News

Industries

Companies

Jobs

Events

People

Video

Audio

Galleries

My Biz

Submit content

My Account

Advertise

Retail South Africa

Clothing quota raising more questions than answers

From a marketing point of view, the agreement between the South African and Chinese governments to restrict clothing imports into this country for the next two years raises a lot of questions and will inevitably not lead to any sort of plausible answers. Purist marketers - they're the one's who don't have shares in local clothing manufacturing companies - will argue that trying to invigorate this country's flagging garment manufacturing industry by restricting imports is simply playing with marketing fire.

It will not be in the consumer's interest as prices will increase and it is messing about big time with free market forces which South Africa so desperately needs to take root precisely in order to do away with the rip-offs we are experiencing in the telecoms and motor industries.

The trouble is there is another side to this story. And that is a free market system can only work if the playing field in level. And the big question no-one seems to be able to answer is whether the South Africa/Chinese playing field is even vaguely level.

Inevitable collapse

For example, if China is simply a lot more productive than we are in terms of raw material sourcing and labour or is able to benefit from the cost effectiveness of producing massive volumes, then marketing purists and local retailers certainly have a point in claming that protectionism is not a long term answer but simply delaying the inevitable collapse of an industry that is simply uncompetitive.

On the other hand, if all these stories one hears are true about Chinese manufacturers either dumping surplus products in the export markets or benefiting from the fact that their labour laws are not nearly as liberal as ours and allow them to use child labour or even what amounts to slave labour, then the playing field is by no means level.

But, the real problem in terms of finding an answer to all of this is the question of just who is responsible for ensuring the morality of trade? Is it up to Government to ensure that SA's trade partners are playing the game and not dumping or using child labour?

Sweating kids

Or is this the responsibility of business? Or, frankly is it anybody's responsibility?

Do the majority of consumers in this country give a toss about whether products might be coming from countries that haul little kids out of bed before dawn and make them sweat their butts off until late at night for a fistful of small change?

My bet is that the majority of consumers would certainly care and vow to boycott any products coming from these sources - that is until they spot a bargain and have the opportunity of buying a shirt or skirt from China for R100 instead of the identical locally made item at R300.

Because mankind has certainly proved over the centuries that morality gets kicked into touch whenever money rears its head.

Resisting marketing

It's a really difficult scenario because both Government and our big retail chains should be obliged to give the consumer what the majority of them want.

In marketing terms, if our retail clothing chains decide to stop importing clothing from a country they believe has immoral labour practices and the consumer doesn't give a toss, then that retail chain is actually defying the needs and demands of the consumer which is, in effect, resisting precisely what good marketing is all about.

There are no easy answers and certainly one has to be extremely circumspect in questioning our Government's motives. Because this is one situation where they cannot be all things to all men and are damned if they do and damned if they don't.

About Chris Moerdyk

Apart from being a corporate marketing analyst, advisor and media commentator, Chris Moerdyk is a former chairman of Bizcommunity. He was head of strategic planning and public affairs for BMW South Africa and spent 16 years in the creative and client service departments of ad agencies, ending up as resident director of Lindsay Smithers-FCB in KwaZulu-Natal. Email Chris on moc.liamg@ckydreom and follow him on Twitter at @chrismoerdyk.
Let's do Biz