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Tuesday, 27 October 2020 12:24

Zimbabwe apparel retailer suffer on second-hand clothes, cheap imports

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Zimbabwe’s clothing sector is suffering from serious competition from second-hand wear and cheap imports that have hit its formal retailers like Edgars hard. Zimbabwe retailers smuggle second-hand clothes from Mozambique while they import cheaper garments from South Africa and Botswana. The Zimbabwean government has banned the importation and sale of second-hand clothing to no avail.

The selling of used clothes has become a source of livelihood for thousands of Zimbabweans in all cities and towns with second-hand clothing markets often teeming with customers. Research and investment analyst Enock Rukarwa highlighted the COVID-19 and other obtaining circumstances have brought in a new set of challenges for all business players adding that clothing companies need to realize that dynamics have changed and the market now demands appropriate positioning to respond with agility to opportunities and challenges that arise.

The major function of the government is to create an enabling environment that fosters business viability. The situation is quite complex because consumer buying power has been eroded by inflation, low incomes and high levels of unemployment which affects credit sales. The government needs to tighten border controls to limit smuggling of second hand clothing. Further, it is necessary to review downwards import duty on raw materials used in clothing manufacturing. Finished clothes should attract higher customs and import duty than raw materials that are used in manufacturing clothes locally by established retailers, said Victor Bhoroma, Economist.