Marketing News South Africa

Black Like Me launches into the UK

Herman Mashaba, CEO of Black Like Me, is modest about the historical importance of possibly being the first black owned company to launch its products into the UK market. Targeting a market worth a massive 65M pounds, (R1.4B) he responds with a mischievous smile when asked what share of that market he is gunning for. The simplicity and cool mannerism of this gentlemen belies the fact that his skill as a business man has built a multi million rand beauty empire that has become the most well known in Southern Africa.

South Africa House in Trafalgar Square was the venue for the BLM launch in Britain on April 17, when Herman Mashaba, its founder, made history as head of the first black owned South African company to sell its products in the UK and international markets.

For a township thoroughbred it is amusing that while he is packaging products for his London launch, he is also bidding for plant equipment being auctioned by a multinational in the same industry that is closing down.

Born in Hammanskraal, 43 year old Mashaba started his business with R30 000 lent to him by another successful black businessman, Walter Dube. Dube was surprised when Herman repaid the loan in 7 months instead of the agreed three-year period.

From the dusty streets of Garankuwa and a small SBDC Hive four equal partners Mashaba, Connie his wife, Joe Moloantwa, and Johann Kriel, marketed, mixed chemicals, filled containers, delivered products and collected money from customers.

Black Like Me was launched at the peak of the vicious apartheid era, and the height of the township violence. It was 1985 and young black South Africans were rebelling against the oppressive regime. Herman's white partner Johann Kriel doubled up as chemist and politically correct person to deal with the government officialdom of the day.

By 1990 Black Like Me had acquired it's own land in Mabopane, and built a state-of-the-art manufacturing plant supplying hair care products to the entire country. In the middle of a typical township the plant stood as a symbol of black hope.

But success breeds enemies and in November 1993 a devastating fire destroyed everything. Arson was suspected but the crime remains unsolved.

An astute marketing man, Mashaba knew he had to get BLM products back on his consumer's shelves as quickly as possible. Using a nest egg and taking what he could from his insurers, he bought 827 Richards Drive, Midrand, and began the task of rebuilding the company for a second time.

As South Africa experienced it's first democratic election in 1994 Black Like Me once more embarked on building its market share. Competition came in the form of huge multinationals with sophisticated American images, state-of-the-art chemical formulations and large marketing budgets.

This changed the entire hair care landscape and diverted the focus from the salons to retail stores. Increased product access in No-Lye kits shifted the focus and increased the retail side of the market.

Extensive marketing by these multinationals eroded Black Like Me's market share and drove it's management back to the drawing board to re-strategise. A multinational partner was taken on, to provide capital, research and development and infrastructure to assist the company to expand its markets.

The acquisition provided better formulations, new packaging and R7 million worth of advertising. Unfortunately the move did not impact on increasing market share locally or internationally. High Price structures, inflexibility and incorrect product mixes, into the retail sector, made a once quality affordable brand too expensive for potential customer.

The acquisition lasted until mid 1999 when Herman Mashaba decided to buy back Black Like Me. Once again Black Like me went it alone as an independent black company.

By 2000 the competition was so tough it looked like Black Like Me would never regain its place in the market.

However by August of that year with slow deliberate effort on the part of it's CEO and management team Black Like Me broke even and the company was back on track to meet the challenges of the new millenium.

Re-employing some of the key staff that had left during the acquisition, Herman Mashaba and his team turned business around and by the end of 2001 Black Like Me was the fastest growing hair care company in the country. The year also saw the launch of Special Solutions, an up market hair brand catering for the middle/upper level consumer, and Permanent Hair Colour and Perfect Choice Colour, to meet the demands of the young trendy fashion conscious market. The company also expanded its African base and is set on the road to become a global player. The company experienced a 46% growth by the end of 2001.

Its mission as it rolls out internationally is to manufactur lifestyle grooming brands for the international African Consumer, and to provide quality affordable hair care, cosmetics, body care, and fragrance to its target market. It's vision is to expand business operations internationally in the next five years and build strong brands that will be embraced by Africans globally.

Black Like Me will be launched into the international and local market with a new image and state-of-the-art formulations. To launch the New Black Like Me image locally a Miss Black Like Me pageant will offer young black women a chance to win prizes worth R1m. Selections and auditions will be staged in 9 regions and Miss Black Like Me will be crowned in a gala show in March 2003.

This fortunate young woman will win fabulous prizes and be the first international face and ambassador for the brand. The stylist that grooms the winner will accompany her to the Afro Hair & Beauty Show in London in June 2003. The South African contingent for London includes Miss Ukhozi FM 2001, Miss Umhlobo Wenene FM 2001, Miss Tertiary 2001 and their stylists, who have all won prizes to London courtesy Black Like Me. These beautiful African women will be used on platform to demonstrate Black Like Me product performance.

As a successful African entrepreneur Herman Mashaba was invited to address a Nepad initiative organised by the German government in Berlin in April 2002. His presentation to German and African business people showcased Black Like Me as a successful African business, positively projecting Africa's potential to succeed against a backdrop of deprivation and poverty. It is hoped that forums like these will dispel the negative perceptions that the Western world has of Africa.

The company also launched a men's & ladies' fragrance range into a selected group of stores in May. A gents' fragrance called BLM Pour Homme & a ladies' called Seduction. The company again is providing a quality lifestyle brand (Genuine French Fragrance) to its target market.

An exciting year for a local black company that has moved through the ranks as a small local player onto the international stage as part of the African dream unfolding. Black Like Me, from Garankuwa to London, and beyond.

African entrepreneurs that have built small and medium companies from nothing to successful enterprises in the last two decades are few and far between. Herman Mashaba certainly falls into this category and is still working at making his company a symbol of hope for future generations.

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