Gap brand returns to SA with first store opening in Gauteng

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Article by Lauren Hartzenberg on BizCommunity

A standalone Gap store opened at the Mall of Africa in Midrand on Thursday, 26 November, signalling the return of the American clothing and accessories brand to South Africa.

Gap has been absent from the local market since 2017, but a distribution partnership with Mauritius-based Hyvec Group will see three Gap-branded stores introduced across South Africa and Mauritius by April 2021. A sustained growth plan will follow.

“Since we exited the market in 2017, it has been a priority to evaluate future partnerships for Gap in South Africa and to restore confidence in our loyal Gap customer base. By partnering with Hyvec Group, we are opening an exciting chapter in our growth strategy and are incredibly energised about what the future holds,” said Roy Hunt, SVP of Gap Inc. franchise and strategic alliances.

Hyvec Group began life as a modest construction company, but has since diversified its strategy with a footprint into various business segments, including fashion retail. The decision to reintroduce Gap to South Africa was made last year, and despite the Covid-19 pandemic, Hyvec Group and Gap settled on pushing ahead with their plan.

Commenting on the Gap brand fit in South Africa, Hunt told Bizcommunity, “The Gap positions itself as a brand whose pillars specialise in family, the classics and a sense of ‘collective individualism’. The same goes for South Africans in general, and especially during the pandemic, we are seeing a new wave of finding comfort in the clothing we wear, as well as quality in what we wear. Hence, right now people want clothing that is durable, comfortable, and stylish – something that encapsulates Gap clothing as well as the South African market.”

Gap is the namesake brand of parent company, Gap Inc., which also houses Old Navy, Banana Republic, Athleta, Intermix, Janie and Jack and Hill City brands. The company is headquartered in San Francisco, California, the same city where the first Gap store was opened by Donald and Doris Fisher in 1969; it sold only men’s Levi’s jeans and record tapes.

Elevated essentials for the whole family

Visitors to the new Gap store in Mall of Africa are able to shop the brand’s summer and autumn collections for men, women, kids, toddlers and infants. The store will offer a variety of elevated essentials including denim, t-shirts and hoodies as well as Gap’s signature logo products for the whole family.

Yogesh Soowamber, Hyvec Group’s regional manager for Africa (fashion division), commented, “Gap is not only the embodiment of youthful energy, but is also a range of denim-led and responsibly-produced elevated essentials. And we are bursting to return this family brand to Mzansi.”

A local online Gap store is not yet available, however, Hunt told Bizcommunity that the introduction of an e-commerce offering is “a top priority” for the brand.

Every brand has a story to tell. What’s yours?

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Article by Sizwe Dlamini, posted on BizCommunity

To be successful in today’s increasingly connected and brand conscious world, brands that want to succeed need to update their storytelling for the modern age, requiring a fresh point of view, while seamlessly weaving stories of the past into the present in new ways.

In the traditional sense, a heritage brand is a brand that has been around for many years, maybe even centuries. However, Covid-19 has somehow shifted these “good old days” to “before the virus days…” Hence, heritage branding has become a powerful tool.

Your brand doesn’t have to be a classic “heritage brand” to implement components of heritage branding. It’s not about having decades of history; it’s about telling your story and humanising your brand.

“Whether your business was founded in 1854, 1998, or 2016, there is always a story to tell.”

People have always loved to listen to stories because of the emotions and relativity it has in their own lives. Why, then, have brands not embraced this fundamental concept of brand storytelling? It could be the fear of the unknown or simply the lack of know-how.

Brands are always looking for ways to set themselves apart. While unique products, impeccable service records and other distinctive factors play a role, branding typically fosters a unique identity. Intricately connected to heritage is brand storytelling. It is how you tell your story that matters to a successful marketing strategy.

A brand that exhibits longevity, a track record, consistent core values and the use of symbols that stand for the brand over time, can use these elements as a means of taping into important impressions of their brand in order to procure loyalty and drive future sales.

Lee, the popular apparel company known for selling denim jeans, is an excellent illustration. Founded in 1889 by H.D. Lee, the company has been synonymous with the term “blue jeans.” To this day, the company taps into this history by telling stories and publishing content that honours the past, while encouraging customers to remain fashion forward.

Storytelling enhances your heritage branding

Trusted brands are often a priority for Consumers. In the past, they have looked at a company’s timeline to determine whether a brand was trustworthy. When they found a brand that had been around for generations, they typically considered it steady and reliable, while a newer brand was viewed in a more sceptical light.

This sentiment has definitely shifted in recent years. Today, you no longer need a legacy of years of brand equity. You simply need brand equity, full stop. Organisations establish brand equity by creating positive experiences, that entice consumers to continue purchasing from them over competitors who make similar products.

You may not have 200 years of history, you may only have five. You may not have generational customers, but maybe you have clients who have been with you since the beginning. If you have some history, you can leverage the principles of heritage branding to your advantage.

Through storytelling, you can make a real-time investment in content marketing, you can tell your brand’s story and relay your heritage to connect with customers on an emotional level to encourage loyalty.

1. Record your history

Every brand needs a story, and every brand needs to tell that story. It is the magnet that draws your ideal customers to you, and it will give your audience members something to think about as they’re making important buying decisions. Your heritage must be part of your brand story, to demonstrate how resilient your brand has been and to instil a sense of trust in the brand itself.

If you don’t know your story, you can’t relay it to customers. While you obviously can recollect where things began and how the business has evolved, take the time to actually put pen to paper and record the timeline, dates and important moments. In doing so, you will begin to see some common trends and identify a story that connects who you are now to who you were at the beginning, which delights the people who take interest in your brand.

2. Authenticity is key to any brand or story

You might not have a compelling history, but don’t try to compensate by fictionalising your past. Authenticity is the key to successful heritage branding. Making up stories – or even exaggerating – will only come back to haunt you.

An important question to ask is: What are your core values, the principals that attracted your loyal customers to your brand in the first place? Focus on those core values and research how people who hold those values are interacting with your brand, never losing sight of the fact that you have to modernise.

3. Focus on people

Whilst your company history is interesting, your customers really want to hear stories about people. Your focus should be less on corporate features and more on the people who have built your brand from the ground up. This is the true heart of a heritage brand.

Even with a heritage brand, don’t fall into the trap of being so ‘established’ that you cannot innovate, as the newer generations will not identify with you. You need to show them what you are really made of, on their terms. Adjust your visual brand identity if those elements are not being properly conveyed.

“Put your brand promise, benefits, values, mission and vision into a language they understand and be sure to offer relevant support and advice for free.”

4. Evoke nostalgia

Definition: A wistful desire to return in thought or in fact to a former time in one’s life, to one’s home or homeland, or to one’s family and friends; a sentimental yearning for the happiness of a former place or time.

If you have seen Ratatouille, the kiddies movie, nostalgia is perfectly captured in the scene where Anton Ego, a grumpy food critic eats the simple peasant dish, prepared by a little rat chef, taking him back to the days when his mother made it for him as a child. His reaction is priceless…

Nostalgia has a way of intoxicating people and making them align with certain brands. Having said that, you’ll have a far better chance of being successful in your heritage branding efforts if you can evoke some sort of nostalgia in your storytelling.

 

5. Never stop innovating

Why have companies like Wells Fargo and Lee hung around, while massive brands like Kodak and Blockbuster eventually withered away? In short, the former two brands have continued to innovate while still acknowledging their heritage. That’s the key!

Heritage and innovation don’t have to be in opposition with each another. In fact, traditional heritage brands – i.e., those that have been around for decades – are the best at innovating as they remain competitive in an ever-shifting world.

If you feel like your brand isn’t really cutting it, it’s possible that it’s not simply a marketing problem, it may be a whole brand issue. This does not mean your values have to change, you merely need to incorporate the things that will bring your brand up-to-date and relevant to the ‘new age’ audiences.

What’s your brand’s story?

Every brand has a story. To develop a heritage brand or one that will always be top of mind, it is imperative to take every opportunity to tell your story to avoid the latest brands from stealing your market share.

Your brand marketing strategy is your plan for moving your brand forward with targeted messaging that communicates your brand’s values, promise and benefits to all the right people at optimal times. If you refuse to change, your hard work and dedication will be in vain and we all know that prevention is better than cure.

Adjust your message to make sure your brand remains significant. Partner with a digital brand storytelling agency that has the know-how and make the changes now before the noise starts again.

Device penetration rises in South Africa as digital becomes the new normal

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Article issued by GFK South Africa and published on BizCommunity

 

Technical Consumer Goods market to bounce back in Q4 on the back of Black Friday specials

The PC, tablet, smartphone and small domestic appliance sectors are the bright spots in a South African technical consumer goods market that saw revenues drop 7% for the period January to August 2020. That’s according to Point of Sale tracking data from GfK South Africa’s Weekly Monitor, analysed for insight into how the pandemic is reshaping the market.

GfK’s data reveals that the lockdown battered the technical goods market, with revenues in rand dropping 25% year-on-year for the period April to July 2020. By way of comparison, revenues for the sector were up 1% year-on-year for the first quarter before the hard lockdown took effect—outperforming GDP growth of -0.1% for the quarter.

For the year to 31 August, the small domestic appliance market was up 10% year-on-year, the office equipment and stationery market was up 55% and the IT market was up 8%. The telecom market was down 13% in rand terms; however, this masks robust entry-level smartphone shipment volumes as consumers traded up from feature phones to Internet-ready devices.

Accelerating the hometainment trend

“The new normal of working and eating at home under lockdown helped to drive strong performance in the IT and small domestic appliance segments. Consumers snapped up appliances for making quick meals and drinks, including toasters, sandwich makers, coffee machines and microwaves,” says Nicolet Pienaar, Head of Market Insights at GfK South Africa.

“Performance for content creation devices such as laptops and tablets was strong, since sharing a device between people in the household was not an option in a time of remote working and homeschooling. The pandemic is also accelerating an already strong trend towards ‘hometainment’ with consumers staying home for safety and the ability to make sophisticated entertainment choices.”

Aggressive retail promotions and the easing of the lockdown to Level 2 in August helped to drive strong performance for the month compared to the same period in 2019. The total technical goods market was up 15% year-on-year, with small domestic appliances growing 37%, office equipment and stationery up 83%, major domestic appliances up 24%, consumer electronics up 21% and IT up 47%.

GfK’s Consumer Panel data indicates that consumer purchases during this time of lockdown and pandemic have helped to lift market penetration of many computing devices among online consumers in South Africa.

From 2019 to 2020, market penetration increased from:

  • 78% to 91% for smartphones
  • 40% to 52% for laptops
  • 36% to 39% for tablets
  • 25% to 29% for gaming consoles

Demand for second devices soars

Pienaar says: “Many households needed to invest in a second device for the home to support remote working and online schooling. The media tablet market bounced back after several years of decline, with people looking for a bigger screen for online content consumption and creation. In a marked shift, we also saw people favouring mid-tier PCs over entry level models, which have traditionally dominated the South African market.”

High demand for panel televisions – especially 32” and 40” models – helped to drive the value and volume uplift in consumer electronics for August 2020. In the telecoms market, demand for post-paid contracts subsided in August with consumers worrying about the financial future. Demand for entry-level and prepaid phones remained strong, however.

Hopes for Black Friday

GfK’s survey of online and offline retailers in South Africa indicates that they are expecting demand in the technical consumer goods market to rebound in Q4 2020, ushered in by Black Friday and Cyber Monday. Online shopping is expected to drive the market, with Black Friday promotions expected to run throughout November.

“After a gruelling year that has hit many South Africans in the pocket, we’re expecting to see demand from two types of consumer over Black Friday: the reset spender, looking for genuine bargains after months of holding back and the revenue spender, looking for deals that let them trade up to premium products,” says Pienaar. “Retailers need a dual strategy that will enable them to capitalise on demand from both segments.”

GfK. Growth from Knowledge.

For over 85 years, we have earned the trust of our clients around the world by solving critical business questions in their decision-making process around consumers, markets, brands and media. Our reliable data and insights, together with advanced AI capabilities, have revolutionized access to real-time actionable recommendations that drive marketing, sales and organisational effectiveness of our clients and partners. That’s how we promise and deliver “Growth from Knowledge”.

For more information, please visit www.gfk.com or follow GfK on Twitter www.twitter.com/GfK.

Takealot announces plans for Black Friday 2020

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Article found on BizCommunity

 

Takealot.com plans to extend its annual Blue Dot Sale from five days to the entire month of November. In the lead up to the Blue Dot Sale, which kicks off at one-minute past midnight on Black Friday, 27 November, the online retailer is offering three extra weeks of Blue Dot Countdown deals.

From the 02 – 26 November, Takealot will release thousands of new deals every week. “These Blue Dot Countdown deals won’t be beaten on Black Friday and stock is limited,” the e-tailer said.

In week one (02 – 08 November) shoppers can expect deals on big stuff, including TVs, large appliances, outdoor, pool and patio, beauty, plus so much more. During week 2 (09 – 15 November), there will be deals on laptops, toys, homeware, furniture, fashion, sports and footwear. Finally, week 3 (16 – 22 November) will see new deals released on camping and outdoor, home improvement and power tools, as well as household essentials.

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For the second year, Takealot.com will also be giving shoppers exclusive early access to some of its Black Friday deals from 23 – 26 November. Over 200 fresh new deals will be released daily exclusively on the Takealot App.

Takealot’s annual Blue Dot Sale is a five-day sale period that starts at one minute past midnight on Black Friday (27 November) with over 5,000 deals released. A range of new deals will be released throughout the weekend as well as on Cyber Monday (1 December) and Takealot Tuesday (2 December) with up to 50% off thousands of items.

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Online shopping safety

“We’ve always aimed to offer a customer-centric online experience that takes the queueing and hassle of in-store shopping out of Black Friday and festive shopping, and this year is no different. The fact that we’re an online retailer is more important than ever as the world adjusts to social distancing protocols. This positions e-commerce as the safest, most convenient way to shop this festive season,” says Julie-Anne Walsh, chief marketing officer at Takealot.com.

“E-commerce has never been as relevant to consumers as it is now. The convenience and safety of shopping online has seen a huge increase in the adoption of e-commerce around the country. We appreciate that this – combined with a month-long focus on the best deals – will fundamentally redefine the retail landscape for shoppers, by giving them a better way to shop,” Walsh concludes.

Pick n Pay Clothing pairs up with Katekani Moreku in second Futurewear collab

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Article found on BizCommunity

Pick n Pay Clothing has paired up with sustainable fashion designer Katekani Moreku in its second Futurewear collaboration. Julia Buchanan kicked off the project in August with the PnP Clothing x Julia range, which sold out in a month.

The PnP Clothing x Katekani range captures his perspective of a united South African heritage. Moreku is no stranger to the spotlight and has shown his unique upcycled designs that push boundaries at various fashion shows. He has now taken his conceptual vision to a broader audience by launching his first commercial range in collaboration with PnP Clothing and Gavin Rajah as part of their new project to support and grow local designers.

Inspired by the culture

All the unique colourful prints in the PnP Clothing x Katekani collection were drawn by Moreku and inspired by the many local cultures he’s encountered growing up. “My childhood involved a lot of moving around with my mother as she was trying to make ends meet and that created opportunities to meet people from different walks of life and the privilege to learn about different cultures within Mzansi,” says Moreku.

The limited-edition range of seven items includes printed t-shirts, a printed shirt, printed swim shorts and denim shorts.

Having completed his diploma in fashion design at the Durban University of Technology, last year, Moreku is excited for his biggest launch into the industry. A creative at heart, Moreku wanted to study something in art or design but settled on fashion after someone suggested it given his dress style, described by Moreku as ‘bold and experimental’.

He says that his creativity is inspired by the beautiful culture of SePulana in the region of Manyeleti where he was largely brought up, and its take on sustainable living.

“The Sepulana culture is one of the African cultures that dabbles in the use of bright and bold colours. The women also combine scraps of fabric and plastic material to create traditional attire as they can’t always afford material for new clothing. When I started studying in 2015, I couldn’t afford to buy materials for my projects so I began collecting old, leftover or discarded scraps of fabric to create collections of colour prints and hats. I used plastic maize meal packaging for my first collection.”

This bore his desire to practice sustainable fashion by upcycling different types of waste material, and during his studies, he racked up accolades showcasing his ‘out-of-the-box thinking’. He showcased a collection at the 2017 Vodacom Durban July alongside nine established designers after winning their student competition. In the same year he was placed in the top 10 finalists at SA Fashion Week, and last year he was awarded the student award at the inaugural 2019 Twyg Sustainable Fashion Awards.

Moreku explains that he hadn’t ventured into business before this collaboration with PnP Clothing and Rajah. “I only designed garments on request. This project has been about contemplation, collaboration and how I can take my brand forward commercially. I’m used to doing everything on my own, but with this project, I got to learn how a team of people get to work together to bring a collection to life. And being around Gavin is always a new learning experience on how to be a creative entrepreneur.”

Helping emerging designers

The process of preparing for this collab – which has been a year in the making – helps young upcoming designers understand the business intricacies of bridging the gap between being a talented creative and building a commercial fashion brand, says Rajah, who scouted and then mentored Moreku.

In an effort to open more opportunities for young creatives, Pick n Pay Clothing – in association with Atelier Gavin Rajah – has formalised this mentorship programme and launched the Futurewear project. This is a dedicated platform that seeks to provide emerging local creatives with the opportunity to launch their business with an exclusive collection in collaboration with PnP Clothing. The 2020-2021 submissions recently closed and the next designer will be announced in December.

Moreku was in the first cohort of designers to be part of the Futurewear initiative, explains Rajah. “It’s been interesting to assist talent to re-imagine clothing for the future. Mentorship has evolved to include looking at global trends in economics, consumer behaviour and the need to develop products that provide local businesses with economic benefit. Mentoring these designers has involved teaching designers to become digitally adept and to factor consumer behaviour and sentiment into design – key factors for the future of design,” says Rajah.

“The collaboration concept has been very popular overseas and we are thrilled that local customers are as excited about it. Through this project, we can play a role in launching very talented designers to a much broader commercial audience, and give our customers access to local aspirational yet accessible and affordable clothing,” says Hazel Pillay, general manager for Pick n Pay Clothing.

The Pick n Pay Clothing x Katekani range is available in 48 selected PnP Clothing stores while stocks last. The range will also be available online at www.picknpayclothing.co.za.

The power of networking and relationship-building

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Article by Rachel Eleza on BizCommunity

Networking and meaningful, long term relationships are extremely beneficial to a business of any type and size. Successful entrepreneurs nurture professional relationships with their staff, clients, suppliers, and other entrepreneurs. You might have innovative products, a huge advertising budget, and competitive pricing, but without good relationships, there is a high risk of business failure.

This is how networking and relationships can benefit your business.

  1. Build loyalty

    By taking the time to know your customers, paying attention to their needs, and matching those needs with the right products or services, you can build a strong relationship with them. Offering unparalleled service will facilitate repeat business, allowing you to build a loyal customer base.

    Establishing meaningful connections with your customers transforms your business from “just an ordinary company” into a reliable and trustworthy brand.

  2. Shared knowledge

    Networking offers a perfect opportunity for the exchange of ideas and knowledge. By expressing your viewpoints or requesting for feedback, you can easily expand your knowledge and look at issues from a different perspective. It’s also possible that within your network there will be people who have already solved the problems you’re currently facing.

    This offers you a chance to learn and gain knowledge that can help you devise long-lasting solutions for your problems. If you’re looking for opportunities to network and build connections with other business-minded individuals, consider working from a professional coworking space.

  3. Better opportunities

    Businesses can access so many lucrative opportunities through networking and positive relationships. These rewarding opportunities range from client leads, partnerships, joint ventures, assets sales, to speaking and writing. Ensure you perform your due diligence before jumping into any opportunity(s). Go for those that are in line with your business goals/vision.

  4. Generate high-quality leads

    Your network can turn out to be one of your most reliable lead generators. If you build valuable connections with the right individuals, then your network will attach huge value to your business. They’ll recommend your business to any person that may be requiring your products or services.

    In fact, 90% of entrepreneurs say they generate new business by networking and distributing business cards. The leads that come from your connections tend to be not only of high-quality but also pre-qualified for you. An effective referral network can play an instrumental role in generating top-notch leads that’ll see your business grow exponentially.

  5. Enhancing confidence

    Consistently networking and striving to engage with strangers will help grow your confidence. Being confident is one of the skills you should have as a business owner, as the growth of your company depends on your ability to talk to the right people and build long-lasting relationships.

    So if you want to grow your confidence, you should regularly participate in social and business networking events. Pushing yourself to interact with others in your industry and getting accepted into their network can be a huge confidence booster.

  6. Gaining visibility

    Gaining visibility is another upside of actively networking and building connections. By participating in business and social events regularly, people will start to know you. You can take advantage of these events to position yourself as an informed, reliable, and helpful person by providing valuable information or advice to people who require it. This strategy will help you build a reputation for not just yourself but also your business.

  7. Build a motivated and productive team

    While it’s vital to nurture meaningful connections outside your company, it’s also important to build healthy and professional relationships within your business. A good working relationship with your workforce together with a favourable environment for collaboration can help you enhance morale, work satisfaction, and overall business productivity. It’ll also allow you to attract and retain talents. If you’re operating in the U.S. or some of your employees are based there, encourage them to find a good coworking space to avoid the disruptions that come with working from their homes.

Regularly networking and building positive connections can position your business for rapid growth. It can help you gain visibility, generate leads that you can convert into loyal customers, and gain access to a multitude of better business opportunities. It can also help you grow your confidence, work through complex industry challenges, and build a top-notch team.

Why contracting, micro-jobbing and gig work is on the rise

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Article by Phillipa Geard.  Issued by RecruitMyMom

The need for companies to be more agile in the way they operate is on the increase, and so is the upward trend of job-seekers contracting, micro-jobbing and gig working. Here’s why.

Unemployment levels globally, and particularly in South Africa, have soared as a result of the Covid-19 pandemic and the need for organisational agility and plasticity has accelerated as rapidly. A global shift toward remote and online working has accelerated in 2020 as new ways of working have quickly been adopted by workers and companies alike.

As companies have realised that productivity levels increase and not decrease with a remote workforce and, that almost anyone can work remotely, the need for purely office-based, locally sourced staffing diminishes. The world is now an open field for recruiting talent.

Take the RecruitMyMom database of nearly 100,000 women across South Africa. These women have this in common:

  • they all have current and high-level skills to offer
  • they want to work with companies that respect work-life integration
  • they all know that whether working in an office or at home, they will get the work done

The demand for contracting, micro-jobbing and gig work has exploded amongst working mothers in the past years, offering many the ability to stay current with digital trends whilst giving them the benefit of the flexibility they seek in their day-to-day lives. The variety of jobs in different industries enables them to bring the most diverse and up-to-date thinking to any hiring company.

Contracting, micro-jobbing and gig work are cost-effective, low-risk solutions to any company seeking excellent skills.

Independent contracting allows companies to hire top-calibre consultants, with experience from the likes of EY, Bain, Deloitte and others for a fraction of a corporate fee. Marketing skills can be hired knowing the contractor has the right skills and will deliver. Compliance and finance managers get hired on an hourly basis, and HR consultants get called upon on an as-need basis. For busy entrepreneurs having a pool of reliable trained virtual assistants to do the work they shouldn’t, makes good business sense.

The gig economy that gets its name from the term ‘gig’, typically used by musicians but refers to a piece of work, has enabled thousands to remain employed. Gig work involves taking on a variety of jobs for shorter periods, and gig workers are generally independent contractors and online platform workers or on-call workers who provide services to a company or its clients, depending on demand.

Micro-jobbing falls within the gig economy and is often small tasks that one does for money. Work may include remote or in-person jobs, such as translation, writing blogs, virtual assistant, social media custodians, appointment setters, website design and more.

The advantage to any company of the growth in the contracting, gig and micro-jobbing space is the ability to tap into an ever-growing pool of local or global skills at affordable rates. Skills that may or may not form part of the core function of the business, many choosing to outsource non-core skills to accessible consultants.

For job-seekers, the advantage is the ability to work on cutting-edge global projects, offering competitively priced skills, whilst working from sunny South Africa or any other remote part of the world. Or it is working with forward-thinking South African companies that embrace flexible work policies, enabling them to attract top talent in a resource-scarce market.

The reality is that contracting, gig working and micro-jobbing is growing because the demand exists from both companies and job-seekers alike. There are considerable advantages on both sides, with online reach making it possible to transact.

The rise of the “Covid-preneur”

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Article found on BizCommunity

The Covid-19 Pandemic has evidently had an impact on the worldwide economy and has certainly contributed to South Africa’s economic downturn. Job security and income stability have become the talk of the town, and has resulted in gutsy entrepreneurs taking risks to thrive during this period of Covid-19, leading them to become what you could call ‘Covid-preneurs’.

Starting a business during a recession, let alone a global pandemic may not seem like a great idea, however, it’s actually completely the opposite. There are ways to adapt to this ‘new normal’.

Lester Philander, business coach, serial entrepreneur and radio host of the Business Show on CCFM, established Empire 629, a sister company of PHL International Consulting. The purpose of the company is to help everyday employees start their own business without the risk of them leaving their jobs. To date, PHL Consulting has created just over 2000 jobs in the Western Cape over the past three years.

Create opportunities

“Employees may often feel undervalued and underutilised within their job function. They might have exceptional business ideas and potential but cannot risk giving up their stable income,” says Philander.

Empire 629 was established to address factors such as these. They also have a program called Ingalozi Mali (Angel Money). Here employees can buy shares into small businesses for a stake in the company. This might suit employees that has the money but no desire to start a new business. The pandemic has led to a rapid increase in the unemployment rate, with skilled workers now willing to settle for less than what they usually would. By starting a business not only are you creating an income for yourself, but you are also contributing to job creation in the economy.

Find your gap

Ask yourself if you are serious about starting or growing this business or if it is simply a dream. Once you have a great idea, know how you can make it work and know what your strengths are. Talk to a business coach to help you identify these strengths, and also assist you in identifying opportunities in the market. Philander explains that it is important to know what your goals are, and set your objectives to achieve them from the get-go.

Take advantage of the weak economy

“The status of the economy will naturally affect the costs of goods and services. Take advantage of discounted services during this time. If you are needing to invest in some office furniture to start up with, now would be the best time to shop around and try to negotiate good deals,” says Melvina Phillips, student development facilitator at the Raymond Ackerman Academy of Entrepreneurial Development. A weakened economy may also lead to fewer risk takers, resulting in less competition in the start-up industry.

Re-evaluate your business model

The Covd-19 Pandemic has brought about and excessive amount of challenges, some of which no one could have prepared for.

“Businesses and individuals are seeking solutions to problems brought about by the economic downturn. Relook at your business model and figure out a way to adapt it to suit the current demand,” says Philander. For example, can your business be altered to target an online audience? More people are working from home and spending more time online.

Establish a healthy routine

Starting a business during tough times and following through with the necessary perseverance can only make you stronger in the long run. Build a good consumer base now to reap the rewards later.

Seize opportunities and take advantage of our current ‘new normal’. It may not make it any easier, but there really is no time like the present.

SA’s record e-commerce performance offers hope for battered economy

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Article found on BizCommunity

E-commerce is providing a ray of hope for the local economy with transactions hitting a record high in May and June. And, while there will be some leveling off, SA’s largest payment provider, DPO South Africa, says the new love affair with digital commerce is unlikely to fade in coming months, offering some relief in an otherwise grim economy.

“The last weekend in May saw transactions per minute hit four times that of the busiest minute experienced during Black Friday last year. June was similar to May and we expect our monthly volumes for the rest of the year to settle at around 40% higher than last year,” explains Peter Harvey, MD of DPO South Africa.

According to Harvey, the adoption of e-commerce should be seen as a very positive sign after the depressing financial metrics published over the past weeks.

The BankservAfrica Economic Transaction Index (BETI), calculated by Economists.co.za, which measures transactions between South Africa’s banks, has recently experienced its sharpest decline in history. The three months ending 31 May saw transactional value drop by 20% compared to the same period in 2019.

“Although the latest bank transactions numbers paint a grim picture, we believe the e-commerce transactional numbers prove that South Africans are still spending online and, with some innovative thinking, there is certainly room for optimism for local entrepreneurs,” says Harvey.

Retail revolution

Harvey acknowledges the Covid-19 lockdown has catapulted digital commerce forward by at least five years, but also says it is part of a greater retail revolution which has been happening for some time.

“Years back all the focus was placed on the formal retail sector. However, we have seen a marked shift. Our partners in the broader payment space have confirmed that the informal sector, including our spaza shops and informal vendors, are fast approaching the same monthly revenues as the formal sector.

“And, while digital retail currently only accounts for a small percentage of the formal sector’s monthly trade, both the informal and digital sectors are the solid areas of growth opportunity which should be appealing to the savvy entrepreneur,” he says.

Overcoming obstacles

Historically, one of the biggest obstacles to transacting online for many consumers was the trust aspect of e-commerce.

“We think the launch of 3D Secure 2.0 will make a big difference. It offers a much better user experience coupled with a more secure authentication process, both of which will enhance the shopping experience. We also need the full support of all our issuing banks. Most are very happy to promote digital commerce when they issue debit or credit cards, but some, like Capitec, still make their customers jump through too many hoops before they are able to transact online. We hope this will change soon.”

Harvey believes the stellar performance of South African online businesses this year as well as the signs that there is still room for growth could offer the country an economic lifeline.

“The past three months have shown us that local consumers are ready to embrace digital business. This increased demand for digital offerings must now be met with a good supply. We have every confidence that the innovative and entrepreneurial flair of South Africans will shine through in the months to come.”

#StartupStory: Go live with Send it – SA’s live streaming platform

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Article by Evan-Lee Courie on BizCommunity

How we interact with one another and the events that we attend have changed due to the Covid-19 pandemic. We’re not going to be gathering together in person anytime soon. Fortunately, technology has played an indispensable role in connecting people and allowing many businesses to pivot their operations to offer their services and products online.

To support industries that have been negatively affected by South Africa’s lockdown, a new, easy-to-use and proudly South African online video streaming platform, Send it, has recently launched and is currently free to use.

The platform allows users to create and schedule live video streaming events. These events, such as cooking classes, concerts or online theatre, can be offered to audiences for free or at a cost.

“We want to help creators generate income during these uncertain times,” explains Brandon Muller, co-founder of Send it. “We’re aware of the devastating financial impact that Covid-19 has had on many industries, particularly those in events,” he adds.

Brandon Muller and James Coetzee, both serial entrepreneurs, have been involved in the eventing space for over eight years. They founded an internet solution company, Quick Connect Wireless, in 2012.

Brandon Muller
James Coetzee

The co-founders of Send it share more about the platform.

BizcommunityCan you tell us a bit about Send it?

Send it is a locally built, end-to-end live video platform; a tool for content creators to deliver free or paid-for-access streams to their audiences. Send it is also a service provider to corporates needing white-labelled live video delivery or video conferencing that can be reverse billed on all SA telco networks.

BizcommunityWhat sparked the idea and when did you get started?

We’ve been in the eventing industry for about eight years, delivering high capacity Wi-Fi networks. In doing that, we’ve done a lot of live streaming and came to learn of the shortcomings and pitfalls of other platforms in the space.

When Covid-19 hit, it gave us some nice breathing room to refocus our engineers on building out a whole new platform as opposed to servicing needs of existing clients.

BizcommunityWhat is the core function of Send it?

Our main purpose is to provide live video delivery.

BizcommunityWhat are some of the obstacles you’ve had to overcome since starting out?

Video tech is very difficult when building from first principles. There are a lot of open-source frameworks out there for video conferencing etc., but to do scalable few-to-many live video broadcasting is a challenging tech environment with an incredibly small margin of error. There is nowhere to hide during a live event if something breaks.

BizcommunityWhat services will you be providing?

Our offering is two-fold. For content creators, it’s a platform to help kickstart an online revenue stream or grow an existing audience through live video. For companies, it’s a fully customisable live video platform that is hosted in SA and can be reverse billed on local mobile networks.

BizcommunityCould you perhaps elaborate more about developing the platform?

We have a dedicated team of three highly-skilled engineers working on the internal mechanics of the platform. We’ve brought in freelancers, where needed, for consultation on user experience design, load testing and some other minor components.

We’ve been building this platform since the beginning of March and have a very long road map ahead. We’re very proud of what we have achieved thus far.

BizcommunityThe platform is free to use for now. How will you generate any revenue?

We currently take a 5% fee for any payments going through our platform. In the future, we will charge creators for hosting larger events. Our commercial white-label offering is a paid service and thus will be the most significant cash-generating component.

BizcommunityWill you need any assistance going forward?

At some stage, we would like to launch on a global scale, but there are a few features we’d like added before we get there. We’ll probably look to raise capital at that time.

BizcommunityLive streaming is quite a competitive market. What differentiates you from the competition?

We’re local, we provide excellent support, we’re currently very competitive in terms of price, and we’re an end-to-end solution for someone who is perhaps not that technical.

BizcommunityWhat trends would we start seeing in the online streaming market?

The streaming market globally is seeing a massive uptick. In the East, it’s already an enormous industry and hasn’t quite taken off elsewhere in the world.

We’re firm of the view that the unfortunate outbreak of the coronavirus is going to ramp up the adoption of live streaming.