CTFA Annual Report 2020

Its economic effect was and continues to be devastating in terms of massive job losses, and economic slowdown. COVID-19 has brought to the fore systemic weaknesses, highlighted a lack of capacity in addressing COVID-19-related challenges, and underscored disparities in the South African socio-economic sphere. EXECUTIVE DIRECTOR REPORT Adelia Pimentel | Executive Director In 2020, the world woke up to the COVID-19 pandemic. The pandemic has affected all spheres of our lives – health, education, social, and economic – with devasting effects on vulnerable people and societies. CTFA’s role of assisting members and lobbying on behalf of industry remained intact. The most notable of the lobbying efforts undertaken by the CTFA during 2020, in the initial stages of lockdown, were the interventions made on behalf of industry to the Department of Trade Industry and Competition and the National Department of Health (NDOH) to ensure that industry products were amongst the “Essential Products” listed in the gazetted Covid-19 legislation, thus allowing companies to continue trading during lockdown. With various CTFA interventions and lobbying efforts, the industry went from no personal care and beauty products authorised to almost 100% listed in the ‘Essential Products” list during lockdown. Great strides were made during this time with the relationship between the CTFA, the Department of Trade Industry and Competition and various ministerial offices. This has boded well for future negotiations. In the second half of 2020, CTFA conducted a survey with members to ascertain some of the impacts of COVID-19 on the various companies. Most small companies' turnover was affected by 100% over all levels of lockdown, depending on their product offerings, they shut down completely during this time. Medium sized companies’ affected turnover ranged from 80% to 50% at level 3 and most multi-nationals were able to still continue trading with essential products, however their turnover was affected from 50% to 30% respectively. An interesting part of the survey was business adaptability by companies, the most notable being; altered goods or services offered to customers, increased use of virtual connections internally and externally and increased use of e-commerce. In July 2020 CTFA had a milestone meeting with the National Department of Health’s (NDOH) with the Acting Director General on the way forward for the cosmetic industry with regards to promulgation of the draft regulations published in Government Notice R1469 relating to Advertising, Labelling and Composition of Cosmetics, 2017. The meeting, which included the CTFA Chairman and CTFA Executive members, was successful in creating more awareness of the necessity to regulate the industry. A further meeting was requested later in the year with the new Director General to further this agenda. This is a continuous focus of the CTFA. CTFA’s modus operandi , like every other business, went through a massive change, and adaptability to the ‘new normal’ was imperative throughout 2020. Lockdown level 5 started on the 27 March 2020 and apart from the CTFA staff working remotely, COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 5