News / Local
Edgars Zimbabwe eyes SA market for Quote range
13 Jun 2014 at 08:25hrs | Views
Edgars Stores is eyeing exporting its recently-launched men's casual clothing label, Quote, to South Africa following its acceptance on the local market.
The Zimbabwe Stock Exchange listed firm in February this year launched Quote, a men's clothing brand, as part of initiatives to drive its sales volumes.
Edgars Stores sales and marketing executive Peter Munyama said the planned move followed success of the label in Zimbabwe.
Although their products can compete with any other in the region, Edgars Zimbabwe cannot penetrate the huge South African market because of a bilateral trade agreement between Zimbabwe and its southern neighbour.
Zimbabwe has preferential access on clothing to most parts of the world on a single transformation basis.
This means that manufacturing of the garment must occur in Zimbabwe, but the fabric can originate from anywhere.
But there are restrictive Rules of Origin in the Southern African Development Community (Sadc) region which maintain a double transformation rule on clothing.
This means in order to participate in preferential access, clothing must not only be manufactured within Zimbabwe, but it must also be manufactured from fabric which was manufactured within Sadc, to enjoy duty-free access to regional markets, or pricing for Zimbabwean products will remain uncompetitive.
The Zimbabwe Stock Exchange listed firm in February this year launched Quote, a men's clothing brand, as part of initiatives to drive its sales volumes.
Edgars Stores sales and marketing executive Peter Munyama said the planned move followed success of the label in Zimbabwe.
Although their products can compete with any other in the region, Edgars Zimbabwe cannot penetrate the huge South African market because of a bilateral trade agreement between Zimbabwe and its southern neighbour.
Zimbabwe has preferential access on clothing to most parts of the world on a single transformation basis.
This means that manufacturing of the garment must occur in Zimbabwe, but the fabric can originate from anywhere.
But there are restrictive Rules of Origin in the Southern African Development Community (Sadc) region which maintain a double transformation rule on clothing.
This means in order to participate in preferential access, clothing must not only be manufactured within Zimbabwe, but it must also be manufactured from fabric which was manufactured within Sadc, to enjoy duty-free access to regional markets, or pricing for Zimbabwean products will remain uncompetitive.
Source - chronicle
