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Africa's retail news resource for the industry! 14 Apr 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.

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Yes, I have collateral
What with interest rates going up – and likely to go up again before the year is out, now is a good time to make friends with your bank manager. This is so that if and when you have to enter their office genuflecting and in a hushed voice have to ask for some sort of arrangement regarding your account, you have a greater chance of success. Actually, they don't usually have fangs dripping blood and will probably look upon your plea with sympathy because you're unlikely to be alone; the number of people under financial stress is growing as too many of us buy to the limit when rates are low – and then suffer when rates inevitably rise. Of course, the best way to solve a problem is to avoid it in the first place. Before taking a loan I have always assumed interest rates would double, I wouldn't get an increase or bonus, and rates and taxes would double – and if I could still afford my new toy, then I'd go for it. If I couldn't, I didn't. By the way, you'd better be serious should you have to have to ask for relief; once I decided to buy a caravan and went to apply for finance. The young lady took my details, leaned forward and asked “Do you have collateral?” Equally seriously, I leaned forward and replied “No, it's just the way I cross my legs.” Thud… straight over her head and against the wall. It took a while to get us back on track as she explained to me in very painful detail exactly what collateral is (and I played innocent).


Rod Baker, Content Manager

Headlines

Retail
Retail sales likely to show drop
[Mariam Isa, Economics Editor] Rising interest rates, soaring inflation and waning growth in disposable income have all conspired to take a mounting toll on household demand.

Power cuts ‘to hit listed retail property firms'
[Nick Wilson, Property Editor] Listed property companies that have large exposures to retail property are likely to be the biggest victims of load shedding.

Jet Community Awards 2008 call for entry
The Jet Community Awards, southern Africa's popular grassroots community awards programme, is open for entries once again to those extraordinary organisations and individuals who dedicate their time and energy to the upliftment of their local communities. Now in its sixth year, there's R1 million in prize money on offer and entries are being accepted from South Africa, Botswana, Namibia, Lesotho and Swaziland.

China's economic revolution in a box
[Naseem Javed] With the Olympic Games set to start in a few months, China has a lot to prove about its place in the global economy. After years of doing the manufacturing work for Western interests, China has learned a thing or two and is now striking out on its own.

Liberalisation set to revolutionise French retailing
A new report, Retailing in France 2008, published this week by retail analysts Verdict Research, part of the Datamonitor Group, finds that a growth revolution for French retail could be on the cards.

Bringing "CARE" into customer service
[Howard Badler] If I had my way I would get every company in the world to remove the word service from customer service and replace it with care.

Bumper issue of rooi rose hits the streets
rooi rose's 300 page May issue is on sale now. This bumper issue includes the much-anticipated bi-annual fashion and beauty style guide that showcases the trends for winter 2008. “Every year we aim to give all our readers practical and achievable advice on how to create the right look for the season,” says editor, Martie Pansegrouw. “This year we also show how the more voluptuous woman can wear these styles.” This issue also includes an exclusive interview with Jacob Zuma on his future plans, and regular LA correspondent Margaret Gardiner chats with Angelina Jolie about her ever-expanding family. Don't miss it!


SABMiller grows in Africa and India
SABMiller expects to spend US$370 million on development in Africa this financial year, and US$500 million in India over the next five years as incomes rise and consumption increases. The group's capital spending programme in Africa includes greenfields breweries and soft-drink plants, expansion of existing operations and replacing containers. SABMiller Africa MD Mark Bowman said: “I don't think I've seen so many opportunities for us to develop our business.” - I-Net Bridge - Business Day

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Banking & Finance
SA's repo rate increases to 11.5%
[Bathandwa Mbola] Indebted South Africans will have to dig further into their pockets following the South African Reserve Bank's (SARB's) Monetary Policy Committee (MPC) announcement of the hike in the repo rate by 50 basis points.

Bank offers businesses a helping hand
With the Reserve Bank's Monitory Policy Committee widely expected to increase the interest rates today, First National Bank (FNB) has offered to reduce the administrative burden on small and medium enterprises by restructuring their loans to enable them to cope with their short-term financial difficulties.

Market sending hopeful signal to SA – STANLIB
Listen carefully, South Africa, the market's sending you a reassuring message. That's the reading of recent equity market developments by STANLIB, one of the country's leading asset manager and largest unit trust company.


Brand news
Durban designers to knock Delhi dead
Katherine Montague recently completed the entire range of fashion garments for and co-produced the fashion show hosted by Danny Moodliyar aboard a cruise liner. She and three fellow Durban designers are now smack in the middle of creating a brand new range to wow the fashion fraternity of India later this month.

Premium white launches with blank price tag
Pieter Walser, owner/winemaker of the innovative internet wine brand, BLANKbottle, has just released his first premium white blend without a price. His 14th and latest wine, the 'Moment of Silence', is a wooded blend of Chardonnay, Chenin blanc and Viognier.


Switzerland exports Gold to South Africa
Probably one of the biggest events in chocolate this year is South Africa is the launch of Nestle's imported range of Swiss chocolate, Nestle Gold.


Motorola taps former AT&T CEO as chairman
Motorola has chosen former AT&T chief executive David Dorman as its new non-executive chairman, replacing Ed Zander, who is retiring from the role. Dorman has about three decades of experience in the telecom industry, including a stint as executive vice president of SBC until January.

Waste not? No, waste yes!
Durbanville Hills is one of the first cellars in the Western Cape to recover and purify waste water in an attempt to re-use water in a sustainable manner.

New team, new partnership, new opportunities
Premier Team Holdings and SAIL Group Ltd have signed a partnership that brings together two groups on the opposite sides of the globe that share similar interests.

Going online with nothing but music
Just Music, one of South Africa's leading independent music companies, is launching a new MP3 store via their website. The company is also the SA home to some of the world's biggest artists such as The Raconteurs, The White Stripes, Radiohead, Jill Scott, Dave Matthews Band, Katie Melua and the Ministry of Sound label.


Pioneer Foods resolves to list on the JSE
The consumer food brands maker intends to list, but has not yet said when the listing will occur.

Ole! Gringo... you wanna hard taco or soft tortilla?
Think Mexico and you think sombreros and tequila, tacos and red chillies. Home to one of the world's richest culinary traditions, Mexico is about hot and spicy embraced in a riot of colour and texture - a medley of sensual delights.

Makeover for Pyotts
[ActivRetail] Pyotts, a household name since 1885, has recently relaunched the brand in order to further cement its position as one of South Africa's leading suppliers of premium savoury biscuits.


Bank connects the poor
By means of a partnership with cellphone network provider MTN, FNB says it is able to reach even the poorest communities through the provision of a R5 prepaid airtime recharge voucher, recently introduced as part of the mobile company's Umoya airtime category.

Samsung signs Chelsea footballer

click to enlarge
Samsung Electronics has signed up Didier Drogba, Chelsea Football Club player, as its 2008 mobile phone category brand ambassador. As part of this partnership, Drogba will appear in Samsung ad campaigns for a year, and will also make public appearances to promote the company's products and corporate activities. “Extending our association with Chelsea FC, we are now thrilled to partner with Drogba as Samsung's brand ambassador,” commented Chi Won Suh, CEO of Samsung Middle East and Africa region. “Africa is a key market for Samsung Electronics, with immense growth potential, and we are confident that our association with an internationally and locally acclaimed football star like Drogba will bring us closer to the football loving population throughout the African continent.”


Juicing it up with Barbie and Hot Wheels

click to enlarge
Quali Kids, the latest addition to the short life juice market, is available under licence from Mattel as the popular Barbie Island Princess for girls and Hot Wheels for boys brands. The 6% fruit juice beverage, available in two flavours, Apple and Blackcurrant, is packaged in convenient 250ml lunchbox sized bottles. Fitted with a colourful spill-proof lid, the Barbie range comes in pink-tinted bottles while the Hot Wheels selection are available in blue-tinted bottles. "Quali Kids was launched to fill a gap in the short life juice market for a character licensed ... product aimed at children, from an established brand such as Quali. ...[W]ell-recognised icons such as Barbie and Hot Wheels was the ideal fit to take the product to market," says Stephanie Hoy, Quali Juice Brand Manager. Quali Kids will form part of the Quali Juice range from The Real Beverage Company and is available at major retailers nationally at a recommended selling price of R3.99.



Catering
Stirring stuff!
Now you can add flavour to your corporate and private events with a new company that promises to mix up anything from luscious lattes to full-bodied cappuccinos and extraordinary espressos – and it doesn't stop there.

Feel at home at OR Tambo
The new 1,000m2 Ekaya restaurant at OR Tambo International Airport has received the thumbs up from international travellers.



Consumer research
Creating an e-mail contact strategy: follow the customer's lead
In order to create a successful e-mail contact strategy, marketers must listen to their customers to cater to their needs. Common tactics used in developing an e-mail contact strategy are onboarding and launching a win-back campaign.

Cup still half full for SA consumers
[Robert Laing] The latest consumer confidence poll by Stellenbosch University's Bureau for Economic research has found that households by and large haven't as yet been financially devastated by higher fuel prices and so on, nor do they expect this to happen in the coming year.

World adspend strength in developing countries
In its first advertising expenditure forecasts of 2008, ZenithOptimedia downgraded its combined growth forecasts for North America and Western Europe this year from 4.4% to 3.8%, as consumer and business confidence is negatively impacted by current economic conditions.

E-commerce to ring up 17% growth in '08
Online retail sales in the US are expected to rise 17% this year to reach $204 billion, according to a Forrester Research study conducted for Shop.org. Clothing, computers and automobiles will be the three largest online sales categories in 2008.

Marketing to the uninterested
[Steve Smith] The other day, and for the tenth time in the last year, I showed my mother how to answer her cellphone.

Nielsen stems another competitor
[Joe Mandese] Weeks after settling a legal threat from one potential competitor, Nielsen Co. has announced plans to acquire another, IAG Research, for $225 million.

Ten points drop for consumer confidence index
[Luyanda Makapela] Consumer confidence has fallen by a whopping 10 points from its previous record, according to the latest First National Bank/BER consumer confidence index (CCI).

Western Cape economy keeps growing
The Western Cape's economy remains extremely healthy, although various negative factors are hampering accelerated growth.


Franchising
A dream comes true
Forced to leave school following the death of his father in 1995 to support his mother and three siblings, Steve Mohope worked at various part-time jobs to put food on the table.

Fast-food group has taste for jewellery
[Nicola Mawson, Consumer Industries Correspondent] Fast-food franchiser Taste Holdings says it's moving beyond just having interests in the food services sector and was set to acquire jewellery chain NWJ Holdings for R120m.

Healthy fast food group announces massive expansion
[ActivRetail] Kauai (pronounced ka-why), the healthy food and beverage company, has announced its five-year growth plan that includes opening a further 130 stores in South Africa, bringing the total number of the group's stores to 200 by 2012.



Import/Export
Nampak plant in Angola can save SABMiller $6m
[Nicola Mawson, Consumer Industries Correspondent] SABMiller aims to save about $6m a year when a new can manufacturing plant being built by Nampak was up and running in Angola in the middle of next year.

European business-to-consumer parcels market to reach €15bn by 2012
Europe's €11bn business-to-consumer (B2C)* parcels market is emerging as a high growth opportunity for many businesses that of late had been focusing on their business-to-business (B2B) service.


Logistics
Logistics group announces new acquisition
Following on the announcement during March that it had acquired the Swift Group in Dubai and was in the process of finalising a further acquisition, Barloworld Logistics has announced the acquisition of Hong Kong-based logistics company Flynt International for US$13 million. The purchase price is subject to final adjustment based on profit and other warranties to be achieved.


Packaging
Packit visits supplier in China - Packit
Most people have never heard of Wenzhou (pronounced Wenjo). Yet it is a thriving industrial city 700 kilometres south of Shanghai, with a skyline to rival any large Western city and development wherever one looks. This is not a tourist destination – in four days in that city Packit's Hugh and Clare Bosman saw only 10 non-Chinese, and all of these at the airport or in their hotel.



Promotions
On-air showcase for new SA designers
Since the start of April, SABC3 viewers have witnessed their favourite continuity presenters looking poised to take the catwalk by storm, as they appear on-air sporting creations by upcoming young South African designers.


Turn over a new leaf
Lipton Ice Tea recently launched its own multimedia integrated “Turn Over a New Leaf” campaign aimed at helping one enjoy a year that is fresh and alive.

China celebrates South Africa Week
China is celebrating “South Africa Week”, designed to commemorate the 10th anniversary of the establishment of diplomatic relations between both countries.

Let's scoot off for a beer
Sophistication, elegance and flair are the hallmarks of Italian craftsmanship – and Peroni Nastro Azzurro is extending that approach to its marketing communications.



Regulatory
Racial change sought for produce market
[Tabelo Timse] The issue of transformation has entered the Eastern Cape's fresh produce market.


Retail services
The care and feeding of your online reputation
Handling online complaints about customer service can be tricky. You want to address the issue and assure people you're responsive to their needs, but you don't want it to appear as if you're bullying customers. It's a delicate balance, and sometimes the best answer is to hire a professional.

Here they are – the 2008 ASATA awards finalists
This year the awards focus has moved away from the 16-year tradition of awarding brands and now recognises the dedication and contribution individuals have made to the South African travel industry.

Hoodzpeaks now available in paper - Right Stuff
Hoodzpeaks are specially-designed patented visor attachments for peak caps, which provide extra protection from the sun by extending over the ears and sides of the face. Now Hoodzpeaks are available in plastic as well as laminated paper, giving you the option to choose what suits your needs and budget.



Security
Intelligent approach needed to reduce retail crime
Technology must be harnessed to effectively tackle shrinkage and rising crime in South Africa's retail sector. This was the key message coming out of the Retail Risk 2008 conference held in Cape Town, Durban and Johannesburg in March.


Supply chain
Textile body rejects claim by retailers
[Mathabo le Roux, Trade and Industry Editor] Textile manufacturers are disputing reports that poor quality fabric and delivery delays are to blame for the woes of local clothing manufacturers.


Technology
BEE ICT company in SA's top 100
Integr8 IT has been accepted onto a list of Technology Top 100 Established Qualified companies. The new status allows the company to compete for awards and make full use of marketing collateral.


HP joins the crowd at the low end
A new segment is emerging in the notebook market. Call them "netbooks," "mini-computers" or even "ULCPCs," smaller, less expensive computers are gaining in popularity. Often, they have smaller hard drives or even solid state drives, and usually they run Linux natively or at least offer it as an option. HP's Mini-Note PC is the latest.

Horror at 37,000 feet: EU allows in-flight cell phone use
Airline passengers who want to talk on their cell phones mid-flight may be able to do so as early as this year -- at least when they're flying over Europe. The European Commission has introduced new regulations concerning cell phone use on planes. Chatting it up at 37,000 feet will be allowed, provided the plane is equipped with devices that create an on-board cellular network.

Green tech and greenbacks: the money case for eco-friendly computing
No corporation is going to adopt environmentally friendly policies simply out of the goodness of its heart. Going green has to provide some sort of benefit. What financial gains can be made by increasing IT's efficiency? Lower power costs and increased efficiency of operations come into play, as do tax benefits and an overall PR spit-shine.

The eco PC: less power in, fewer hazards out
What does it take for a computer to be considered ecologically friendly? Efficiency is one factor, as is technology that enforces conscientious use like automatic shutdown systems. The materials used also come into play -- Fujitsu, for instance, has developed a computer built out of corn-based polymers.

i2 Mobile gears up for growth
i2, the diversified mobile phones and IT products provider based in the Middle East and Africa, has opened corporate regional headquarters in Johannesburg, South Africa.

Harnessing the power of cross-channel retail
Cross-channel retail opportunities are helping companies improve the customer experience and streamline operations. Other benefits to cross-channel retailing include improving profitability and the optimizing inventory.

Green IT hits the CIO radar
[Vamshi Mokshagundam] Eco-friendly computing practices, collectively termed Green IT, have gained significant CIO mindshare lately, thanks to the almost ubiquitous debate around enterprise carbon footprints and all things environmental-friendly.

Electronics survey: Is your mobile green?
The Sony Ericsson T650i and P1i were awarded first place in the Mobile Phone and PDA categories respectively in the Green Electronics Survey conducted by Greenpeace in the search for ‘greener' electronics.

The two-second telephone directory
Say goodbye to thick, heavy telephone directories and say hello to a single number that will enable consumers to contact you.


Training
Tooling plan to save diminishing industry
[Michael Appel] With the state of the tool designing industry in disrepute, the Gauteng Department of Economic Development and other partners have launched the Gauteng Tooling Initiative (GTI) to recapitalise the dwindling industry.


Galleries
Etincelle Paris launches new winter collection


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