Two Sides to every coin

Two sides to every coin
There is understandable outrage at the government's decision to impose extremely strict quotas on clothing and textile imports from China. Apparel retailers have produced fantastic profits in recent years - it is important however, to note that this occurs after duties of up to 40%, and taxation at the corporate rate of 30%. In addition to this, the retail industry is a significant employer so one can hardly argue that it is a leach industry that is sucking the life out of the country.

On the flip side the South African apparel industry was once a flourishing sector - albeit in a protected environment. Since 1996 it is estimated that over 150 000 jobs have been lost in this sector. That is a significant loss to the country and it is understandable that the government would like to "plug the sink". I know that retailers would also like to create jobs. A strong economy is essential to their success, and many of them have internal policies designed to develop sustainable South African producers and therefore decrease their dependence on imports. This is a path that should be developed with retailers and regulated if necessary, but I don't believe a project with a 2 to 3 year window will attract the necessary investment to make the sector sustainable.

At the end of the day I believe that the government is trying to protect a sector that is largely unsustainable, for a short period of time, at the expense of a flourishing sector. It is a mistake to think that one has to be manufacturing in order to develop a healthy economy. The world is a changing place, and we can't afford to resist the change lest we get left behind.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Retailers up in arms over proposed imports quota
Retailers are up in arms over the DTI's announcement of a proposed quota on Chinese clothing and textile imports. The announcement was published in the Government Gazette last Friday without consultation with retailers. Warnings of price increases in excess of 20% as well as empty shelves have emanated from local retailers.
Read more.

Dated food poses a threat to consumers
East Londoners, cooperating with the police and media, recently exposed a scam concerning the re-labelling of food which had passed its "sell-by" date. This has caused great concern to the food industry in general and the Consumer Goods Council of South Africa (CGCSA) in particular.
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Food, beverages income totals R1.87 billion
The average monthly total income in the food and beverages industry for the eight months from August 2005 to March 2006 was 1.869 billion rand, according to Statistics South Africa's newly launched food and beverages survey.
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Distell delivers sparkling results
Distell has delivered an impressive set of results, capitalising on buoyant spending amongst South African consumers and establishing a stronger global footprint on the back of improved production and operational efficiencies. For the 12 months to 30 June 2006, revenue rose 12.6% to R6.7bn on a sales volume increase of 8.3%, fuelled by the increased consumption of premium brands.
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GLOBAL NEWS

Massmart to open in Ghana
South African retailer Massmart plans to open its first Game store in Accra, Ghana in March next year. The store will be located in the Accra Mall on Spintex Road. The 4,800 square metre store will have a large range of products ranging from major domestic appliances and high-tech sound and audio equipment to toys, linen, sporting goods, interior decor and outdoor products. Massmart will invest an estimated USD87.8 million in the Ghana economy over the next ten years - in premises, establishment costs, import duties, VAT, corporate taxes and salaries.
(Planet Retail)

North American retailers combat Wal-Mart with diverse store formats
With sales more than four times larger than its closest competitor, Wal-Mart continues to dominate the retail scene in its home market. According to Planet Retail's recently published Top 30 Grocery Retailers in North America, North American retail banner sales for the retail giant topped USD274 billion in 2005, giving it a total market share of 15.5% and a 9.9% share of the region's grocery market.
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FEATURED BRAND

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BRAND NEW

NEW! Get a grip on super shaving sales! The next generation of shaving sophistication is here. Introducing the new DUEL Matrix3 +Titanium, now available nationwide. Positioned in the premium market, the new DUEL Matrix3 +Titanium provides South African men with an appealing combination of cutting-edge style and shaving-edge technology. Read more.

NEW! Celebrate Sunshine Goodness with NIVEA SUN With NIVEA SUN you can ensure your consumers' immediate and maximum protection this summer! Health-conscious sun-seekers can enjoy all the protection they need with NIVEA SUN's NEW ultra protection SPF 50+ knowing that they're protecting themselves from long-term sun damage. Read more.

NEW! A new taste for the upper crust Four new Iona meat spreads are now on the shelves. Made from real meat, Iona adds the gourmet touch to sandwiches, sundowner snacks, starters and light meals. Make sure you get your slice of the demand by stocking up now! Read more.

NEW! Have your cake and eat it with Parmalat sensational new flavours Yoghurt lovers are in for a triple treat with the launch of Parmalat's three new seductive low fat smooth yoghurts, offering a feast of flavour without the guilt. Brimming with indulgent taste, the three new variants - Banana Custard; Blueberry Cheesecake; Coconut Biscuit - break the mould of traditional yoghurt flavours, offering consumers an exciting new experience in the fast growing smooth yoghurt category. Read more.

NEW! Dilmah launches premium single origin teas in SA Dilmah, Sri Lanka's pioneer of single origin pure Ceylon tea and the first grower owned tea brand in the world, offers superior refinement to local tea purists with the launch of the Dilmah Premium and Dilmah Gourmet selections in South Africa. Read more.

NEW! Nature Valley provides healthy, convenient snack In keeping with currents trends toward healthy snacking, Nature Valley Crunchy Granola Bars provides consumers a healthy, simple and energetic snack. Nature Valley Crunchy Granola Bars are a blend of rolled oats, rice-soy crisp, sugar, honey, dark syrup and canola oil - mixed with delicious ingredients such as almonds, bananas, and maple syrup. Read more.

BRAND ACTIVITY

Douglasdale Dairy backs Basketball community project In the interests of promoting the importance of nutrition and physical activity, Douglasdale Dairy have announced their support of the inaugural "Basketball Active" initiative, a community youth development project which sees the first of a series of events taking place in Alexandra on the 26 August 2006. Read more.

Clover a firm favourite The Sunday Times / Markinor Top Brand Results for 2006 have placed Clover at 7th position in the Overall Favourite Brand category. The results, based on face-to-face consumer research, have placed Clover in the Top 10 category with brands such as Coca-Cola, Toyota, Nike, SAB and Vodacom. Read more.

WINE, BEER & SPIRITS

Swartland's premium new wine range to satisfy all tastes Swartland Reserve is the latest release from Swartland Winery and is an excellent range of wines offering exceptional quality. The Swartland Reserve range consist of two red wines from the 2005 harvest and one white wine from the 2006 harvest. These wines will add good taste to any event - formal or informal. Read more.

J.C. Le Roux sparkles with handy new carry pack There's nothing quite like a fine bubbly to uplift the mood and add style to any occasion, and now consumers can add extra sparkle to summer with the handy new carry pack of three fun loving J.C. Le Roux sparkling wines. Read more.

Lauded Fleur du Cap Unfiltered Sauvignon Blanc releases 2006 vintage Fleur du Cap has just released the 2006 vintage of its select Unfiltered Sauvignon Blanc, a full-bodied wine with a smooth and extremely elegant finish. Fleur du Cap Unfiltered Sauvignon Blanc 2006 is the second vintage made of grapes handpicked from terroir-specific vineyards - Alexanderfontein in Darling, Myrtle Grove in Somerset-West and Lutouw near Koekenaap in the Lutzville area. Read more.

Amarula goes Gold at IWSC Amarula Cream recently won a Gold Medal for 'Best in Class' at the International Wine and Spirit Competition (IWSC). Following a stringent two-stage judging process, Amarula Cream won in the Tasting category for 'Liqueur / Cream / Wild Fruit'.

FEATURED RETAIL SERVICES

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TFD Network Africa We are the forward-looking distribution company that keeps you in control of your outsourced distribution, thus growing your market position, brand strength and profitability. Read more.

RETAIL SUPPORT

Free Record Shop Tunes High-Fidelity Retail Operations with SAP SAP AG (NYSE: SAP) have announced that Free Record Shop, a Dutch entertainment products retailer with nearly 400 stores in five European countries, is empowering 90 percent of its more than 2,000 employees with retail industry-specific software from SAP. Read more.

Recall Matters
Recall data is not as widely available in SA as it is in Europe. However, the awareness of contamination incidents is certainly increasing. In addition to a number of high profile recall cases (including accidental contamination and malicious tampering), the South African Department of Health published in 2004, Policy Guidelines entitled "National Food Safety Alerts and Official Food Product Recalls in South Africa". The RQA Group is a global business offering Crisis management, Food Safety and related Field services to the food, beverage, cosmetics and other consumer products industries. RQA has partnered with QPRO International whose offices are in Johannesburg and Cape Town to provide an expert recall consultancy service.
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ADVERTISING

Volcano campaign reinforces Gillette's premium market leadership Volcano Advertising recently implemented a successful consumer promotion for Gillette grooming products, with the creation of the 'Get The Look with Gillette - Win a Merc SLK Roadster!' campaign. This megabrand promotion ran over May and June 2006 and offered one lucky Gillette consumer the opportunity to win a Mercedes SLK Roadster. Read more.

Zesty Promotion from FCB impact 361º for Savanna
A rather 'zesty' promotion for Distell brand, Savanna Dry Premium Cider has surpassed its objectives. Not only did the promotion stimulate more entries than targeted, the nature of the response from the public indicates that it resonated with them and strengthened their relationship with the brand.
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Eno on the Go with Primedia Outdoor
Specially constructed Primedia Outdoor billboards are turning heads with a most spectacular ENO promotion. The strikingly lifelike creative, almost 20 metres high, uses a bigger than life mannequin to drive home ENO's payoff line.
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Safyr Bleu maximises washroom advertising
Seldom does an ad campaign run for a second consecutive year without any changes, unless as in the case of Safyr Bleu, the overwhelming success of the campaign leaves no reason to change. Aspen has taken the stance "if it ain't broke, don't fix it", and renewed their contract with Primedia Unlimited's indoor advertising arm, The Letter Corporation (TLC).
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EVENTS

The Fortune at the Bottom of the South African Pyramid with Eighty20
13 September 2006 - Mount Nelson Hotel (CT)
Inspired by the work of C.K. Prahalad and others on the Bottom of the Pyramid, Eighty20 brings you a fascinating overview of the low-income market in South Africa.
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Connecting with Black Diamonds
12 - 15 September 2006 - Durban, JHB & Cape Town
The UCT Unilever Institute, Research Surveys and the SABC join forces to reveal valuable insights into the lives of 'Black Diamonds'.
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Improving your Supply Chain Seminar
3, 5, 10 October - Durban, Cape Town, Johannesburg
The primary objective of improving the performance of the supply chain can only be made possible through collaborative development and implementation of global business standards.
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Jozi Cheese & Wine Festival
6 - 8 October 2006 - Helderfontein Estate
The Jozi Cheese & Wine Festival will provide a fantastic day 'in the country' for visitors at the beautiful Helderfontein Estate.
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Nedbank Cape Winemakers Guild Auction
7 October 2006 - The Lord Charles Hotel, Somerset West
A selection of 44 rare and unique wines from some of South Africa's most sought-after wineries.
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Robertson Wine on the river Festival
20 - 22 October 2006 - Robertson
The Festival will offer visitors a comprehensive showcase of the Valley's wines from 40 wine farms.
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RMB WineX Gauteng
24 - 27 October 2006 - Sandton Convention Centre
RMB WineX 2006 represents the entire spectrum of Cape wine producers showcasing every wine route in the country.
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Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
Read more.

Retail Loss Prevention Africa 2006
20 - 23 November 2006 - Sandton Convention Centre
Focused on delivering expert experience and know how for ensuring you reduce your losses and stock shrinkage.
Read more.