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HGR July 2011.Indd July 2011 )PNF(PPET3FUBJMFS Contents July 2011 Newsline Industry Captains Amap moves offices, buys satellite and TV business 4 Margaret Hirsch 14 Immediate customer benefits in Walmart-Massmart merger 4 Domestic Cooling Turkish group buys Defy in R2.2bn takeover deal 5 Eurolux ceiling fans to transform any room 17 Van Dyck gets a brand makeover 5 Lowest prices rush costs consumers more – Toshiba 6 Market Review Du Noon school receives boost from Eurolux 7 Sales hold steady as refrigeration appliances Unilever recognised as 'number one' by graduates 7 become more affordable 18 Benefits to consumer legislation 8 Calgan Lounge builds its furniture kingdom 9 Fridges & Freezers New distribution agreement includes retail sector 9 New affordable luxury from KIC 22 Newsline International Miele redefines cool with MasterCool range 28 3DTV not expected to be UK mainstream success 10 Technology Focus Cash is king when it comes to credit card incentives 10 Painless budgeting leaves more time for planning, Electrolux to increase prices of appliances 11 strategy 30 Samsung seeks ban against Apple products 11 American consumer spending stagnates to Product Showcase weakest level 12 360-degree swivel webcam designed for portability 31 The evolution of social media in retail 12 Limber adaptability with infinite poses 31 Talking Points Publisher's Comment How online reputation drives your business 13 It beggars belief 32 4 5 14 22 HGR Team Publisher & Editor-in-Chief Ian Hughes Email: [email protected] )PNF(PPET3FUBJMFS Editor Aurette Bowes A move, a makeover Email: [email protected] and Turkish delights in SA National sales manager There are a lot of 'new' things to report in this issue of HGR. Frances Venter Amalgamated Appliances has moved to beautiful new offices in Fourways, Cell: 072 607 5134 Johannesburg, Van Dyck Carpets has had a branding makeover and undergone a name Email: [email protected] change, while Defy Appliances has a new Turkish parent company. More on all these stories can be read in Newsline. Design & Layout On the international news front, Electrolux has announced plans to increase the Aurette Bowes prices of its appliances, American consumer spending is at an all time low, while Email: [email protected] Samsung and Apple are at it again - this time over an alleged patent violation. Our industry captain this month is renowned industry doyenne Margaret Hirsch. Special Projects Highly respected for her business acumen, Margaret's achievements over the last 30 Taryn Haley years are an inspiration to all women in business. Email: [email protected] Our Fridges & Freezers feature is packed with products from across the price spectrum, and showcases the latest in feature offerings. Additionally, GfK reveals that Administration & Subscriptions refrigeration appliances are becoming more affordable as sales continue to hold Loveness Banda steady. Email: [email protected] All this, plus new product announcements and informative reads on the importance of a good online reputation in your business and how to take the pain out of Office budgeting, makes for a must-read issue. 203 Melrose Place, Willowbrook Close, Until August. Melrose North PO Box 41632, Craighall 2024 Tel: (011) 447 9326, Fax: (011) 447 9838 Email: [email protected] www.hgr.co.za Printing Park Avenue Copyright on all editorial in Home Goods Retailer is owned by the publisher and reproduction without permission is prohibited. The opinions expressed in Home Goods Retailer are not necessarily the views held by the editor or publisher. We reserve the right to edit – for purposes of space and clarity – all editorial material and letters submitted for publication. Subscribe, connect FAX 11 issues for your details to R264-99 011 447 9838 Make cheques payable to email Home Goods Retailer and post to PO Box 41632, [email protected] Craighall, 2024 Made in South Africa Newsline Amap moves offices, buys satellite and TV business After more than 60 years in its Booysens- all Amap’s brands. based building in Johannesburg, brand “We no longer need to rent facilities for manufacturer and marketer Amalgamated to hold promotions and training – now Appliances (Amap) has moved to new they can all be held in-house.” premises in Fourways. “The move was long overdue,” says CEO Acquisition will aid expansion Alan Coward. “The building from which In a R53 million deal, Amap’s wholly we were operating was extremely old, and owned subsidiary Tedelex is to buy the crime rate in the area had worsened to satellite reception businesses from a degree where clients no longer wanted Sanmeg Satellite, wholesaler and to visit our showroom. manufacturer of terrestrial and satellite “Additionally, we needed facilities that Amap personnel in the company's new television reception equipment and reflected our transformation into a brand showroom in Fourways, Johannesburg. accessories. company.” “The acquisition will enable us to Amap’s new offices are centrally located finally settled everyone is enjoying the introduce new brands into our portfolio at the Pineslopes Shopping Centre, corner convenience of being able to run quick and help with our business expansion of The Straight and Witkoppen roads, with errands at the shopping centre, which into sub-Saharan Africa and the Indian easy access to the N1 highway. they weren’t able to do at the previous Ocean islands, where satellite decoders “Customers and partners visiting us building. in particular are in high demand,” says from outside Gauteng can stay at the "We have also changed our office hours Coward. nearby Plaza or City Lodge hotels, and from 7h00 to 16h00 to enable staff to The deal, which includes Sanmeg’s for entertainment Monte Casino is just beat the rush hour traffic. Consequently, operations in Cape Town (Samsat) and around the corner,” says Coward. productivity has increased exponentially, KwaZulu-Natal (Samcast), is subject to “Naturally, there was some trepidation along with morale and communication.” approval from shareholders and the among the staff prior to the move,” Coward is especially proud of the competition authorities, as well as a due he continues, “but now that we are brand-new showroom, which showcases diligence. Immediate customer benefits in Walmart-Massmart merger Following the recent closing of the cut by R76.00 to R449.00. Similar price Supplier fund transaction in which Walmart secured cuts were also launched at DionWired and Plans are also underway for the creation of a 51 per cent controlling interest in Makro stores. a R100 million supplier fund that will help Massmart, the companies have moved Massmart CEO Grant Pattison says, “A local South African suppliers to establish swiftly on their promised benefits to South distinguishing feature of this promotion long-term relationships with Massmart African consumers, demonstrating their is that the price cuts were fixed for a and Walmart. It is anticipated that the commitment to significant job creation, ten-week period, which to my knowledge fund will be established over the coming and announcing plans for growing an is unique in the South African retail months. enhanced food offering, the majority of environment. Massmart and Walmart say they look which will be locally sourced. "While other exciting promotional forward to working closely with the South Massmart and Walmart have also campaigns are planned, this offering so African government, businesses, including worked to begin delivering lower prices soon after the finalisation of the Walmart small and medium enterprises, and trade to customers. This initiative comprised merger is a clear demonstration of unions to finalise the establishment of the price cuts on product offerings, selected Massmart and Walmart’s intent to save fund. examples of which included a 32-inch people money to live better.” By leveraging Walmart’s experience Samsung LCD television selling at Pattison adds, “We’re also excited in various parts of the world and by R3499.00 (from R4799.00), and a 5-in-1 to announce our plans to create 15 collaborating in areas such as product Samsung home theatre system for R999.00 000 jobs in the next five years. During selection, purchasing, operational (from R1399.00) at all Game stores. that same period, we intend to expand processes, systems, e-Commerce, and Similarly, at all Builders outlets, the cost sourcing, most of which will be from introducing sustainable operating of Osram energy saver light globes was local manufacturers, to approximately practices, the merged entity remains reduced by R23.00 to R11.99, while 15 R60 billion of additional food and FMCG adamant it can help South African litres of Dulux Weatherguard paint was purchases.” page 6 X 44 Home Goods Retailer – July 2011 Newsline Turkish group buys Defy in R2.2bn takeover deal Durban-based home appliances manufacturer Defy Appliances has been acquired by Turkey's Arçelik group, the third largest appliance maker in Europe and a subsidiary of Koç Holding, for R2.2 billion ($327 million). The price includes $229million of equity value and a $95 million shareholder loan from Franke Holdings, Defy's Swiss-based former parent company. Defy, which has been operating in the home appliances market for almost a century, employees more than 2600 people at three factories. It's Durban operation makes freestanding stoves, built-in ovens and hobs and tumble dryers. A second factory in Ezakheni, Ladysmith produces chest freezers and fridges, while a third in East London Levent Çakiroğlu – Defy acquisition strategic to African positioning. manufactures fridges. Last year Defy's net sales amounted to about R2.5 billion. The company exports billion) and recorded international sales high growth potential. Koç Holding to a variety of markets in Africa and the of €1.8 billion. will continue to support acquisition Indian Ocean islands. Arçelik CEO Levent Çakiroğlu says opportunities for Arçelik in the "Arçelik has been a major strategic the company is consistently looking to framework of its global growth plans," he supplier of products to Defy for many expand its international presence, from adds.
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