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Cape Town - Taking unwanted garments from excess to entrepreneur, a local non-profit organisation opened their fifth outlet with the assistance of two collaborating competitor retailers, Woolworths and Mr Price on 8 May.
The Clothing Bank mentors and coaches unemployed and underprivileged women to become self-employed through its garment resale model, allowing entrepreneurs to establish small businesses.
From markdown to merchant
The retail-donated waste garments, which are bought by the entrepreneurs at a reduced price, are subsequently resold to their clients.
Best understanding their customers’ needs, the Clothing Bank graduates handpick garments to be resold, allowing the women the opportunity to establish retail operations.
The Clothing Bank develops its entrepreneurs using a three-year road map to self-employment:
- In year one, it establishes an entrepreneurial mind-set in a safe environment, where the women learn practical business and record keeping skills
- Building on this foundation in year two, the women learn computer skills and NQF level 3 small business practices
- In the last year, the women focus on sustaining the business independently, looking at the potential of growth and employing others.
Having trained 829 women to date, and with the capacity to train another 800 a year, the expansion to Durban is widely celebrated.
The Clothing Bank CEO Tracey Chambers, who is a former Woolworths employee, said the NPO received R52.6m worth of retail-donated garments to date, with entrepreneurs collectively generating profits of R29m, of which R12.6m was in the last year.
At the Clothing Bank’s Durban branch launch were from left: Mr Price Group’s Kim Burgess, The Clothing Bank’s CEO Tracey Chambers and Operations Head, Tracey Gilmore, and Woolworths Group specialist BEE and ED Procurement, Litha Kutta. (Photo: Mr Price Group)
Enterprise development
This programme is a sterling example of a successful enterprise development initiative, and although controversial, the BBBEE scorecard encourages such programmes in South Africa’s transformation journey.
With the revised BBBEE scorecard taking effect from 1 May 2015, organisations, particularly large organisations, are in search of programmes to assist in their successful transformation journey through skills and enterprise development initiatives.
This challenge in turn creates an opportunity for entrepreneurs to innovate by identifying or establishing up-skilling and enterprise development programmes, and together taking South Africa’s economy from rags to riches.
Watch:
* Tina Retief is a clothing and textiles specialist and an MBA graduate who is passionate about South Africa’s development. She is currently working in support of the local fashion industry.
* Are you a small business owner in the fashion industry? Ask Tina Retief a question about how you can grow your business.
