This archive report was first published on 14 September 2021.
Kenya's fashion industry has been facing significant challenges in recent years, with the Covid-19 pandemic and retail turbulence taking a toll on local brands.
According to a study on Kenya's fashion Small and Medium Enterprise (SME) ecosystem, the market is 'messy and poorly informed' and tough to understand.
However, Mavazi Lifestyle Clothing, a fashion offshoot of Tuskys, has managed to break away and expand despite the challenges.
From less than six branches early this year, Mavazi has grown to 16 stores, offering a variety of over 5,000 store keeping units (SKUs) and aiming to have stand-alone outlets in all major towns across the country.
The company's Operations Manager, Florence Mukuha, attributed the success to the aggregator business model, which brings together the best suppliers specializing in particular products.
"You're not leaving it to one supplier to cater for products across the board; that's where the problem comes in. A consumer gets the best of everything from ladies', men's, night and swimwear," said Mr. Chiera, a supplier who spoke to Financial Standard.
Despite the challenges, Mavazi has maintained a collection of suppliers, providing quality items and merchandise with an aggregator business model that also seeks to create a tight-knit supplier channel.
Suppliers are informed on every little thing going on in the retailer, and the retailer constantly reviews stock, pricing, and branch performance to eliminate non-performing merchandise and keep abreast with fashion trends.
Unlike in the traditional retail model, aggregator suppliers provide sales items on a consignment basis, with the products remaining in the control of the suppliers and payments whose terms are dictated by the suppliers settled promptly.
Other local brands, such as Deacons and K-Shoes, have gone bust, while once-promising ones like Jade Collections are barely keeping their heads above water.
Deacons, Kenya's first indigenous fashion retailer, listed on the Nairobi Securities Exchange (NSE) but eventually went bust and is up for liquidation.
Similarly, Nairobi Business Ventures (NBV), the first footwear firm to list on NSE in 2016, ended in a baffling trail of losses, with its founders envisioning a ready market for 10 million pairs of shoes annually.
Some foreign fashion retailers have also complained of dollar-based rents pushing them out of business, with South African fashion retailer TFG set to exit Kenya due to the new demand.
