ▪▪ They typically use an eight stud Young players may use smaller configuration (six at the front and World Rugby specifications state balls. that boot studs may not be long- two on the heel), which gives bet- FIFA (Fédération Internationale de er than 21mm nor may they have ter grip during scrums; Football Association) rules state burring or sharp edges. Because ▪▪ Additionally, tight 5’s also need a of this, it says that nylon shouldn’t that the ball should conform to the boot with more studs on the front be used as it tends to burr. following: The correct size for of the sole. A rugby ball must have the fol- • Circumference: 680-700mm; a rugby boot stud. ◦◦ Backs will want footwear designed lowing specs: • Weight at the start of play: 410- to help with speed and agility. Fea- • Length: 280-300mm; 450g; tures should include flexibility, light • Circumference around the width: 580- • Air pressure at the start of play: 0.6-1.1 at- weight, good traction, a snug fit and 620mm; mosphere (600-1 100g/cm2) at sea level. a good kicking zone;

Sports Trader :: 2020 Autumn THE BEST IN THE GAME FOR A REASON

SUMMIT prides itself on designing and producing products that deliver the very best. SUMMIT is focused, passionate and committed to making a difference to sport. All of our products have been tested to make sure they hold true to our quality standards, and designed to make sure they are a leader in any category. We take pride in what we produce, creating products that give the consumer the very best experience possible.

Contact Opal Sports with enquiries. T: 011 695 9640. E: [email protected] p38 :: Industry

Retailing in the future Tips from the NRF Big Show

Fascinating applications and technologies for retailers were again on show at the NRF Big Show in the US — for example, high quality projected 3D images that create easy-to-manage store window displays, technology that reads your customers’ moods, robots to tell you when to order stock, and many more.

t this year’s National Retail the goods to his customers directly from This year’s NRF (National Retail Fed- Federation Big Show many of the fulfilment centre and still make mon- eration) Big Show attracted around the futuristic developments ey out of it.” 40 000 visitors of which 18 000 were from previous shows could be “Workforce management is big for all retailers with 800 exhibitors showing seen as they would be used the right reasons,” says Rowen. “Employ- off their products. It markets itself as inA real time, demonstrating how these ment levels where they are, wages where the world’s largest retail conference technologies can be applied in everyday they are … this seems to be a very hot and expo and, due to its size, is a life — or retail. time for this space, to the point where good barometer of what is happening “There tends to be two different shows: there are a lot of wins being announced.” in the retail industry. the bright shiny object shows and the Some of these include task management let’s get real shows,” says Steve Rowen and scheduling solutions. of Retail Systems Research (RSR). “This tory and to return items to the warehouse There were several exhibitors who year was definitely the latter.” that just aren’t selling.” shared stories of where they are suc- The retail research company presented Visual analytics can help retailers to ceeding. “It would certainly appear that, a webinar to share their impressions from identify unsavoury customers who might if everyone in this space is doing as well the 2020 show. have given problems in the past. Kil- as they are, this is a time where retailers At last year’s show, exhibitors present- course gives the example of Facefirst, are thinking very seriously who’s going to ed items and technologies that retailers which uses consumer-grade cameras, so be working in their stores, what they’re might be able to see and use in the fu- nothing fancy, and focuses on making going to be doing when they’re there, ture, but this year they were more fo- sure that the same person can’t steal making sure that it’s all as optimised as cused on execution and how to use tech- possible.” twice from a retailer by identifying the nology in the retail space, RSR noticed. culprit if he returns to the store. It does “We saw a lot more things that were Order orchestration this by storing the person’s image on a practical.” The implementation of BOPIS (buy online database, the retailer marks the person They didn’t necessarily see anything and pick up in the store) and BORIS (buy as a problem, and AI can identify him new, but they saw new applications of online and return in the store) is seeing a when he returns. these things. “A lot of the things we saw lot of growth. “Two and a half years ago Visual analytics can also help identify in prior years are now becoming more we were talking about BORIS and BOPIS. products on the shelf. and more real,” says Brian Kilcourse, also Now we have 4 000-5 000 customers us- of RSR. Another important function for busi- ing, breaking it, and needing better an- “One of these is visual analytics. These nesses is forecasting — and using data to swers,” Manhattan Associates told RSR at have been around since the early 2000s, find optimal solutions. the show (RSR also launched its first ever but they are now getting real and getting They give the example of a retailer that survey on the topic last week to find out useful and finding practical uses.” sends a lot of product direct to his cus- more about retailers’ experiences with tomers and used demand forecasting to this). Analytics and forecasting reduce the amount of duties he has to “Order orchestration is really moving “Insight is a really big detail to retailers,” pay. He used the information to identify to the centre of selling environments says Kilcourse. “Business Intelligence and where the most demand came from and and becoming very important” says Kil- analytics is changing rapidly and it’s be- then — instead of shipping to the US, for course. They saw several exhibitors try- cause of AI.” example, and then to his consumers from ing to address this in interesting ways. One example is to understand cause and a fulfilment centre — he noticed that he They use order orchestration in conjunc- effect (Causal Analysis). “The point of this could fulfil from a trade-free zone near tion with ordering systems, for example is to do an intervention mid-season, for to where the products are made. ecommerce or store channels, and fulfil- example, if something is going on that can “He wanted to avoid the tariff situation ment options that are pushing consumers cause sales to drift (go south or go better as well as some of the import fees that towards the store, but offering other op- than expected) the intervention will allow come with the traditional supply chain,” tions. They use this orchestration compo- the retailer to re-allocate stock based on says Kilcourse. “The savings from this is nent in the middle. activity, to adjust assortments and inven- significant enough to allow him to FedEx BORIS and BOPIS are about more than

Sports Trader :: 2020 Autumn Industry :: p39

Photo: Jason Dixson Photography.

sending an order to a store and asking store, and exhibitors such as Aura Vision someone to fill it, he points out. “It’s Visual analytics can help are able to use your existing security about finding optimal locations for the retailers to identify un- cameras so retailers don’t need to get a inventory, finding available labour, deal- savoury customers who whole new expensive set up — simply use ing with all of the issues associated with might have given prob- the company’s software on your camera shipping, etc.” network. Additionally, their system also lems in the past gives retailers customer information such Track stock levels as gender and age group. “A lot of times we saw conflicting tech- The system makes use of traffic light Bluetooth can also be used to track the nologies to try to solve common issues, colour indicators (red, yellow and green) comings and goings in small areas, enabling for example out of stock: is that going to give feedback to the manager and he a store to fine-tune its location-based mar- to be solved by robots or by cameras?” can click on them to get more informa- keting. Pointr creates a digital store blue- asks Rowen tion or to order more product via the print, which a retail user can use to pin- Trax had several shelf solutions, one pop-up. point where customers are in store. of which features cameras built into the “The system is so simple that if you shelves that can also scan the opposite don’t have a planogram for your store, Alternative window dressing aisle. This is how they determine what is you simply go up to the display and take Making the store front beautiful and eye- out of stock and what needs to be replen- a photo in the app.” catching is a very labour-intensive pro- ished. “The argument that they have is cess, Kilcourse points out. Exhibitors at that this is a real-time solution, whereas Consumer information the NRF Big Show again offered progres- a robot moves slowly if it’s running while This year’s show featured way in which sive, practical solutions to gain attention customers are in store and will probably visual wizardry is finding real-use cases, via your store fronts. only scan the store a couple of times says Rowen. Retailers can use these to By treating the window with a type of during the real work day. At night they learn more about the people who enter film, Glass-Media can project high qual- can fly around as much as they want and their store. ity images onto the window. A retailer don’t need to worry about safety issues.” There is technology that is, for exam- can then change the display as often as A mobile technology from arpalus uses ple, able to track where the joints on it wants. iPads and visual recognition to manage our bodies connect and thus how they’re They are also able to use AR technology inventory in the store. “It’s all about moving, showing how people interact to project a 3D image of a product, mak- stock management, planogram compli- with the products. ing it look like it’s an actual item in the ance and control,” says Kilcourse. “A It can also read information such as window and not just an image. real-time dashboard makes sure that the their mood, age, height, etc. Next year’s NRF Big Show takes place store manager is keeping on top of the Cameras can also be used to track your 17-19 January 2021 at the Javits Centre inventory.” customers’ movement patterns in your in Washington, US.

2020 Autumn :: Sports Trader p40 :: Industry

Several aid packages have been put in place by government and private Queues outside food stores to minimise contact between people became a feature individuals to assist businesses in of the time of corona. Photo: Carin Hardisty distress due to COVID-19 Where to find help o beating about the bush: e.g. that you were registered with CIPC Rupert and Oppenheimer fund the COVID-19 pandemic will by 28 February 2020, FICA documents, These two prominent families each do- have a devastating impact on certified IDs of directors, three months’ nated R1-bn to assist small businesses and retailers and their suppliers, bank statements and latest annual fi- their employees that have been financial- especially small businesses nancial statements, a business profile ly impacted by COVID-19. The fund will be whoN might not have a financial cushion to and 6 months cash flow projections. administered by Business Partners Limited deflect some of the income blow from the • Company must be 100% owned by — of which Remgro owns 43% — but at the lockdown and social distancing. South African Citizens and employees time of going to print details of how and There were, however, various relief must be 70% South Africans. It is un- where to apply for assistance had not yet packages announced, especially for true that the company needs to be 51% been published. small, medium and micro (SMME) enter- black owned. prises. These were announced as Sports • Company must be registered and com- COVID-19 TERS Trader was preparing to go to print and pliant with SARS and UIF. The COVID-19 Temporary Relief Scheme we would therefore urge you to visit the 2020 (TERS) UIF benefit from the Depart- Home page of the government website ment of Labour aims to assist employers with links to updated information on To qualify for the specific who are unable to pay their workers’ full COVID-19 and relief funding, which are salaries during the lockdown. https://www.gov.za/welcome-official- COVID-19 relief funding, They will electronically process appli- south-african-government-online-site. companies must show proof that their business is cations received via email covid19ters@ Debt Relief Finance Scheme labour.gov.za. Applicants should then re- in distress due to the virus. ceive an automated reply outlining the This is administered by the Department steps and requirement details. of Small Business Development (DSBD) A PDF document, Easy-Aid Guide for and only applies to SMMEs (see definition • If applying for rental relief you must right). This could also provide assistance provide a copy of the lease agreement to acquire raw material, pay labour and Who qualifies as a SMME? or proof of ownership. If applying for other operational costs. MEDIUM, small and micro businesses are payroll relief the details of employees An online application form will be pub- defined by Government as follows: medium lished on the website www.dsbd.gov.za and their banking details is needed. businesses have 51-250 employees, small 11-50 from April 2. Qualifying criteria: • Priority will be given to businesses and micro 0-10 employees. The maximum an- • Only SMMEs that are registered on the owned by women, youth and people nual turnover threshold differs from industry to industry, e.g.: department’s database will be consid- with disabilities. • Manufacturing: medium R170-m, small ered. Please register your business on The department advises SMMEs to use their alternative email at [email protected]. R50-m, micro R10-m. https://smmesa.gov.za. • Retail: medium R80-m, small R25-m and za or call their hotline number 0860 663 • Businesses must prove that they were micro R7.5-m. 7867. Seda, which promotes small busi- directly or indirectly negatively affect- • Wholesale: medium R220-m, small R80-m ed by COVID-19 measures — NOT businesses, will assist micro-enterprises to and micro R20-m. nesses that had been in distress before comply (email [email protected]), • Transport, storage and communications: the outbreak. but small and medium enterprises must medium R140-m, small R45-m, micro R7.5-m. • Must supply supporting documents, assure their own compliance.

Sports Trader :: 2020 Autumn Industry :: p41

COVID-19 specific funding

There is also relief avail- Several funds have been established able for companies in eco- to provide support for the provision of nomic distress, not due to equipment for those involved with com- COVID-19 bating the pandemic, or to provide relief for affected communities. The Growth/ Resilience Fund is Employers, explaining the procedures aimed at SMMEs that are manufacturing can also be downloaded from https:// essential goods, whether food or medical www.labourguide.co.za/workshop/1779- equipment and related goods needed to corona-virus-easy-aid-uif/file combat the pandemic. It is administered You can also follow @DeptofLabour by the Department of Small Business De- and @UIFbenefits on twitter and visit velopment. www.labour.gov.za for regular updates. The hotline number is 012 337 1997. The Solidarity Response Fund gives The COVID-19 TERS is not linked to other individuals and organisations the oppor-

UIF benefits (including the normal TERS tunity to support efforts to prevent, de- to financially assist distressed companies) tect, care for and support those whose and is aimed at employers who are unable lives have been impacted by COVID-19. The secure donations to this indepen- to pay the full salaries of workers dur- dently administered fund are tax-de- ing temporary closure of business opera- Restrictions on the movement of air ductible. Gloria Serobe is the chairper- tions. The contribution has a threshold of son of the fund. R17 712 per month, per employee and travel all air cargo coming from medium an employee will be paid in terms of the to high-risk countries must be sanitised The Motsepe family in partnership income replacement rate sliding scale immediately after being off-loaded from with companies and organisations that (38% – 60%) in the UIF Act. the aircraft. they are associated with, have pledged R1-bn to save lives and slow down the To qualify, a company must be regis- Cross-border freight movement may pandemic by purchasing sanitisers, disin- tered with the UIF and the company’s also continue to and from neighbouring closure must be directly linked to the fectant and other protective equipment, countries, according to the Cross-Border COVID-19 pandemic. assist Government and health workers Read more in the Government Gazette Road Transport Special Dispensation and provide water to poor and rural com- No. 43161 9 of 26 March published on (COVID-19) Directions of 25 March. munities. www.gpwonline.co.za. Retail property sector relief Other useful contacts The Department of Trade and Industry has announced that retail tenants and The WESGRO COVID-19 Content Centre provides very helpful answers to many landlords may reach communal agree- questions relating to doing business during the time of the pandemic. Frequent- ments to alleviate the negative impact of ly asked questions are covered with a vast number of articles covering all as- the lockdown through payment holidays, pects of the impact of COVID-19 and official announcements are regularly pub- discounts and limitations on evictions. lished. You can also ask for specific questions to be answered. The team consists These agreements will be exempt from of staff from the Department of Economic Development and Tourism (DEDAT), the provisions of the Competition Act, Wesgro (Cape Town and Western Cape Tourism, Trade and Investment Promotion provided that it is done in coordination Agency), City of Cape Town, GreenCape and the private sector. Contact details: with the Department of Trade, Industry www.supportbusiness.co.za. Frequently asked questions: www.supportbusiness. and Competition for the sole purpose of co.za/faq or email them at [email protected]. responding to the COVID-19 pandemic. NON-COVID relief for businesses This will be known as the COVID-19 Even without the dire consequences of the lockdown and fear-of-shopping created Block Exemption for the Retail Property by the COVID-19 virus, many businesses in our industry had been suffering due to Sector, 2020. the economic downturn that resulted in consumers not buying non-essentials like Read more at: www.gov.za/documents/ recreational and sport equipment or footwear and clothing (see following pages). competition-act-coronavirus-covid- The Departments of Small Business Development (DSBD) and Labour do have fund- 19-block-exemption-retail-property-sec- ing programs in place for such businesses. tor-24-mar-2020. Or in the Government DSBD funding is available for a wide range of micro, small and medium companies. Gazette No. 43134 of 24 March 2020. The Blended Finance Program for equipment etc. needed to run a business, worth Cargo in ports and air cargo up to R5-m, is an example. See more on www.mybindu.org.za. Sefa Accessible Development Finance: sefa’s focus is the financing needs of During lockdown the loading and off- SMMEs and co-operatives, for example, direct loans of R50 000 up to R5-m, which loading of cargo in and out of all sea are repayable. ports is permitted, according to the doc- Temporary Employer / Employee Relief Scheme (TERS) from the Department of ument www.gov.za/sites/default/files/ Labour has been in place since last year. Businesses may apply to the scheme for gcis_document/202003/43103gen173. subsidies to fund their employees’ wages. pdf. But, the regulations require im- Training lay-off schemeis a NEDLAC Framework Document developed as an option proved hygiene control and sterilization to avoid retrenchment and is financed by the NSF & SETA’s. Instead of retrenching during the whole loading, shipping and workers, employers can instead reskill them as an investment for the future and off-loading process. pay them a reduced training allowance for the period. The lay-off depends on an Air cargo may be loaded and off-load- agreement between the employer and workers who might otherwise have lost ed at certain designated international their jobs, but participation by workers must be voluntary. airports, but according to the COVID-19

2020 Autumn :: Sports Trader p42 :: Industry A pre-COVID-19 cushion for some retailers COVID-19 has turned the world upside down and changed the retail landscape. There is, however, a light at the end of the tunnel that the impact of the virus may pass and then it can be back to trading as normal. The end-of-year and back-to-school trading periods are the most significant for retail as it can provide a cushion during the lean months. Results from Sports Trader’s survey of trading in this important quarter shows that at least some retailers could build up some reserves, reports CARIN HARDISTY

t’s been a tough economy for some reported a drop, and 20% of these stores school period was at sport retail: more time now and consumers and in- took a big hit and their turnover was than half (60%) of respondents indicated dustry members alike have been down by more than 20%. that their turnover grew by up to 20%. struggling. Towards the end of Clothing and footwear retailers were 2019 and start of 2020 there were the hardest hit with reduced sales dur- What sold in December? allI kinds of other factors affecting retail: ing December 2019, with 67% of these re- So what did consumers end up buying the Black Friday sales frenzies, loadshed- spondents reporting lower turnover and during the December period? Mid-priced ding, a later start to the school year, etc. 22% saying they were down by more than functional items (e.g. shoes and cloth- Despite all this, more than half of the 20% from December 2018. ing) were the sales drivers, report 71% of retailers who responded to Sports Trad- Consumers bought footwear from his respondents. This category sold the best er’s holiday sales survey reported roughly store, but where they would previously for all retail types: 43% of sport, 80% of the same turnover as in 2018 December, have bought two or three pairs, they now outdoor, 67% of sport and outdoor and or better. only bought one, an anonymous clothing 77% of clothing and footwear retailers. This is especially true for sport retail re- and footwear retailer told us. Interestingly, only 13% of retailers respondents, who all reported higher turn- port that consumers mainly bought entry over — a fifth of them said it increased by Back-to-school level necessities. A third of sport and out- more than 20%. More than a third (38%) This year schools reopened 15 January, door retailers indicated that their cus- of the outdoor retailers and 12% of cloth- a week later than in 2019. Since it’s hu- tomers mostly bought entry level items, ing and footwear retailers also reported man nature to leave everything for the with 14% of both sport and clothing and an increase of up to 20%. last minute, retailers likely only experi- footwear stores indicating the same. Last year, however, the industry thought enced most of their back-to-school trad- In the tough economic environment one 2018 was as bad as it gets, Sports Trad- ing around the middle of the month. might have expected to see a higher per- er reported in our 2019 Q1 issue (Mixed Retailers had mixed results with regards centage of entry level purchases. results for holiday sales). Then, a third to back-to-school trading with a third re- Consumers were looking for good value of the respondents indicated that their porting an increase in turnover compared for money products, says an anonymous outdoor respondent. December turnover was worse than the to the same time in 2019, just over a They also bought anything that was of- year before. In this year’s survey, nearly third saying they did roughly the same, fered on a sale, adds Duncan Bloom of half (47%) of respondents indicated that and 28% indicating lower turnover. Nevills, a clothing and footwear retailer. their 2019 December turnover was down Only a third of clothing and footwear A similar percentage (11%) of respond- compared to the previous year. stores indicated an increase in turnover ents indicated their customers bought Turnover in just over a third of out- for this period. Another third indicated mainly higher priced functional items door retailers was down, but not by too a decline, and 17% was down by more (e.g. sport or outdoor equipment) and much (max down by 10%). Of the retail- than 20%. 4% said their customers went for luxury ers stocking sport as well as outdoor, 40% The biggest growth during the back-to- items. Based on responses, consumers especially bought luxury items at sport Does location matter? stores. During December, his store had very Retailers in small towns and other rural areas had a comparatively better December than little turnover from items selling below their city counterparts — especially in the stores outside of malls. Of these stores, 38% re- R1 000, says a sport retailer. “These were port an increase in turnover from December 2018 and 13% increased by more than 20%. all purchased on Black Friday.” Only 24% of responding city stores situated outside of malls and a third of those in city malls reported turnover growth. Black Friday None of the stores that indicated they are situated in rural malls report increased turnover. The majority of respondents (63%) are based in a city in South Africa and 41% are outside Retailers are quick to complain about the of malls. impact of Black Friday on their December Almost half of clothing and footwear retailers and 40% of sport and outdoor, respondents sales (half of respondents said it nega- trade outside of a mall, while the majority (40%) of sport retailers are either in a city mall or tively affected holiday sales), but three in a rural area outside of a mall. Three quarter of outdoor stores are not based in malls, be quarters of all respondents still took part they in the city or not. in 2019’s Black Friday, and almost half of all respondents (or two thirds of those

Sports Trader :: 2020 Autumn Industry :: p43

Back-to-school turnover December turnover (2020 vs 2019) (2019 vs 2018) 45% 30% 40% 25% 35% 30% 20% 25% 15% 20% 15% 10% 10% 5% 5% 0% 0% >20% up +10-20% +0-10% Same -0-10% -10-20% >20% >20% up +10-20% +0-10% Same -0-10% -10-20% >20% down down

who took part in Black Friday) offered out old stock and attract new customers. we have lights on,” says Bloom. “Howev- discounts of more than 20%. Only a quarter of respondents opted not er this has changed as people just don’t Almost all clothing and footwear stores to offer discounts. move around when loadshedding is on.” (89%) and sport retailers (91%) took part In general, customers stayed away from in Black Friday sales, and 61% and 40% Indirect impact from loadshedding business areas, says Mohmed Kazi of Rite respectively of these stores offered more The spate of loadshedding that South Af- Value Fashion and Style. Even when the than 20% discount. rica was put through at the end of 2019 store has inverters, adds Shahid Koor Two thirds of outdoor stores also took and start of 2020 didn’t impact retail- from Urban Mania. part and 44% offered discounts of more ers directly. As this wasn’t the first time It also doesn’t help when malls aren’t than 20%. we’ve had it in recent times and three prepared, or when other stores in the Not everyone is happy about same mall haven’t taken meas- Black Friday, however. “Black ures to be able to stay open. Friday has never had a posi- Price points retailers sold “Customers leave the shopping tive impact on our stores,” the most of during December mall when more than half the says Yvette Jackson of Vil- stores close during loadshed- lage Vibes Surf. “Coastal re- ding, resulting in lower than 5% tail businesses are suffering 13% Entry level normal sales,” says an anony- as they basically only have 11% mous respondent. once a year to make money Mid-price functional Another impact outside of re- to keep them afloat for the High-price functional tailers’ control is that on their rest of the year. When people suppliers: when they are load- come on holiday over Decem- Luxury items shedded, and not able to oper- ber they only buy the bare ate during this time, the retail- necessities now. ers’ orders are delayed. “Customers run to malls for their Black Friday deals, Economic expectations buying all the stock from our 71% During the first quarter of 2020, competitors and also shop more than half of the respond- online spending their 13th ents believed that the economy cheques. Come December, Christmas will remain weak and consumers won’t shopping is done and they have spoiled quarters of respondents were now pre- have much money to spend ... a view themselves at discounted prices at the pared with generators, or are powered that was confirmed when it transpired mall.” by solar energy. However, some of these that South Africa entered into a techni- “As far as we are concerned, all that measures do increase the store’s op- cal recession. Black Friday has done is kill trade for erational costs, an anonymous retailer And that was before COVID-19 struck. November, December and January,” la- points out. Almost a quarter of all respondents and ments Bloom. “Everyone waits for spe- Another responded that the store three quarters of sport respondents at cials and spend on unnecessary items doesn’t have generators and the systems that stage still had high hopes that good as the euphoria of Black Friday tends to go down, but the store doesn’t close. things could happen this year. distort what a good bargain is, which in- Only 6% indicated that they had to close Most outdoor respondents were, how- evitably eats into spendable budgets for their stores during loadshedding. ever, already despondent about the eco- future purchases.” However, there were several forces out- nomic outlook for the year, even during Half of all respondents have a similar side retailers’ control that affected sales. normal trading times. Tree quarters indi- viewpoint and say that customers did all Consumers, for example, were nervous cated that they expected the economy to of their Christmas shopping during the about shopping during loadshedding. “We remain weak. Half of the sport and out- Black Friday discount period. have invested in our own power to keep door and just over half of clothing and Yet 30% said Black Friday had no notice- us going, but there is a noticeable drop in footwear retailers shared this feeling. able impact on their December sales. trade during loadshedding,” says Jeremy “Shops may need to diversify to main- Black Friday did have a positive turnout Hare of Great White Sport and Surf. tain profits,” commented Duncan Pat- for some, however: 16% used it to clear “Trade was good during loadshedding as tenden of Orca Industries at the time.

2020 Autumn :: Sports Trader p44 :: Sport

The Rugby 7s crowd. Photo: Nicol du Toit. COVID-19 plays havoc with sports calendars inter and summer ranges … which they might just offer winner. For the already cash-strapped sports will this year at very good prices to countries where and sponsorless TOM this could be the mean something quite spring and summer are still on the way. death-knell, especially as athletes would different. The sports The most momentous impact of the not be impressed that they had to forfeit usually played locally COVID-19 outbreak on the sporting world their entry fees. duringW March and May — and heaven for- is, no doubt, the fact that 2020 will no Internationally, there will be no UEFA bid, possibly later! — have all either been longer be known as an Olympic year. 2020 European Champion — the announce- postponed or cancelled. The new date of the Olympics — 23 July ment that the 2020 branding could be car- As have major crowd-pleasing sporting to 8 August 2021 — has sparked specula- ried over to 2021 was quickly rectified as events and tournaments. tion that it would require further changes a glitch. Nor, it seems, a 2020 Wimbledon And this could benefit Southern hemi- to the world athletics and swimming cal- champion, or a 2020 Giro d’Italia cham- sphere (including South African) retail- endars as the 2021 World Championships pion … and so the list goes on. ers, suggests an international brand prin- of both the sports would clash with the Which will make 2020 one of the most cipal. Because sport across Europe and Olympics next year. And even the 2022 memorable sporting years when future the UK had been put on hold and retailers Commonwealth Games dates could be af- generations wonder about the log gap. were closed for most of their spring sea- fected, the organisers warned. We’ve compiled a new sports calender son (and maybe beyond) affected brands But, there will also never be a 2020 of the postponed events, although some would have plenty of stock of their new Cape Epic or Two Oceans Marathon (TOM) dates can still change.

New dates for 2020 postponed events Dates to be confirmed 2020 April Cricket: Indian Premier League resume 15th (at this time) Basketball NBA: new dates tbc May Soccer: UK Premier League, season extended Motor racing Nascar Atlanta and Miami, Grand Prix in Bahrain and Vietnam Golf: tournaments resume 17th Vodacom Super Rugby and Guiness Pro 14; Rugby 7s Challenger Rugby June Cricket: international matches resume Series Stellenbosch; Six Nations men & women Cycling: African Continental Road Championships Soccer All CAF continental qualifying fixtures Women’s Champions League, Europa League, Champions League Gymnastics: Artistic & Rhythmic World Cup June 3-7 Surfing World Surfing events: 10 Events postponed Motor racing: Formula 1 resume 14th June Swimming African championships Durban Road running: Comrades marathon 14th (tbc April 17th) Triathlon Abu Dhabi World Series & World Cup China Table tennis: World Championship June 21-28 Tennis: All events to resume 8th June July Cricket: South Africa vs West Indies 2021 Events August Swimming: FINA World Championship 1-30 August March Athletics: World Indoor Championships Nanjing September Tennis: French Open (Roland Garros) on 20th June-July Soccer: Euro Championship 2020 postponed to June 11 to July 11 Road running: Boston marathon 14th, other city mara- thons September-October July-August Olympic Games Tokyo July 23 to 8 August MotoGP: Thailand, Spain, Americas, Argentina Grand Prix Swimming: World Championship 16 July – 1 August (tbc) October Road running: London marathon on 4th August Athletics: World Championship 6-15 August (tbc) Rugby Sevens: Singapore & Hong Kong TBC The 2020 Copa America moves to 2021

Sports Trader :: 2020 Autumn Industry :: IBC Trade shows affected by COVID-19 COVID-19 has affected people and businesses alike, including worldwide trade shows, some of which have been postponed or cancelled, while others are still keeping an eye on developments

mong the first trade shows ever for industry, retail and the media to to cancel their 2020 dates come together to talk, exchange ideas were ISPO Beijing, China and experience products and services. Fish and Bihai Spring Fishing This is why we are continuing to make se- Expo, which were all meant rious preparations for EUROBIKE 2020.” Ato have taken place in February. Due to Messe Friedrichshafen adds that it will the COVID-19 outbreak, which originated keep assessing the situation as the meas- in China, the Chinese government had ures in Germany keep being updated. banned all exhibitions in the country to protect the health and safety of all ex- Merely postponed hibitors, visitors and the general public tion is more clear. The annual ATF and Source Africa trade and to control the spread of pneumonia At the time of going to print, three of shows held in Cape Town have been re- due to the coronavirus. the major fishing trade shows — EFTTEX branded as allfashion sourcing Cape Town The next ISPO Beijing sport show will be (European Fishing Tackle Trade Exhibi- and postponed to 13-15 October this year held 14-16 January 2021. tion), ICAST (the American Sportfishing when it will be held together with China The Bihai National Fishing Tackle Show Association’s show) and AFTA (Australian Premium Tex. They were meant to have takes place twice a year in the northern Fishing Trade Association) — stated that taken place 2-4 June. hemisphere’s Spring and Autumn. It’s not they are still going ahead with their re- “We must acknowledge that these are clear if its Autumn show will take place spective shows that take place in June challenging times all around the globe. In this year. and July. light of the South African president’s an- OutDoor by ISPO has also announced EFTTEX takes place 11-13 June in Czech nouncement on COVID-19, it is important the cancellation of its 2020 show in the Republic, ICAST 14-17 July in the US and for us as trade fair organizers to make wake of the rapid spread of the coronavi- AFTA is on 9-11 July in Australia. the appropriate decision for the safety rus. It’s the second of ISPO’s trade shows While the EFTTEX team continues with of our local and international exhibitors, to be cancelled for this year. organizing the show, they add that they visitors, partners and stakeholders,” says “Under these circumstances it is not “are carefully monitoring the COVID-19 Joshua Low, MD of Messe Frankfurt SA. reasonable to go ahead with OutDoor situation in the Czech Republic and are by ISPO as scheduled — for health and in close contact with our partners at the economic reasons,” says Klaus Dittrich, venue. As it stands the Czech govern- Advertisers index: Chairman and CEO of Messe München, ment has temporarily suspended trade 1721 Distributors 15 who is responsible for OutDoor by ISPO. fairs and other events in Prague, with a A1 Star 9 “We are now looking ahead and working view to resuming them in the Spring.” Billabong 23 together with the industry to organize a ICAST is monitoring the COVID-19 situ- Blundstone 21 Boardriders 23 successful OutDoor by ISPO 2021.” ation while in close contact with the Or- Brand Folio OBC “The outdoor industry is facing unprec- ange County Convention Center where Crown Group OFC, 2, 3 edented stress due to the COVID-19 pan- the show takes place and is also taking DC Shoes 23 demic,” says Mark Held, the President precautions from the Florida Department of Health. Dukes 34 of the European Outdoor Group. “We Element 23 AFTA is doing the same and is in close believe that cancelling OutDoor by ISPO Emu Creek 21 contact with its venue, the Gold Coast 2020 will free up much needed company FILA 15 Exhibition and Convention Center. resources that can be used to support G&M 31 employees, retailers and other stake- Even though its show is still some time Hi-Tec 17 holders along the supply chain. The more away EUROBIKE, which takes place 2-5 IG Sports 6, 7 we can do now to protect everyone in- September, has addressed concerns stat- Jack & Jones 9 volved, the better equipped we will be ing Messe Friedrichshafen is still going Jack Parcels 9 once this crisis is over.” ahead as planned with preparations for JFK Clothing 9 OutDoor by ISPO was meant to take the event. Opal Sports 31, 34, 37 place 28 June to 1 July. “At present, talking about anything be- Quiksilver 23 yond the next few days, let alone weeks, Rocky 2, 3 Still taking place remains pure speculation,” the organiser Roxy 23 It’s difficult to estimate for how long says in a statement. “Patience and soli- Skechers OBC COVID-19 will remain a big threat, so for darity are the order of the day. However, Summit 37 the time being some trade shows are still we believe that once the acute phase is Von Zipper 23 being organised as normal until the situa- behind us, it will be more important than Wildebeest OFC

2020 Autumn :: Sports Trader