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Africa's retail news resource for the industry! 14 Jul 2008
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Rentals and returns
It's half past eleven on a Saturday morning, the DVD's are due back at midday, but the kids fell asleep halfway through the movie last night and now they're insisting on watching the rest of it, plus the hour-long bonus features... What do you do? Upset the kids and hear them whine for the rest of the day? Return the videos late only to be fined for the full amount? Or drop the videos in the dead of night and never go back? With the economy facing the possibility of recession, retaining loyal customers is as important as making sure your books balance at the end of the day, and it's becoming more and more necessary to find the equilibrium between the two. Because, while you're sitting with a lengthening list of people who owe you, these people in turn are facing their own cashflow problems, and are more than likely screening their calls from your persistent accounts department. In the case of DVD rental stores, some have become more customer-centric with respect to their return times and cater for those people who, after a long night of watching, tend to snooze till noon. And I'm under the impression many other businesses could learn a thing or two from this lot. I'm not saying extend repayment times indefinitely, but perhaps show a little leniency. Compile a list of loyal customers who have recently been falling behind in their payments. Give them a call and speak to them like you actually care (and so you should - this isn't just your money you're following up on, but also a long-term customer who's been feeding your bottom line for years). Don't harass them by demanding to know when they're going to pay. Tell them you've noticed they're a little overdue, but because you value them so much, you're going to give them an extension without the costly fines. They'll love you for it. Also, be willing and open - rather than have the customer avoid you like the plague, let them know that they can call you if they can't make a full payment and arrange another payment option. After all, a small amount per month with a shot of interest and a happy returning customer is better than nothing at all, is it not?


Shan Radcliffe, Retail editor

Headlines

Retail
GIA releases food and beverage research reports
Global Industry Analysts (GIA), USA-based research company, has released several research projects in the food and beverage space. Each report aims to provide comprehensive insight into the product's current market scenario, factors influencing the market, growth drivers, and major challenges. The reports also focus on recent research and development activities, and strategic corporate activity of major market participants.

Wine-Searcher launches wine market intelligence service
Wine-searcher, one of the world's most used wine search engines, is launching its new Wine Market Intelligence Service in Auckland, New Zealand.

Economic outlook not entirely bleak
In assessing the current economic outlook in SA, Business Unity South Africa (Busa) says that, while there are indisputable signs of a serious and rapid slowdown in economic and business activity in 2008, the overall growth outlook remains positive.

Musica sues pirate product supplier
[Nicola Mawson, Consumer Industries Correspondent] Music and gaming chain Musica has instituted legal proceedings against Dolphin Enterprises after being found guilty of selling pirated Sony PlayStation products it had bought from the Durban-based company.

Call to enter Passing the Torch Awards 2008
The Gauteng Provincial Government, under the auspices of the Department of Economic Development, is looking to once again honour a select group of women in the prestigious Passing the Torch Awards 2008.

Why everything costs more
A rough guide to why food prices keep going up.

Retailers prefer welfare to price control
[Nicola Mawson, Consumer Industries Correspondent] Retailers would prefer the government to use social welfare measures — rather than price-fixing — to alleviate the effect of rising food prices.

Vriesenhof returns to the Nederburg Auction
Jan Boland Coetzee of Vriesenhof Vineyards is back for the Nederburg Auction after an interval of a few years. The two estate wines that will come under the hammer of Stephan Welz this September are a 1999 Vriesenhof Pinotage and a 2000 Vriesenhof Enthopio, a Pinotage-based blend that takes its name from the Greek word for 'indigenous'.


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Banking & Finance
Women more prone to go broke?
Women were more likely than men to file bankruptcy in 2007 according to research recently released by the Institute for Financial Literacy, a non-profit financial counselling and education organisation based in Portland, Maine, USA.


Brand news
Heinz cans 'baked'
NEWSWATCH: Food giant Heinz has announced it is dropping the word 'baked' from its canned beans, the UK's Telegraph reports. The actual product will, however, remain the same but cans will now be sporting the new title 'Heinz Beanz' on the labelling.

Slashing trans fat from Snackworx's snacks
[ActivRetail] Snackworx, manufacturer of Bakers, Pyotts, Baumanns and Willards snack foods, recently announced that all of its biscuit and chip ranges are now being produced free of trans fatty acids.


Buy airtime direct from your mobile
SWAP Mobile Payment Systems, a Pretoria-based company, has developed a mobile airtime solution that focuses on convenience and ease of use by allowing users to buy airtime vouchers direct from their phone with a credit card. With the use of USSD technology the call is free and vouchers for any of the major cellphone networks are available for purchase.

Grolsch off to a great start
The introduction of Grolsch's first batch of premium Dutch brew last week by SAB Ltd through a tightly-controlled distribution plan has been met with a "very encouraging" consumer reaction, says SAB corporate communications manager Janine van Stolk. Supplies were sent to those customers believed to be best placed to shape this global brand's position in the South African market.


Bovril launches brand extension
Bovril is bringing the flavour of its beef spread to the dinner table with the launch of its new brand extensions: Bovril Gravy Powder and Bovril Instant Gravy.


Specialty espresso - storm in a teacup
[ActivRetail] The South African-borne red espresso, a premium ground rooibos tea produced under patent for use in a coffee espresso machine, is taking the beverage market by storm. It was recently awarded ‘Best New Product' in the specialty beverage category at the Specialty Coffee Association of America's 20th Annual Conference & Exhibition, held in Minneapolis.


Retailer grows at ‘low end of market'
[Nicola Mawson, Consumer Industries Correspondent] Shoprite has gained market share at the bottom end of the market, taking custom from cash-and-carry outlets.

Message from the CEO - Stephen Gersowsky - Gloria Jean's Coffees
Coffee is the second highest traded commodity in the world, so it's no wonder there are so many variations to satisfy the millions around the world who drink it. An appreciation for coffee is not unlike an appreciation for wine - the more you know, the more your experience is enhanced.

Groom your feet for an African summer

click to enlarge
In preparation for summer, Imbali is launching a Smoothing Foot Scrub with mint, seaweed and pumice to exfoliate, moisturise and revitalise feet. Natural pumice grains work to remove rough skin whilst softening seaweed extract helps to hydrate dry skin. Mint is a popular traditional medicine with cooling and refreshing properties. The brand's two step 125ml Smoothing Foot Scrub and 125ml Foot Repair Cream are also available in a twin pack as Imbali Barefoot Therapy. Inspired by the healing traditions of Africa, the Imbali luxury bath and body care products are formulated with local plant oils and extracts recognised for their beneficial properties. The products can be purchased from selected Pick n Pay and Spar stores in the Cape and at Pick n Pay Hypermarket stores nationally, for an RSP of R30 each and barefoot therapy from R55 each.


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International Retail Advertising Conferences with top professional speakers at Emperor’s Palace Convention Centre on August 12 and at Lord Charles in Somerset West on August 14. For more information or to register go to www.raclite.co.za

Consumer research
Global study of consumer rituals
A global study by BBDO Worldwide offers marketers insight into the everyday routine of people across the globe - the commonplace rituals that consumers embrace on a daily basis in their lives. The study, entitled ‘The Ritual Masters', is the most extensive research project ever undertaken by BBDO.

Customer magazines with more pages get more response
A new study and analysis by Royal Mail, with the Association of Publishing Agencies (APA) and Millward Brown, reveals a range of benefits by making some format adjustments to customer magazines.

Interpublic: Social is fastest growing emerging medium; search is slowing
[Joe Mandese, Editor, MediaPost] Warning that the "hyper acceleration" of some of the fastest growing emerging media platforms - including search, social media, online video, gaming, interactive TV, and digital out-of-home - appear to be slowing, Interpublic's Magna Global unit has released an outlook that nonetheless called for a 31.1% rate of growth for emerging media in 2009.

Practical content necessary for mobile phone user satisfaction
A recent study by the Research & Insights department of AKQA, a US company, in conjunction with dotMobi, finds that there is a strong consumer desire for practical mobile content on phones.


Corporate Social Investment
Bonnita Long Life's Amandla Nempilo Campaign enriches SA's rural communities - Parmalat SA
Amandla Nempilo, the 2008-leg of Parmalat's social enrichment campaign, kicked off in the Eastern Cape and Transkei. With Amandla Nempilo meaning ‘strength and health' in Xhosa, the campaign helps schools, as well as consumers and wholesalers in their communities to take the next step towards healthy nutrition, and a very worthwhile prize.



e-Commerce
Stylish new on-line gift registry
Lauren Bloch and Daleen Atherton, the owners of the online wedding directory Wedding Secrets, recently launched Secret Gifts - an online gift registry offering upmarket gifts to the discerning customer.


Online businesses: Recession-proof or just lucky?
[Gene Hoffman Jr.] The entire United States is debating whether the country is in the midst of an economic slowdown. Some of the signs are fairly explicit: steadily rising fuel prices and their cascading effects on the average consumer, unemployment rate bumps and the continued fallout from the housing market bubble. Independent of which side of the debate you fall, there is one sector of the business world, outside of the oil industry, that continues to defy even the toughest economic naysayer: online businesses.

Buy it your way with new online rewards store
MiWay, the newly launched direct financial services provider, has introduced its official online rewards store, mirewards.co.za.



Exhibitions
FACIM 2008: Maputo International Trade Fair
The Maputo International Trade Fair (FACIM) is respected as the most important international event of its kind in Mozambique and one of the most important in Southern Africa since 1963. The event will take place from 1-7 September 2008 with business people and enterprises from different parts of the world coming together.

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Hospitality
Blazing the peri-peri trail to US shores
Nando's, South Africa's iconic chicken brand, is celebrating its 21st birthday in style with the opening of its first restaurant on 819 7th Street Washington DC, USA.


Foodie consumer-generated supplement now out

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The first Eat Out People's Choice in association with Prudential Portfolio Managers is available now. Eat Out's online brand extension appealed to the South African public to vote for their favourite restaurants across 15 different categories. The result is a 66-page consumer-generated supplement published by New Media Publishing. Edited by Abigail Donnelly, the supplement is bagged with the August 2008 edition of Woolworths Taste magazine and can be viewed online at www.eatout.co.za. Says Donnelly, "Sometimes the personal reviews from the restaurant-going public are forgotten as we professionally judge and review the best restaurants around the country.”



Import/Export
WAN tells Mugabe: "Drop punitive tax"
The World Association of Newspapers had told Mugabe to drop a "luxury" tax clearly aimed at stifling news.


UK to increase trade to Africa to $750m by 2010
[Michael Appel] The United Kingdom will be spending some $750 million in Africa by 2010, through its "Aid for Trade" strategy forming part of the Economic Partnership Agreements (EPAs).

SA, UK to strengthen relations
United Kingdom Foreign Secretary David Miliband is currently in the country to strengthen bilateral relations between the UK and South Africa.


Logistics
Temple heads forward
South African-based logistics and supply chain management company Barloworld Logistics recently appointed Stephen Temple as divisional director of Freight Forwarding.


Owner-driver programme a winning recipe
From chauffeur to truck driver, to transport company owner with an annual turnover of more than R2-million, Ben Mvemve is living testimony to how hard work and perseverance, coupled with good entrepreneurial skills, can pay off.


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Packaging
DNA labelling for drug security?
German logistics firm Movianto GmbH has developed what it considers to be the most effective protection against the infiltration of counterfeit drugs into the supply chain: DNA labelling. In a statement, the firm noted that the proportion of counterfeit products has recently been reported by the European Commission to be rapidly increasing.


Promotions
Beer aficionados required
The search is on to find a new board member for Hansa's league of extraordinary beer aficionados, wherein one lucky winner will be set to win an annual board member's salary of R600 000, as well as receive the exclusive honorary title of a Hansa Board of Approval member.

Day out with the girls

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Seventeen magazine, in conjunction with Puma, recently held two in-store events at the sport lifestyle brand's Maponya Mall and Canal Walk outlets. Under an "all girls" party theme, the all girl guest list included Seventeen magazine urban scouts, and was completed with female DJ's the likes of Lady Lea and Vanessa Holiday. The event, which took place on 26 June 2008, was also sponsored by Appletiser which supplied its full range of refreshments for the guests, including Red and White Grapetiser and Peartiser. Appletiser SA brand assistant, Candice Voutyritsas believes that providing the soft drink at events like this one is entirely appropriate for the brand. “There is a strong synergy between Puma, Seventeen and Appletiser,” she comments. “Each is a premium brand in its own market and the launch allowed us [the] opportunity to tap directly into this important group of consumers. It's also a great opportunity to show that the range can be enjoyed any time, any where... All the flavours in the range are low GI, and contain no added sugar or preservatives - so you can enjoy it ... without the guilt.”
- ActivRetail


Regulatory
FDA orders 'black box' label on some antibiotics
Earlier this week, the US Food and Drug Administration ordered the makers of certain antibiotics to add a 'black box' label warning - the FDA's strongest - to alert patients of possible tendon ruptures and tendonitis.


Retail services
Creating a stronger customer link
[Andrew Boyd and Sumair Dutta] Despite progress made against key warranty chain improvement initiatives, service and warranty management executives still wrestle with post-sale customer satisfaction issues and escalating warranty costs.

BPO&O industry to grow by 50% per year
[Michael Appel] The relatively new industry of Business Process Outsourcing and Offshoring (BPO&O) is expected to grow globally by 50% per annum over the next four years, generating a number of employment opportunities, Trade and Industry Minister Mandisi Mpahlwa said on Thursday, 10 July 2008.

Is simplicity enough?
[Denis Pombriant] Lots of new Sales Force Automation (SFA) companies market their products by claiming that their ease of use will promote user adoption. Change is often difficult, if only because it involves getting out of one's comfort zone and into another. Just about every profession, sales included, requires the practitioners to re-educate from time to time.

SaaS, emerging markets drive CRM sales
The worldwide market for CRM software grew in 2007, according to a Gartner report. Emerging markets were a major factor in the increase, as were the popularity of Software as a Service offerings. The United States accounted for 53% of all CRM sales during the year.

What is the cost of shoddy customer service?
[Patrick Deale] Do you know how much poor customer service is costing your company in terms of direct sales as well as bad publicity? In this day and age, with consumers even more careful about where they spend their hard-earned rands, improved customer service can give you the edge over your competitors.


Seven habits of highly effective email marketers
[David Baker] What a great metaphor to discuss email. Stephen Covey has long reigned as one of the core pioneers of self-development and time management principles. As such, I'm a firm believer that the email space can benefit from the core principles of the "Seven Habits" series.

IOC appoints Getty Images as Official Photographic Agency for the Beijing Olympics - Gallo Images
Getty Images sports specialist photographers will again be providing live updates of every sports and medal event at the Beijing Olympics in August via direct feeds to the world's media and a live stream on the Getty Images website.


Cutting through the highway helter-Skelter

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Skelter's Straight is the latest addition to Wideopen Platform's high impact outdoor advertising site. Motorists travelling along the William Nicol can't miss the massive 425m2 advertising strip for the alcoholic brand. The vibrant red creative projects a 7m dye cut Skelters bottle which appears to be ripping itself out the banner, blazing a trail of water and ice in its wake. "Thanks to Wideopen's technical expertise, we were able to produce the huge 3D bottle cut out which ensures brand awareness for the next six months to be immediate and dramatic," says Caryn Cohen, Wideopen CEO. SAB's latest offering is made with pearl malt and positioned within the highly competitive flavoured alcoholic cooler segment. The new brand has 6% alcohol volume and is targeted at both female and male consumers, with a specific profile of 18 - 34 years.
- ActivRetail


Retailers
Edgars must compensate
[Nivashni Nair] A leading clothing retailer has been found guilty of racism and will have to fork out thousands of rands in compensation to a disgruntled customer.

Massmart benefits from 53-week year
[Nicola Mawson] Mass retailer Massmart, home to Makro, Game and Builders Warehouse, reports that sales in the 12 months to June had grown to R89,8bn, bolstered by an extra week in the year.

Musica guilty of trading in counterfeit goods
The National Prosecuting Authority has revealed that New Clicks Holdings trading as Musica has been found guilty of trading in counterfeit goods, in a matter that was successfully prosecuted by the Specialised Commercial Crime Unit (SCCU).


Security
Ruling opens customer data floodgates
[Anick Jesdanun] USA - A judge's ruling in the Viacom vs. YouTube case sets a new and permissive standard for parties seeking to get their hands on the data companies retain about their customers. While not a legal precedent, the ruling will serve as a reference in future cases, potentially laying bare the trail of search terms we all leave behind.

Think your website is hacker-safe? Then you don't know Jack!
Dennis Gaskill, 11-year veteran of e-commerce and owner of BoogieJack.com, shares his valuable insights on how to secure websites from hackers, based on his own experience.

Five ways to build an indestructible customer data fortress
[Kristin Lovejoy] USA - Retailers should use the standards set by the Payment Card Industry as a starting point when ensuring that their customer data is as secure as possible, suggests Kristin Lovejoy, IBM's director of corporate security strategy.

The impact of counterfeiting
[Irshaad Moidheen] South African intellectual property laws have been refined over the years to afford protection to the holders of certain forms of intellectual property, including trademark and copyright holders, allowing them to take action against the counterfeiting of their products. With the advent of the 2010 FIFA World Cup not too far off, the issue of protection of intellectual property is becoming an even more pressing issue.



Supply chain
Summit to tackle high food prices
[Nthambeleni Gabara] The two-day food summit currently taking place at Gallagher Estate in Midrand will enable the Gauteng Department of Agriculture to formulate a position on the pricing of food.

Coffee to lead bull market by the horns
[Michael K. Smith] Soft goods such as coffee, sugar, cotton and orange juice are nowhere near their all time high prices like so many other commodities such as energies, grains and metals. The soft sector of this market may be the next leader of the commodity bull market. Within the soft commodities, coffee futures may be next to make a historic market run.

IBM goes green with new software
The green movement in business is moving beyond recycling paper, water bottles and soda cans. Companies such as IBM are starting to capitalize on the "greening" of the supply chain, especially when it comes to controlling carbon dioxide emissions.


Technology
Bottles from plants
Rising fuel prices drive consumer demand for oil-free packaging; new primo bottled water made from plants, not crude oil, expands distribution.

Gaming in mobile motion
The new Sony Ericsson F305 with Motion Gaming puts fun and entertainment at the heart of the mobile phone. In addition to horizontal gameplay and dedicated gaming controls, the F305 lets the user control the action with a swing or a swipe of the phone.


Social networks at work: if you can't beat 'em, join 'em
Employers who forbid the use of social networks in the workplace often do so out of concern for security and productivity. However, if approached correctly, social networks can offer businesses great opportunities for employee training and learning, writes Udutu CEO Roger Mundell.

Energizing the rollout of plug-in cars
Andy Grove, the former chairman of Intel, has made it his mission to trumpet the virtue and urgent necessity of plug-in vehicles. "The drumbeat of the electrical transportation is accelerating like nothing I've ever seen in my life," he said. He's not only working to encourage development of new cars, but also to encourage the practice of retrofitting old cars with new engines.

Flat screen TV sets look great, right?
But there is a problem. It seems the rising popularity of the slim and sleek devices has not been good for the environment.

Next-gen Prius: What will a little sunshine get you?
The Toyota Prius will reportedly soon sport solar panels to feed the hybrid vehicle's power supply. While solar energy is free and clean, it's only enough to help out a little with the car's AC system, not power its engine. Critics say Toyota might be wiser to direct its research and development toward plug-in hybrid electric vehicles.


Training
Training debt counsellors
In an effort to assist debt counsellors overcome the challenges they are facing, the National Credit Regulator (NCR) and the Banking Association of South Africa (BASA) are currently conducting training sessions for debt counsellors until the end of August 2008.


Galleries
Fashion spectacular at the Vodacom Durban July 2008

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Ndau champagne and cocktail launch

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People on the move
  • JWT Johannesburg appoints Dave Strappini - more info
  • More...  Submit a Person
     

    Events to diarise
    Africa Big Seven Retail Show Exhibition Management Services - Midrand, Johannesburg, 20 July
    An exhibition where fresh and processed foods are displayed for export and specialty foods and beverages are marketed to Africa.
     
    The client magnet The Client Magnet - Cape Town, 23 July
    A six-week seminar series that teaches small business owners and self-employed professionals the secrets to getting all the clients they want.
     
    Dealing with global and overload logistics University of Stellenbosch - Cape Town, Stellenbosch, 14 August
    A short course dealing with global and overload logistics challenges will be presented by Professor James R. Stock from the University of South Florida.
     
    SOCAP South Africa 6th Annual Conference 2008 SOCAP South Africa - Johannesburg, 20 August
    SOCAP South Africa 6th Annual Conference presents - The culture of quality, covering serving customers, organisations and communities.
     
    POPAI Master Class - Johannesburg, 2 September
    The master class is a unique opportunity for your marketing team to gain an expert understanding of the best of point of sale strategic thinking, applications and measurement criteria.
     

    Upcoming events
  • 2nd Annual Best Practices for Modern Distribution Vicenda - Johannesburg, 15 July
  • Customer service AchieveGlobal SA - Cape Town, 17 July
  • Africa's Big Seven 2008 Exhibition Management Services (Pty) Ltd - Midrand, 20 July
  • More...  Submit an event
     

    Jobs offered    Specialising in Media Sales, Advertising
    and Marketing placements
    OPEN DOOR Recruitment:
  • Yield/Revenue Manager/Data Analyst - Sandton
  • Management Accountant - Cape Town
  • Store Manager - Johannesburg
  • Field Service Consultant - Wynberg - Sandton
  •  

    Quotes
    "I am one who believes that one of the greatest dangers of advertising is not that of misleading people, but that of boring them to death." - Leo Burnett
    "It is better to have it and not need it than to need it and not have it." - Gerard Patrick Roeling
    "A bargain is something you can't use at a price you can't resist." - Franklin P. Jones
    "You have to recognize when the right place and the right time fuse and take advantage of that opportunity. There are plenty of opportunities out there. You can't sit back and wait." - Ellen Metcalf
    "Beauty is all very well at first sight; but whoever looks at it when it has been in the house three days?" - William Shakespeare
    More...  Submit a Quote
     

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