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high-quality textiles, and reinvested his turnover into the business; after three years of
following these measures, he was able to buy new equipment.
Brenda had ceded some of her assets as collateral in securing a bank loan, but paid off
the loan as soon possible because “in this business, cash is king”, meaning that one needs
cash to buy fabric and other materials to make up the garments, as very few suppliers are
willing to provide credit to independent designers (Interview, 8/7/06). Two respondents
said that one advantage of being involved in fashion was being able to make money by
creating and selling clothes while studying; they noted that there are further opportunities
to earn money through competing in fashion shows. The prize-money they had earned was
saved and used to purchase equipment and fabrics, and to cover the costs of marketing
materials.
One respondent held as many jobs as possible, earning, saving and investing the money to
build up capital to start her own business. Out of the 11 respondents, only one had
obtained capital from family members, while another had received money from a friend
to assist in setting up their business.
8.4 Designer Value Chains
Before analysing the relationships between designers and their suppliers, it is important to
revisit the value chain concept as it applies to this study. Taking the designer as the central
point of the value chain, four factors that make up a designer’s value chain can be
identified. The first is the design element, the second is the source input such as fabric, and
beading, the third is manufacturing (designer doing own manufacturing, outsourcing to
CMTs and crafters in the informal sector), and the fourth is retailing through informal
markets or private boutiques. Particular to designers is the advent and growth of Fashion
Week events. The Fashion Weeks provide added value to the branding and marketing of
the designers’ products, but they also challenge designers to meet the financial demands
of participation. Producing haute couture garments in time to be shown on the catwalk at
these events can compromise the efficient roll-out of their regular production runs.
In the literature reviewed in this study (Fakude, 2001; Dunne, 2000; Nordas, 2004 as cited by
Morris, 2006) it is evident that it is the consumer who exerts the most pressure through the
value chain by demanding design-intensive products at affordable prices. The retailers
and private boutiques exert their own pressure on designers in different ways - formal retail
chains are buyer-driven and are able to source design-intensive merchandise through
foreign manufacturers (Doel, 1996 as cited by Kenny, 2003; Gereffi, 1999) at a price
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