Design houses in the Cape Town clothing value chain of production

Abstract

This exploratory study aimed to investigate the role that design houses play in the Cape Town clothing value chain of production. Semi-structured interviews were conducted with key informants, buyers in clothing retail companies, heads of design rooms in design houses, and homeworkers. Findings reveal that design houses act as intermediaries between retailers and clothing manufacturers or between retailers and homeworkers. In their latter role design houses are forging links between the informal and formal clothing economy. As in buyer-driven chains of production, retailers in the clothing value chain wield a substantial amount of power in determining prices. It was found that design houses are not completely powerless in their relationship with retailers, in fact, they posses knowledge that enables them to bargain over prices. The relationship between design houses and homeworkers was found to be an oppressive one, with homeworkers possessing little to no bargaining power. The increase in the number of design houses in Cape Town has assisted in the survival of the industry in the face of a number of difficulties. The continued presence of design houses creates the potential for development in the industry.