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Africa's retail news resource for the industry! 25 Feb 2008
Retail, Banking & Finance, Brand news, Catering, Cold chain, Consumer research, Distribution, Franchising, Health & Safety, Import/Export, Logistics, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Retail services, Security, Shopfitting, Supermarkets, Supply chain, Technology, Training, Wholesalers.

Spending the budget
The budget that Trevor Manuel presented last week is old news already – but the impact will stay with us for ages. One thing shone through, however: he has boxes of cash to throw at Eskom for one – but how is it going to be spent? Let's face it, in an industry as heavily dependent on skills as our power supply utility is, the ability to spend money in a budget (spend it wisely, that is) is dependent on the skills of the people involved... If your organisation is short of the requisite skills to make the best use of the cash, then you're pretty much wasting your time having it in the first place – and Eskom admits to being short of skills in key areas. We seem to have been remarkably free of blackouts recently, but I wouldn't be surprised if they return. And if they do, it won't be due to a lack of cash – it will be due to a lack of skills in planning, building and operating our power grid. Education and training is an infinitely renewable resource; we had better make the most of it.



Rod Baker, Content Manager

Headlines

Retail
Meet Strellson
Hugo Boss is a brand familiar to most of us. Say 'Strellson' to the average South African man, however, and you are likely to be met with a blank stare. Not for much longer, though...

Giving brands the final word
Every shopper making a purchase and up where? At a till point, of course - and that's when they also have little to do but take in what's in front of them...


Fix those communication channels
[Howard Badler] Companies are always looking for new ways to improve communications within their operational areas. Research taken from my training sessions has revealed that communication channels are put in place without consultation from employees to advise whether or not the current communication forums works for them.

E-mail marketing grows up
It's time we ensure that we give our customers a relevant and appealing experience that rewards them for engaging with us in the first place. Through behavioral targeting, we provide our customers with the means to steer their relationships with us. By focusing and enriching the information we provide them, we can ensure that the conversation we foster will prove to establish a mutually beneficial relationship.

The well heeled keep on spending
[Nicola Mawson, Consumer Industries Correspondent] Consumers who are less wall off or facing more onerous debt and bond repayments may be tightening their belts, but for those who are well off, it's business as usual.

Online PR - is there any value beyond the links?
[Jennifer Osborne] A few months ago, I wrote a post comparing various online press release services. While nobody disputed their effectiveness at building links, there were questions as to how to measure the full value of Online PR.

Get your pizza
[Bill McCloskey] We've been working on a study of the pizza industry and how it is using the Web and email to take the neighbourhood pizza parlour into the world of cyberspace. We are seeing some interesting findings.

State probes effect of wheat import parity on bread price
[Linda Ensor, Political Correspondent] The agriculture and trade and industry ministries are probing whether wheat sold on the domestic market at import parity prices contributes significantly to higher bread prices.

The buck starts here!
Drawing inspiration from Eskom's recent spate of load shedding Joe Public Advertising created a billboard campaign to highlight just how versatile eBucks are. Now one of South Africa's leading rewards programs offers customers the choice of using points for 2008's most essential household purchase: a generator.


Shoprite diluted headline earnings per share up 55.1%
[Nicole Rego] Retailer achieves higher growth than expected after industrial action in 2006.

Shock for food prices as wheat futures rocket
[Mathabo le Roux and Nicola Mawson] Consumers, already battling to meet ever-higher food prices, are in for yet another shock as the price of wheat hits a new record high.

North West registers stable economic growth
After years of fluctuating growth performances, the economy of the North West province is now on steady economic growth and prosperity.

Credit retailers feel pinch
[Adele Shevel] The combination of higher interest rates, consumer debt and factors such as the National Credit Act are taking their toll on businesses... some more than others.

Investment company appoints new MD
Fore Good Investments has appointed Craig Clemence as Managing Director to head up its subsidiary Sunrise Bay Trading. Clemence will be responsible for sourcing new products and opportunities from local and global manufacturers, as well as developing and maintaining business relationships. He has over 16 years experience in the South African FMCG market and recently headed up the national sales and key accounts for Stimorol South Africa.



Banking & Finance
The danger of SA's rising account deficit
[Michael Appel] South Africa's current account deficit has widened to R143 billion with a number of implications in the face of a global economic slowdown, soaring commodity prices and an unsavoury United States economy.

2008 Budget lowers taxes, keeps surplus
[Shaun Benton] Minister of Finance Trevor Manuel, prior to delivering his 2008/09 Budget speech on Wednesday, dismissed doomsday economists worried about the current global economic downturn and insisted that the South African economy will weather any coming storms.

Tips for Trevor - Budget Speech wishlist
[Edwin Tshivhidzo] Education, health, housing and social grants are some of the top priorities the public wanted Finance Minister Trevor Manuel to consider when presenting his Budget Speech on Wednesday.

SA will weather the storm - Manuel
[Michael Appel] Whilst much of the world is suffering from soaring oil, gold and platinum prices in the midst of a global slow down, Finance Minister Trevor Manuel is confident South Africa will weather the storm.

Fund to empower women entrepreneurs
[Gabi Khumalo] The Department of Trade and Industry and Old Mutual have launched a fund which will accelerate women's economic empowerment by providing more affordable, usable and responsive finance solutions.


Brand news
SA company makes pledge: only in Africa
Engen Petroleum Ltd, the South African refined petroleum products market leader (27%), has made a remarkable promise to Africa - to operate only on the continent.


Pinotage takes centre stage
Pinotage claims centre stage in the latest vintage of Simonsig's famous Cape Blend, Frans Malan 2004.


New packaging for Spanjaard
Spanjaard Limited, manufacturer of specialised lubricants and allied chemical products, has recently introduced its new bottle packaging onto the market for its full range of 375ml products.


Loving online drives sales
If you thought the Valentine phenomenon was losing its lustre, think again. Thanks in part to the growing penetration of the internet into everyday South African life, Valentine's 2008 was as popular as ever.

Trading environment challenges Truworths
[Nicola Mawson, Consumer Industries Correspondent] The company said the trading environment had been “challenging” thanks to a rise in the cost of living and higher interest rates.

Clubs cut current costs
Many companies are still talking about power saving, but Virgin Active has been on the energy-saving treadmill since 2001 – go on, you remember… Those were the days before blackouts (well, there were fewer of them, anyway).


Woolworths interim diluted headline earnings per share down
The retailer has reported a 12.3% decline in diluted headline earnings per share from 63.4 cents last year to 55.6 cents for the 26 weeks ended December 2007.

Will you like this campaign? Of corsa you will
Universal McCann in partnership with sister creative agency McCann Erikson developed a campaign with a twist for the new Opel Corsa 4400.


New jaffle joins old favourite
[ActivRetail] Consumers in South Africa and abroad are demonstrating an increased demand for more spicy foods. This is evident in the exceptional growth of a wide range of hot condiments and sauces that are now available to consumers.


Shakira to create beauty brand
Puig Beauty & Fashion Group and internationally renowned music icon Shakira have signed a worldwide agreement to create a line of signature products produced with and inspired by the artist. The collaboration will include the development of beauty, fragrances and other personal care products.

Walkman is GSMA Best Handset
Sony Ericsson's W910i Walkman phone strutted off with the prize for Best Handset the GSM Association's 13th Global Mobile Awards 2008. The ceremony was held on 12 February in Barcelona, Spain, as part of the Mobile World Congress.


Phones for the informal
MTN has introduced affordable cellphones within informal markets.

Killarney Mall gets a touch of ‘street look'
Rage, the dynamic ladies shoe and clothing brand, has branched out into Killarney Mall with the launch of its new ladies combination store in February 2008.


Matlare's wounded Tiger
Peter Matlare is used to tough positions, but whether he will be able to manage Tiger Brands' redemption, and restore staff morale and investor confidence, is unclear.

Added Value and Glendinning join forces to unpack SA's shoppers - Added Value
Marketing insight company Added Value and Glendinning Management Consultants have announced that they will form a strategic alliance between their South African businesses effective from the beginning of 2008.

Bring on the Country Road
Woolworths is expanding its product range and will soon feature a select range of clothing from sister company, a leading Australian retailer, Country Road. Womenswear clothing and accessories will be trialled initially at four stores: V&A Waterfront and Cavendish in the Cape, and Sandton and Hyde Park in Gauteng, from early April 2008. Woolworths has a majority shareholding in Country Road, which offers a select range of clothing and homeware through stores in Australia and New Zealand.

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Consumer research
Why ratings no longer matter
[Joseph J. Pilotta, PhD] Recent occurrences involving Arbitron's new PPM and Nielsen's commercial measurement have caused many within the radio and broadcasting industry to question their validity; especially impacted have been minority radio and broadcasters.

Takeaways from the Email Evolution Conference
[Chad White] Last week the Email Experience Council held its first annual Email Evolution Conference in San Diego, US, attracting over 500 attendees. Here are what I think were some of the most interesting takeaways from the sessions that I attended:

New media continues to grow in influence to purchase
A US survey shows that new media is further fragmenting the influence of traditional media, even more among minorities in the US.

Mobile PCs fly off SA shelves
Mobility drives positive uptake over holiday spending season, says IDC.


Franchising
Capitalising on properties in distress, rescue and sales
Real Africa Financial Services, a national franchisor focused on the burgeoning financial and real estate markets, introduces SA Homesavers®.



Import/Export
Lesotho hosts trade ministers
Trade Ministers from the 50-strong group of Least Developed Countries (LDCs) from around the globe, including 34 African countries, jet into Maseru, Lesotho's capital, from Wednesday to Friday this week to discuss key World Trade Organisation issues.

China has its eyes on Africa
[Carole Kimutai] Apart from the Industrial and Commercial Bank of China's (ICBC) purchase of a 20% stake in South Africa's Standard Bank, the Eastern giant is looking at the purchase as only one of a number of steps in its growing trade and business relations with the continent.


Logistics
2008 set to be challenging for the logistics industry
The global logistics industry is set for a challenging year in 2008 as the effects of the credit crunch filters through to consumer spending. Margins in the industry are already thin, but shippers can make moves now to improve their chance of future success.


Merchandising
Trendy home catalogue offers easy shopping
[ActivRetail] Boardmans is releasing its second Home Catalogue, a convenient home-shopping guide that offers three effortless ways to shop - in-store, online or telephonically.



Packaging
Time factor inhibits innovation
New US research reveals that 'lack of time' is a key inhibitor to branding and packaging innovation for consumer goods companies.

Simplifying specialised printing needs
HP has launched three new vertical solutions for customers in the retail and financial services industries located in Europe, Middle East and Africa (EMEA).


Promotions
Miner makes major win
On Wednesday night, at a dramatic event at The Back Room in Soweto, 10 underground mineworkers, selected from around the country, stood anxiously awaiting the final draw of the Teba Bank Win a Dream Competition.

Boost for best-selling category in SA Music Awards
Mzansi's Best Selling Album of the Year has always been one of the highlights of the main awards ceremony at the MTN SA Music Awards, as it is a good indication of who South Africans love most. This year the category has been expanded.


What's big and yellow and hands out roses?
When love is in the air people around the world do crazy things to demonstrate their love to their partners, friends and admirers.


How about going after treasure on a tropical island?
[ActivRetail] Tropika, Clover SA's leading beverage brand with the extensive range of smooth drinks, will be selecting 10 fans to pair up with 10 South African celebrities for the Tropika Island of Treasure challenge, which will take place on the island paradise of Mauritius at the end of May.


Regulatory
UK proposes piracy sanctions for ISPs
The Recording Industry Association of America and its international cousins are cheering this morning after the British government unveiled a proposal that would Internet service providers to take explicit steps towards curbing illegal downloading or they face legal sanctions.

RIM, Motorola exchange volley of patent lawsuits
Research In Motion (RIM) is suing Motorola over several patents used for wireless devices such as RIM's BlackBerry e-mail devices and Motorola's Razr smartphones.

Software pirates rip off taxpayers
[Warren Weertman] A massive 35% of all computer software used in the South African economy is thought to be unlicensed or pirated. This equates to a staggering annual loss to the economy of R1,5 billion.


Security
Practicing safe e-commerce
If you're headed to a brick-and-mortar store or a restaurant, don't leave a receipt on the table, and be sure to check your credit card bill to make sure the staff didn't heist your credit card number. Those are common-sense behaviors for real-world commerce, but similar security measures are in order when shopping online.


Supermarkets
Competition intensifies in the battle for grocery market share
A new report* from Retail Analysts Verdict Research, part of the Datamonitor Group, reveals that the battle for UK grocery market share has become more intense than ever. Despite the Competition Commission's concerns that UK shoppers may lack a choice of food retailers, Verdict finds that competition in the sector is flourishing.


Supply chain
Pioneer unveils R1,2bn plan to lift production
[Nicola Mawson, Consumer Industries Correspondent] The group, under investigation by the Competition Commission for alleged involvement in a bread price-fixing cartel, said it was still considering listing on the JSE, but a listing might be postponed due to the investigation. In the meantime, is has budgeted R1,2bn to boost output in the new financial year.

Agri dept to give farmers 100 Nguni cattle
[Gabi Khumalo] In a bid to promote the breeding of indigenous, South African Nguni cattle, the Limpopo Department of Agriculture handed over more than 100 cattle to two previously disadvantaged farming communities on Thursday, 21 February.

New soybean technology approved
USA - Monsanto Company has received final regulatory approval in the Asian countries and areas of Japan, the Philippines and Taiwan for its second-generation soybean technology, Roundup Ready 2 Yield. These approvals represent significant progress toward the commercialisation of this new, reportedly higher-yielding, soybean technology.


Technology
SEO: Five easy pieces
One rule for a new Web site hoping to catch traffic out of search engine attention is to find a niche market. This cannot be stressed enough, as it is much harder to receive top search engine rankings for a new site than an established site. A new site will have to fight amongst Web sites that have established high search engine rankings.

Toshiba surrenders
[Jim Offner] High-definition video enthusiasts are going to be looking at a Blu-ray world.

Umuzi selects digital commerce platform for SMME development program
IBSG International, Inc., a holding company for four technology and software subsidiaries, announced today that its BizWorld Pro© digital commerce platform has been selected by South Africa's Umuzi (Pty) Limited for its small-, micro- and mid-size enterprise (SMME) development program.

Customer service: The new black
[Melinda Krueger] Many of the valuable sessions at the Email Evolution Conference, which took place recently in the US, cited integration as a key to email success.

Here's the next generation notebook
Sahara Computers has announced its latest mobile solution – the Sahara 12-inch wide Core 2 Duo Image Book 12WS notebook powered by Intel® Centrino® Processor technology.


HD DVD doomed?
[Keith Regan] With recent defections threatening to make what was expected to be a close and ongoing battle for next-generation DVD supremacy a rout in favor of Sony's Blu-ray format, Toshiba is reportedly close to pulling the plug on HD DVD.


Training
Promote agri career paths for youth
[Gabi Khumalo] Careers in agriculture must be promoted to young South Africans, who perceive the sector as being exclusive to older people and not lucrative, says Limpopo MEC for Agriculture Dikeledi Magadzi.

How gaming chops translate into real-world business skills
The U.S. Bureau of Labour Statistics found that more than 90 percent of IT workers are employed outside the IT industry, which makes it necessary for graduates to have both IT and complementary training in their respective business sectors. Utilizing serious games is a fun and engaging means of bridging this skills gap.

Varsities, colleges turn to CRM
CRM solutions are on brink of widespread adoption across the higher education market.

Workshops designed to put customers first
With 2010 only two years away and service in South Africa often seen as lacking, N'lighten, the customer-service improvement company, is offering a series of workshops throughout 2008 dedicated to providing businesses with tools to build their level of customer service effectively.



Events to diarise
Visit the International Fashion Sale IFS - Johannesburg, 28 February
This year's International Fashion Sale (IFS), now in its 12th successful year and in its 23rd show, is more popular than ever!
 
Wine & olive tasting The Academy - Lakeside, Cape Town, 15 March
Join us at the Lakeside Academy as we treat you to a mini wine route with a difference!
 
Planning a golf day? Make it a ‘hole in one’ The Hedgehog Event - Johannesburg, 2 April
Make sure that when you plan a corporate golf day, it's a complete success...
 
Program to provide HR tools for 21st century UCT Graduate School of Business - Cape Town, 21 April
Human Resources practitioners will have a unique opportunity to sharpen their practical HR skills on a new program launching at the UCT Graduate School of Business (GSB) this April.
 
 

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    Quotes
    "Nowadays the rage for possession has got to such a pitch that there is nothing in the realm of nature, whether sacred or profane, out of which profit cannot be squeezed." - Desiderius Erasmus
    "A brand that captures your mind gains behaviour. A brand that captures your heart gains commitment." - Scott Talgo
    "Feeling gratitude and not expressing it is like wrapping a present and not giving it." - William Arthur Ward
    "It is not the style of clothes one wears, neither the kind of automobile one drives, nor the amount of money one has in the bank, that counts. These mean nothing. It is simply service that measures success." - George Washington Carver
    "Age does not diminish the extreme disappointment of having a scoop of ice cream fall from the cone." - Jim Fiebig
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