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Africa's retail news resource for the industry! 24 Nov 2008
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Catch-22 of car sales
I've recently been checking out my options for a new set of wheels - two to be exact, considering, among other things, the global economy and yo-yoing fuel prices. Pointing over to a sweet little machine, I queried its price tag: "How negotiable are you?" The reply came back like a shot, "A little while ago, I was, but now with the yen dropping out the bottom..." Now, I may be a girl, but I'm not that gullible. If you mean to tell me that your mark-up minus some minor discount to secure my interest isn't going to cover the overheads, then you really need to rework your sales strategy. In a time when money is tight and you need my hard cash more than you need a fixed asset gathering dust on your showroom floor, it's time to get a little flexible. So as I watch the catch-22 of new vehicle sales hitting the cutting room floor, while the actual prices are steadily rising (to counter parts etc. don'tcha know), the logic behind the "Well, you can't afford it now, so I'm going to increase the price so you can't afford it even more..." mentality is beyond me. OK, so you're not going to make the 100k commission you usually do, but let me ask you this: Would you rather make a sale and get half the commission, or make no sale and get sweet zip, nada, nothing? Now, forgive me if I'm being simple-minded, but a few bucks in your back pocket seems better than a white elephant sitting pretty in the window, no? Even with GMSA offering its "Buy a Hummer, get a Harley free" deal, there's a great deal of sense in my colleague's counter-offer: "Rather deduct the cost of the Harley from the Hummer's price tag..." Although, that said, you may just be better off using the Humvee as a lawn ornament, à la Jeff Dunham, and keeping the Harley as a runabout, considering you're likely to pay its weight in petrol within its first few fill-ups... Happy Monday motoring, folks!


Shan Radcliffe, Retail editor
retailnews@bizcommunity.com
Responses to this column welcomed in our new online editor's column archive.

Headlines

Retail
A slimmer festive stocking
[Sasha Planting] Christmas wish lists are likely to be more modest this year as consumers rein in discretionary spending.

Retailers left out of China quota talks
[Mathabo le Roux, Trade and Industry Editor] The trade and industry department is to hold talks today on the possibility of extending quotas on Chinese clothing and textile imports.

Angola dances to the Blue tune
[Pedro de Gouveia] In Africa, there are few countries in which the ubiquitous red and white colours of Coca-Cola haven't been plastered across billboards, buildings and banners to epitomise "Cocacolonisation" by the world's biggest soft drink brand.


Niche décor centre for Northern Tshwane attracts established brand
Montagu Property Group's commercial division is developing a niche décor centre on the corner of Zambesi Drive (R513) and Veronica Road within the Kolonade urban core to capture the residential expansion of Northern Tshwane.


Driving more value from your email investment
[Ryan Deutsch, Snr] It's fourth quarter - budget time - and in the US economy many of us are focused on maintaining our budgets rather than obtaining approval for additional spend. As marketers, just like our colleagues, we need to step up and contribute. We have to do more with less or make a solid case for how we'll do more with more.

Tiger may face long AVI battle
[Thabang Mokopanele] Food manufacturer Tiger Brands could be in for a long battle to buy rival AVI, which rejected its R8 billion bid yesterday, saying it did not make commercial sense and was not in the best interests of the company and its shareholders.

KZN's best shine over the rest
KwaZulu-Natal businessmen Howard Blake (Blake), Rick Jackson (Sanyati Holdings) and Nick Criticos (Chester Wholesale Meats) were all finalists in the South African chapter of the Ernst & Young World Entrepreneur Awards Program, held in partnership with First National Bank.


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Associations
Woolies workers get numbers for union
The South African Commercial Catering and Allied Workers Union (Saccawu) won its bid for union recognition at national retailer Woolworths on Friday.


Banking & Finance
Manuel urges SA to maintain healthy economic growth
[Luyanda Makapela] South Africa needs to ensure that its firms and people are more productive, more export orientated and have higher savings and investment rates, says Finance Minister Trevor Manuel. Doing so would help in curbing the effects of the global economic crisis.

Weathering the storm - money worries bring on marital stress
Many US couples are finding what happens in the nation's boardrooms also affects what happens - or doesn't happen - in the bedroom. The same could apply in some South African boardrooms, and bedrooms, as we weather the financial crisis.


Brand news
Four Cousins extend their family
Robertson's Four Cousins range has expanded its current offering and has launched three sparkling wines - just in time for the festive season. Boasting a brand-new look and label the three new styles are sweet white, red and rosé.


A toast to Africa
[Jacqui Pile] Of all SABMiller's markets, Africa has been the most resilient against the global slowdown.

This cheddar is a champ!
After South Africa achieved excellent results in this year's Paralympics, an Olympic victory of a different kind was to come!


TransUnion triumphs at annual Assegai Awards
TransUnion, a leading credit and information management company, has won a Gold award at the prestigious annual Assegai Awards, in the category “Technology & Innovations: Mobile & Electronic Commerce” for its new MobileCredit solution.

New taste lands in South Africa with a splash
This summer, South African consumers have the chance to dive right into the crisp and refreshing lemon and lime taste of new 7 Up Free. This sugar-free, colour free and caffeine free soft drink caters for the health conscious and the lemon and lime lover and is Pepsi South Africa's third Better-For-You (BFY) offering.


SA distiller beats the best in London
For the second year in succession, Distell has won one of the most coveted trophies at London's International Wine & Spirit Competition (IWSC), for its distilling prowess. Up against short-listed producers from the US, West Indies and Latin America, Distell came out ahead in a tightly contested battle to win the title of best regional distiller outside Scotland and Europe.

Life Magazine's giant photo album lives on online
Millions of never-before-published photos from Life magazine's archives have been made available online through Google. They can be printed for free as long as they aren't being used as part of a money-making operation. The move is part of a larger effort on Google's part to put more media online, a project that's also incorporated millions of books.

Retailer recognises suppliers for commitment to protecting the environment
Woolworths has announced that not one, but three, of its suppliers have just been named winners of Woolworths Eco-Efficiency Awards for 2008.

New-look groundnuts hit SA
[ActivRetail] The Snack Factory, one of The Fore Good Investment Group's FMCG brands has added Crispy Coated Nuts to its range of groundnut savoury snacks.


Simonsig flying high as SAA Chairman champion of 2009
[ActivRetail] Renowned Stellenbosch estate, Simonsig, has risen to new heights as the winner of the South African Airways Chairman Award 2009.


Estate was already a winner
In a recent media release, Nederburg stated that the Platter South African Wine Guide five-star rating awarded to the 2007 Ingenuity was the first time the winery had achieved such high honours. While the five-star ranking featured in the 2009 issue of the guide is the first ever for the present winemaking team under Razvan Macici, appointed in 2001, and the first in well over a decade, it is not the first. The last time Nederburg achieved a five-star rating was in 1995.


Corporate Social Investment
Are you game to help schoolchildren in need?
Game shoppers across the country have the chance to help schoolchildren in need simply by having the Christmas presents they buy gift wrapped at the store.



Exhibitions
North West Mega Expo to boost small businesses
[Kagiso Metswamere] More than 370 small businesses are expected to take part at this year's Mafikeng Mega Expo which kicks off today, 24 November 2008.

Durban exhibitions company off to London for a world first
Durban-based, Eclectic Exhibits (Eclectic) is on the move again! Having just returned from a successful show at JATA World Travel Fair in Tokyo (over 110 000 people attended), the team heads for London to make what it reckons is a world first.

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Franchising
Franchisees' protection a feature of new bill
The Consumer Protection bill is far-reaching and the first legislation of its kind in South Africa that will codify the common law in relation to the rights of consumers.


Hospitality
Sparkling wine, sparkling stars
A few decades ago, Nicky Krone turned accepted practice upside-down at his family wine estate, Twee Jonge Gezellen, near Tulbagh, and started a tradition of his own. By harvesting his entire crop at night, he realised he could retain the finer, more subtle qualities of the grapes.



Import/Export
SA, Russia to consolidate bilateral relations
[Proffesor Ndawonde] South Africa and Russia are to consolidate and strengthen their bilateral relations at the inter-sessional meeting of the Inter-governmental Committee on Trade and Economic Co-operation (ITEC) on Tuesday.

Engen expands in Rwanda, Burundi and Guinea Bissau
Engen, the African petroleum products marketer, has increased its African footprint, with the acquisition of Total's operations in three African countries - Guinea Bissau, Rwanda and Burundi, effective 19 November 2008.


Manufacturing
McCain baby carrots pass the test
McCain Foods Limited South Africa has moved to reassure consumers that its frozen baby carrots, and all other frozen vegetables in its range, are chemical-free, freshly frozen to preserve goodness and processed according to the highest hygiene standards and good manufacturing practice.

Path Plastic's Xmas season pallet offer - Path Plastics
Plastic pallets by Path Plastics help to relieve the pressure on timber production - to alleviate the current shortage in soft timber, an extra 100 000 to 200 000ha of natural lands has to be turned into commercial plantations!


Path Plastics is donating a prize for Charity Auction at Marine Bash get-together - Path Plastics
Path Plastics, one of the sponsors for the bi-annual Marine Bash get-together, is also involved in the Charity Auction which runs concurrently with this event. Funds raised thus will be put towards facilities for the NSRI and Mission for Seamen.



Packaging
New stretch-wrapper to cut damages and costs
US truck accessory manufacturer implements new wrapper that pays big dividends.

How to choose ink for improved sustainability
In the move toward greater sustainability, ink choices will become increasingly more important.


Package design: Four things to think about when choosing a typeface
The style of lettering on a package can largely dictate its success or failure.

New US wine label inspired by beer and spirits branding
Effort in the US is aimed at improving weak brand loyalty among wine drinkers.


Promotions
Indulge in a day in the life of Eva
Magnum ice cream is partnering with Spar to promote the launch of the new Magnum Mini's with the opportunity to win “A day in the life of Eva Longoria” - Magnum ice cream's brand ambassador.



Regulatory
Aligning guidelines with ASA's new code on marketing to children
Widespread recognition of the impressionability of children up to the age of 12 years has led to recent changes to the Advertising Standards Authority's code on food and beverage advertising to children.

Software pirates bust in Durban
Two Durban-based computer outlets, Computer and Electronic Services in Smith Street and World Wide Web in the Bluff, have been raided by police for allegedly selling PCs pre-loaded with illegal software.

Samsung slapped with pair of patent suits
[Diane Bartz] Samsung Electronics was hit with two separate sets of lawsuits as Eastman Kodak and Spansion both accused it of infringing on their patented technology.

Judge rejects dairy groups' appeal
[Mathabo le Roux] The Competition Appeal Court yesterday dismissed a bid by five of the largest milk processors to have a case of price-fixing against them thrown out.


Research
Digging deeper: How emotions drive customer choices
Knowing the emotions that drive customer decisions is key to anticipating what purchasing decisions they'll make, writes Adam Edmunds, CEO of Allegiance. Tools exist that can help marketers figure out their customers' motivations.

Financial security an elusive concept
A study from the American Savings Education Council (ASEC) and AARP shows that 91% of young adults report having financial goals for themselves, only 53% report sticking to a monthly budget. In addition, while 62% have given at least some thought to their own retirement, 61% feel their retirement savings is behind schedule. Some 42% of these young adults give themselves a grade of D or F to describe how well they are saving. Given that the level of saving among South Africans is an on-going concern, it is interesting to see how the situation is in the US.

Consumers turning increasingly to private label brands
Economic challenges force shoppers to seek lower-price alternatives.

US restaurants shifting their beverage strategies
Variety may be the spice of life, but more and more US eateries are tending to drop marginal items to concentrate only on the most profitable items.

Property market plummets while DIY and home improvement increases
UK: With the recent slump in the housing market, it seems people are turning to improving their current property rather than moving to a new one. According to the Internet statistic guru Hitwise, online traffic has increased by over 20% in the last 12 months, while traffic to real estate websites has dropped by over 35%.


Retail services
New search site brings sales to customers online
SaleSearcher, the newly-launched online sales and specials listings site, gives South African retailers an innovative opportunity to capture additional customers during this time of economic belt-tightening.

Spain looks to balance quality and costs for offshore success
[Patrick O' Brien] South Africa could have a new competitor in the IT services market if efforts being made by Spanish consulting companies bear fruit. However, the language issue could be a significant factor.

Layaway: Dusting off a Depression-era idea
[Ashley M. Heher] USA: Sears Holdings is bringing layaway back to its namesake stores next week, nearly two decades after it was scrapped, after seeing a strong response to the pay-as-you-go plan at its Kmart locations.


Retailers
VW group spies good buys in poor economy
[Roux van Zyl] Times may be tough for retailers, but the Gonubie-based VW Group of Spars believes an economic downturn provides the best opportunity for aggressive expansion.


Security
Buyer beware: 'Tis the season for faux iPods
[Daniel Pye] With bad economic times and Christmas around the corner, bargain hunters are going to be out in droves.


Technology
Touchy feely BlackBerry Storm a worthy iPhone rival
The Storm, Research In Motion's touchscreen BlackBerry, is a compelling phone that rivals the iPhone in likability, writes Mike Wendland. However, it's still not enough to make him want to switch. The Storm's touchscreen requires the user to actually click down on a button rather than simply touch it. Wendland found that awkward after using an iPhone for so long, though others liked the additional tactile feedback.

Now business can keep up with the latest in wireless technology
New European online portal keeps IT users abreast of developments in wireless technology.


US cheese producer uses robotics to boost production
To keep pace with the growth of its Hispanic cheese product line, Wisconsin Cheese Group automates its pick-and-place pack-handling operations with a robotic system featuring camera-based vision.


The new dawn of the 3-D film era
In a few years, every movie we watch could be made in 3-D, predicted Dreamworks chief Jeffrey Katzenberg. His studio, along with Disney and Fox, are betting on 3-D technology to give the film industry a boost. If Katzenberg has his way, 3-D glasses could be a new fashion accessory.


Events to diarise
The Annual Advertising Conference - Cape Town, 25 November / Johannesburg, 27 November
Join Jeremy Maggs for an insightful and hard-hitting morning conference as he attempts to find out where advertising, branding and design is heading in these uncertain economic times.
 
SME nuts and bolts conference BW Projects - Cape Town, 26 November
A one-day conference designed by small businesses for small businesses with various speakers who understand the challenges and concerns that keep you up at night.
 
Xmas Gift Shopping Festival World Wide Exhibition Services - Cape Town, 12 December
World Wide Exhibition Services (WWES) offers you the opportunity to come and show your imaginative wares at the Xmas Gift Shopping Festival.
 
2nd International Hospitality Fair 2009 Confederation of Indian Industry - Banglore, 23 February
A three-day international B2B exhibition for all sourcing needs from the hospitality sector in India.
 
 

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    Quotes
    "The Greatest Sales Strategy in the world: Don't tell me how good you make it; tell me how good it makes me when I use it." - Leo Burnett
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    "No matter what your product is, you are ultimately in the education business. Your customers need to be constantly educated about the many advantages of doing business with you, trained to use your products more effectively, and taught how to make never-ending improvement in their lives." - Robert G Allen
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