Two sisters sewing up their way to success

Certainly you know about (at least have heard about) the tragedy that befell South Africa’s textile industry – which boomed in the 1990s and was once the pride of the nation – after failing to withstand competition from grossly underpriced foreign products, some of them of pathetically mediocre quality. And with this information, it would seem foolhardy for one to even toy with the idea of starting a business in such a sector.

But two young women, Palesa Mosiea and Keananetswe Ngophe, typical of enterprising entrepreneurs, saw the textile industry as the case of a glass being half full, not half empty.  Massive opportunities lay buried beneath the obstacles, it was a matter of how to unearth them, so they thought in their youthful exuberance! At that time it seemed naïve of them. However, these smart young people had already done their homework, and diligently at that! and were willing to withstand whatever  fate threw in their way. Looking at where they are now, their choice has been vindicated.

Now they are proud owners of four year-old Free State (QwaQwa) based clothing and textile company, Mospak Trading and Project Primary Co-operative. The company, with 28 employees manufactures fashion garments, PPC, school uniform etc.

But this was not before they endured hardship and prevailed. Mosiea reminisces:  “We had to change our approach; initially we were just doing CMT work where the middleman would ask us to do work for Mr. Price, EDCON group, or boutiques in Durban. The middleman would then supply fabrics and trims. We would then cut, make and deliver but we got very little money from that. Eventually we came up with an alternative method of having our own brand.”

If the business approach was structurally flawed, the means of production wasn’t any better. The company focused on mass production (producing a minimum of 1,200 a day!), without taking into account whether it had the critical wherewithal to deliver. It was using obsolete machinery and essential tools like iron and did not have critical skills.

Looking back, the business partners regard their tribulations as a blessing in disguise – an experience which refined their understanding of business.

Fittingly, the doors opened only in 2014, when various business industry decision makers and government institutions recognised them and offered them. These included the Department of Trade and Industry (DTI) and National Development Agency (NYDA), Eskom and the Free State Department of Health.

Both DTI and NYDA facilitated the purchase of new machinery and pressing equipment. NYDA bought a truck for products delivery. “We will forever be grateful to those departments, our staff and everyone who has supported us throughout this process and especially during the tough times in the beginning of our journey” says Mosiea.

A twelve months contract with the Free State Department of Health was the spark which the cooperative had long been waiting for. “With that contract we paid off our debts and for the first time we made a profit in 2014 and we have been stable since”, Mosiea recounts.

Chirping in Ngophe, reveling in the dramatic turnaround, says:  “Our first 18 months were very tough. We couldn’t afford to even pay our employees. We have gone through all the kinds of hardships than most of what entrepreneurs normally go through but in our case, it was those challenges that pushed us even closer to success.”

Mospak Trading and Project Primary Co-operative is now the name behind some of the most illustrious in-house brand range or labels. It still does projects with and for government departments but now the major priority is to form partnerships with big retailers.

Ngope and Mosiea say Mospak Trading and Project Primary Co-operative has big plans but feel that it is premature to disclose them.

One thing which they hasten to share at this stage, though, are tips on how to navigate the challenges one is bound to encounter in the textiles business.   “It is a real jungle out there where only the fittest survive, hence, continuously come up with innovative fresh ideas and keep knocking on each and every door for opportunities. Most importantly, be disciplined; treat business as a separate entity from your personal account,” they say.

 Information credits: Sourced from an article originally published in Transform SA Print version 2015 Fourth Quarter and adapted for Transform SA Online