Abstract
In South Africa, the influx of foreign clothing has resulted in the decline of local production by over 50 per cent since 2010. This decline has contributed to the failure of some SMEs in the clothing industry. In South Africa, more than 70 per cent of SMEs fail to succeed. Most SMEs exist mainly as survivalist businesses with limited ability to attain sustained growth. Researchers attribute this low success rate of SMEs to increased competition as well as a lack of innovation in the products offered.
The aim of this study was two-fold. Firstly, the study sought to gain an understanding of the growth challenges facing SMEs in the South African clothing industry. Secondly, the study sought to identify innovations in the customisation of ready-to-wear clothing that these SMEs may use as potential growth strategies. This study addressed the gap in the existing literature by reporting on the challenges faced by SMEs in the South African clothing industry and by linking it to research regarding models for the customisation of ready-to-wear clothing as a potential growth strategy.
The framework employed in this study was the Venture Life Cycle (VLC). The VLC was used to represent the life cycle of SMEs in the South African clothing industry. A qualitative research approach was utilised and by employing a multiple case study design, the researcher was able to compare numerous cases to establish the circumstances in which the concepts of the proposed growth strategies will be viable for SMEs in the South African clothing industry. A sample of seven SMEs was purposefully and conveniently sampled. The primary data collection strategy was that of individual face-to-face interviews utilising a semi-structured line of inquiry guided by the VLC.
The VLC was instrumental in guiding the researcher in understanding the challenges experienced by the SMEs and what resources were required to grow and achieve maturity. The most prevalent growth challenge was regarding the aspect of access to adequate finances. A lack of finances meant that the SMEs were unable to assemble a skilled team, allocate resources towards branding and marketing efforts as well as the investments in the technology that are needed to implement the models for clothing customisation.
The main resource required by the SMEs to implement the innovative models was adequate financing as that would increase other core areas of the business. Industry support and access to developmental programs such as incubation hubs were also cited as vital interventions necessary. Support is vital in assisting these SMEs to be competitive and to achieve the growth needed to transition beyond the inception and survival phases of the VLC. Co-design, as a way
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to customise ready-to-wear clothing, can be a viable growth strategy for SMEs that desire to differentiate their products, meet consumer needs, increase the area of sales and finances and grow their businesses to the stages of expansion and maturity in the VLC. However, it was noted that without adequate financial resources, SME owners may not be able to acquire any of the other secondary resources needed to implement these innovative models for the customisation of ready-to-wear clothing.