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Shifting to the transformation economy

The new year is well underway with much trend talk on what retailers should be preparing for. Last week, Claudia Roth from Soul Luxury looked into the shift from the experience economy to the transformation economy, with five tips to get you started in identifying your own currency of connection; Justin Smith from Woolworths explained why more than ever, sustainability is good business; and Kevin Tucker from PriceCheck believes that a renewed focus on value in e-tailing will level the playing field. For more trend-themed articles, visit our #BizTrends2017 special section here.

Local top story was the release of Woolworths' poor trading update, showing a sharp slowdown in Christmas sales growth and furthermore, the extreme pressure on consumer spending. As reported by Colleen Goko, analysts say this "can only be a bad omen for the rest of the retailers still to release their Christmas figures".

It's not all doom and gloom. In international news, Alibaba will buy domestic department store Intime in a $2.6bn privatisation scheme. The announcement came after founder and chief executive Jack Ma met US President-elect Donald Trump at his headquarters in New York to discuss how the e-commerce giant can help create 1m US jobs by enabling small businesses to sell goods to China and Asia, reported AFP.com.

Enjoy reading.


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BizWeekly top stories
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Woolworths' nightmare after Christmas
[Robert Laing] Retailer says exclusion of Boxing Day from first-half figures is partly to blame for lacklustre sales growth... read
Alibaba to buy China mall operator in $2.6bn plan
Alibaba to buy China mall operator in $2.6bn plan
SHANGHAI - Chinese e-commerce titan Alibaba will take control of domestic department store Intime through a $2.6 billion privatisation scheme, the companies said Tuesday, sending shares of the mall operator surging... read
BizTrends 2017
#BizTrends2017: Seven runway trends for S/S 17
#BizTrends2017: Seven runway trends for S/S 17

Hannari Slabbert

Leading global trend forecasting agency WGSN, rounds up the most important directions from the catwalks in New York, London, Milan and Paris, for Spring/Summer 17 women's apparel in their Key Trend report. read
#BizTrends2017: What does 2017 hold for supply chains?
#BizTrends2017: What does 2017 hold for supply chains?

Mungo Park

Supply chain trends will continue to be driven by the need to support business in meeting customer expectations while continuing to better manage and control costs... read
#BizTrends2017: Local franchise trends for 2017
#BizTrends2017: Local franchise trends for 2017

Dumisani Bengu

South Africa's economy is under significant pressure and does not promise a great deal of progress for business or consumers – with the International Monetary Fund (IMF) predicting only 0.8% growth in 2017. Franchising, however, is one sector that has consistently shown its resilience by performing well and this trend is expected to continue in 2017... read
#BizTrends2017: Why more than ever, sustainability is good business
#BizTrends2017: Why more than ever, sustainability is good business

Justin Smith

South African companies, including those in the retail sector, continue to experience a significant change in mindset among customers. The reality is that doing business is no longer just about profit, but also about creating shared value and meeting responsibilities to contribute to inclusive economic development, and to give back to communities and our planet... read
#BizTrends2017: Renewed focus on value in e-tailing levels the playing field
#BizTrends2017: Renewed focus on value in e-tailing levels the playing field

Kevin Tucker

The online retail space in South Africa is often categorised as underperforming, but while there is plenty of room for improvement, this perspective might be a little shortsighted... read
#BizTrends2017: Top five decor trends
#BizTrends2017: Top five decor trends

Dave Nemeth

In this fast-paced, technologically driven world, contrasting trends are emerging which either embrace or provide reprieve from hi-tech developments. Visionary trend forecaster Dave Nemeth has partnered with Hansgrohe to identify the top five deco themes for 2017. read
#BizTrends2017: Stepping into the future of global supply chains and logistics
#BizTrends2017: Stepping into the future of global supply chains and logistics

Kate Stubbs

In 2017, supply chains and logistics will be shaped by smart partnerships... read
#BizTrends2017: The shift from the experience economy to the transformation economy
#BizTrends2017: The shift from the experience economy to the transformation economy

Claudia Roth

The world is in a silent revolution. Global consciousness is growing. Passion for mindless luxury is waning. Consumers are increasingly mindful of not only what their chosen product gives them, but how it makes them feel... read
David Drew
#BizTrends2017: Instant gratification is not limited to information

David Drew

David Drew, chief commercial officer of Boxmore Packaging, writes about how 3D printing is revolutionising the FMCG industry... read
#BizTrends2017: Developing Africa's future cities
#BizTrends2017: Developing Africa's future cities

Nadir Jeeva

Cities are "smart" when infrastructure, urban assets, public services, human and social capital, mobility systems and other forces are improved and optimised under ICT... read


More trends...
Architecture & Design
2016/2017 PPC Imaginarium Awards judges announced
2016/2017 PPC Imaginarium Awards judges announced
Now in its third year, the PPC Imaginarium Awards has assembled some of the industry's most influential creatives on the national and regional judging panel who will evaluate the various category submissions, choose category finalists and the overall winner... read
Banking & Finance
Christo Wiese.
Picture:
Market sells on tie-up news as Shoprite takes bigger hit

Ann Crotty

The deal is to be priced slightly in favour of Steinhoff, share prices suggest... read
(c) moji1980 -
Future looks bright for Astral as shares soar
While MTN's latest payment-break offer to snare cash-strapped consumers deserves caution... read
diego_cue via  - Train on the border of Zambia and Zimbabwe
Overland freight costs strangle trade with neighbours, study shows

Karl Gernetzky

It is cheaper for SA to import animal feedstock or sugar from Brazil than from Zambia because of the excessive costs of overland cross-border freight, according to a new research paper... read
Commercial Property
Multi-million rand logistics and retail park to be developed at N2 Business Estate
Multi-million rand logistics and retail park to be developed at N2 Business Estate
A multi-million rand logistics and retail park is to be developed at the N2 Business Estate, further establish the Cornubia multi-use development as an important node between King Shaka International Airport and Durban... read
CSI
Picture:
Massmart donates high-tech hampers to top matriculants
At the recent event, officially announcing the 2016 matric results, Massmart provided the top three achievers in quintiles 1, 2 and 3 with hi-tech hampers worth R80,000. The hampers are aimed at assisting the students' transition from secondary to tertiary education... read
E-commerce
2017: Weathering a tough year for business
2017: Weathering a tough year for business
Dr Yudhvir Seetharam says it isn't all doom and gloom as he shares his outlook on a few trends that we can expect in 2017 in various industries... read
Exhibitions & Events
Digital Signage Expo offers seminar programme
Digital Signage Expo offers seminar programme
The Digital Signage Expo (DSE), the international trade show and educational conference dedicated to digital displays, interactive technology and digital communications networks, will take place 28-31 March 2017 at the Las Vegas Convention Center in Las Vegas... read
Fashion, Clothing & Textiles
Schiaparelli rises from fashion death to Paris haute couture
Schiaparelli rises from fashion death to Paris haute couture
Fashion label Schiaparelli completed its remarkable resurrection on Tuesday when it was inducted into the elite ranks of Paris haute couture houses... read
FMCG
Freeimages9 via
Crookes Brothers might be ripe for the picking
Multinational food processing and retailing company Associated British Foods swallowed SA's biggest sugar industry player, Illovo, in May last year. Crookes Brothers now stands out as another highly attractive potential target... read
skeeze via
Astral Foods projects a poultry catastrophe if Eskom cuts off defaulting councils

Mark Allix

The company warned that Eskom would disconnect power supply to the municipality indefinitely if the situation did not improve - so 11.5-million chickens would not be fed daily... read
maabsnco0 via
Price of major food commodities fall for fifth year in a row
"Economic uncertainties, including movements in exchange rates, are likely to influence food markets even more so this year." read
Introducing the S'Mores Frappuccino by Starbucks
Introducing the S'Mores Frappuccino by Starbucks
Starbucks have launched a new drink, the S'Mores Frappuccino to celebrate summer and deal with the heat. The S'Mores Frappuccino is a combination of marshmallow-infused whipped cream... read
Pork is healthy, in moderation
Pork is healthy, in moderation
The Medical Research Council states that within a healthy eating plan it is reasonable, healthy and safe for an adult to consume approximately 560 grams of cooked, iron rich meat such as pork, split over a few meal occasions in the course of a week... read
Franchising
Picture: Supplied
Kees van der Westen visits Coco Safar SA
Kees van der Westen, described as the Da Vinci of espresso machines, was in Cape Town for the first time on 12 January 2017 to visit Coco Safar SA... read
Import/Export
Low poultry duty on EU 'will decimate jobs in SA'
Low poultry duty on EU 'will decimate jobs in SA'

Mark Allix

South African chicken producers, the South African Poultry Association, and labour mainly blame "dumping" of dark chicken meat products, such as legs, for the industry's woes as producers struggle to sustain operations... read
MichaelGaida via
More choppy waters for shipping

Karl Gernetzky

SA's shipping market is expected to remain under pressure in 2017, with import figures likely to be weaker after low third-quarter import numbers despite a strengthened rand... read
Manufacturing
Surprise uptick at factories
Surprise uptick at factories

Asha Speckman

A recovery in agricultural output and the uptick in the mining sector could support demand going forward, BER economists predict... read
Serco to capitalise on new technology and innovation in 2017
Serco to capitalise on new technology and innovation in 2017
Staying abreast of global trends and innovations is an important part of how Serco strives to give its customers the edge in a competitive African market... read
China manufacturing accelerates at fastest for four years: survey
China manufacturing accelerates at fastest for four years: survey
China's manufacturing activity expanded at its quickest pace in nearly four years in December, an independent research firm said on Tuesday, in a sign of improving health for the world's second-largest economy... read
Regulatory
Picture:
Coca-Cola heads for tricky AB InBev deal
Competition analysts believe it will involve another year of detailed engagements with competition regulators in many African countries... read
Research
Better rainfall and larger harvest 'could keep repo rate at 7%'
Better rainfall and larger harvest 'could keep repo rate at 7%'

Robert Laing

Better rainfall leading to a larger harvest is likely to keep the Reserve Bank's repo rate level at 7% during 2017, BMI Research said... read
Retail Marketing
Young Gun Films make magic for new Opel Mokka X
Young Gun Films make magic for new Opel Mokka X

Issued by Young Gun Films

Up-and-coming Cape Town film mavericks Young Gun Films recently got the chance to weave their cinematic magic on the launch of the new Opel Mokka X... read
Retailers
Picture:
How being sceptical paid off for Massmart

Adele Shevel

The company says its cautious strategy in the rest of Africa is proving to be the right approach... read
Shoppers leave a Woolworths store in Lenasia, south of Johannesburg. Picture:
How can Woolworths shake off the doldrums?

Ann Crotty

The just-released trading update from Woolworths points to 2017 being another extremely tough year for a group that was, until as recently as the end of 2015, one of the darlings of the investment community... read
(c) radub85 -
Woolworths update bodes ill for sector

Colleen Goko

There are further signs of trouble in SA's struggling retail sector, with Woolworths releasing a poor trading update that analysts say can only be a bad omen for the rest of the retailers still to release their Christmas figures... read
Smartphone with Google 3D Tango from Taiwan's Asus
Smartphone with Google 3D Tango from Taiwan's Asus
Taiwan-based electronics group Asus announced on Wednesday it was launching a new smartphone which uses Google Tango 3D technology and allows users to experience augmented and virtual reality... read
Shares in UK clothing groups slump on price warning
Shares in UK clothing groups slump on price warning
British clothes retailer Next on Wednesday warned of a tougher trading year ahead as uncertainty caused by Brexit weakens the pound and pushes up the cost of raw materials... read
Sales
A pedestrian walks past a Cartier store, operated by Richemont, as it stands illuminated at night in Shanghai, China. Picture:
Richemont sales growth returns

Colleen Goko

Luxury goods company issues upbeat trading update on first sales spike since August 2015 period as global jewellery demand rises... read
Picture:
Truworths 26-week sales rise 21% but earnings drop marginally
On Thursday Truworths International reported a 21% rise in retail sales to R10.2bn for the 26-week period that ended on Christmas Day... read
A man looks at a Montblanc watch, part of Switzerland-based luxury goods holding company Richemont.
Picture:
Richemont benefits from Christmas spending

Robert Laing

Luxury goods group says women's fashion brand Chloé, fountain pen and watchmaker Montblanc and men's clothing brand Peter Millar performed well... read
Retail sales growth expected to underperform economic growth
Retail sales growth expected to underperform economic growth

John Loos

This year could prove to be a tough year for retailers, with real retail sales growth expected to underperform economic growth... read
Technology
Tech spending to slip in world of political uncertainty
Tech spending to slip in world of political uncertainty
Global spending on consumer technology is expected to slip this year due to factors including a strong US dollar and political uncertainty prompted by Brexit and President-elect Donald Trump... read
Global launch by Huawei of new mid-range smartphone
Global launch by Huawei of new mid-range smartphone
Chinese electronics giant Huawei announced on Tuesday a global launch of its mid-range Honor 6x smartphone which includes dual-lens camera technology and is aimed at young consumers... read
Lenovo launches 'home assistant' with Amazon Alexa
Lenovo launches 'home assistant' with Amazon Alexa
Chinese tech giant Lenovo announced on Tuesday it was launching a smart home assistant powered by Amazon's Alexa, becoming the latest firm to enter the market for voice-activated devices... read
International
London Fashion Week shake up tradition with mixed catwalks.
Picture:
London Fashion Week shake up tradition with mixed catwalks
LONDON - Men and women are sashaying down catwalks together at London Fashion Week, in a shake-up of tradition backed by celebrated designers including Vivienne Westwood... read
Skincare deal gives fresh face to L'Oreal in US
Skincare deal gives fresh face to L'Oreal in US
PARIS - French cosmetics giant L'Oreal said Tuesday it had agreed to buy three leading skincare brands from Valeant for $1.3 billion in a move set to give its US offering a facelift... read
Total group sales jumped 6.5 percent during Tesco's third quarter to the end of November 2016 compared with a year earlier ()
Tesco hails rising sales over Christmas period
LONDON - Supermarket chain Tesco, Britain's biggest retailer, announced Thursday rising sales during the festive period, which followed a strong third quarter despite uncertainty over Brexit... read
Uniqlo's parent company Fast Retailing says that quarterly net profit jumped by almost half from a year ago ()
Uniqlo operator profit jumps on bargain-shopper focus
TOKYO - Uniqlo's parent company said Thursday that quarterly net profit jumped by almost half from a year ago, as it refocused on a strategy aimed at luring thrifty shoppers... read
Amazon relied on its suppliers to provide list prices for its Canadian website without verifying that those prices were accurate ()
Amazon to pay Canada fine over pricing practices
MONTREAL - The Canadian branch of US online retailer Amazon will pay Can$1.1 million ($836,967) over allegedly misleading pricing on its website, the government said on Wednesday... read
India warns Amazon over alleged insults to flag
Amazon removes India flag doormats after visa threat
More International
Business
What's worrying businesses most in 2017?
What's worrying businesses most in 2017?
Companies increasingly fear the unpredictable business environment, where markets are volatile and political perils are on the rise... read
Jobs offered
New events to diarise
Professional selling skills workshop
The Peer Group - 25 Jan 2017, Johannesburg | 31 Jan 2017, Durban | 22 Feb 2017, Johannesburg | 22 Feb 2017, Durban | 14 Mar 2017, Durban | 29 Mar 2017, Johannesburg | 19 Apr 2017, Johannesburg | 24 May 2017, Johannesburg | 21 Jun 2017, Johannesburg | 26 Jul 2017, Johannesburg


E-commerce MoneyAfrica
Kinetic - 22 Feb 2017 to 23 Feb 2017, Cape Town


Customer experience practice
Enterprises University of Pretoria - 19 Apr 2017, Pretoria


Short course in customer experience practice
Enterprises University of Pretoria - 19 Apr 2017 to 21 Apr 2017, Pretoria | 28 Jun 2017 to 30 Jun 2017, Pretoria | 29 Aug 2017 to 31 Aug 2017, Pretoria | 25 Oct 2017 to 27 Oct 2017, Pretoria


SAPICS Conference and Exhibition
4 Jun 2017 to 7 Jun 2017, Cape Town


Customer relations
Provox Centre for Public Relations & Communication - 24 Aug 2017 to 25 Aug 2017, Johannesburg


Quotes
Colin R. Davis
"The road to success and the road to failure are almost exactly the same."
Sylvester Stallone
"I believe any success in life is made by going into an area with a blind, furious optimism."
Ralph Marston
"Success in any endeavor depends on the degree to which it is an expression of your true self."
Julie Benz
"You really have to work hard and apply yourself and by applying yourself and working hard and being diligent, you can achieve success."
Vera Wang
"Success isn't about the end result, it's about what you learn along the way."

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