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Appendix Two
The following micro-case study indicates that price is dictating the purchasing motivation
of retailers and brand managers, even when the merchandise is a localised brand. While
undertaking field research in April 2006, I discovered a range of South African rugby
merchandise being retailed in a clothing shop in Durban, all made in China.
RUGBY MERCHANDISE NOT PROUDLY SOUTH AFRICAN
A collection of the Sharks (KwaZulu-Natal rugby team) clothing merchandise is not “proudly South
African”. The merchandise, which includes fleece-throws, caps and beanies sporting the famous
Sharks logo are all made in China. The labels attached to the merchandise have details of SA
Rugby as well as a Vodacom logo, which are the sponsors.
Vodacom and the retailer Pick ‘n Pay link to this range of clothing is of concern. It is
common knowledge that South Africa’s clothing industry is in crisis due mostly to the influx of
Chinese clothing imports flooding the South African market, creating a situation where many
clothing firms have had to close down, retrench workers or alternatively casualise their
labour.
Why would Vodacom and Pick ‘n Pay, both being members of Proudly South Africa and
punting a positive reputation for social responsibility, endorse these products? Is price the
deciding factor governing the importation of this specific range of merchandise from China?
This range is marketed towards a particular clientele that, possibly, would not object to
paying a little more if they knew that their purchase was supporting the local industry.
Vodacom’s Corporate Social Investment programme states that “it’s about building trust
and relationships, so that people get excited about Vodacom because they see how the
company has helped develop their communities.” Pick ‘n Pay claims that they “strive to fulfil
our economic, social and environmental responsibilities … in supporting local communities.”
Further research reflects Pick ‘n Pay’s stated commitment to selecting suppliers who
demonstrate “product quality and respect for labour.”
Retailing clothing brands made in China such as the Sharks merchandise does not align with
Pick ‘n Pay’s philosophy of ensuring that the value chain is ethical. China’s clothing industry
is reputed for its abuse and exploitation of labour so as to produce merchandise that is
cheap and appealing to global brand and retail buyers.
The Sharks rugby management, Vodacom and Pick ‘n Pay need to review their creative
buying and marketing strategies. There are many small clothing enterprises based in the
informal economy within KwaZulu-Natal that could produce the Sharks merchandise, and
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