7 Sep 2009

 

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The price of power

One never quite realises one's depencency on something until it's not there anymore. In my case, it was our reliance on electricity, and when working in an online environment, a reliable power source is the be-all and end-all of your existence - for without it, you are technically rendered obsolete. However, it wasn't until recently that I actually factored in the cost of having such power at my finger tips. In the last week of July, just before Eskom's latest increase kicked in, I toddled off to buy my usual R300 electricity voucher, which usually runs my household for just over a month. So I was shocked to see that within the first 10 days of August, there was only enough to last another three or four days. OK, so we'd had another person in the house for a week and a half, which meant more hot water, another electric blanket and hair-styling tools on the go, but even then I couldn't believe how much we'd already gone through. Yet it was only when I found myself forking out another R300 in the last week of August that the mounting cost really hit home. R600 in a month? Our bill had essentially doubled... And even though in these last few years I've become conscientious about turning off lights that aren't in use, I'm now becoming obsessive even by my parents' standards. And if this how badly I'm feeling it, I can only imagine the effect it's having on retailers and manufacturers. Let us know how hard you've been hit by the latest electricity increase by voting in our poll.


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

Top stories



Editorial news

Retail


Super Group pulls in R27m with Mica sale
[Artwell Dlamini] Super Group, which is yet to finalise its recapitalisation and restructuring plan as part of its revival, on Friday, 4 September 2009, announced that it had sold some of its Mica stores. Read more >>

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Household spending falls, says Reserve Bank
Spending by households fell by 5.8% in the second quarter of 2009, the South African Reserve Bank (SARB) said on Thursday, 3 September 2009. Read more >>

Vehicle sales continue downward spiral
New vehicle sales for the month of August continued on a downward trend, according to the National Association of Automobile Manufacturers of South Africa (NAAMSA). Read more >>

Come party with Bamboo in Melville
Bamboo, a designer lifestyle centre in Melville turns 10 on Saturday 19 September 2009. Birthday celebrations will take place from 11am to 4pm with the eight shops participating in the festivities. Read more >>

South Africans not drowning their sorrows in whisky and beer
Contrary to the idea that people drink during a recession, industry leaders agree there is as much as a 20% drop in liquor sales in South Africa but the wine industry is not as hard hit. Read more >>

Brace yourself for more food price hikes
[Kea' Modimoeng] Consumers already grappling with high food inflation can expect further increases in the price of food in coming months. Read more >>

Associations


Patel 'won't' play role in textile strike
[Anna Majavu] Economic Development Minister Ebrahim Patel will not intervene in the looming strike by 60000 textile workers. Read more >>

Banking & Finance


Bank charges rise steeply
[Derrick Spies] As the recession bites deep into consumers' pockets, it appears that some banks are helping themselves to some of their clients' hard-earned cash by increasing their service fees. Read more >>

Consumers feel economic pinch
The National Credit Regulator (NCR) has warned that at least 150,000 South Africans could be under debt review by Christmas as the effects of the economic crisis take hold. Read more >>

Brand news


Nestlé nests with Mediavest
After tender process which began several months ago, Mediavest, of the Starcom Mediavest Group, has been appointed strategic media partner by FMCG giant Nestlé. The announcement was made today, Monday, 7 September 2009. Read more >>

Gugulethu basketballer new Bronx ambassador
Vincent Ntunja is the next brand ambassador for South African footwear brand, Bronx. The full-time model and TV presenter will also be the Mr May in Cosmopolitan's “Sexiest SA Men 2009” calendar. Read more >>

Sony Ericsson partners The Parlotones
Sony Ericsson has announced a partnership with the South African rock band, The Parlotones. Their third album, Stardust Galaxies, is available exclusively on the W995 Walkman, “The Parlotones” edition phone. Read more >>

Penny Black has a hint of white
The Penny Black, the flagship in the Post House wine range, is a bold red blend that has contained the same cultivar components for its first four vintages, a merlot- and shiraz-led blend with cabernet sauvignon, petit verdot and a little Chenin Blanc (never more than 5-6%). Read more >>

Two new flavours for Steri Stumpie
Steri Stumpie, South Africa's iconic flavoured milk brand, has launched two new flavours with the help of an interactive social media campaign to reveal its latest taste - Marshmallow and Raspberry. Read more >>

Tiger takes further empowerment step
[Kgomotso Mathe] South African consumer goods group Tiger Brands yesterday, 1 September 2009, announced its intention to sell a further 10% of its shares, valued at R2,8bn, through its broad-based black economic empowerment transaction aimed at enhancing black ownership within the group. Read more >>

Sparkl'ing new site for Appletiser
Appletiser's interactive, lifestyle-orientated website Sparkl.co.za, officially launched yesterday, Tuesday, 1 September 2009. "Our aim is to add value and ‘sparkl' to member's lives by making planning an event simpler, easier and more enjoyable, whether the event they are planning is a meal for two or a banquet for 100,” commented Denese Pillay, Appletiser Group brand manager. Read more >>

Commercial property


Grand old lady gets a facelift
Liberty Property Developments is expanding and improving Sandton City Shopping Centre to enhance its position as an excellent shopping and rendezvous destination for millions of local and international visitors, as well as leading global and South African retail brands. This is the first phase of a broader vision for the repositioning of the centre and is scheduled for completion in late 2011 at a cost of R1.77 billion. Read more >>

Commercial property market to improve by 2010
While the recession in the commercial property market lagged behind the slowdown in the residential property market by approximately a year, trading continues and investors who were active during the period from 2006 to 2008 are still evident, albeit much more prudent and 'yield-conscious' than before, says Geoff Stroebel, GM of Pam Golding Commercial in the Western Cape. Read more >>

Corporate Social Investment


One writer, one dress, one month for charity
The Elle Foundation, which supports various HIV/Aids NGOs, will have an exciting donor project this September, as the magazines' features writer Emily Pettit-Coetzee will wear one dress for the whole month. Read more >>

2009 Jet Community Awards entries double
According to the organisers of the Southern Africa grassroots awards programme, the annual Jet Community Awards, entries have doubled since the 2008 competition. Almost 1000 entries were received from community projects and non-profit organisations (NGOs) from South Africa, Botswana, Namibia, Lesotho and Swaziland. Read more >>

Hope Ride for breast cancer awareness in October
On Saturday, 17 October 2009, 15 adventurous breast cancer survivors will clad up in their leathers, kick off their high heels and rev up the motors of their Harley's supplied by Harley-Davidson Motor Company and commence the second Journey of Hope Ride from Cape Town to Johannesburg. This eight-day journey ends in Johannesburg on 24 October. Read more >>

Arden perfume launch coincides with Arbor Week
Elizabeth Arden would like to encourage everyone to 'make the world a prettier place' by supporting Arbor Week 1-7 September 2009. If you cannot physically plant a tree, then visit www.maketheworldaprettierplace.com and plant a 'virtual' tree in this online forest. For each 'virtual' tree planted, Elizabeth Arden will sponsor the planting of a tree, through the international NGO, Trees for the Future. Read more >>

CRM


Equal treatment of customers pays off
[Charles Pittaway] There's a story about the owner of a fancy private art gallery in London, who was once asked why he went to the trouble of treating even the scruffiest student who walked through his doors with the same courtesy as a rich and well-known buyer. "You never know who they're going to marry," he replied, "or who they're going to be." Read more >>

Now all our retailers need is commitment
[Chris Moerdyk] South African retailers might have showpiece malls, product variety and quality to match anywhere else in the world, but the majority are still missing one of the most important retail marketing ingredients of all - genuine commitment to the consumer. Read more >>

e-Commerce


Susan Boyle album top seller on Amazon
WASHINGTON, USA: The album won't be released until November but Susan Boyle, the Scottish singer discovered on "Britain's Got Talent" who went on to become a YouTube sensation, is already number one on Amazon.com. Read more >>

Exhibitions


Time to getaway
The DStv Getaway Show, run in association with Jacaranda 94.2, at the Coca-Cola Dome Northgate opens at 11am on Friday, 11 September 2009, and runs until Sunday, 13 September. Over 300 exhibitors will showcase everything for travel and outdoor related fun under the sun for young and old alike. Read more >>

Tlale gets bite of Big Apple
[Gabisile Ndebele] South African designer David Tlale will showcase all that is African in his debut at the New York fashion week. Read more >>

Soweto Wine Festival - bigger and better
The annual Standard Bank Soweto Wine Festival kicks off this Friday, 4 September 2009 at the Main Hall, Soweto Campus, University of Johannesburg, Old Potch Rd and will host 115 wineries, showcase approximately 850 wines and attract an expected 5500 Sowetan residents. Read more >>

Green sustainability


Recycled paper project from SAPPI, OKI
Sappi has launched a brand of recycled paper named Typek 50% recycled and the Triple Green product range and every OKI printer sold will carry samples of Typek recycled paper to assist the market in becoming comfortable with recycled paper. Read more >>

Inaugural Green Supply Chain Award goes to City of CT
The Green Supply Chain Awards were launched earlier this year by the Chartered Institute of Logistics and Transport: South Africa (CILTSA), the Consumer Goods Council of South Africa (CGCSA) and Supply Chain Today magazine in an effort to acknowledge and applaud companies that show excellence in ‘going green'. The first awards were handed out on Thursday 27 August 2009 in Randburg. Read more >>

Youth participate in waste management conference
The Institute of Waste Management of Southern Africa (IWMSA) Eastern Cape Conference held last week devoted the Thursday morning session to youth, as part of its focus on the link between waste management and climate change. Read more >>

Golden Arrow's green advertising gets credits
Offsetting carbon emissions through carbon credits is not well understood in South Africa but the new advertising opportunity offered from today, 1 September 2009, on the 300-vehicle fleet of Golden Arrow in Cape Town is aimed at changing that. Read more >>

Health & Safety


CANSA rejects Canola Oil chain email
The Cancer Association of South Africa (CANSA) has rejected the chain email regarding Canola oil as false and has asked members of the public to reject and delete the fraudulent email and not pass it on. Read more >>

Hospitality


Finalists announced for Chef of the Year competition
This year the Unilever Foodsolutions Chef of the Year has an international component as chefs from all over South Africa, Egypt, Dubai and Pakistan will be competing for the title. Prize money totalling R90 000 will act as a magic ingredient. Read more >>

Century City gets 5-star hotel
Crystal Towers Hotel & Spa, Cape Town joins a number of new developments in South Africa in the expansion strategy of both Protea Hotels and African Pride Hotels in the build-up to the FIFA World Cup 2010 and beyond. It opens in December 2009 in the urban retail, business and residential hub of Century City. Read more >>

Hyde Park chic extends to new conference venue
Southern Sun Hyde Park's 132-room hotel will finally open end of October 2009. A four-star hotel, it adjoins the Hyde Park Shopping Centre, and two boardrooms and a function room will cater for executive business meetings and events. Apart from a 60-seater a la carte Bice Ristorante offering authentic Italian cuisine and incorporating Daruma Sushi & Tempura Bar, there will also be exclusive whiskey and cigar bars.

Import/Export


SA's current account deficit narrows - Reserve Bank
The deficit of the country's current account of the balance of payments has narrowed, the South African Reserve Bank (SARB) said on Thursday, 3 September 2009. Read more >>

SA posts R0.4bil trade surplus
South Africa posted a record trade surplus of R0.4 billion in July, the South African Revenue Services (SARS) announced on Monday, 31 August 2009. Read more >>

Instore media


Australian brochure display system expands in SA
Multi-brochure desktop stands, business card and postcard holders, wall displays, Z-folding stands and trolley displays have been added to the existing standard range of brochure holders from Expanda-Stand, Australia brought into South Africa through distributor IDG. Read more >>

Logistics


Transnet: Gama's R800m 'blunder'
[Hilary Joffe and Artwell Dlamini] Transnet executive Siyabonga Gama's insistence on awarding an R800m contract to overhaul 50 locomotives to an outside company — against the express instructions of Transnet's board — is delaying the upgrade of the parastatal's ageing rolling stock, and led to Gama's suspension last week, it emerged over the weekend. Read more >>

Transnet to name interim freight rail head
[Artwell Dlamini] Transnet said yesterday, 2 September 2009, it intended to announce an interim head for Transnet Freight Rail (TFR), its largest division by revenue, in “due course”. It also confirmed that it had suspended Siyabonga Gama, CEO of TFR and a contender for the post of group CEO. Read more >>

Manufacturing


Rex Trueform posts R27.2m operating profit
Clothing retailing and manufacturing group Rex Trueform on Thursday, 3 September 2009, reported that its diluted headline earnings per share for the year ended June 2009 were at 123.2 cents compared with the 185.7 cents reported last year. Read more >>

Merchandising


New branding promotes Cape crafters
The Cape Craft and Design Institute (CCDI) unveiled the stylish new Handmade Cape brand, that highlights the excellent craftsmanship and sophisticated products of Western Cape craft producers and designer-makers last month at Decorex in Johannesburg. Read more >>

Packaging


Plastic has many lives
Tuffy manufactures all its black refuse bags from recycled material and even the master batch is recycled, says marketing manager Rory Murray. Read more >>

Regulatory


New law smoke and mirrors for bar and restaurant trade
[Khanyi Ndabeni and Lee-Anne Butter] Nelson Mandela Bay and Garden Route pubs and restaurants are confused by the new smoking law, which includes a fine of R50000 if they fail to abide by it. Read more >>

Cutting food prices fine
[Shannon Sherry and Sasha Planting] In April the National Agricultural Marketing Council (NAMC) released a sensational report suggesting that the dominance of supermarket chains — through their buying power and ability to one-sidedly determine the terms of trade — could be a threat to food security and a vibrant rural landscape in SA. Read more >>

Flora is Halaal in South Africa
Reacting to news and email reports about the use of porcine products in Unilever Australia's Flora margarine products, the SANHA (South African National Halaal Authority) announced on Thursday, 27 August 2009 that this is not the case in South Africa. SANHA stated the present Flora products in South Africa are formulated differently and neither Flora Light nor Flora Extra Light products contain any pork gelatine and are in fact free from animal/meat derived ingredients. The Flora products manufactured in South Africa are accordingly Halaal.

Retail marketing


Zanzibar is Tropika's Island of Treasure
Tropika has expanded its horizons, taking celebrities and winning contestants to the spice island paradise of Zanzibar in Tropika Island of Treasure 2, spurred on by the success of last year's competition in Mauritius. Read more >>

SA to punt upmarket wine sales to Holland
[Kgomotso Mathe] Although South African wines have a successful record in the Netherlands, Wines of SA (Wosa) says it will embark on a new marketing strategy to improve sales of upmarket branded wines. Read more >>

MMA launches four-point plan for SA
The Mobile Marketing Association (MMA) is a global non-profit trade association established to lead the growth of mobile marketing and its associated technologies. It announced this week that it has increased its support for the South African market through a new work plan for MMA SA. Read more >>

Retail services


Incredible new partnership for eBucks
eBucks, FNB's rewards programme, on Tuesday, 1 September 2009, announced its expansion into the growing technology sector with the addition of Incredible Connection as a retail partner. Read more >>

Retailers


Retail growth is not a given
[Sasha Planting] In the grip of extraordinarily difficult trading conditions, SA's biggest and third-biggest retailer by market capitalisation delivered strong results. Read more >>

Brow'se a Benefit Bar at Woolies
Woolworths announced the opening of its first brow bar at Woolworths V&A Waterfront. Trading as Benefit Brow Bar, it extends the Benefit cosmetic brand exclusive to Woolworths, available at selected stores around the country. Read more >>

Supply chain


Siyakhana food garden serves as model to other poor areas
Professor Michael Rudolph, head of Community Dentistry and Health Promotion Unit at Wits University, started the Siyakhana food garden project in 2005 in collaboration with several non-governmental organisations such as BHP Billiton Development Trust, Cape Gate, Food and Trees for Africa, and Party Design, which cares for people living with AIDS. Read more >>

Introductory supply chain and operations training starts 2010
SAPICS (The Association for Operations Management of Southern Africa) announced on Monday 31 August 2009 that it will offer “Introduction to Supply Chain and Operations” programmes from early 2010. The course is aimed at individuals wishing to enter the field of supply chain operations who have limited work experience in the sector or for learners at NQF Level 2. Read more >>

Mozambique: Markets too far for farmers' profit
[Jessie Boylan] LAGO DISTRICT: August is peak tomato season in the Niassa province of northwest Mozambique, and farmers are bringing bucket-loads of tomatoes to sell to Nkwichi Lodge, one of the few buyers of local produce in the region. Read more >>

Technology


Sony to roll out 3D television next year
BERLIN, GERMANY: Japanese electronics giant Sony said it aimed to bring 3D television screens into homes next year, a technology usually found in the cinema at present. Read more >>

Early Christmas present from Xbox
In line with its current strategy in Europe, Microsoft is dropping the price of the Xbox 360 Elite console with 120GB hard drive by R1500 to R3399 (ERP*). Read more >>

MP3 downloads available from Kids Campus
Kids Campus, an online store focusing on babies and children's educational music, stories and DVDs, updated its product offering late last month, to include music downloads in an MP3 format that can be purchased online and instantly downloaded to a PC or laptop. Users can load music from their laptop onto a MP3 player or burn it on to a CD. Read more >>

Training


UCT develops global supply chain course
The UCT Graduate School of Business (UCT GSB) is launching a new course in October 2009 aiming to advance global supply chain skills in Africa. The course runs from 21 - 22 October 2009 at the UCT GSB in Cape Town, South Africa. Read more >>


Company news

Brand news


Vuka signs multi-million rand agreement with Loncin SA - Vuka Scuta
Vuka Scuta this week signed a buy-out agreement with Loncin South Africa. Vuka will take over the current stock and parts inventory as well as the distribution of the Chinese manufactured range of street bikes, scooters, quad bikes, off-road bikes and cruisers. Read more >>

Instore media


Wireless digital signage boosts sales over 1000%, says new report - Isenzo Broadcasting cc
Results from a new internet-based digital-signage project in more than five dozen pharmacies around the Western Cape show that sales improved between 20% and 1200% for specific products that were advertised on the in-store network. Read more >>

Retail marketing


Spirits on a bit of a down-down in recession - Moving Tactics
We all know that spirits are down as a result of the recession. What is coming out of recent retail figures though is that other alcoholic beverages too, are feeling the pinch. Rumours that South Africans are drowning their fiscal sorrows are greatly exaggerated. Read more >>


Poll
How have you been affected by the Eskom tariff increase?

What elecricity increase?
Not much - we have an alternative energy source.
Marginally.
We're now installing alternative energy sources.
The bill has doubled.
Electricity or food? Food or electricity?
Other (please specify)
Vote and view results


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    Events to diarise
  • Consumer Protection Bill IIR- South Africa - Rosebank, 7 September
  • BrandOvation Seminar BrandOvation - Johannesburg, 9 September
  • ABF Relaunches - Johannesburg, 9 September
  • The DStv Getaway Show - Johannesburg, 11 September
  • Marketing and branding in recessionary times IIR - Johannesburg, 14 September
  • Digital branding in the innovation economy Vega - Johannesburg, 15 September
  • Digital branding in the innovation economy Vega, the Brand Communications School - Greenpoint, Cape Town, 15 September
  • Professional purchasing and procurement skills CBM Training - Durban, 16 September
  • Customer service workshop LEAP Training - Johannesburg, 16 September
  • How to create advertising that really sells ZA Group (pty) Ltd - Johannesburg, 17 September

  • Quotes
    "The world at large does not judge us by who we are and what we know; it judges us by what we have." - Joyce Brothers"Men have become the tools of their tools." - Henry David Thoreau"A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures." - Michael Eisner"Creative people should be sales people because design is a function of selling." - Duan Coetzee"The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself." - Peter F. Drucker

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