Page 12 - KZN Business Sense 7.7 ebook

IMPORT REPLACEMENT PRESENTS MASSIVE

OPPORTUNITIES FOR FURNITURE MANUFACTURERS

Paige Sherriff, Project on-year growth opportunity This will give the manufacturers The EFC is seeing the positive able to unlock retail market
Manager: eThekwini for buying local, specifically in the direction they need for their impact of this approach. Despite opportunities are successfully
Furniture Cluster upholstered furniture, office strategic investment.” the economic recession, the leveraging sustainability
furniture and case goods, which organisation's early successes in multiple ways such as
present the most opportunity Other opportunities outside include R1,5m in new sales raw material sourcing and
he next for local manufacturers to of the retail market are linked and 46 new jobs. Paige believes innovations, research and
36 take advantage of local supply. to sectors such as tourism and these green shoots have been development investments, and
Tmonths Retailers are looking to local hospitality, and construction. since manufacturers have begun restoring old product for an
hold manufacturers to supply the two With most furniture, reliant to align their own growth extended life span.
unprecedented million units required to meet sectors will be returning to pre- objectives to support retail
opportunities the expected market demand. Covid levels by 2023. growth drivers. These are: “When manufacturers
for the local benchmark their businesses
furniture Paige cautions that The EFC anticipates that 1. Market positioning against growth drivers and
manufacturing industry. while this could put South residential construction, to achieve price-quality assess their operational
Recent market research by the Africa’s struggling furniture hospitality and tourism will see equilibrium capability to support those,
eThekwini Furniture Cluster manufacturing sector back on the most growth by 2024. Retailers and manufacturers they can practically and
(EFC) shows that South Africa’s the world map, the opportunity The market intelligence used need to understand which market proactively generate growth,”
leading furniture retailers are is not just going to be given away. to identify these trends has segment they wish to target and Paige elaborates. “Our data-
looking to replace imports by “Whilst the opportunity for been conducted by the EFC to then drive value chain sourcing driven intelligence tools,
sourcing up to two million local manufacturers exists deliver on its mandate to boost strategies to meet that segment’s therefore, help manufacturers
units per year from local in these product categories, the competitiveness of the requirements. more strategically align to their
manufacturers. we have identified that firms sector by facilitating market chosen market and develop their
According to Paige Sherriff, that leverage this successfully access opportunities and 2. Improved consumer model to service that market.”
experience through agile
Project Manager for the EFC, will be those that align with developing the competitiveness retailing She summarises by saying
more than 50% of South Africa’s the fabrication, capacity of manufacturers to unlock that the import replacement
furniture is currently imported, and design requirements of these opportunities. Products are no longer sold opportunity identified will
mostly from China. “In 2019, retail. Some examples from “There has been a clear in isolation. Successful brands help the EFC to achieve its
South Africa imported R11bn of our research include the need to establish direct are focusing on servicing goal to increase the economic
furniture from China but due to demand for multifunctional, dialogue between furniture the end-user. Whether it be potential and growth of the
a range of factors, our research contemporary and modular manufacturers and retailers. through installation support, local furniture manufacturing
shows that over the next three pieces (design) made with Manufacturers simply do not improved logistics to ship direct sector. The EFC’s GrowthFinder
years the large furniture natural stone surfaces, brass to customer or offering various tool provides a practical way for
retailers have decided to source finishes, plating (fabrication) at know what retailers want. So, fabrication options which can be manufacturers to do this, and in
more goods locally,” says Paige. large volumes and economies as a Cluster we have developed triggered and delivered with short turn, plays a vital role across the
of scale (capacity). Now it is up a data-driven, market-led turnaround times.
The EFC’s intelligence based to the manufacturers to take approach to create and facilitate entire value chain. 
on feedback from three of South advantage of this by aligning an ongoing conversation that 3. Social and environmental
Africa’s leading independent their own growth strategies to aligns supply and demand,” sustainability. To find out more contact,
retailers predicts a 3-4% year- the lead enterprises predictions. says Paige. Manufacturers who are E: efc@bmanalysts.com

BUSINESS ACCELERATOR PROGRAMME WINNERS

he winners of iLembe expansion plans include the buying
Chamber of Commerce’s of ready-to-lay pullets (young
TThe Entrepreneur 2021 laying hens) and raising them
Programme were announced through their productive life cycle.
at The Entrepreneur 2021 Mdudusi wants to use the
Exhibition, which was held at the
CMH Ford Ballito Showroom. business as a project to promote
the creation of jobs for woman and
The iLembe Chamber’s The the youth of his community.
Entrepreneur is a business
accelerator programme that aims Phila Zulu from Phila Zulu Foods
to find entrepreneurial gems in received The Social Entrepreneur
award, whilst Dodi Sathianarain
the iLembe District and develop from Treat Attack received a
and support them to sustainable commendation.
levels of growth.
The awards were presented by
Maxi-Lee Machado from Councillor Thabani Mdlalose,
NutriVita South Africa was L-R Mandeni Mayor Thabani Mdlalose, Mandisa Mwandla, Maxi-Lee Machado, and Mduduzi Daniso the Mayor of the Mandeni Local
announced as the winner of the and the strong leadership and market segments. In addition Third placed winner was
Entrepreneur 2021 Competition. extensive job creation and skills to supplying the KZN market, Mduduzi Daniso from Nomalinge Municipality.
NutriVita South Africa produces development potential. products are supplied as far as Poultry Farming, which was The iLembe Chamber partners
and supplies a range of nutrient- the Eastern Cape. established in May 2020 as a in The Entrepreneur 2021
dense plant-based foods beverages, Mandisa V Mwandla Makhoba, community-based project. The business accelerator programme
supplements and superfoods. The owner of Have a Seat Stylish Owner Mandisa Mwandla operation produces chickens and are Enterprise iLembe, King
produce ingredients are bought Furniture Manufacturers, was believes that their main Shaka International Airport,
fresh and sourced directly from the runner-up. The established expertise lies in their creative sells both the meat and live broilers. Airports Company South Africa,
local farmers. The company is furniture manufacturer is based and innovative approach to Mdudusi noticed the gap in the The North Coast Courier, Siza
conscious of their impact on in Mandeni and offers a complete furniture design; catering for market for poultry production in Water and ENGIE Peakers
the environment, and therefore home and office furniture solution individual customer needs South Africa considering the high Operations. The Entrepreneur
all products are packaged in to its clients. whilst managing to contain levels of chicken imports from the is an accredited UKZN
biodegradable and/or compostable Have a Seat Stylish Furniture costs. Although Have a Seat USA and Brazil. Graduate School of Business and
plant-based materials. Manufacturers have been offers a broad range of furniture Nomalinge Poultry Farming Leadership Short Course. 
Judges were impressed with steadily growing over the past products, it specialises in the buys one day old chicks and
the high quality of the product five years, establishing a solid design and manufacturing of breeds them until they are ready The virtual home of The Entrepreneur
base by catering for various dining room suites. to be consumed. The company’s programme is www.theentrepreneur.net.za

12