Tag: products

Source: Supermarket & Retailer 

The “latest month” (5 weeks ending 3 April 2022) shows sales of R53-billion representing a 10.1% month increase versus the same period last year.

This data emanates from NielsenIQ’s Market Track the largest retail (grocery) data source in the country and the only currency used by all South Africa’s major retailers.

This benchmark data comprises more than 10 000 branded retail outlets (e.g. supermarkets and garage forecourts) and more than 143 000 independent stores (e.g. spazas and taverns) across South Africa’s nine provinces and measures more than 80% of all retail grocery transactions.

Private label pounces

Total Private Label (retailer own brands) sales are now bigger than the two largest manufacturers in South Africa. This is borne out by NielsenIQ analysis which shows that the private label sector now commands 15% of all grocery sales in South Africa.

This equates to R77-billion in annual sales (12-months to 3 April 2022) and saw 8.6% growth in March 2022.

Inflation nation

Rising inflation has become a hallmark of the COVID-19 era and has been exacerbated by the ‘perfect’ storm of the war in Ukraine and most recently the floods in KwaZulu-Natal – a key South African manufacturing and logistics hub.

Annual consumer price inflation rose to 5.9% in March – from 5.7% in February – placing it just below the upper limit (6%) of the South African Reserve Bank’s monetary policy target range.

Transport, housing and utilities and food and non-alcoholic beverages were the most significant contributors, with transport contributing 2.1 percentage points to the annual rate. Fuel prices rose by an eye-watering 33.2% in the twelve months to March with petrol prices climbing by 32.6% and diesel by 35.1%.

Cooking oil prices on a slippery slope

Indonesia’s decision to suspend palm oil exports in the face of domestic shortages has pushed vegetable oil prices to new highs. The prices of palm, soybean, European rapeseed and even its Canadian GMO counterpart, canola oil, have also reached historic highs.

“Given that vegetable oil is a raw ingredient in a wide range of products, varying from prepared meals to personal care, we are likely to see a negative knock-on effect of rising oil input costs,” says Nooy.

NielsenIQ data shows that South African cooking oil sales figures have unsurprisingly experienced a massive increase of 21% over the last year (52% during the past month). It has also experienced the highest price increases amongst the top 20 products measured in its data panel.

As a result, the rate of price inflation on cooking oil is currently double that of the next category.

In addition, an in-store average shelf price check by NielsenIQ revealed that the average price of cooking oil was R42.76 per litre the week before the war in Ukraine started (20 Feb) and is now R54.70 per litre (vs the latest week 1 May) which represents an increase of R11.94 per litre.

Top products

Beer is South Africa’s number one FMCG product category in terms of sales and has experienced significant growth over the last 12 months, while soft drinks are down from the number one position, having experienced 8% annual growth and 12% in the last month.

Cigarettes are the third largest product category has grown by 63% over the last 12 months and 8% in the 5 weeks ending 3 April 2022. NielsenIQ South Africa MD Ged Nooy cautions it’s important to view the data in context.

“The globally unprecedented prohibition on the sale of liquor and cigarettes during the 2020 and 2021 COVID-19 lockdowns in South Africa have resulted in those sectors experiencing high growth rates off previous low, and in certain months, nil bases.”

The only product in the Top 10 displaying negative sales figures is sugar; sales of which have declined by 2% over the last year.

Adding to this bitter pill is that the South African Cane Growers Association reports that the local sugar industry has lost more than R223-million after the unprecedented floods in April 2022 that caused damage to thousands of hectares of cane crops.

Keeping a lid on it

Long Life Milk and Instant Coffee sales are currently experiencing flat sales and low inflation. This follows a boom in sales of these items during South Africa’s lockdowns when consumers were primarily working from home and were stocking up on these items, instead of the coffee breaks they would normally take at their offices.

Now that consumers have moved to a hybrid working model, or returned to the office full time, sales have plateaued. The Beverage category has also only experienced a 2% price increase.

This category has been able to curb price increases thus far due to a decision by Government to delay an increase in the sugar tax. There have also been considerable pack dynamics at play with consumers shifting pack sizes as opposed to forgoing their favourite cooldrink, for example.

Nooy points out; “The retail sector has benefited from South Africa’s successive lockdowns. This stems from consumers prioritising in-home consumption, such as home-office related snacks and beverages and homemade meals, as opposed to out of home dining at restaurants.

“Government support measures including social relief grants have also contributed to boosting spending in the retail sector.

“However, the next 12 months will be interesting as the retail sector returns to normalised sales with the inclusion of liquor and cigarette revenue back into the mix which will allow for real year on year growth measurement and show a clearer picture of the true state of retail in South Africa,” says Nooy.

TOWER reaches Amazon UK’s digital shelves

In May 2021, leading South African self-adhesive products brand TOWER launched their range on the proverbial shelves of online retailer giant, Amazon.

This move will give TOWER a boost as well as inspire fellow South African brands to brave the international online shopping space, especially within the United Kingdom.

Despite its small size geographically, the United Kingdom is a big e-commerce player, with annual online sales at $99 billion, a 14.5% share of the global e-commerce market.

TOWER’s main purpose for expanding their online presence and selling on Amazon is to grow the reach of the brand. CEO of TOWER, Stephen Beattie, comments: “We’ve established ourselves to be a strong brand with solid values and an unwavering commitment to quality products. We are now looking to the future to scale up the business internationally.”

Beattie explains that, “TOWER is an international company that happens to be headquartered in Cape Town. We want to honour our roots and leverage our international ties to share the benefits of our products in every office, school and home worldwide.”

What stands out about Amazon to TOWER, however, is not just their impressive distribution channels, but their dedication to the consumer experience. Partnering with a company like Amazon is a good fit for TOWER who is a consumer centric business that champions the stories and experiences of business professionals, teachers and parents.

TOWER’s focus on the consumer drives their product development and TOWER understands the needs of parents and teachers who guide and encourage the developing minds and confidence of children.

TOWER has chosen the 30 best-selling range of school labels and stickers to sell on Amazon, which focus on encouragement and rewards. Acknowledgment of a job well done, or the encouragement to keep trying, are important affirmations to provide children when they are learning, and TOWER hopes they can spread joy and positivity to children and inspire other South African businesses to reach for success beyond the borders of South Africa.

 

3M expands actions to fight Covid fraud

Source: Medical Process Outsourcing

3M continues to fight the global pandemic from every angle, and help ensure a safe supply of needed personal protective equipment, by expanding its region-specific resources to report and stop fraud around the world.

The company has launched an aggressive legal effort to stop profiteers who are attempting to take advantage of the demand for 3M products used by healthcare workers and first responders. Building on this work, 3M has established hotlines around the world to report suspected fraud and has created online resources to help spot price-gouging, identify authentic 3M respirators and ensure products are from 3M authorised distributors.

3M has investigated more than 7 700 fraud reports globally, filed 19 lawsuits, and has been granted nine temporary restraining orders and seven preliminary injunctions. More than 13,500 false or deceptive social media posts, over 11 500 fraudulent e-commerce offerings and at least 235 deceptive domain names have been removed. 3M has been awarded damages or has received settlement payments in seven cases, with all proceeds being donated to COVID-19 related charities.

3M has not, and will not, increase the prices of its respirators as a result of the pandemic. 3M is a global company with factories that produce respirators and other critical products needed to fight COVID-19 in the U.S., Europe, Latin America and Asia.

To combat increased counterfeiting and online fraud during the COVID-19 outbreak, 3M is working with law enforcement and customs agencies in every region of the world.

3M is also engaged with many major e-marketplace operators to detect and disrupt fraudulent and counterfeit respirator offers, including Amazon, Alibaba, Mercadolibre, Lazada, eBay, Flipkart, Shopee, Made-in-China and several others.

In particular:

  • Since the pandemic began, 3M has worked with customs and law enforcement agencies around the world to seize approximately 3.5 million counterfeit respirators, either as the products are moving through customs, or in targeted raids against suspected resellers and manufacturers of counterfeit products.
  • 3M has engaged with law enforcement agencies to fight counterfeiting in more than 1,200 actions around the world.
    In Latin America, 3M has worked with customs agencies in more than 15 cases to seize counterfeit respirators being imported into the region from other parts of the world, with several of the seized consignments containing more than 10,000 counterfeit respirators.
  • In the United Arab Emirates, 3M has worked with police and the Dubai Department of Economic Development to seize over 600,000 counterfeit respirators.
  • In Vietnam, a 3M investigation led to a raid and seizure of more than 150,000 counterfeit respirators. The Hanoi and Ho Chi Minh City Market Management Bureaus also seized the manufacturing equipment used to make the fake respirators.
  • In Europe, 3M is fighting multiple cases of fraud involving bad actors using .nl, .uk and .pl domain names intended to deceive buyers with offers of nonexistent or fake 3M respirators. Other scams include using the names of 3M employees in fake invoices and certificates to claim a relationship to the company. 3M is taking legal action and is working with law enforcement through the European Union.
  • In India, 3M is working with law enforcement agencies in multiple states to investigate and raid manufacturing operations producing counterfeit N95 respirators, and resellers offering counterfeit N95 respirators to the public, seizing fake products and holding bad actors responsible.
  • In South Africa, 3M is investigating numerous cases of fraud and the sale of counterfeit respirators. In two recent cases, South African customs seized over 100 000 counterfeit 3M respirators.

These are just some examples of the many actions 3M is taking to stop and deter fraud to protect people around the world.

 

In the mid-thirteenth century, the Assize of Bread and Ale statute in England regulated the price, quality and mass of bread that was sold within the kingdom. Consequently, bakers would be severely fined if they were caught duping their customers. This a little less harsh than the punishment handed out in ancient times. In Egypt, bakers who were found cheating their customers would have an ear hacked off and nailed to the door; drastic measures indeed.

This is not the case for modern day businesses who are far from inhibited by price controls, especially when it comes to fast-moving consumer goods (FMCG). Current legislation does not specify the minimum mass for most products, the only obstacle being, The Trade Metrology Act, which stipulates that the packaging must be consistent with the content of the product and what is inside the package. For instance, a chocolate bar must not weigh 5% less than what is declared on the package.

Manufacturers and supermarket chains know from past experience that they will be punished by penny-pinching shoppers if prices rise too far or too fast. To address this, several businesses have started reducing the size (mass) of their products as opposed to increasing the price of the goods itself. Producers have a growing tendency to ‘shrink’ products in an environment of rising input costs and to combat consumer resistance to price hikes. This principle actually has a name and is known as ‘shrinkflation’.

Even established supermarkets are looking to beat the discount stores at their own game by keeping a lid on costs and hence their own prices. Shrinkflation enables them to do this. Rather than simply cutting sizes across the board, the smarter operators are shrinking their goods as one part of a temporary solution to the problem.

Food and drink pricing always reflects the economic climate of the day, whether that’s the impact of changing utility prices or ingredient costs. Businesses seek to offset these costs wherever possible through improvements in efficiency and productivity, but these actions can only go so far, and in some cases, companies will reduce the pack size rather than increase the price for consumers.

However, it’s the transparency in which these product changes appear to be introduced that leaves questions for many. Producers employ shrewd tactics to ensure that consumers don’t instantly notice the changes to size or mass of a product. It would seem that the shrinkage of products has become an acceptable business practice for companies in South Africa.

More and more consumers are starting to notice that many food items are getting smaller, although they are paying the same or more. Everything from dental floss and toilet paper to cool-drinks and chocolate treats is subject to this so-called “shrinkflation”.

The question is, should manufacturers make it clearer to consumers when they shrink their products? Wouldn’t it be easier and certainly more transparent for the pack sizes to remain the same but for the prices to go up?
Consumers have a right to know what’s going on, that they are getting less for their money. It’s a moral and brand image issue and companies are not currently obliged to advertise changes. It is presumed that if prices and sizes of all products are clearly labelled, customers can make informed decisions about their purchases. In reality, is that really happening? Our fast-paced lifestyles’ sees consumers throwing the products in the trolley, without checking the grammage. It takes time before they actually notice.

Angus Kennedy, editor of a trade magazine, Kennedy’s Confection in the UK, says one of the worst examples of shrinkflation was Cadbury’s reducing the number of Creme Eggs in a box from half-a-dozen to five in the run-up to Easter. ‘If these companies said: ‘We’re sorry but we have no choice but to do this because cocoa is now in short supply,’ then I think the British public would be much more understanding,’ he says. ‘What we don’t like is feeling duped when we realise what the companies are up to.’

So, while it is the consumers responsibility to check the pack before they buy, what should producers and manufacturers be doing to communicate the reason for the shrinkage, rather than trying to hide it at the risk of a reputation knock if found out. Pushing up the price and using the input costs is somewhat a more acceptable excuse.

Stratcom branding, the leading packaging strategy and design agency gives thought to the communication of reducing product grammage to the unsuspecting consumer.

Gail Macleod – CEO of Stratcom Branding and Founder member of the GLBA (Global Local Branding Alliance), says, “Be truthful & transparent, however use the opportunity to build brand image.”
Macleod adds, “Use the change in size to communicate new news, such as Ltd. Edition, build a brand heritage story, optimise portfolios and add volumes against sharing occasions as well as smaller packs for individual use, all the while, considering the risks. Upgrade brand image, logo and when possible create a new pack size, that enhances brand distinction and image.”

It seems hiding the new grammage on the pack is no longer working as consumers are aware and more sensitive than ever before. Shrinkflation is a risky move and if you’re trying to convince consumers into paying the same for less and, if they cotton-on to what’s happening, they may hi-jack your brand. Instead, producers could take a more strategic look at the product’s overall cost and find ways to reduce costs and improve efficiency without affecting quality or value.

Much can be achieved by innovation too. Offering a product that offers improved quality or value, consumers may well be willing to pay more for less of it. Alternatively, the adoption of lighter or more compact packaging could reduce distribution costs.

But the trend will no doubt continue, bringing many more downsized products to our shelves, both local and imported. Let’s be honest: transparency is the best policy.

China is likely to see price rises for paper products this year on a shortage of raw materials and imported waste paper, according to Hong Kong-listed Nine Dragons, one of Asia’s largest packaging and paper producers.

Cheung Yan, the company’s chairwoman and one of China’s richest women, said at a press conference in Hong Kong on Tuesday that the company was likely to raise product prices in 2018, pressured by increased costs in raw materials, whose supply has been hit by Beijing’s tighter controls on imported waste paper, an important source for manufacturing paper products.

“The government’s tightened control on imported recovered paper has resulted in significant volatility in both imported and domestic recovered paper prices,” said Guangdong-based Nine Dragons in an interim results filing to the Hong Kong stock exchange.

In the six months ended December 31, the company saw its net profit more than doubled to 4.33 billion yuan (US$690 million), up from the previous 1.91 billion yuan.
Separately, Vinda International Holdings, China’s third-largest tissue manufacturer, said last month that it had raised tissue product prices by 4 to 5 per cent since last October in response to rising pulp prices.
China’s tissue giant Vinda expects further industry consolidation as Beijing tightens environmental controls
US pulp prices have risen more than 35 per cent in the past year, contributing to the hike in toilet-paper costs among other factors, according to Bloomberg.

The toilet paper price hike has sparked panic buying in Taiwan over the weekend after suppliers told local supermarkets they would raise prices by 10 to 30 per cent from next month.
Raw materials accounted for around 48 per cent of the costs for toilet paper products, and almost all of the pulp was imported from abroad, said Taiwan’s Ministry of Economic Affairs.

Vinda has operations in Taiwan, but it is not immediately known the level of price increase they will put in place for their products on the island.

Source: BusinessLive

Popular stationery brand Typo has been slammed for selling products containing swear words which are marketed to young people.

The company, owned by Cotton On, is renowned for its colourful and quirky products but has come under fire from some disgusted shoppers.

For example a pencil case featuring the slogan “Shut the f*** up about your stupid diet” is sold in store alongside a candle labelled “Zero f***s” or a cushion which reads “S**t just got magical”.

Some customers took to Facebook to air their disgust in the products.

“As a loyal customer of your brand I was disgusted to find some of your current products (aimed at children) to contain such inappropriate language. By no means a prude, I am deeply offended that you would use this kind of language on your products. Seriously considering deleting your brand from my children’s Christmas gift list!” one shopper wrote.

Another was shocked that such items were on full display to children.

Cotton On has argued that its target audience falls either side of the 18 to 35 age bracket and that it uses censorship stickers where necessary.

“Whilst some of our products are more irreverent than others, we do appreciate that as a gift retailer, our customers fall either side of our target audience of 18-35 so where relevant we use censor stickers on products not appropriate for a younger audience,” the company said in a statement.

“The product in question should have been censored and we are taking steps to ensure this takes place immediately.

“We’ll also make any necessary changes to our product displays to make certain they are less prominent within the store.”

Source: www.tenplay.com.au

Differentiate with digital

Digital presents a powerful opportunity for brands to differentiate themselves against competitors. We’ve all heard the stories of great digital projects and wonder how we could create the same traction for our own brands. In our quest to thrust our brands into the digital era, we have found it to be more difficult than we initially anticipated.

The trouble is, brands who are unsure of the value of digital choose a copycat approach to digital marketing. They hear of something that worked for someone else and copy it. Choosing to copy others rather than create new opportunities results in a saturated market of ‘the same old’ digital tactics.

We see it all over the place, in social media, as brands and agencies adopt the same ideas over and over again. Even in the mobile apps market, brands are too quick to jump in fast and end up with smaller and smaller returns from their online efforts. We need to make the copycat approach public enemy number one.

The copycat approach comes when:
• Brands aren’t sure of who they are
• Brands are chasing speed to market over innovation
• Brands are afraid of failure
It’s become my experience that brands who succeed in digital know who they are, they make sure their digital ideas match their overall strategy and they are brave. They’re even a little crazy, in a good way.

So, it seems fairly practical that we could apply a simple process to getting out of a copycat approach and I’d like to unpack this a bit more.

In short, we could apply this three-step approach:
• Become one with your brand
• Align your digital objectives to the overall strategy
• Be brave
Easier said than done!

Become one with your brand

In life, our confidence in who we are helps us become a stronger, better version of ourselves. Most emotional intelligence programmes will help us highlight our strengths rather than focus on our weaknesses. In other words, to be better and stronger we need to focus on what makes us different from everyone else, instead of focusing on how we can be like everyone else.

Branding is the same. Focusing on understanding your brand should clearly articulate what makes you stand out from the crowd. Why do people buy from you instead of your competitors? This understanding helps build your confidence as a marketing manager in making the right decisions for your brand. It helps you be bold with your strengths and eventually aids you in becoming an even stronger brand. Without a strong understanding of your identity, you won’t have the strength to make an impact.

David Aaker provides a Brand Identity Model that helps brands work out who they are and what is important to them. It’s a great model to get a deep, tangible understanding of a brand. In short, the model defines brand equity as a collection of Brand Loyalty, Brand Awareness, Perceived Quality, Brand Associations and Proprietary Assets.

If you haven’t done this Brand Identity work before then I would encourage you to give the Aaker Model a spin.

Alignment

I really like Aaker’s Brand Identity Model because he helps marketers make the next step, from brand understanding to digital alignment. In his article, “The Four Faces of Digital Marketing”, Aaker helps marketers apply digital to their brand identity. The four faces of digital that he describes show you how to apply digital to your brand:
1. Support the product offering
2. Amplify other brand building channels
3. Extend the value proposition
4. Create digital brand building channels
With a clear understanding of the brand, you should be able to apply the four faces of digital to identify unique digital experiences that will help you stand out.

So, when looking for the power of digital for your brand you can reframe these faces of digital into these questions:
1. How can digital help me enhance my product offering?
2. How can digital amplify my other brand building channels?
3. How can I use digital to extend my value proposition?
4. Can I create my own digital brand building channel?

Be brave

Any marketer who is afraid of taking a calculated risk will never receive the reward of truly innovative marketing. Marketers are like entrepreneurs and innovators. They need to research the opportunities, paint a picture of the future, build innovative consumer engagements and then take the leap. They need to back themselves and the research they’ve done.

I remember reading that the best entrepreneurs had low risk profiles. They had just spent enough time working out every possible way something could go wrong and they had a plan. They reached the point in their research that they knew it would work and they knew how to make it happen.

Marketers who think like this are the marketers who will show bravery and lead brands in becoming stronger versions of themselves with great, purposeful digital solutions that their customers love.

By Mike Saunders for BizCommunity

If you work in the content and branding space, you’ll know how great it feels to log onto your Twitter account and see your brand’s hashtag in the top trends. A plus is also that it’s so objective. Apart from promoted trends, you can’t overtly buy your way into the top trends. It takes the time and effort of a number of independent content creators that felt like having a conversation with or about your brand.

I’ve been lucky enough to work in spaces where social media is a key driver of success. If there’s three almost-sure-fire tactics to get enough “tweeps”: talking about your brand to get it to trend, it’s these:

Consistently publish hot content

Think about the last time you saw a post that made you stop scrolling through your feed. How long did it hold your attention for before you eventually moved on? If you’re like most people, it can’t have been more than a few minutes. If this is true for the best pieces of content, imagine how little time people have for average, or worse, below average content?

Creating content that consistently strikes a chord with your audience over time is extremely hard to do. But if you manage to pull it off, the rewards can be immense. Essentially, you’ll have built a big community of people that trust you not to waste their time and data (yes, data struggles are a real thing). Before they even see your latest post, they are ready to share it, because they know you have a reputation of not disappointing them.

Reach out to influencers (the right way)

Influencers can be separated into two categories. There are celebs who are super famous musicians, actors and other public figures. Then there are ‘twelebs’ who have a lot more followers on social media than the average user, but their fan base is generally smaller than that of celebrities. If a tweleb or a celeb shares a post of yours, it exposes your content to their gigantic audiences. Besides increasing shares for your content, it’s kind of an endorsement. If celeb X has a cooking show for instance, and she shares a link to your recipe on her Facebook page, she’s telling her followers that they can trust your page to deliver on their content needs.

Relevance is important when reaching out to ‘influencers’. I’ve seen a lot of radio chart shows tag musicians letting them know how their music is performing. This works because it’s directly about the musicians and the radio shows regularly trend on twitter as a result of the artists retweeting and interacting with shows.

Incentivise the creation of content about your brand

Between 10 and 5 held their first two-day #POSSIBLEConference earlier this year and it had a fantastic buzz on social media. A great deal of the buzz came as a result of how they incentivised attendees to create content at the event. To stand a chance of working on a campaign with Estee Lauder, a sponsor of the event, attendees had to take photos where they use certain products creatively. The conference was targeted mainly at creatives, so the incentive was extremely relevant. Dentyne SA used a similar mechanic for their #DentyneSmile competition earlier this year and the hashtag trended a number of times while the competition was running.

By Skhumbuzo Tuswa for BizCommunity

From smiley faces to hearts and hugs, emojis (emotive icons) have become an intrinsic part of our everyday lives.

Hot on the heels of its European success, this week saw emoji-africa announce its exclusive distributorship of officially branded emoji products to the sub-Saharan African marketplace.

“Emojis influence how we communicate, providing us with the means to express ourselves in everything we do,” says Paul Hubers, co-founder of emoji-africa.

“Emoji branded products take the feelings and emotions we share when using digital icons into the world of physical and tangible products.”

Having enjoyed a very successful uptake in Europe, Hubers is confident that the same will hold true locally.

“Officially branded emoji products are found on shopping streets and at retail stores across the continent,” he says. He adds that the reason for its success lies in its evergreen potential.

“Emojis are neither a passing fad nor are they connected to any movie or action hero. As a result, potential for long term sustainable uptake is huge. This makes it an obvious choice for local retailers interested in exploring not only new products, but a lucrative and viable additional revenue stream as well.”

Through its joint venture with Durabo Holland, and its extensive network amongst leading European retailers, emoji-africa is able to offer an extensive range of official emoji products, including but not limited to entertainment, homeware, BBB (bath, bed, textiles), toys and gadgets, back to school items such as stationery, storage, wrapping and luggage.

Available soon at leading retail outlets including the likes of Mr Price, Musica, Toys R Us, Checkers and Pick ‘n Pay, together with various online outlets, what has up until now been simply a fun way to communicate is about to become a much bigger part of everyday life.

Image credit: www.emoji-africa.com

Ystudio is back with another timeless stationary set. Crafted locally in Taiwan, the set of beautiful writing instruments consists of one sketching pencil and a classic ballpoint pen, made from brushed brass that has been tempered in the scorching heat of 1 000 degrees.

Each item included in Ystudio’s “The Weight of Words” collection is characteristically rendered, featuring imperfections like rust spots, yet ensuring an honest and durable result.

Both pens will be available from 1 April.

Source: www.highsnobiety.com

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