The challenges for retail in Africa
Africa has become a prime destination for retailers in their quest to break into new markets. Our growing consumer populations combined with slower growth in developed markets, among other factors, all contribute to making it a sought-after business destination. But, as with most ventures, there are challenges to overcome in order to succeed in the untapped markets of Africa.
Distribution is probably one of the biggest challenges for retailers because many of the consumers who need to be serviced are scattered and live in outlying areas. This, coupled with this market’s difficulty in accessing transport, means that retailers need to be more innovative in the ways they familiarise consumers with their products and gain this market’s loyalty.
Advertising and marketing are other challenges in reaching consumers in Africa. Many rural communities use mobile phones instead of traditional media, for example, which means that retailers will have to look at new ways of advertising their presence to these new markets and getting consumers through their doors.
South African retailers have been quick to enter African countries. In recent developments, Woolworths plans to open three stores in Nigeria in the next few months and Pick n Pay has already entered Mauritius. Although the playing fields have been marked out, there are no hard and fast rules to winning this game.
Wendy Smith
P.S. Look out for this editorial on our editor’s blog.
Please feel free to make comments or raise new issues by
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Jobs in FMCG and retail
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Economic News
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SA consumers to remain financially vulnerable: BMR
SA consumers are likely to remain financially vulnerable for some time, given that current factors leading to their financial vulnerability have not changed, Professor Carel van Aardt from University of SA's Bureau of Market Research (BMR) says.
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New Products
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New I&J Out'O the Oven
100% pure fish fillet portions delicately seasoned and coated in a crisp and crunchy crumb result in a mouthwatering combination that will delight the taste buds of all family members - without tugging at the purse strings because I&J Out’O the Oven comes in at under R30 per pack of 6 fish fillet portions! Great flavour, a quality product and great value for money, just what families want!
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Moir's enters biscuit market with classic favourites
For almost a century, the tried and trusted brand, Moir’s, has supplied the South African market with a wide range of top quality baking products. Now some of South Africa’s best loved biscuits will be made under the Moir’s label, which speaks of only the very best quality in baking.
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Tetley Bags Big Changes
For Tetley Big Tea, it’s all about the bag – at 2,75g, Tetley tea bags contain 10 percent more tea than those of other South African tea brand.
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Brand Activity
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Gants Chunky Chicken wins Product of the Year Award at Good Food and Wine Show
Gants Chunky Chicken recently received the Product of The Year Award in the Convenience Category at the Good Food and Wine Show. Since its launch in July this year, the innovative new chicken in a can range has been marketed as the ideal lunchtime companion.
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What’s Hot Snippet: Get your Canderel Cuppa
Some days, all that’s needed for a quick pick-me-up is a good cup of coffee or tea, sweetened by Canderel that can make all of life’s troubles melt away.
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I&J Fish Bakes - Fabulous family food at a great price
Lean economic times and high food prices are still with us for a while but I&J will make meal times that much easier and less costly with their hearty and wholesome family product, I&J Fish Bakes.
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Grand Prize Winner jets off with R250 000 Joy Voucher from Cadbury Dairy Milk!
Cadbury Dairy Milk has ended winter with a joyous bang by announcing the grand prize winner of their annual winter promotion - 57 year old Mr Malik Samuels from Paarl. He claimed the promotion’s biggest prize of an overseas holiday valued at R250 000 which he will share with his wife and 3 children.
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Equal is Sweet on Soweto
The sweetener brand Equal recently caused a stir in Soweto and surrounding areas with an education drive on the health risks of diabetes by encouraging consumers to test their blood glucose levels and at the same time create market awareness for Equal.
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Willow Creek's commitment to quality and innovation pays off
You could say that Willow Creek Olive Estate, situated in the Nuy Valley, is well-oiled when it comes to winning awards. Their most recent victories include a gold medal for their Directors’ Reserve extra virgin olive oil at the SA Olive Awards, a Distinction at the Italian L’Orciolo d’Oro competition, as well as a SA Gold Pack award. In addition, Andries Rabie, managing director, was heralded as the Olive Achiever of the Year.
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Clover sees "Way Better" philosophy giving fresh impetus to its strong brand identity
Clover, the leading dairy products and beverages-focused consumer goods group, is well underway with a fresh branding initiative that entrenches the Way Better theme and message across its product line and throughout all of its operations.
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Featured Brands
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Berocca
Berocca’s unique combination of vitamins and nutrients is clinically proven to enhance concentration, reduce tiredness and combat feelings of stress¹. A high dose of B-vitamins, minerals and other micronutrients work in synergy to improve brain and nerve functioning throughout the day.
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Cal-C-Vita
Cal-C-Vita is the Vitamin C brand that meets the needs of the South African woman, who is the care taker of the family. With 1000mg of Vitamin C, as well as additional vitamins to assist body in utilising the Vit C, Cal-C-Vita helps to protect from cold and flu through prevention or reduction of severity of symptoms.
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Liquor News
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Obikwa sticks its neck out at London’s International Wine and Spirit Competition
Obikwa, the adventurous, fun loving, range of value for money wines, has kicked up a stir at the 2011 International Wine and Spirit Competition in London snatching a total of seven medals, including a Best in Class award
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Trio of Nederburg 5-Star wines in 2012 Platter's and 6 Best in Class wines at London's IWSC
Nederburg has three wines ranked worthy of five stars in the 2012 edition of Platter’s South African Wine Guide, scheduled for launch next month (November). Three five-star ratings is the highest number achieved by any producer in the 2012 edition of the guide. Nederburg shares this distinction with Boekenhoutskloof and Mullineux Family Wines.
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Amarula both ways: Shaken and stirred
Keep it sophisticated but simple this festive season with an elegantly smart cocktail that’s effortlessly easy to make. Appealing, tasty and witty, it looks great and tastes even better. Shake it up first and then stir in a twist of lemon zest for that je ne sais quoi.
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Sweet success for Monis sherries at Veritas
South Africa’s oldest producer of fortified wines received three awards for its sherries at this year’s SA National Wine Show with the Monis Full Cream Sherry receiving gold and the Monis Medium Cream and Pale Dry both silver.
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Fleur du Cap triumph at 2011 International Wine and Spirit Competition
Fleur du Cap has brought home another cache of medals from London scooping two Gold Best in Class and five Silver Best in Class awards at the 2011 International Wine and Spirit Competition.
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4th Street engages its consumers in-store with a Bottle Hang UFO
Following Distell’s 4th Street Natural Sweet Rosé perfect party accessory launch, a two litre boxed wine with a fashionable twist – a handbag-style, easy-to-carry pack, it is now spreading the 4th Street vibe by giving away branded products to make its consumers’ street party a hit.
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Welmoed Wines Shine with a Trio of Veritas Silver Awards
Welmoed, the South African wine known for its centuries of handcrafted tradition with a modern twist, simply shined this weekend after scooping up three silver medals at the 21st annual Veritas Awards ceremony.
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Kumkani Wines Scoop Six Veritas Medals
Kumkani, the ‘king’ of South African wines, showed its royal pedigree this weekend after scooping up six medals at the 21st annual Veritas Awards ceremony, including a gold, two silvers and three bronze.
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Zonnebloem shows how micro-managing works
Zonnebloem’s dynamic young winemaking team exudes an energetic sense of purpose in wanting to extend the strong affection felt for the brand.
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The SAINTS support the SPRINGBOKS
The Saints Wines helped stoke national pride and rugby fever during the World Cup with unique in-store retail displays supported by a fabulous Defy Microwave consumer lucky draw prize.
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Featured Retail Services
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Artifact
We create advertising campaigns, create or refresh your brand identity, develop your digital strategy, implement your social media campaign, design and print your collateral, design and develop your flash sales presentation, run your search media campaigns, build your website, book your media.
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Primedia Face 2 Face
Primedia Face 2 Face provides marketers with a unique opportunity to bridge the gap between above- and below-the-line conventional media by providing the necessary mix of numeric distribution and face-to-face communication.
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Retail Services News
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BMI Food Bites: Butter
Butter is made by churning cream or milk, which is either fresh or fermented. Butter is mostly used as a spread or condiment, though it is often used in the bakery and confectionery market. It consists of water, milk and butterfat.
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Nampak Closures ups its game with new production line
Nampak Closures Epping, officially unveiled its new R14 million wine closure production line in Cape Town today. The new line is currently being used to produce 30mm x 60mm screw caps for the wine industry, and is capable of at least doubling Nampak Closures’ capacity.
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Nampak Flexible is top of supply chain at 2011 Logistics Achiever Awards
Africa’s leading flexible packaging manufacturer, Nampak Flexible, received a Gold award at the South African Logistics Achiever Awards dinner held in Johannesburg on Thursday, 29 September 2011.
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One Digital Media takes client empowerment to a whole new level with its new website
One Digital Media, the largest provider of digital in-store screens in South Africa, launched its new website this week, www.onedigitalmedia.co.za. Not only does the redesigned website provide improved navigation and easy and intuitive access to the company’s various innovative digital solutions, it also brings client service to a whole new level.
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FMCG Jobs
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Regional Sales Manager (Nicolene Di Bartelo)
The position of Regional Sales Manager is to provide tactical and operational leadership and support to the sales functions of this organisation. Reporting to the General Sales Manager this position is to facilitate the development of the Regional sales team as well provide support and direction.
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Accountant - Cash Van Operation – Gauteng (Talented Selections)
This junior level role would ideally suit a Junior Accountant with 2 years experience ideally within an operational environment. You will be required to manage and report on the financial aspects of a national van sales operation but will be based in Johannesburg.
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Financial Manager – Nigeria
The Financial Manager will strive for the creation and enhancement of shareholder value through the development and execution of business strategy, and financial stewardship of company assets. He will act as co-pilot for the business Managing Director, supporting him in developing the business and achieving business and financial targets.
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Events
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SOCAP SA 2011 Conference
When: 3 Nov 2011 – 4 Nov 2011
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New dairy experience come to the Cape
When: 4 Nov 2011 – 5 Nov 2011
Venue: Sandringham (next to the N1 between Cape Town and Paarl)
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Food Safety Conference
When: 21 Nov 2011– 24 Nov 2011
Venue: The Crowne Plaza, Johannesburg
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Global Sources: China Sourcing Fairs
When: 30 Nov 2011 – 2 Dec 2011
Venue: Gallagher Convention Centre, Midrand, Johannesburg
· Global Sources, Baby & Children's Products China Sourcing Fair
· Global Sources, Hardware & Building Materials China Sourcing Fair
· Global Sources, Garments and Textiles China Sourcing Fair
· Global Sources, Gifts & Premiums China Sourcing Fair
· Global Sources, Home Products China Sourcing Fair
· Global Sources, Solar & Energy Saving Products China Sourcing Fair
· Global Sources, Electronics China Sourcing Sourcing Fair
· Global Sources, Fashion Accessories China Sourcing Fair
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Networking expo for the logistics and supply chain management industry
When: 22 Mar 2012 – 23 March 2012
Venue: Gallagher Convention Centre, Midrand, Johannesburg
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Cards & Payments Solutions - even bigger and better for 2012
When: 13 Mar 2011 – 14 Oct 2011
Venue: Earls Court, South Hall, London
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Featured Client
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Active Clients
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