July 2011
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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
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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. years and we have enjoyed an excellent both a manufacturing and branding The biggest conglomerate in Turkey relationship with the group," says Defy perspective. "The acquision of Defy will and the country's only company in CEO Ross Campbell Heron. allow us to expand in South Africa and the Fortune Global 500 list, Koç group Arçelik employs around 19 000 people sub-Saharan Africa. operates in the energy, automotive, across the globe and operates in the Koç Holding chairman Mustafa Koç consumer durable and finance sector. consumer durables and consumer says the acquisition will enable Arçelik Regulatory approvals for the Arçelik electronics sectors. In 2010 it posted a to strategically position itself on the deal are expected to be finalised in consolidated turnover of R34 billion (€3.5 African continent. "I believe this offers September.
Van Dyck gets a brand makeover, new name
Van Dyck Carpets has embarked on a new the environment and social wellbeing of branding strategy. those we live amongst. "We have done away with the blue "We have also joined the social media diamond-shaped logo and replaced it frenzy and would most appreciate our with a bright and trendy green logo," partners' and customers' support in this," explains the company's Bernd de Smedt. Van Dyck's new logo. he continues. "Our new website is up and "Our new branding incorporates all the running and while you browse please various activities that take place in our Dyck." 'follow' us on Twitter, ‘Like’ us on Facebook company. The company has also dropped the and become a part of the Van Dyck "The whole look and feel of the new word "carpets" from its name. network on LinkedIn. logo has a younger and more modern "We are no longer simply carpet "Also, visit YouTube and check the impression that reflects the fresh and manufacturers," De Smedt explains. "We various videos we shall be posting from energetic wave we have embraced at Van are an organisation that is committed to time to time."
Home Goods Retailer – July 2011 5 Newsline
Lowest prices rush costs consumers more – Toshiba
Many vendors are chasing a ridiculous rush East, Africa and Turkey. Having worked to offer the lowest prices on notebooks to for Toshiba since October 1999, he is the retail market, and this approach will extremely knowledgeable of the challenges cost the consumer more in the end because of international sales and marketing they don’t realise that their newly purchased – particularly in Africa. notebook does not meet expectations or has “Toshiba, through its focus on three old component technology, this according major business pillars, will aim to increase to Toshiba's newly appointed general its market visibility and presence in the manager for Africa Domenico Gargarella. channel, offering increased levels of "Value for money does not mean waste marketing and service support for our of money," he continues. "Many customers partners who have loyally supported us over are looking for an affordable notebook, the years,” Gargarella explains. especially from the retail segment, but they “There are many new and exciting still want to use the new notebook for at announcements in the pipeline for 2011, least three years, so consumers need to be which are guaranteed to drive even greater Domenico Gargarella – newly appointed conscious on how they spend their money.” demand for Toshiba’s products and services GM at Toshiba. Gargarella's appointment is part of in the consumer, corporate and public Toshiba Computer Systems' recent corporate sector spaces,” he says. Rest of Africa Business, which focuses restructure of its African operations as part on forming strategic alliances with core of its strategic plan for market growth. New retail division partners, maintaining and increasing Gargarella will be focusing on establishing Toshiba's corporate restructure sees the Toshiba’s presence and visibility with current a solid foundation of trust for the Toshiba introduction of three new business divisions, and prospective corporate customers by brand and will set the conditions for one of which will focus exclusively on retail. supporting and getting directly involved in sustainable growth in Southern Africa where The new Retail Business division is headed joint ventures. It is headed by Nelo Neves, channel partners will play a key role. by Jan Minnie and is geared to increasing while the third pillar, Channel Operations, Previously head of product strategy Toshiba’s visibility, footprint and brand headed by Jorge Da Silva, aims to make all and business development, Gargarella value by building a closer and stronger Toshiba products and services more widely was responsible for developing product partnerships with retailers. available for the end-user in order to service strategies for Toshiba CIS and Baltics, Middle The other divisions are Corporate and the demand for the Toshiba brand.
Immediate customer benefits in Walmart-Massmart merger
W page 4 McMillon adds, “As we do around Mark Lamberti (chairman), Dr Lulu the world, we will provide previously Gwagwa, Phumzile Langeni and Chris businesses through not only this fund, but underserved customers and communities Seabrooke will continue to serve on the also within the greater Massmart supply with better prices and increased access to Massmart board as independent non- chain. the products they want and need. executive directors, as will Massmart CEO “Massmart intends to leverage "Both Massmart and Walmart remain Grant Pattison and CFO Guy Hayward, in Walmart’s global expertise in working committed to partnering with the their capacity as executive directors. directly with local farmers to encourage South African government as well as all Walmart is entitled to nominate the the cultivation of safe, high-quality fresh key stakeholders, and we stand by our chairman plus three non-executive produce,” says Pattison. “This will assist stated commitment to encourage other directors to the board. These are Walmart existing, as well as emerging farmers to international companies to invest in International representatives Doug deliver consistent fresh produce to our Africa’s vibrant economy.” McMillon (president and CEO), Jeffery stores, while enhancing the net incomes Davis (senior vice-president finance of the local farmers through better Board changes and treasury) and JP Suarez (senior operating and logistical practices. The finalisation of the merger with vice-president international business "This will go some way toward Walmart has resulted in changes to the development). strengthening the country’s industries and board, which will comprise nine directors, Dods Brand, Kuseni Dlamini, Jim will also result in the selected businesses including four independent non-executive Hodkinson, Nigel Mathews, Peter Maw being more internationally competitive." directors, three non-executive directors and Dawn Mokhobo have resigned from Walmart International CEO, Doug and two executive directors. the board.
6 Home Goods Retailer – July 2011 Newsline
Du Noon school receives boost from Eurolux
Lighting supplier Eurolux has partnered painting of the mural. It incorporates with Sophakama Primary School in Du the ideas and artwork of the children, Noon outside Cape Town to provide providing them with a sense of pride new lighting, paving and a collaborative and uplifting the building’s aesthetics. mural at a recent activation day. Tree planting social enterprise, The school of 1200 pupils suffered Greenpop, co-coordinated the day with xenephobic attacks in 2003 and was in Eurolux and kicked off proceedings with dire need of an upgrade. The lighting a talk on sustainable living, explaining company also supplied and planted how each person can make small 65 indigenous and 25 fruit trees at the changes to protect the planet for future school, with the help of the learners and generations. teachers. Lauren O’Donnell from Greenpop This is the first phase of an ongoing says, “It’s amazing to see such project which will see Eurolux install commitment from a company like fans, provide playground equipment Eurolux to do good work and give back and renovate some of the class rooms. A Sophakama Primary School pupil helps in every way they can. “Due to the widespread need in paint the new mural, part of Eurolux's recent "In spring they plan to install fans in many schools, we feel it is vital that upgrade activities for the school. the prefabs and the hall and bring in corporates come alongside schools new playground equipment, benches and other educational centres to help and a water fountain. provide in their needs and see their provided them with new ballasts and "The relationship that has grown children benefit from a wholesome tubes for future use. between Eurolux and Sophakama learning environment,” comments Sustainability was one of Eurolux’s Primary is inspirational.” brand manager and project coordinator major concerns and it involved the Wex adds “With Eurolux staff, Andrew Wex. pupils, teachers and even community supportive retailers, Greenpop and the A lighting analysis done by the members in most of the activities. local community coming together, the company revealed that much of the “They were so excited to participate planting of close to 100 trees symbolises existing infrastructure in the school and we believe this helps them take growth and a shift in mindset to care could be retained, although there were greater ownership of the project and for and protect our environment and obvious lighting needs. their future as a whole,” says Wex. community, preserving it for future Eurolux replaced seven pole Eurolux reached out to its top retailers generations. floodlights with 85Watt CFLs, which in the Western Cape to form part of the "The coming together of these offer a wide beam perfect for perimeter day and come and see firsthand how parties, working together for a cause lighting. Several bulkheads were also their involvement can change lives. that is greater than the sum of its parts, in need of replacing and as the school The school’s environmental class was is merely a foretaste of things to come," already used fluorescent tubes, Eurolux especially hands on when it came to the he concludes.
Unilever recognised as 'number one' by graduates
The annual South African Graduate techniques, factors which influence says Unilever South Africa human Recruiters Association (SAGRA) survey has application and offer acceptance resources vice-president Antoinette seen Unilever voted as the number one decisions, and future plans of candidates. Irvine. "We are developing a performance graduate employer in the FMCG sector As part of the survey, Unilever also culture to attract and retain the best and fourth overall aspirational employer. featured on the list of top ten best people, build world-class capability and The SAGRA survey is conducted recruitment process, top ten for the deliver our business goals. Unilever offers among 1562 new or future employees best graduate recruitment brochure, top world-class development opportunities from 81 organisations and is based ten for the best graduate recruitment in a fast-paced, challenging work on the graduate recruitment activities website, and top ten for the best environment." conducted the previous year (2010). integrated graduate recruitment The company will be visiting campuses The survey is done by an independent campaign. around the country from July to look for organisation and the criteria include "People are at the very heart of our young talent as part of its 2011 graduate candidate's applications, job hunting business and the reason for our success," recruitment programme.
Home Goods Retailer – July 2011 7 Newsline
Benefits to consumer legislation
Marketers should embrace new laws such as the Consumer Protection Act (CPA) as an opportunity to bring best practices to their email marketing campaigns, rather than fighting or resenting them, declares TouchBasePro marketing director Cordell Brewer. "The experience of other industries across the world and over the years shows that increased regulation leads to more mature and effective business practices that benefit companies as much as consumers. Companies become more successful when they embrace laws and good practices that are meant to protect consumers. This will be true in email marketing, too, because the regulation and discouragement of unwanted or unsolicited commercial mailing will work in the favour of legitimate marketers." Brewer says that marketers who embrace best practices already follow an opt-in permission based direct marketing because they understand that the less spam there is, the less clutter and annoyance their customers have to deal with. "Clients will be more likely to opt-in for marketing emails if they believe their data will not be sold on to spammers and that they will be able to opt out whenever they want to. "Additionally, bulk mailers that do not send emails to people who don't want them or never asked for them have better relationships with ISPs (internet service providers) and email services. This means their legitimate mails are reported as spam less often and have a better chance of getting through spam filters to the users inbox." The most significant change to email marketing regulation introduced by the CPA is the mandatory compliance with an official "do not contact" list that will pre-emptively block direct marketing to consumers who put their names on the list, Brewer continues. Also significant is the CPA's tighter standards for data collection, which make it mandatory to receive active (rather than passive) opt-in permission from consumers. "There is a need to differentiate between email subscription services (such as news and finance update subscriptions) and direct email marketing. Email subscription services that do not fall within the CPA's definition of 'promotion' are not subject to regulations for direct email marketing under the CPA. "The lines between the two may not always be that clear," Brewer adds. "Another grey area is whether it is acceptable to attach marketing information to electronic bills for customers who have opted out of marketing emails." Where companies have doubts, Brewer says the rules they should apply include 'don't annoy the customer' and 'ask permission rather than forgiveness'. "Email marketing is not just about getting your product offers in front of the consumer's eyeballs. It also important to provide a brand interaction that consumer's value and enjoy. That means avoiding any practices that will lead to spam complaints." He recommends asking all customers to opt-in before sending communications. "Data sourced from list brokers must be thoroughly audited to ensure that one has permission to send commercial mail to consumers on the database. To conform to the Act, companies should provide consumers on an email database with an easy-to-use opt-out mechanism that reliably removes them from all direct communication channels and databases."
8 Home Goods Retailer – July 2011 Newsline
Calgan Lounge competes rand-for-rand with imported products
In the heart of Johannesburg lies a they are in quality. back-up services to all its customers. business that, over the past 15 years, In its first years of business Calgan This kind of efficiency is an integral has been stealing the hearts of South Lounge became widely known in the part of the Calgan Lounge business Africans looking for high quality and furniture industry as the experts in and is driven by some very innovative high fashion lounge suites. And if recent high quality fabric lounge suites. But thinking by the leadership. developments are anything to go by, in staying true to its philosophy of A case in point is the decision to the business is set to steal many more. putting the customer’s needs and tastes operate its factories on a just-in-time The vision is simple – every lounge first, Calgan started producing motion (JIT) principle, which describes an suite designed and produced by Calgan lounge suites with just as much success. operation where exactly the right Lounge is destined to nobly serve as Today it’s in the process of branching materials and quantity are delivered for thrones to the kings and queens who out into various new ranges that include a process right before it is set to begin. proudly purchase them. more than eight different “click-clack” This is done to minimise the need This passion for truly understanding sleeper couches. for storage space and leads to a its customers’ needs and then delivering dramatic improvement in time and cost on these in the products it produces are Competitive pricing efficiency, which reflects in the Calgan just some of the factors that have led As a South African-based manufacturer, customers’ bottom line. Calgan Lounge to its success. Calgan Lounge not only supports local But the real proof of the Calgan For Calgan Lounge, customer industry, but is also uniquely positioned Lounge magic lies in the reputation satisfaction begins long before the to offer highly competitive pricing on its it has managed to build up during its crafted lounge suite is delivered to its products. In fact, the company is able to relatively short existence. new home. compete rand-for-rand with imported Today it produces furniture for big It starts when only the highest quality products. retail groups such as the JD Group, materials are sourced from the most As a business with local roots, Calgan Ellerines, House & Home and many reputable suppliers. offers its customers even greater more. Then, close consultation and benefits. More importantly, as it continues to cooperation with some of the industry’s Time and money isn’t lost in the often build on its success, Calgan Lounge is leading merchandisers help ensure that very frustrating and very lengthy import set to become exactly what its new logo the Calgan Lounge designers create process and Calgan also offers highly suggests and wear the crown of local pieces that are as high in popularity as efficient distribution, delivery, as well as furniture industry.
New distribution agreement includes retail sector
Tudortech, which already holds South our active regional expansion," explains The timing of this appointment African representation for established Belkin national account manager MEA coincides with the strategic brands such as SanDisk, Olympus, Sigma Andrew Pepperell. announcement of its global licensing and Leica, has added Belkin, a global "The key components to partnering agreement for Samsung accessories in leader in connectivity solutions, to its with the company are based on its solid the smart phone and tablet categories. portfolio. The partnership is aimed to experience and successful history in the further strengthen the product's footprint country, good channel presence and Optimistic about growth within the South African market. relationships in both the retail and SMB Belkin is very positive about the South Tudortech will be distributing the sector. African market and is optimistic in full line of Belkin's products and will be "Furthermore, its effective logistics achieving further growth in 2011 and responsible for covering all verticals, solutions and a team that understands beyond, as the market has a lot of including retail and small and medium- the South African market well adds great opportunities for it to leverage and build sized business, corporate channels, as value to our business." upon, being the market with the biggest well as other sectors where its product IT spend in Southern Africa. are pertinent. As an established name, Expansion plans It will continue to invest in expanding it currently delivers products to over The partnership with Tudortech is part its business in South Africa, through 4500 customers in the retail, IT and of Belkin's regional expansion plan to marketing, channel development, telecommunication channels. develop its local distribution into the growing its product offerings to "We are looking forward to working southern African market, which is a key consumers and introducing an extensive closely with Tudortech to further support market for Belkin in the MEA region. range of new products.
Home Goods Retailer – July 2011 9 Newsline International
3DTV not expected to be UK mainstream success
LONDON, UK: Despite a major push from sets with one in three households in the a technically superior product (with 3D UK broadcasters, 3DTV is not expected to UK owning a TV set with 3D capabilities included). The result is that an increasing be a mainstream success. by 2016. However, this growth is being proportion of TV sets are having 3D A new report from Informa Telecoms driven by a change in strategy among capability built into them. But instead of a & Media forecasts that fewer than half of consumer electronics (CE) companies. USP, 3D is now often marketed as just one the 11 million 3DTV-ready homes in the At launch, 3D was marketed as the of the set's benefits – along with features UK in 2016 will be active and regular users "next big thing" for the mainstream such as Internet-connection capability of 3DTV content. Last year, almost 90 per TV viewing experience – the natural and LED backlighting," Thomas continues. cent of homes with 3D-ready sets were successor to HDTV. So, with mainstream "active" users. adoption becoming a much harder Short-term impact will be limited This much higher proportion results The Informa view remains that the from early adopters being significantly short-term impact will be limited, but more likely to sign up for 3D content 3DTV-capable sets will have long-term services, coupled with operators making “3DTV is less mass market penetration, driven by content available free to build some scale. of an enhancement major CE manufacturers embedding the As 3D becomes a "default" technology and more a new type of technology in the majority of their sets. embedded into more and more sets However, we anticipate that use of the 3D as standard, it will reach consumers viewing experience” capability will be limited in homes, often who are not particularly interested restricted to major events where a 3D in the technology and so the "active" viewing experience will be sought for its percentage will fall. sell, the emphasis has changed to a novelty value. "3DTV has the backing of the major UK future-proofing strategy. By depicting "We do not share the view that 3D broadcasters like Sky and Virgin, and most 3D as the cutting edge of technology, represents the obvious next evolutionary recently the BBC announced its plans to CE manufacturers can use it to attract step for TV, in the same way that colour show the Wimbledon final in 3D for the TV set buyers by convincing them that followed black and white, or HD is first time. Despite this, however, public a compelling 3D environment will following SD. A case can be made reaction has been mixed – due to both a eventually be in place, so they should that colour and HD offer noticeable lack of content and a simple failure of the equip themselves for it now. enhancements to the technologies that public to engage with what is, essentially, "Irrespective of existing public demand preceded them. But 3DTV is less of an a new type of viewing experience," for 3D, major set manufacturers (Samsung, enhancement and rather more a new comments Global 3DTV Forecasts senior LG, Panasonic and others) increasingly type of viewing experience – one that analyst Adam Thomas see 3D capability as a feature they must many people will enjoy, but some way There will, however, be significant include in their sets, or the perception will from becoming ubiquitous," concludes growth in the penetration of 3D-ready be that rival manufacturers are producing Thomas.
Cash is king when it comes to credit card incentives
CHICAGO, US: Competition is always fierce card, has been popular in the competitive Despite the growth of cash, miles and in the credit card industry, and these days cash back card segment," says Mintel points are still the most popular incentive issuers are sweetening incentives to grab Comperemedia senior vice-president – 25 per cent of offers during January-April consumers' attention in an increasingly Andrew Davidson. "However, we are now 2011 lured potential customers with bonus crowded mailbox. seeing cash used as an additional incentive miles or points. According to Mintel Comperemedia, for some mileage cards, as well as cards "It is getting to the point where, in some cash in particular is becoming the without rewards." cases, the incentive is so attractive that enticement of choice, as 23 per cent of consumers may as well apply for a card credit card offers in January-April 2011 Additional incentive to cash in on its incentive regardless of included an additional cash incentive, Fifty nine per cent of offers for new credit whether they have any serious intent to use compared to just one per cent during the cards in the first four months of the the card in the long term," notes Davidson. same period in 2007. year promoted some form of additional "The challenge for issuers will be getting "An additional cash incentive, usually incentive to encourage potential applicants these incentive-driven switchers to change triggered upon first purchase or once a to sign up for a card, compared to 30 per their spending behaviour and become loyal cardholder spends a specific amount on the cent during the same period in 2007. cardholders."
10 Home Goods Retailer – July 2011 Newsline International
Electrolux to increase prices of appliances
STOCKHOLM, SWEDEN: Electrolux plans October. Implementation of the price to increase prices for appliances in the increases will be managed through European market by five to seven per close contact with customers. cent in October. The price increases will offset increasing costs for raw materials New major appliances head and transportation. Jack Truonghas been appointed new Over the past 18 months, the average president and CEO of Electrolux major costs for some of Electrolux's most appliances North America and executive important raw materials have increased vice-president of AB Electrolux, by between 40 and 90 per cent, while succeeding Kevin Scott, who will leave costs for transportation have also Electrolux after eight years with the increased significantly. The trend is company. now stabilising, but there are no signs Truong will report to Electrolux of a broad-based major downward president and CEO Keith McLoughlin correction towards the prior cost levels. and be a member of group During the same period, Electrolux has management. Truong previously held experienced increased price pressure the position of vice-president and in the market, which accelerated in the general manager, global construction first part of 2011. and home improvement division of 3M. As a part of the work to achieve "We are pleased to welcome Jack sustainable profitability, while Truong to Electrolux," says McLoughlin. Jack Truong – new major appliances CEO. continuing to invest in consumer "At 3M he demonstrated the ability preferred and sustainable innovations, to accelerate growth by applying strategy. Electrolux is aiming for a price increase innovative technologies and marketing "We also want to thank Kevin Scott of five to seven per cent across all to meet the ever-changing consumers' for his important contributions to product categories effective as of 1 needs. His experience and track record Electrolux. will be crucial in helping to ensure our "He has strengthened our business long-term growth with an intense focus and our team in North America, and has Samsung seeks on strong brands, high-impact new successfully pursued our efforts to more products and cost efficiency – all of effectively operate as a single company ban against which are key elements of the Electrolux within the region." Apple products Something on your mind? Samsung is asking the US to prohibit Apple from importing key products, Post your comments on our interactive website including the latest iPhone and iPad devices, amid an escalating patent dispute. Samsung says it filed a complaint with the US International Trade Commission over what it claims are Apple's violation of five patents held by Samsung. Many of Apple's products are assembled outside the US. Samsung says it is seeking a “permanent exclusion order prohibiting entry to the EJM US of all Apple products in violation of these patents.” Apple Inc. spokesman Steve Park in Seoul declined to comment. Apple sued Samsung in the US in April alleging patent violations; Samsung has facebook.com/homegoodsretailer twitter.com/@hgrmagazine responded with its own lawsuits against Apple.
Home Goods Retailer – July 2011 11 Newsline International
American consumer spending stagnates to weakest level
American consumer spending in May was at its weakest pace in 20 months, according to figures released by the US Department of Commerce. Spending was unchanged in May for the first time since August 2009, and when increased for inflation, spending dropped 0.1 per cent. April’s consumer spending figures were revised to show a similar 0.1 per cent drop in spending; the two months marked the first inflation-adjusted declines in spending since January 2010. Many economists theorised that high gas prices and the nation’s 9.1 per cent unemployment rate are to blame for the lack of spending growth. The numbers reflect what was reported in the Consumer Reports Index, which showed that spending has been stagnant spending was down in May for more affluent New York Times. and unemployment has remained high for ($100 000 or more yearly) or middle-income Economists feel that consumer spending many lower-income American households. ($50-$100 000 yearly) American households. should increase in the second half of the Those households ($50 000 or less in yearly Lower consumer spending hurts the year because gas prices have declined since income) account for nearly 50 per cent of economy overall because consumer reaching a high of about $4 per gallon the country. spending accounts for about 70 per cent of nationally in early May. The Index also found that consumer the American economy, according to The Source: Consumer Reports
The evolution of social media in retail
LONDON, UK: Many retailers are result, retailers have the ability to create by blogs, YouTube clips, music tour dates overlooking the huge potential of retail theatre online." and Facebook and Twitter pages. The transforming their online stores into The research highlights how effective link to the online shop is given lower entertainment destinations by integrating social media could be for online stores priority than tabs for information pages. social media, finds Verdict. in helping to shape brand identity. For However, the retailer has benefited A new report by the independent retail example, simply embedding YouTube from the addition of social media as analyst has revealed that although e- videos of product launches, and customers spend longer on the site, and commerce and social media are separate interviews with designers and celebrities brand engagement has increased, as has entities for retailers, those that recognise could emphasise brand identity and boost consumers' likelihood of purchasing. the potential of combining the two will customer engagement as they would help Woods continues: "Retailers across all reap the rewards. consumers to identify with the retailer on sectors should not underestimate the Verdict analyst Charlotte Woods says: a personal level. potential of creating online retail channels "Most retailers have recognised the dedicated primarily to entertainment. The value of social media, but very few have Using online to best effect concept would work particularly well for realised its potential to benefit their online One retailer that exemplifies the extent entertainment retailers, which could use stores. By viewing and running the two to which retailers can use social media to interviews with authors and actors in the operations separately, retailers simply turn their online stores into entertainment content of their homepage. aren't realising the full power of social destinations is RVCA. The clothing "This sort of strategy will become media. company, which is based in the US and increasingly important as competition "Retailers have the ability to attract owned by the Australian brand Billabong, continues to grow. Retailers will therefore increased levels of traffic to their online uses social media on its website to enforce have to work harder to engage customers, stores by using social media to create a lifestyle with which consumers can and integrating social media with their entertainment destinations which identify. online stores could prove lucrative to consumers can get excited about. As a The website's front page is dominated those that get on the front foot."
12 Home Goods Retailer – July 2011 Talking Points How online reputation drives your business
Your online reputation – what customers and other stakeholders are saying about your company on the social web – has a real and measurable impact on your business.
That's the word from Acceleration Media your social media strategy. CEO Tony Sousa. He says that online Companies need to put ORM reputation can affect a range of key tools and strategies in place if they performance indicators for a business by are to stay on top of the sheer influencing the behaviour of its customers, volume of conversations about their business partners and shareholders. brands in social media channels, "Your online reputation can affect your Sousa says. sales, brand and even your share price," "ORM starts off with listening to says Sousa. "By proactively managing what customers say, he explains. "This your online reputation, you can often can provide a wealth of information that drive better outcomes for your business. can inform your business strategy even may even be Online reputation management (ORM) before you begin to participate in the opportunities to subtly needs to be seen as an important part conversation. If there is a problem with drive sales." your logistics and customers are receiving Acceleration Media managing director deliveries late, they'll probably complain Diane Charton adds that measurement is about it on Hello Peter. If they love your as important a part of social media as it “People discuss brands new ad, or (especially) if they hate it, is of any other online campaign strategy. and products online, they'll say so on Twitter. "Although many companies recognise whether businesses want "You can gather a wealth of information the importance of engaging with their about what your customers like and customers using social media, few of them them to or not” don't like and what they think about your are measuring the impact of their social company and your competitors, simply by media strategies." listening to the online grapevine," Sousa With ORM tools, marketers can analyse of any company's brand and reputation continues. "With the right tools in place, the buzz about their companies and management mix." you can analyse the data and uncover its products, issues, competitors, as Sousa says that people discuss brands trends that can guide your strategic well as outcomes of specific marketing and products online, whether businesses thinking into the future. campaigns and social media investments. want them to or not. "Although you "The real power of ORM is unleashed This empowers marketers to keep refining cannot stop people from discussing your once you begin to interact with your their social media strategies so that they brand on Facebook, Twitter, web forums, customers. For example, if an influential drive the business outcomes they want. blogs and news sites comments, you can Twitter user with thousands of followers Charton says that measurement needs monitor and influence the conversation." tweets a complaint about your customer to be tied to clearly defined business This is where ORM has a valuable role service, you can jump in and help. Or goals such as creating buzz or combating to play. ORM is all about listening to if malicious gossip is surfacing about negative perceptions. online conversations, analysing these your company, you can nip it in the bud "You can't benchmark success unless conversations, taking part in them when before it blossoms into a widespread and you have a clear idea of what you hope to appropriate and measuring the impact of damaging rumour. In certain cases, there achieve."
Home Goods Retailer – July 2011 13 Industry Captains Margaret Hirsch Retail's inspiration to women in business
Thirty years ago Margaret Hirsch helped found the Hirsch family’s mega appliance store, of which today there are 12 branches throughout KwaZulu-Natal and Gauteng, with Cape Town in the pipeline. Although Margaret has handed over the managing director's reins to her son, Richard, she is still integrally involved in all aspects of the business as operations manager.
Margaret is a champion of women’s Multiple skills called for best place in the world!” empowerment, and someone who firmly Margaret regards herself as a “jack of all Questioned on the importance of believes in giving back to the community, trades”, having done the selling, invoicing, keeping the business in the family, especially to people in less fortunate demonstrating, delivery, installation and and the greatest challenges in running situations, having been there once herself. generally taking care of everything at a family-owned business, Margaret When Margaret was 12 her father died Hirschs for the past 31 years. responds: ”I think it is very important to leaving her mother to fend for herself “We have built Hirsch’s from a tiny little keep the business in the family. We have and two small children. Margaret’s strong “mom and pop’s” store to a billion rand been offered huge amounts of money sense of survival and her positive attitude company and I hope that I will be an to sell our company, but to me it’s a way helped pull her family through the tough of life, although I do need to point out times. Having had to battle from an early that both my children worked in various age, she found that it is possible, through companies overseas and in South Africa sheer determination and a positive before joining Hirsch's. attitude, to get ahead, and now all “The greatest value "I think the greatest challenge in Hirsch’s staff members are encouraged to in life is having a running a family-owned business is to better themselves and are shown that by strong family unit” teach your children from a very young uplifting themselves they will ultimately age that they have to work really hard to uplift those around them. get ahead," she continues. "Some people Her true wealth, Margaret believes, are think they can work for a little while and her children. Both Richard and Luci are the money will keep rolling in, but it involved in the family business. inspiration to others to know that they doesn’t work that way. You have to keep “I think to bring up children today who can live their dreams as well,” she says. working every day of your life.” are good citizens, and who are going to One of Margaret’s dreams is to spend do something with their lives is the best more time at the family’s game farm in Every day is busy reward that anybody can have, and to KwaZulu-Natal. “It’s a wonderful farm The average day for Margaret starts me the greatest value in life is to have a house on 500 acres of natural indigenous at 4am when she and Allan get up to really strong family unit where you can vegetation, which is home to giraffe, meditate. work together, live together and have fun zebra, about 20 different kinds of buck “At 4:30am we leave for the gym and together,” she says. and 180 species of bird; and its just the and by 7:00am latest we are at our desks.
14 Home Goods Retailer – July 2011 Industry Captains
Margaret Hirsch (left) with her husband Allan and children Luci and Richard.
We then meet with our managers to help the next day, so its not for the faint- the construction of Hirsch’s new branch in them plan their day and or week. hearted," Margaret adds. Milnerton. At 8:00am we have a motivational Another store is also due to open meeting with all the staff. After that there Expansion continues in Gauteng next year, as well as one in are various chores that have to be done in With twelve branches and concept stores Somerset West, plus a few more concept the stores; mostly working with customers stores around the country. to make sure that our customer service "While other companies were talking remains the best in the country. “Some people think they about the recession we have grown 20 After a full day, which finishes at can work for a little while per cent year-on-year and look forward to around 6:00pm after we have cashed up continued growth," says Margaret. we usually meet with our suppliers to and the money will keep Hirsch’s are geared to go forward with discuss upcoming promotions. We do rolling in, but it doesn't the next generation moving into place. 16 shows a year and are now working work that way” “After 32 years I was delighted to hand on concept stores out of Hirsch’s and over the reigns to Richard who has been in shopping centres, so there is always with the company his whole life, starting a load of forward planning to do with spread throughout KwaZulu-Natal and at the bottom and working his way up.” suppliers. Gauteng, Hirsch’s is planning to expand Daughter Luci – the “voice of Hirsch’s” "We work right through to 11:30pm, go even further and Margaret will be heading – oversees the marketing and advertising to bed at midnight and get up at 4:00am off to the Cape later this year to oversee department.
NEWS FLASH At the time of going to press Margaret Hirsch had proceeded to the finals of South Africa's Most Influential Women in Business and Government competition,
)PNF(PPET3FUBJMFS after winning the Retail and Wholesale category.
Home Goods Retailer – July 2011 15 WHO CAN RESIST A COOL ITALIAN? Air Conditioning at it’s best
De’Longhi, a leading name in the household appliance market, is a world leader in portable air conditioning. De’Longhi offers innovative products, conceived with avant- garde criteria and made to the highest possible standards.
De’Longhi air conditioning units bring a breath of fresh air into the home to create a healthy living environment for the whole family.
De’Longhi’s Pinguino air-to-air portable air conditioner, Model PAC N125 HP, (pictured) is the perfect appliance to provide the desired climate anywhere it is needed.
The Pinguino guarantees the maximum in terms of comfort and energy saving, thanks to its efficiency, silent operation and low power consumption. It refreshes, dehumidifies, purifies the air and, with its fresh, innovative design, it compliments the home. The Pinguino is eco-friendly due to the use of the latest generation of refrigerant gas (R410A). The air conditioner respects the environment while ensuring user comfort.
Thanks to the inclusion of a special ‘heat pump’, the Pinguino can also be used for heating, with a capacity of 11 500 BTU/h. It’s the unit that provides complete climate control in the home.
Special features include a remote control that allows easy setting of all the functions, a cooling capacity of 12,500BTU/h, three fan speeds, fan only function, dehumidifying only function, exclusive condensate recirculation system, LED control panel, digital timer and thermostat, and handles and castors for easy moving of the unit.
Keep your cool this summer with De’Longhi.
For more information about the complete range of De’Longhi cooling appliances and dehumidifiers, phone 011 474 0153 and speak to the De’Longhi Brand Manager. Domestic Cooling
Eurolux ceiling fans to transform any room
Besides adding character to a room, control and offers a three-speed function, says Bouchier, “as it is the size of the fan ceiling fans are a great way to keep cooler together with a forward and reverse motor and the blade surface area that in summer and warmer in the winter. motion. makes the biggest difference.” Eurolux’s latest range of ceiling fans has a Bouchier explains that ceiling fans are The three-speed Turbo comes in a black fan to suit every taste and requirement. designed to circulate air with a downdraft, gloss finish with black blades or white yet they can also be set to create an gloss with white blades, and also features Swirl upward circulation. “The reverse motion a forward and reverse switch. This fan, The Swirl ceiling fan is available in a on the fan must be selected to achieve ideally suited for smaller rooms, favours a stylish antique brass or satin chrome this effect, which allows the updraft to more traditional décor style with its pull finish with three blades featuring a aid the heating of the room. The premise string switches. It is also available in a cherry wood finish on the one side and a is that it pulls cool air up to the ceiling, satin chrome finish with maple or cherry maple wood finish on the other – simply where most of the heated air settles, and wood finish blades. A remote control is turn the blades over to change the fan’s then sends warmer air down into the available on request. appearance. room along the outer walls. The fan must Eurolux director Shaun Bouchier says spin very slowly so as not to create a Twister contrasting or reversible ceiling fan blades chilling breeze.” The Eurolux Twister ceiling fan offers a are an innovative addition to ceiling fan The Swirl is also available in white or satin chrome finish with four black and blade design. satin chrome with reversible silver and silver reversible blades. Again, the warmer “The two different finishes on either black blades. cherry or maple wood finish is available as side of the blade add to the glamour reversible blades. This fan also has three quotient of the interior and allow for Turbo speeds, a forward and reverse motion and far greater versatility than the standard The Eurolux Turbo features six blades. “It comes with a remote control. single-tone blades.” is often assumed that more blades move All three models include a light fitting The Swirl fan comes with a remote more air, but this is not always the case,” with a maximum 60-Watt globe.
The Eurolux Twister in silver.
The Eurolux Turbo in wood and brass.
The Eurolux Turbo in black. The Eurolux Swirl in silver.
Home Goods Retailer – July 2011 17 Market Review
Domestic Refrigeration Electrical cooling is defi ned as insulated appliances that prolong the life of food by keeping it at or below 0oC, and includes boxes, refrigerators, combination refrigerator-freezers and combination refrigerators-wine cabinets. Excluded are wine cabinets, combinations freezer-wine cabinets, bottle coolers, portable cooling boxes and commercial units. Sales hold steady as refrigeration
The refrigeration market made a steady start to the year. Year-to-date figures for January to May 2011 show a two per cent increase in unit sales and a three per cent drop in sales value, compared to the same period last year. However, May 2011 sales have been the weakest when compared to the last 18 months, putting this category under some pressure. Average prices for January to May 2011 have dropped by five per cent, compared to the same period last year, making products more affordable to the consumer.
Consumer spend within channels in the last five months from a units to May, accounting for 35 per cent of sales. The middle and upper share perspective has seen the furniture specialist channel losing price classes from R4000 to > R8000 remained fairly consistent, share by three percentage points, from 48 per cent in January to 45 together accounting for 29 per cent in unit sales. per cent in May, but still dominating the distribution standings by a small margin. Two-doors dominate The electro retailers channel, on the other hand, has remained Refrigerators are broken down into side-by-side, two-door top fairly consistent over the last five months, making up 12 per cent in freezers, two-door bottom freezers, single-door units and bar fridges. unit sales in the current reporting period. Mass merchandisers lost The two-door bottom freezer units continued to dominate sales, ground to the furniture specialists channel in January, but have since making up well over 55 per cent of total unit sales. They remained made steady gains, currently making up 43 per cent in unit sales the consistent over the last five months, making up 56 per cent in unit. current reporting period. Sales of top freezer models were strong during the first two months of 2011, but slipped back by three percentage points to Pricing stable make up 17 per cent in unit sales in May. Pricing structure of the refrigeration market remained fairly stable Sales of side-by-side models had a slow start to the year, but between January and May. The lower price classes from R1000 to made steady gains over the last five months, making up four The furniture specialists channel continued to dominate the While sales for January to May 2011 increased by two per cent, value distribution standings, albeit by a small margin. declined by three per cent during the same period. 18 Home Goods Retailer – July 2011 Market Review appliances become more affordable Two-door bottom freezer units continued to dominate sales. Among the key selling features for retailers are frost-free units. a strong start to the year, making up nine per cent in unit sales in January, then dropping by two percentage points to make up seven per cent in unit sales in the current reporting period. Frost-free market stable Among the key selling features for retailers are frost-free units. The frost-free segment of the market remained stable over the last five months, with frost-free models representing 22 per cent in unit sales and 41 per cent in value in. Manufacturers and retailers have been increasing their product assortment, introducing more models with a frost-free feature. The South African economy is currently in a stable condition, although year-to-date sales for major appliances for January to May 2011 are up marginally by one per cent in units and down four per cent in value. It seems that sales for major appliances have not taken off as well as anticipated, as consumer confidence has not increased significantly. With refrigerator models dropping in price and becoming more affordable sales should improve, as consumers may be delaying their purchases and replacements until the hotter summer months when refrigerators are more frequently used. Pricing remained fairly stable between January and May. GfK tracks the sales of consumer durables through monthly retail audits done on model level. This audit is carried out across all relevant channels of distribution. GfK currently tracks and reports on over 60 product categories within the consumer electronics, domestic appliances, telecoms, IT, DIY and gaming markets. Home Goods Retailer – July 2011 19 Fridges & Freezers 20 Home Goods Retailer – July 2011 SENSING THE DIFFERENCE Publicis JHB 7709 Fridges & Freezers New affordable luxury fridge from KIC The Water-on-Tap fridge is a new and welcome addition to the KIC cooling range. The three-llitre water tank, housed on the inside of the door, makes for fewer refills and a regular supply of crisply chilled water. The innovative refillable lid allows for easy refilling without having to empty and remove the door shelf. The sleek design of the water tank does not decrease the space utilisation of the fridge door, as one would expect. With the angular design of the dispensing unit, glasses of all shapes and sizes are easily filled. All-in-all, the KIC Water-on-Tap fridge offers more value for money and is definitely an affordable luxury. The KIC KB 6035/2 ME WATER www.commercialinteriors.co.za 22 Home Goods Retailer – July 2011 Fridges & Freezers Comprehensive range of refrigerators from Defy DEFY’S COMPREHENSIVE RANGE removable safety glass shelves fronts, whilst the L300 refrigerator consists of the DEFY ECO and and adjustable levelling feet features sealed crispers and DEFY ranges, comprising of single removable safety glass shelves. door, double door, combination ‘NO FROST’ MODELS and side by side models, larger The two Combination models; FOUR STAR FREEZER MODELS refrigerator, upright freezers C375 and C360 are “no frost” The three combination models; and chest freezers. All Defy with a wine rack, and twin C365; C315 and C260 offer a fast refrigerator / freezers are CFC sealed crispers. The C360 freeze compartment. The C365 free and have four star ratings. features a water dispenser. The comes with a wine rack and twin C375 also features a Eco fuzzy sealed crispers. THE DEFY ECO RANGE feature, refrigerator odour filter All models are stylishly designed and refrigerator and freezer THE DEFY RANGE – and ‘A’ Energy rated. Further temperature display. NO FROST OPTION features; fast freeze, reversible The F600 side by side comes in a doors, concealed ice tray shelf, MATCHING PAIR F300/L300 beautiful mirror glass finish with dairy compartment, interior light The F300 has a fast freeze option, nano silver technology, built-in alarm light and freezer basket ice-maker, water dispenser and 24 Home Goods Retailer – July 2011 Fridges & Freezers All Defy products come with the two year guarantee, and nationwide after sales service is a local call away. For further info visit www.defy.co.za mini bar. Further features include digital LCD display, electronic control with fuzzy logic, silent/ sleep mode, cold storage drawer with variable control, folding wine bottle holder and antibiotic deodorizer. FROST FREE OPTION The F640 side by side frost free, with electronic control, air flow technology, a fast freeze feature, alarm light and multiple interior function control is available in white or metallic finish, and boasts attractive door furniture. It fits flush with 600mm cupboard configurations. SPACE SAVING CONVENIENCE The range of “4 star freezer” double doors includes the D225, D240 and D260 all offering space saving convenience coupled with the latest design. The combination line up consists of six models, from the C250 to the C380. MATCHING PAIR The F350 and L350 matching pair is the ideal frost free options in this category, with the single door configuration and attractive door furniture, available in white or metallic finish. CHEST FREEZERS Defy offers six model chest freezers ranging from 130 litres to 530 litres, with a multi-function variable thermostat, a four star freezer, on/off indicator light and vinyl covered work top lid. A commercial option with glass flat tops or slanted tops are available in the C420 / 530 litres sizes upon request. Home Goods Retailer – July 2011 25 zŽur Ĩreenjer is LJŽur ƉiggLJ ďĂnŬ͊ WŽlLJureƚŚĂne insulĂƟŽn ĨŽr eĸĐienƚ ĐŽld ĐŚĂin ʹ energLJ ďĂlĂnĐe ŽĨ ϭϲ͗ϭ ‘Minus 20 degrees Celsius’ that is the temperature that polyurethane not only improǀes the energy balance a frozen pizza must not exceed before it makes its way but also reduces KϮ emissions. into the consumer’s freezer. A polyurethane rigid-foam insulaƟon system made by A^& Wolyurethanes is an dŚree Wh grĂdes ĨŽr ƚŚe ĐŽld ĐŚĂin integral part of this logisƟcal ͞cooling feat͟. ,oweǀer /n basic terms, the beƩer the insulaƟon properƟes, the the polyurethane does not only haǀe to be an eīecƟǀe less energy has to be consumed for the actual cooling. insulator, it also has to be sustainable when it comes to Various polyurethane systems are currently used for energy and material consumpƟon. diīerent insulaƟon applicaƟons. A^& Wolyurethanes has three innoǀaƟǀe system groups in its porƞolio͗ Wolyurethane technical experts from >emfƂrde haǀe Elastocool®, Elastopir® and Elastopor®. Thanks to a conducted an co- ĸciency Analysis to compare polyurethane insulaƟon system for applicaƟon and the eīect of using insulaƟng materials of diīerent eĸciency͗ thicknesses in freezer warehouses or freezer trucks ͻ Elastocool for refrigerators and freezers, in which frozen pizza is stored or transported. The ͻ Elastopir for refrigerated warehouses and cold- Įndings indicate that if all storage faciliƟes, freezer storage cells, and chests and transport ǀehicles were insulated with ͻ Elastopor for freezer chests, truck trailers and polyurethane rigid foam of an opƟmized insulaƟng transportaƟon boxes, the energy and raw material thickness, then ϭϲ Ɵmes more energy could be saǀed consumpƟon as well as the emissions can be than used in the producƟon of the insulaƟng material. considerably reduced. ĐŽͲ ĸĐienĐLJ nĂlLJsis ŽĨ ƚŚe ĐŽld ĐŚĂin The polyurethane rigid-foam insulaƟ on’s greatest A^& started working with consultancy Zoland erger aƩribute is its ǀery low thermal conducƟǀity due to the in ϭϵϵϲ to deǀelop the co- ĸciency Analysis. /t is a combinaƟon of a Įne, closed-cell foam structure and comparaƟǀe instrument that yields a holisƟc eǀaluaƟon heat-insulaƟng cell gases. /t’s low thermal conducƟǀity of products and processes by looking at the enƟre and good physical properƟes such as lower densiƟes, life cycle of a giǀen obũect. hsing this tool, A^& makes polyurethane the preferred insulaƟon material Wolyurethanes’ specialists from >emfƂrde together in the cold chain. with the Pko-/nsƟtut ;/nsƟtute for Applied cologyͿ in &reiburg, 'ermany, haǀe examined the eco-balance of CleĂrͲĐuƚ energLJ sĂǀings ǁiƚŚ Ă ƚŚiĐŬer insulĂƟŽn the cold chain. lĂLJer This energy balance, inŇuenced only by the The cold chain starts when a freshly made pizza is polyurethane insulaƟon, not only aīects the monthly Ƌuick-frozen and subseƋuently deep-frozen. /t goes to energy costs but also has a sustained impact on the the freezer warehouse, traǀels in the freezer truck, is carbon dioxide emissions. This translates into a saǀing put into the freezer chest of the supermarket and then of ϭϱ percent. thereas a freezer with a ϱϬmm thick into the freezer of the Įnal consumer. Kn aǀerage, the insulaƟon layer emits Ϯϯkg of KϮ in seǀen days, the ũourney of a complete pallet of frozen food takes ϳϱ model with ϲϬmm thick insulaƟon emits only ϭϱ.ϱkg days from the warehouse to the household freezer. /f of KϮ oǀer the same period of Ɵme. These Įgures the latest generaƟon of polyurethane insulaƟon already include the producƟon and the disposal of material made by A^& Wolyurethanes is used the polyurethane rigid foam. ^imultaneously, ;in opƟmal thicknessͿ in all of the cooling more than ϭϱ percent of polyurethane segments, the analysis shows that, aŌer ;which are fossil fuelsͿ can be saǀed during this short period of Ɵme, ϭϲ Ɵmes more the producƟon of the insulaƟng material. energy is saǀed than the amount used in Consequently, consumers who own freezers the producƟon of the insulaƟng material. At with ϲϬmm insulaƟon can see a huge saǀing the same Ɵme, modern insulaƟon made of on their energy bills. ^& WŽlLJureƚŚĂnes ^ŽuƚŚ ĨriĐĂ deleĨĂdž͗ н2ϳ ϴϲ ϲϲϵͲϳϭϴϳ ͲMĂil͗ enƋuiriesͲƉuͲnjĂΛďĂsĨ͘ĐŽŵ ǁǁǁ͘Ɖu͘ďĂsĨ͘eu Fridges & Freezers Miele redefines cool with MasterCool range Miele’s MasterCool refrigeration and wine storage appliances are designed to exceed the expectations of the discerning consumer. “The MasterCool range offers unique solutions to preserve food and wine easily and safely, without sacrificing freshness or texture,” explains Miele product manager Liam Gawne. The MasterCool range comprises refrigerators, freezers, fridge-freezers and wine conditioning units. Gawne says that these appliances are crafted using only the highest quality materials, cutting-edge cooling technology and Miele’s proprietary electronics to create top-end products designed to last. “In every aspect, from the high performing dual cooling system to the intuitive TouchControl operating system, the exceptional energy efficiency, outstanding aesthetic design and the simple installation, Miele’s legendary reliability is apparent, giving peace of mind that food and valuable wines are protected,” he says. Food-driven menu system One of the most revolutionary aspects of Miele’s MasterCool F1811 Vi freezer comes complete with a built-in ice-maker and has a 486- the MasterCool range of appliances is in litre capacity. its operation, explains Gawne: “Different foods and wines require different ideal exceptionally user-friendly to operate: lighting system provides light from temperatures and humidity levels to “Simply select the drawer location and the top and sides of the appliance to store them, and in reality most of us are type of food from the MasterCool menu, achieve maximum illumination inside the unsure about these. and the electronics will adjust and cabinet. Says Gawne: “With no blind or “With Miele MasterCool refrigerators, maintain the ideal conditions so the food dark spots, users are guaranteed to have the user is greeted by a food-driven is kept fresh and nutritious for longer.” a clear view of the food on all levels.” menu system that is easy to view, The unique LED lighting system does understand and adjust for each of its four Super cool and Super freeze not affect the internal temperature of the independent MasterCool zones within “After stocking the fridge or freezer cabinet. the cabinet, which comprise meat, fish, with a significant load of new groceries, dairy and deli. This intuitive functionality engaging the Super cool or Super freeze FullAccess storage drawers helps to create and maintain the function will override the thermostat and Miele’s FullAccess storage drawers optimum conditions required for specific begin to rapidly cool the cabinet down and shelves are built from top-quality food categories so that optimum to just under 2°C in the refrigerator and materials to ensure stability. Gawne freshness is maintained.” to -30°C in the freezer,” Gawne continues. notes that they also extend fully to "This feature will switch off automatically provide an unobstructed view and easy Separately controlled microclimates after six hours in the refrigerator or 52 access to their contents stored inside. MasterFresh drawers keep everything hours in the freezer, to guarantee that from fruit and vegetables to salmon optimum freshness, taste and texture are Drop&Lock system and cheese at the perfect temperature locked in. Miele’s Drop&Lock system uses a slide rail (between 0.5°C and 3°C, depending on system to move shelves and door fittings. food type selected) and humidity level. Brilliant illumination A one-handed tilt-up-and-slide motion Gawne explains that they are Miele’s unique BrilliantLight halogen is all it takes to move a door shelf higher 28 Home Goods Retailer – July 2011 Fridges & Freezers or lower. Once located, simply let go and anywhere within South Africa. "Its high quality insulation foam and watch it automatically lock into position. vacuum panels ensure that the fridge is Protruding runners and supports have The perfect home for fine wines kept cool without wasting energy.” been replaced with rails embedded in Changes in storage temperature, Miele received the ten per cent the rear panel of the cabinet. however subtle, can dramatically affect Energy Challenge Champion Award Gawne notes that shelves are easily the quality of wine, says Gawne: “Miele’s by NEA (National Energy Action) for adjusted in 1.5cm height adjustments: MasterCool electronic controls ensure achieving a target of more than 80 per “Simply lift them up at the front and a precise and constant temperature cent of energy efficient models in its sliding them up or down to the height in the three independently controlled product ranges. The MasterCool range of you want them at before lowering them cooling zones, which can be used to appliances boast a minimum A+ energy into position.” store or temper red and white wines and efficiency rating. The same degree of flexibility also champagne at their ideal temperatures.” applies to the door interior. Also, a In each zone, the bottles are gently floating deli drawer in the refrigerator cradled on one of 14 high-quality acacia and unique divider system in the freezer shelves, two of which are fixed in place compartment glide effortlessly across to separate the cooling zones, and the shelves or within drawers to maximise rest are extendable to make for easy storage efficiency. viewing and access. He notes that controlling the humidity Refreshing beverages level is also important for long-term wine Some of the MasterCool freezers and storage. fridge-freezer offer an ice-maker or a “If the humidity is too low, the corks water/ice dispensing unit. will dry out and no longer provide an “Thanks to Miele’s Dual Compressor effective seal. Miele’s Dynamic cooling System there is no exchange of air system ensures that the air and humidity between the ice-maker and the rest of are circulated evenly, alleviating the the freezer so flavours stay where they problem of dried corks and guaranteeing belong,” notes Gawne. a perfect bouquet. "An active charcoal filter keeps the Durable door hinges air inside the appliance fresh so your As with all Miele’s appliances, the delicate wines do not absorb unwanted MasterCool range is designed and tested odours.” even down to the hinges. Miele’s MaxLoad hinge, for example, Modular system featured in the doors of all MasterCool MasterCool appliances are based on a appliances, is capable of supporting a modular system for maximum flexibility collective load of over 90kg and is tested and are designed to be fitted with either for over 200,000 door cycles – twice the a stainless steel front panel or a furniture industry standard. front to match the kitchen. Says Gawne: “Fully loaded, with food All MasterCool models are available in on the inside and a heavy furniture door a variety of widths, between 44cm and panel on the outside, these hinges can 90cm. The MasterCool building block support a weight of up to 120kg and approach allows consumers to configure ensure that the door will remain stable combinations to suit their requirements and secure over time.” and to maximise storage space. “All appliances can be combined Simple installation to suit individual needs and space Miele’s EasyInstall system enables requirements,” explains Gawne. MasterCool products to be installed by one person. Energy efficiency Gawne explains: “This system offers A great energy saving option for height-adjustable rear castors, which refrigerators, Miele’s MasterCool range can be adjusted from the front of the of refrigeration has earned a four-tick appliance for the final alignment and energy efficient rating. special ladder brackets to make the Says Gawne: “Despite its large size, installation of the door panel simple and Miele’s MasterCool range of appliances straightforward.” contains VCC compressors that run on The installation of all MasterCool variable speeds, taking into account the Miele’s KWT1611 Vi MasterCool 60cm wine products is performed by trained Miele current temperature in the cooling cavity cooler has three temperature zones and service technicians free of charge to optimise energy use. boasts a 102-bottle capacity. Home Goods Retailer – July 2011 29 Technology Focus Painless budgeting leaves more time for planning, strategy New Zealand retailer The Warehouse is reduced a lot of unnecessary back and forth management system, so if there’s an making sure every Kiwi gets a bargain in between business and finance. In the old anomaly in their figures people can drill more ways than one. Thanks to its adoption days we had four people working solidly on down in three or four clicks to the actual of sophisticated South African budgeting the budget for two months – now it’s one invoice.” software, its finance staff are spending and a half people for three or four weeks.” These abilities are not just theoretical, less time adding up numbers and more "As a result," he adds, “the whole dynamic either, says Mangold “As system on planning and testing scenarios for the has changed. Instead of spending most of administrators we can see who’s logged in company’s future. our time doing budget recons, we’re now and when, so we know people are using it “We’ve been told idu-Concept budgeting working at a higher level doing forward every day." software is the best thing Finance has done planning, modelling scenarios and testing This means that although officially for the business in the past five years,” says them. It’s taken us away from the pain of designed for budgeting and forecasting, finance manager Tim Mangold. “It’s an making sure numbers add up, to a situation idu-Concept is also proving to be an excellent budgeting and forecasting system where we’re helping to come up with new effective cost control tool: “It makes all that is also really intuitive and easy to use. It strategic scenarios for the company.” the information about budgets and actual means all our managers, whether they have Managers can also use idu-Concept spend very visible, so it helps to maintain finance training or not, can complete their to track their spending. “It has essentially accountability – people are more aware budgets on their own.” become our reporting system for monthly about how they are managing their costs. idu-Concept’s point-and-click navigation and quarterly actuals," says Mangold. “The whole line of sight from capture is a big part of its success, says Mangold. “We do the month-end accounting; push to presentation is easy to see, simple and “It’s incredibly intuitive – nowadays a button and people throughout the understandable,” says Mangold. “It provides everybody is used to finding information company can go in to see how they’ve a great level of certainty: whenever I on the internet, so the web interface to performed against their budget. We’ve present information on the budget I know the system is familiar and easy to use. It’s linked idu-Concept to a document that these numbers are accurate.” 30 Home Goods Retailer – July 2011 Product Showcase 360-degree swivel webcam designed for portability Logitech has added another web well as HD video upload to YouTube camera to its range with the launch of and Twitter, so users can share video the HD Webcam C615, which features a recordings. simple fold-and-go design that makes For extra flexibility, it comes with a it easy to carry around and use with a 90cm USB cable with an extender and notebook. has a tripod-ready design to capture The C615 allows video calls in HD 720p video easily from any vantage point. on Skype, FaceTime for Mac, Logitech The C615 features built-in auto focus, Vid HD and Windows Live Messenger, designed to help ensure picture quality and video calls on Yahoo! Messenger, will be razor sharp, even in extreme iChat, AOL Instant Messenger (AIM) and close-ups, and a built-in microphone other instant messaging applications. that is designed to help make sure Moreover, its 360-degree swivel background noise won't spoil video rotation enables recording anywhere, calls. any time. The webcam is expected to be It also includes one-click HD video available in South Africa towards the and photo upload to Facebook, as end of 2011. Logitech's new HD Webcam C615. Limber adaptability with infinite poses Joby has released new versions of the hands-free positioning and camera optimising case and stands, GorillaMobile Ori and GorillaMobile Yogi for iPad 2. Enhanced for the addition of the camera to the iPad 2, the Ori and Yogi allow users to take advantage of the new iPad 2 features with steady, hands-free photographs and comfortable, more flattering Face-Timing. Says Joby CEO Forrest Baringer-Jones: "The elegant yet functional design of Ori and Yogi deliver hands-free experiences that elevate the utility of the device.” GorillaMobile Ori Built for the demanding iPad power user, the GorillaMobile Ori for iPad 2 provides sleek ergonomic positioning all in a protective case and stand. Drawing its inspiration Joby's GorillaMobile Yogi. from the folding art of origami, the GorillaMobile Ori is engineered from a superlight German-made aluminum/polypropylene composite used in high-performance cars. This next-generation material allows the Ori to be folded into countless positions, designed with the needs of the mobile professional in mind. When folded back into its folio mode, the Ori delivers lightweight, rigid stability that can easily slip into a bag for travel. GorillaMobile Yogi For iPad users who would rather read and watch videos in the comfort of their bed or on the couch, the GorillaMobile Yogi for iPad 2 stretches and wraps into the perfect position. The limber yet sturdy legs of the GorillaMobile Yogi twist and bend to stabilise the iPad on uneven surfaces or wrap around fixtures in the kitchen to become the perfect companion for grand cooking plans. The polycarbonate case with rubber bumper protects the iPad from shocks and falls. In addition, the quick-release clip easily detaches the modular legs, allowing Joby's GorillaMobile Ori. the case and legs to be used in landscape or portrait mode. Home Goods Retailer – July 2011 31 Publisher's Comment )PNF(PPET3FUBJMFS It beggars belief The application by no fewer than three cabinet ministers to review the multibillion rand Walmart acquisition of Massmart simply beggars belief. The Competition Tribunal, which approved the deal in June subject to certain conditions, had had more than enough time to evaluate the deal, more than enough opportunities to hear from all interested parties, and had, after some considerable deliberation, come to absolutely the right conclusion. It had sought and wrung major concessions from Walmart, and indeed that company had bent over backwards to assure unionists and other opponents of the deal of their bona fides by offering a guaranteed R100 million sweetener to boost the ability of local suppliers to compete for their business. And if all that wasn’t enough, the Competition Tribunal itself is an adjunct of the Department of Trade & Industry. So what we have now is one constituent of Government opposing another, and in the process destroying the remaining international credibility of this Government. Thousands of young South African graduates, black and white – professionals all – have indicated their lack of belief in the future of this country under current leadership. Their confidence has been steadily draining away as the daily evidence of rampant corruption, thuggery, gross ineptitude and lack of leadership grows, and grows and grows and grows. Do we or do we not need direct foreign investment? With the massive unemployment and its inevitable corollary of crime, the answer one would have imagined, was self-evident. Is there no policy extant regarding foreign direct investment? A clear policy, a consistent policy which everybody can understand, including potential foreign investors, is urgently needed to avoid what has already developed into a fiasco. With such a policy in place, Walmart would have had the ability to decide accurately what they were going to be allowed to bring to the table and under what conditions. And that goes for every other potential foreign investor. Clarity is what business needs, and clarity is in short supply with this Government. What if Walmart had decided that it simply wasn’t worth the effort and walked away? Wouldn‘t that have been the signal that other potential foreign direct investors were waiting for, and shifted their beady eyes elsewhere? 32 Home Goods Retailer – July 2011 Excelsior BRS Galaxy Sleigh Bed Romano Sleigh Bed Venecia DRS Telephone: (012) 333-3162/3/4, Fax: (012) 333-6453, 32 Eland Str, Koedoespoort, Pretoria, 0186 Oslo DRS Manhattan BRS d >͗ ϬϭϮϳϯϰϭϭϳϭ &$5(%$ &y͗ ϬϴϲϱϬϰϰϵϰϭ >>͗ ϬϴϮϵϮϲϯϱϳϲ;>zͿ D/>͗ĂďůLJΛLJĞďŽ͘ĐŽ͘njĂ '(6,*16 >>͗ ϬϴϮϴϲϬϰϲϵϲ;Z ,EͿ D/>͗ƌĞŚĂĂŶƚŵΛǀŽĚĂŵĂŝů͘ĐŽ͘njĂ