Local manufacturers launch aggressive
marketing drive, writes Ed Richardson
THE US African Growth and Opportunity Bill will create further opportunities for South African companies eager to get a toe hold in the lucrative North American market.
House of Monatic managing director Brian Buckingham says the Bill is a catalyst to action, particularly within the SA clothing manufacturing industry. The Bill, currently before the US Senate, extends duty free treatment to African textiles and clothing and greatly expands the range of other African goods granted preferential access to the US market.
Also of importance to exporters is the Department of Trade & Industry's (DTI) decision to extend the Duty Credit Certificates (DCC) incentive by five years. What this has created is a level of certainty and has attracted new entrants to the market, knowing that the incentive will be in place for some time, says Buckingham.
With the Bill likely to be ratified, a number of SA clothing manufacturers, led by Monatic, have launched aggressive marketing campaigns in the US.
The US already represents an important market for manufacturers in the Western and Eastern Cape and Lesotho.
We are certainly aiming to increase our US market penetration. The US represents a large, virtually untapped market for South African exporters, but it is also a challenging market for us, he says.
Buckingham says that while the aim is to increase exports into markets such as the US, the emphasis has been into the top bracket retailer, the 5th Avenue style store.
What makes us competitive is our level of reliability, quality, and obviously price. Major US buyers have come out and conducted extensive audits of our facilities. They left impressed and came back with the orders, says Buckingham.
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