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Africa's retail news resource for the industry! 18 Aug 2008
Retail, Associations, Banking & Finance, Brand news, Cold chain, Consumer research, CSI, Distribution, e-Commerce, Exhibitions, Franchising, Health & Safety, Hospitality, Import/Export, Informal Retailing, Logistics, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Retail services, Retailers, Security, Shopfitting, Supply chain, Technology, Training.

Fashion fabulous
It's been a busy time for the fashion industry with culmination of the Virgin Mobile Cape Town Fashion Week on Saturday, while the Joburg crowd start setting up ramp for the Sanlam SA Fashion Week from 27 - 30 August. For those who couldn't make the CT event, check out Terry Levin's "One night at...", as well as the style galleries. Woolworths is also launching its Spring/Summer collection to the media and other industry players this week - keep tuned for more. Taking a step back from the catwalk, the Ipsos-Markinor/Sunday Times Top Brands survey results are out, with drinks being top-of-mind for local consumers. Another interesting event yesterday, 17 August, saw the launch of the SADC Free Trade Area. Among its goals is the elimination of tariffs and trade barriers among the member countries, which I'm sure is good news to many; however I do have my doubts about the long-term plan of a single currency (scheduled for 2018)... Are we likely to see the local heavy-weights backing the idea, or backing out as Britain did when the rest of Europe integrated the Euro...?


Shan Radcliffe, Retail editor
retailnews@bizcommunity.com
Photo: Design by Hip Hop

Headlines

Retail
Annual t-shirt design competition opens for entries
The theme of the third annual Makhulu Polane t-shirt design competition - which opens today, Monday, 18 August 2008, for entries - is ‘Funny-Galore'. Not only will the funniest, smartest, coolest design will win R20 000 in cash, it will be sold in all Big Blue and Kitsch & Kool stores nationwide for two months.


Pretoria retailers win the Revolution
Retailers operating at Menlyn Park Shopping Centre in Pretoria have dominated the Retail Revolution, a new annual awards competition covering some 2,000 shops in major retail complexes managed by Old Mutual Investment Group Property Investments (OMIGPI). Menlyn Park took nine of the categories, while Gateway Theatre of Shopping, Umhlanga, fared tops in its region with six awards, and the Cape's best scorer, Cavendish Centre, brought home five awards.


Google killer, brand killer
[Patrick Carmody] On an infamous Friday in 1993, Marlboro rocked the business world by slashing the price of its premium brand - a mini-crash ensued as all brands were suddenly deemed brittle. ‘Marlboro Friday' has since proved to be a wobble rather than a seismic shift as brands have continued to command healthy and often increasing profit margins over a sustained period. The recent launch of search engine Cuil (28 July 2008), although seemingly innocuous, again raises some Marlboro Friday-type questions around the value of brands, this time in the Web 2.0 economy.


Retail slump backs case for Bank to show mercy
[Mariam Isa] Retail sales fell for the fourth month running in June, backing the case for the Reserve Bank to keep interest rates steady when its monetary policy committee ends its meeting today.

Institutional and alternative media underpins ad growth forecast
Following up last week's MediaPost review concerning projected out-of-home ad spending, with additional details about the Total Communications Forecast from Veronis Suhler Stevenson, total communications spending is projected to increase 5.4% to $923.91 billion in 2008, as strong gains in the institutional and alternative media sectors offset the downward pressure of declining traditional advertising spending.

The case for sales force transformation
[Peter Gilbert] It is becoming increasingly difficult for companies to differentiate themselves by what they sell. If they are unwilling to differentiate themselves by how they sell, then they will, by default, end up differentiating themselves by how much they sell it for.

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Banking & Finance
Repo rate remains unchanged at 12%
[Luyanda Makapela] Indebted South Africans can temporarily breathe a sigh of relief with the announcement that the repo rate will remain unchanged.

MPC might anchor interest rate, economists predict
[Michael Appel] Many economists are predicting the interest rate will remain unchanged when the Monetary Policy Committee (MPC) meet on Wednesday and Thursday to review current monetary policy, but it will be a close call.

Nedbank to integrate Go Banking
Nedbank has announced it will be integrating Go Banking into its core offering. Go Banking has been run as a separate business in association with Pick n Pay since 2002.


Liquidations to rise as business costs soar
[Artwell Dlamini] Banks are sounding an alarm over what they fear will be an avalanche of loans turning sour followed by company liquidations.


Brand news
Volcanic new dessert from Moir's
Moir's is adding a hot new offering to its existing range of desserts and baking goods: Volcano Desserts.


Lewis Group revenue up up 7.4%
Furniture chain Lewis Group's revenue for the four months ended July 2008 has increased by 7.4%.

The top SA brands of 2008
[Ingrid Rubin] I always look forward to the Ipsos-Markinor/Sunday Times Top Brands survey as often there are some big movers and even bigger surprises when it comes to who has come up tops.


Local muscadel scores international gold
Monis, one of the oldest names in fortified wines in South Africa, has made the cut once again as a foremost producer of muscadel in the world, with its 2001 vintage securing a gold medal and top 10 ranking at the 2008 Muscats du Monde competition held in France recently.


Italtile rides tough trading conditions to increase turnover
[Thabang Mokopanele] Ceramic tile, sanitaryware and bathroom accessory retailer, Italtile, reported a 7% jump in turnover to R2,77bn for the year to June yesterday, and said it expected profitability would be maintained despite tough trading conditions.

Clicks acquires medicines courier
[Thabang Mokopanele] Drugs and cosmetics company New Clicks has acquired a 60% stake in courier pharmacy business Direct Medicines for a cash payment of R13,2m.


Consumer research
Got a customer service nightmare? You're not alone
[Bill Torpy] Have you been bumped from a flight? Belittled by a hotel clerk? Or stewed in a doctor's waiting room? Then Rupert Barkoff wants to hear all about it.

Baby boomers ignored by South African marketers
[Marion Scher] They've done it again: the UCT Unilever Institute of Strategic Marketing that brought you the Wildfire and the groundbreaking Black Diamond research projects has launched its latest study on the ‘Prime Time' generation which shows that South African marketers, unlike their European and American counterparts, are ignoring one of the most lucrative markets around.

Airport retailing shrugs off global economic downturn
While many retailers around the world are suffering from deteriorating consumer confidence, there is one channel of retail that will continue to boom. According to the latest report from Verdict Research, a Datamonitor company, retail sales at airports will grow by 11% in 2008 to $30bn (about R235bn), making it the fastest growing channel of retail after the Internet.

Brand labelling: Building our beliefs
[Gord Hotchkiss] In previous columns, I have tried to show how branding and search can work together, but this time, I'd like to start from the opposite end of the spectrum: our brand relationships, from a memory retrieval perspective.

Survey shows Sowetan shoppers go bulk
The opening of four major shopping malls in Soweto since 2005 has changed the entire shopping landscape and experience of Sowetans. With further retail development being planned as part of the Orlando eKhaya entertainment and business development project, past shopping behaviour trends of Sowetans to shop outside the area are bound to change.

How are you using media research?
[David L. Smith] With the introduction of more and more new information sets characterised as media research (Google Ad Planner) and other data sets that people are using as surrogates for research (log files/Google Analytics), it seems an appropriate time to talk about research and proper use of same.

New Bureau of Market Research report on Gauteng income, expenditure patterns
The Bureau of Market Research will shortly be publishing a report entitled ‘Income and expenditure patterns of households in Gauteng, 2006', based on a study conducted in 2006 of the income and expenditure patterns of households in Gauteng. This study encompassed a survey involving a random sample of 520 households of all population groups living in urban areas of Gauteng.


Corporate Social Investment
Wheelchair drive mobilises youth
Hundreds of physically disabled schoolchildren throughout Southern Africa received the gift of mobility with the donation of 455 brand new wheelchairs worth R1,5 million by Game Stores and Vodacom this month.



Distribution
Neotel in distribution deal
[Lesley Stones] Telecoms operator Neotel is about to sign a distribution deal with a national chain store to make it easier to sell its services to consumers.


e-Commerce
eBay shops for foothold in Korea
[Erika Morphy] eBay is looking to expand its overseas reach with plans to acquire a minority stake in the South Korean online e-commerce market Gmarket.

High fuel prices boost e-commerce in SA
With fuel prices continuing to climb, a growing number of people appear to be skipping car trips to the shops in favour of online shopping. This, despite an economic downturn that some analysts have speculated could hold back the growth of e-commerce in South Africa.

e-Commerce and brand protection: A two-way street
[Luis Alcalde] Does your business bear legal responsibility to police the infringement of one of your organisation's most valuable assets, the company brand, on widely used Internet auction sites like eBay?


Exhibitions
One night at the Virgin Mobile Cape Town Fashion Week
[Terry Levin] If only SA corporates and indeed our Olympians could be more like fashion; representing a merger of usually one person's vision with passion, team work and unstinting attention to detail, in the name of making something beautiful.


Durbs hots up for Hostex

click to enlarge
Exhibitors at the upcoming South African Hospitality and Catering Exhibition, Hostex KwaZulu-Natal 2008, are preparing to wow visitors at the trade show, which will take place from 8 - 10 September 2008 at the Durban Exhibition Centre. "The show will feature an estimated 150 exhibitors, demonstrating a cross section of the crème de la crème of hospitality, catering, decor, design and retail offerings," says Lynn Chamier, exhibition director at Exhibitions for Africa (EFA), a division of Specialised Exhibitions. The Restaurant Association of South Africa (RASA) is also gearing up its stand for the show. RASA is a non-profit organisation formed in 2004 that acts in the interest of South African restaurateurs to ensure that they have a voice on their behalf. The purpose of the organisation is to represent, develop, educate and ensure sustainability for the restaurant industry. For more information on Hostex KZN 2008, visit www.hostexkzn.co.za.


Gearing up for a feast: live blogging from Durban Good Food and Wine Show
After catching an excruciatingly early flight on Wednesday morning, 13 August 2008, Bizcommunity.com's marketing co-ordinator Jo Hardiman is on-stand for the Bizcommunity Retail portal at the Durban Exhibition Centre, helping set up for the gastronomical food fiesta that will be the city's inaugural Good Food and Wine Show. The event officially opens on Thursday, 14 August 2008, and runs until Sunday 17 August. Read Jo's first intake of the show here.


Import/Export
Free Trade Area officially launched for SADC region
[Bathandwa Mbola] The Southern African Development Community (SADC) member states officially launched a Free Trade Area (FTA) for the region at the weekend, ushering in a new era of economic integration.

SADC Heads of State to launch Free Trade Area
[Bathandwa Mbola] As part of the Southern African Development Community's (SADC) efforts to deepen long term regional economic integration, the organisation will on Sunday, 17 August 2008, launch the Free Trade Area (FTA).


Logistics
Wunderman to move Barloworld
Direct and digital marketing agency Wunderman has won the Barloworld Logistics account with immediate effect, it was announced yesterday, Thursday, 14 August 2008.


Packaging
Project Calabash sees end of an era for iconic quart bottle
South African Breweries (SAB) has entered the final stages of its ambitious 'Project Calabash', said to be one of the largest packaging projects ever undertaken in South Africa. The two-year project focuses on replacing 330-million of SAB's iconic 750ml quart bottles with 430-million new 'Calabash' quart bottles, for Castle Lager, Carling Black Label, Hansa Pilsener and Castle Milk Stout.


New technology makes bioplastics more feasible
Metabolix announced that in recently-completed greenhouse trials, switchgrass plants engineered using the company's multi-gene expression technology produced significant amounts of PHA bioplastics in leaf tissues. This result demonstrates a possible means of maximizing the potential of biomass crops for bioplastics.

Student bags Exclusive Books competition
A 21 year old student from the University of Pretoria has bagged first place in the Exclusive Books Shopping Bag Design competition finalised in Hyde Park, Johannesburg, last week. Said Batya Green-Bricker, Exclusive Books marketing manager, of Elske Nel's entry, “The winning bag design answered our brief deftly, with a witty, sophisticated and intelligent drawing that captured the Exclusive Books brand perfectly. The naïve line drawing was simple, playful and unusual, and added a touch of whimsy to the Exclusive Books brand.”


The pursuit of sustainable medical packaging
US pharmaceutical companies need to ask themselves the question: "Can we comply with the FDA's health and safety requirements and still pursue sustainable packaging goals?"

Read the labels on all green products
Have you heard of "nutrition fatigue"? It is a term for the problem faced by nutrition advocates after years of telling people so many things are dangerous to human health. This article refers to the US, but could it also be applicable to SA?


Promotions
Activia challenge: Guaranteed results or your money back
Activia is challenging consumers to purchase the yoghurt from mid-August until October 2008 and take the '15 Day Challenge'. With its unique probiotic culture, Acti Regularis (patented by the Danone group), the yoghurt is a probiotic food that is scientifically proven to help stimulate the intestines to improve slow *transit time. If consumers are not convinced by the results they can claim their money back.



Regulatory
Open source wins landmark legal validation
Just because open-source software is free, doesn't mean that you can change it.

Study: Mature-rated games worry parents more than beer, porn
If the video game watchdog group What They Play has it right, parents are more worried about their kids being exposed to adult-themed video games than they are about kids drinking alcohol or viewing pornography. Some have questioned the study's use of "Grand Theft Auto IV" as an example; the researchers say they had to pick a specific, known game in order to avoid misleading survey takers.

South Africa: Alarm over drug recalls
A packaging error by a factory worker a year ago has led to a nationwide recall of two types of antiretroviral (ARV) drugs manufactured by Adcock Ingram, a major supplier of ARV medicines to the private and public sectors.


NCR, credit providers agree on cost of distribution of payments
Hard-pressed consumers will no longer have to carry any costs of payment distribution following an agreement between the National Credit Regulator (NCR) and credit providers regarding the cost of distribution of payments to credit providers.

Another "plan" for the SA Clothing and Textile Industry?
[Renato Palmi] An "action plan" is to be launched to assist South Africa's beleaguered clothing and textile sector in November - one month before the quotas on Chinese imports are meant to end - it was reported1 yesterday, 11 August 2008.



Retail services
Email marketing lies, lies, lies
[Loren McDonald] I want to expose three lies that email marketers either tell or have told to them by people who should know better.

North American market for hosted outbound IVR services to more than double by 2013
[Aphrodite Brinsmead] A new report by independent market analyst Datamonitor reveals the North American market for hosted outbound integrated voice response (IVR) services is set to more than double from an estimated $213 million in 2008 to $524 million by 2013.


Retailers
Analysts await Woolworths, Massmart news
[Thabang Mokopanele] With retail sales having fallen for the fourth month running in June, analysts said on Friday it would be interesting to see how retail groups Massmart and Woolworths — which release their results this week — have withstood the consumer spending downturn.

Retailers are feeling economic crunch
[Robert Laing] Mid-year is traditionally slow for retailers but this June, which saw total sales rung up by South Africa's tills fall to R39.7 billion from over R40bn in May, was worse than economists expected.

eBay wins case over counterfeit L'Oreal goods
BRUSSELS: Online auctioneer eBay won a Belgian court case Tuesday against L'Oreal after the French cosmetics giant sued it over the sale of counterfeit goods.

Shoprite expects high full year earnings
Grocer retailer Shoprite Holdings expects annual fully diluted headline earnings per share to rise between 45% and 55%, it said on Monday.

Best Buy kiosks aim to snag customers on the fly
[Jeff Meisner] Best Buy is trying a new retail channel - the vending machine, of all things. The electronics retailer plans to place automated kiosks at airports across the US in an effort to reach customers while they're travelling. The machines will offer MP3 players, phone chargers and other smaller items.


Supply chain
New wool season opens on Wednesday
The new wool season kicks off on Wednesday when close on 12 000 bales will be offered at auction in Port Elizabeth, Cape Wools announced today, Monday 18 August 2008.

Illovo Malawi invests K1,5bn in sugar production
[Gregory Gondwe] Illovo Sugar Malawi board chair, Graham Clark announced last week that his company has this year injected K1,5bn to increase production before adding a further K2bn next year.


Key areas assigned for subsistence farming
[Bathandwa Mbola] The Presidential Working Group on Commercial Agriculture has earmarked four key areas where they will encourage communities to use their land efficiently by working together to produce food for their subsistence.


Technology
Stix game controller takes Wii-style play to PC
[Barbara Ortutay] USA - Looking at its size, shape, white wrist strap and B-button on the bottom, it's easy to compare the Stix with the Wiimote, the wireless controller for the popular Nintendo gaming console. Except the Stix is for your PC.

Where there's a web, there's a way: A business guide to getting social
Web 2.0 represents big opportunities for small businesses. With so many free and low-cost utilities on the Web, the cost of advertising and communicating with customers and using convenient online tools is low enough for many SMBs to afford. The trick is to align your online activities tightly with your overall business strategy.

Lenovo bulks up with latest laptop release
Targeting a segment of the laptop market it hasn't previously gone after, Lenovo launched the W700 ThinkPad Workstation. The unit is one of the first to be built with Intel's Core 2 Quad-Core Extreme processor. It isn't light, though, weighing in at 3.8kg (8.3 lbs.)


Galleries
Virgin Mobile Cape Town Fashion Week 2008

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Flaunting it at Virgin Mobile CT Fashion Week 2008

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