Home Goods Retailer February 2009
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C M Y CM MY CY CMY K
February 2009
Home Goods Retailer
0902 HGR.indd 1 2009/02/10 12:32 PM
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0902 HGR.indd 2 2009/02/10 12:32 PM
Contents
February 2009
Tafelberg Awards Product Showcase
Tafelberg Furnishers – the first independent dealer Dyson vacuum cleaners mini yet mighty 25
in the Western Cape to host a suppliers award event 3 Get steamy with Tefal 25
Acer TravelMate balances performance, reliability
Newsline and security 26
Retailers experience subdued trading over Award-winning entertainment, gaming products
festive season 12 from Logitech 26
HGR weighing its online publishing options 12 Black is the new black at LG 28
South Africans hanging tough amidst global
economic turbulence 13
Market Review
Linea Classica showcases in style 15 Computers – Furniture chains still a major outlet
Shoprite pays tribute to suppliers, enjoys for desktops 30
strong growth 16
Information sharing crucial to improve finance Gallery
access for SMMEs 17 People on the move 33
LG Electronics shares festive season joy 17 Floors Direct encourages cyclists 33
Logitech wins seven CES innovation awards, ships
billionth mouse 18 Diary
Back to school for Umlazi bursary students 18 IFFS 2009 achieves 96% take-up rate despite
global slowdown 35
Corporate Profile
IFA still at home in Berlin 35
The new face of Furnex – refreshed, rejuvenated Experience the complete digital lifestyle
and ready to go 19 at DigitalLife Expo 09 35
3 15 17 25
Furniture Traders’ Association of South Africa
Meubelhandelaarsvereniging van Suid-Afrika
(011) 789 6770
The FTA supports HGR but is in no official way associated with the magazine.
0902 HGR.indd 1 2009/02/10 12:32 PM
Editor’s Desk
HGR Team
Publisher & Editor-in-Chief
Ian Hughes
Email: ian@hgr.co.za
Home Goods Retailer
Editor
A quiet Christmas, cautious
Aurette Bowes
Email: editor@hgr.co.za
optimism and a new look
While some retailers ended off 2008 on a high note, others were not smiling
as broadly over the Christmas period, as trading remained subdued, despite National sales manager
a small interest rate cut just before the start of the festive season and several Frances Venter
significant reductions in the fuel price. Cell: 072 607 5134
Furniture manufacturer Linea Classica opened its stylishly revamped Email: sales@hgr.co.za
showroom to considerable applause from the industry, while Cape-based
Tafelberg Furnishers hosted the first of its annual suppliers’ awards events in
acknowledgement of their continued support. The Shoprite group also paid
tribute to its suppliers while celebrating strong turnover and profit growth for
the trading year.
The start of 2009 was awaited across the globe with bated breath, with Marketing consultant
businesses anxious about what the next 12 months would hold as the world’s Cherry Swanson
leading economies sink deeper and deeper into recession. Cell: 082 780 7976
South Africa got off to a relatively good start with SARS reporting a decrease Email: cearecruit@mweb.co.za
in the trade deficit and the Reserve Bank reducing interest rates by another per
cent. Although the fuel price increased, its effect was marginal when compared Design & Layout
with the onslaught businesses and consumers had to deal with last year. The Bianca Keenan-Smith
bad times are far from over, but South Africans continue to be optimistic about Email: dtp@hgr.co.za
the immediate future of their national economy, according to MasterCard’s
Consumer Confidence Index. Special Projects
Buying group Furnex is starting off the year with a fresh look, with Kerryn McMurray
significant changes being made to the company’s organisational structure and Email: kerryn@hgr.co.za
management composition.
Administration & Subscriptions
What’s your opinion? Sameera Hoosein
As the cost of printing and postage escalates and advertising revenues shrink, Email: sameera@hgr.co.za
HGR’s viability remains under threat and we are seriously considering our online
publishing options. This is in line with global trends where more and more Office
publications are canceling their print versions in favour of publishing exclusively 203 Melrose Place (formerly Willowbrook)
online. As HGR weighs up the pros and cons of going this route, we are eager to Willowbrook Close, Melrose North
hear our readers’ views. Send your thoughts to editor@hgr.co.za PO Box 41632
Craighall 2024
Tel: (011) 447 9326, Fax: (011) 447 9838
Email: info@hgr.co.za
www.hgr.co.za
Printing
Park Avenue
Copyright on all editorial in Home Goods Retailer is owned
by the publisher and reproduction without permission
is prohibited. The opinions expressed in Home Goods
Retailer are not necessarily the views held by the editor
or publisher. We reserve the right to edit – for purposes
of space and clarity – all editorial material and letters
submitted for publication.
2 | Home Goods Retailer – February 2009
0902 HGR.indd 2 2009/02/10 12:33 PM
Tafelberg Awards
– the first independent dealer in the
Western Cape to host a suppliers award event
Independent furniture and appliance dealer Tafelberg Furnishers executive officer Hartwig Heil thanked the suppliers for their
hosted their first suppliers gala evening in the Western Cape continued loyal support and congratulated all the winners. He
during December last year, in acknowledgement of good and the relevant buyers then handed out certificates.
relations, professionalism, high standards and quality from its Later in the evening Chris Welsh amused guests with some
suppliers in the furniture and appliance industry. magic tricks and his ventriloquist puppet. Jo Nichol provided
Suppliers from various departments – major appliances, small music entertainment throughout the evening.
appliances, furniture, bedding and audio visual – were invited, Guest of honour at the occasion was ex-Springbok rugby
with many senior management members flying down from player Rassie Erasmus who spoke enthusiastically about his rugby
Johannesburg for the event, which was set against the backdrop career and the current state of affairs in South African rugby.
of the exquisite Durbanville hills wine estate, with a panoramic And what would a five-star evening be without a five-star
view of the city of Cape Town. meal? Guests were treated to a buffet starter, main course and
Guests were welcomed with accordion music courtesy of desserts and all received a Durbanville Hills gift pack.
Stanislav Anguelov, after which master of ceremonies Dicky Post “This was certainly an evening in which we all felt proud to be
got the proceedings underway. In his address to the guests, chief part of the Tafelberg Furnisher’s team,” said Heil.
Home Goods Retailer – February 2009 | 3
0902 HGR.indd 3 2009/02/10 12:33 PM
Tafelberg Awards
And the winners are…
The Tafelberg Furnishers
suppliers awards were presented
in five categories – major
appliances, small appliances,
furniture, bedding and audio
visual – to suppliers for overall
company performance and to
company representatives for
individual performance.
Major Appliances
Supplier awards were
presented to:
• Defy Appliances:
Supplier of the Year and
Setting the Standards for
After-sales Service
• LG Electronics: Largest
Contributing Supplier to
Tafelberg Turnover
• Samsung SA: Most
Improved Supplier
Defy won awards in the Major Appliances category for Supplier of the Year and Setting the
Standards for After-sales Service. From left are Stefan Heil (Tafelberg Furnishers), Richard
Bunting, Jason Crowther, Adrian le Roux, Koot Barnard, Dicky Post and Mr HG Heil.
0902 HGR.indd 4 2009/02/10 12:33 PM
Tafelberg Awards
Stefan Heil and Mr HG Heil with
Peet van Rooyen (centre) of
LG Electronics, which received a
supplier award for the Largest
Contributing Supplier to
Tafelberg Turnover.
Representative awards were presented to:
• Bernadette Latimer of Whirlpool SA for
Extra Effort and Dedication
• Dave Colyn of Electromec in recognition
of Outstanding and Invaluable Service
to Tafelberg
• Doreen Saunders of AEG in recogition
of Outstanding Customer Service and
Willlingness To Get Things Done
• Ana Fugareu of Smeg in recognition of
Dedication and Enthusiasm
• Janene Apps of BSH in
recognition of Dedication and
Superior After-sales Service
Bernadette Latimer (centre)
of Whirlpool SA received a
representative award for Extra
Effort and Dedication in the Major
Appliances catgory. Congratulating
her are Stefan and Mr HG Heil.
Geoff Coetzee and Mr HG Heil with Dave
Colyn (left) of Electromec, who received a
representative award in recognition of his
Outstanding and Invaluable Service.”
Home Goods Retailer – February 2009 | 5
0902 HGR.indd 5 2009/02/10 12:33 PM
Tafelberg Awards
Janene Apps (left) of BSH
received a representative
award in recognition of her
Dedication and Superior After-
sales service. Presenting to to
her is Geoff Coetzee (centre)
and Mr HG Heil (right).
Natalie Giliomee and
Mr HG Heil with Minette
Steinmann (left) of
Feintech, who received a
representative award for
Exceptional Enthusiasm
and Positivity.
Small appliances Furniture
A supplier award was presented to: Supplier awards were presented to:
• Electrolux: Setting The Standards for Best After-sales Service • Alpine: Lounge Supplier of the Year
Representative awards were presented to: • Milano Décor: Most Improved Furniture Supplier of the Year
• Ronnie Reynolds of Electrolux for Dedication and Integrity • Bakker & Steyger: Case Goods Supplier of the Year
• Minette Steinmann of Feintech Sales for Exceptional • Custom Furniture: Best New Furniture Supplier For 2008
Enthusiasm and Positivity Representative awards were presented to:
• Jenni Wagner of Alpine for Representative of the Year
• Werner Hartman received an award for Loyal Support
and Mark van der Walt for Jack of All Trades and Master of
Information.
6 | Home Goods Retailer – February 2009
0902 HGR.indd 6 2009/02/10 12:33 PM
Milano Decor is proud to have been selected as one of Tafelberg Furnishers' top suppliers of
lounge suites. Our partnership is now much bigger than that and extends to joint and active
support of a green environment. Currently Milano Decor is actively participating in a revolutionary
production programme called Live Green. Live Green commits us to using more and more recycled
material as our raw material of choice which Tafelberg Furnishers have committed to supporting.
These are the retailer/supplier partnerships of the future and we thank Tafelberg most sincerely
for the trust they have placed in us. We will not let them down.
The process of creating fabric from recycled materials:
PLASTIC BOTTLES SMASH
SPUN FIBER FLAKE
SPUN YARN WEAVING KNITTING
NON WOVEN
1 Recycled water bottle is used in each yard of ECO SUEDE FABRIC
0902 HGR.indd 7 2009/02/10 12:40 PM
Tafelberg Awards
Bedding
Supplier awards were presented to:
• Sealy: Supplier Of The Year and
Innovation and Marketing
• Cloud 9: Consistent High-Level
Performance
• Simmons: Outstanding Service
and Innovation in the Premium
Bedding Market
• Restonic: Consistent High-Level
Performance
• Rest Assured: Loyal Support and
Outstanding Service
• A representative award was
presented to Sakkie Burger
of Rest Assured for Bedding
Representative of the Year.
Riaan Strydom (left), Huegh Groenewald (front) and Rassie Erasmus (right), all of Sealy
with ex-Sprinbok rugby player Rassie Erasmus (centre). Sealy received awards for Bedding
Supplier of the Year and Innovation and Marketing.
8 | Home Goods Retailer – February 2009 No.1 selling bed in the world.
Tafelberg Awards8V2.indd 1
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2009/02/10 12:33PM
PMTafelberg Awards
Riaan Lamprecht and
Mr HG Heil with Sakkie
Burger (left) of Rest Assured.
The company received a
supplier award for Loyal
support and Outstanding
Service and Burger also
received a representative
award for Bedding
Representative of the Year.
Thank you Tafelberg Furnishers for recognising our constant striving to improve
our high level of service. We recognise that this is a true partnership and only by
playing our part to the best of our ability, can we thrive. To that end we guarantee
to continue offering Tafelberg our finest, highest quality products backed by the best
service possible.
Sleep in our world Tafelberg Furnishers –
you will never regret it !
“Our bed of choice”
Danny K & Lee-Ann Liebenberg
Home Goods Retailer – February 2009 | 9
0902 HGR.indd 9 2009/02/10 12:33 PMTafelberg Awards
Richard Debonair (left) of Sony receives
a supplier award for the Most Improved
Supplier from Gareth Baker (centre) and
Mr HG Heil (right).
Gareth Baker and Mr HG Heil with
Chris Neethling (left) of Samsung SA,
which received a supplier award for
Walking the Extra Mile.
Jonny Aarons (centre) of Iser-Expert
received the award for Special Recognition
as a Trade Partner. With him is Stefan Heil
(left) and Mr HG Heil (right).
Audio visual
Supplier awards were presented to:
• Sony: Most Improved Supplier
• Samsung SA: Walking the Extra Mile
• Connoisseur Electronics: Innovation and Professionalism
• Audiosure: Training and Development of Audiovisual Staff
• Sonic: Entrepeneurial Siprit
• A special award was presented to Iser-Expert in special
recognition of a trade partner for Enthusiasm and Integrity.
It was received by Jonny Aarons.
10 | Home Goods Retailer – February 2009
0902 HGR.indd 10 2009/02/10 12:33 PMAs the largest contributing supplier to Tafelberg Furnishers’ turnover, LG Electronics
bears a massive responsibility to ensure that they retain that position this coming year.
0902 HGR.indd 11
It is a responsibility and task that we relish and welcome, placing our trust in the sheer
quality and innovation of our product ranges, and backed up as always by service of the
highest standard. Thank you Tafelberg for placing your trust in LG. We promise that
suppLier
www.lge.co.za
0800 LG LG LG
that trust will never be misplaced.
LG, LarGest
ContributinG
2009/02/10 12:33 PMNewsline
Retailers experience subdued trading over festive season
Despite a small interest rate cut just before
the start of the recent Festive season, and
several significant reductions in the fuel
price, most retailers experienced subdued
trading over December, as consumers
continued to curb their spending amid
fears of job losses, slowing income
growth, inflation and steep debt costs.
“2008 was a year most of us would
rather forget,” says Furniture Traders
Association executive director Dick
Behrens, referring to the global economic
meltdown that dominated events in
the latter end of the year. “The signs
were there for a long time. Additionally,
in South Africa there was the ongoing Dick Behrens – expecting Etienne Lewis – fairly busy Alan Hirsch – looking
effect of the National Credit Act, which a continued uphill journey. over Christmas. forward to a buoyant 2009.
has severely tightened up the extension
of credit, so retailers were generally than rivals such as the JD Group, which Among the chain stores, Hirsch’s
expecting a very tight peak season.” sells to more customers with car finance exceeded its sales expectations, especially
Yet, final sales figures, while not and mortgages. among new technology products with
spectacular, were a lot better than many “Although the JD Group reported mixed LCD’s TV sets contributing significantly to
anticipated. Analysts say this is because, results from the various income sectors in these figures.
even in tough time, consumers usually which it trades, its December sales were “Our coastal stores did really well,” says
find the funds to keep up spending over down overall, with middle-of-the-market CEO Alan Hirsch, who is looking forward
the festive season and only “feel the pain” and cash traders appearing to have done to a “buoyant” 2009. “Trading in the
after Christmas. better than the entry level credit traders,” first months will be tough due to price
Lower-income furniture group says Behrens. increases, but all our indicators show
Lewis’s retail sales for December rose an “Shoprite’s furniture sector results that this year is going to be a lot easier
“encouraging” five per cent compared to a were absorbed into the company’s than 2008, owing to a lower interest rate,
year ago, outpacing a flat performance in overall results, which were surprisingly reduced petrol price, and an indication
the previous nine months. Analysts point good,” he continues. Ellerine’s is still that food prices are going to come down.
out that the less-indebted market which undergoing organisational restructuring If the rand stabalises I don’t see why we
Lewis serves has been better protected and at the time of going to press had not shouldn’t have a boom in 2009.
from the consumer spending contraction commented on its results. page 14 ►
HGR weighing its online publishing options
In view of global high number of hits being received from marketing campaign and reach
trends whereby retailers, suppliers and other visitors thousands of potential customers in
more and more is a source of much satisfaction to the hours, who can respond immediately to
publications are editorial team. It proves that HGR’s your offers.
Home Goods Retailer going online, readers are not averse to using the site to
and in many extract information, or simply to find out What do you think?
instances, have what is going on in this changing and HGR has proven and established ties to
cancelled their print versions in favour of volatile industry. its advertisers and readers over many
publishing exclusively online. As the cost years, and is keen to determine their
of printing and postage escalates and Online benefits thinking on this matter. What is your
advertising revenues shrink, presenting Undoubtedly, advertising online view of online advertising? Would you
HGR with a real and constant threat to its is considerably less costly than its be in favour of HGR going exclusively
viability, the publication is seriously also print counterpart, which will enable online and if you are an advertiser,
considering its online options. advertisers to advertise more frequently. would you support an online version of
The HGR website has been up and It only costs a few thousand rand the publication with advertising? Send
running for many months now and the to launch a highly effective online your views to editor@hgr.co.za.
12 | Home Goods Retailer – February 2009
0902 HGR.indd 12 2009/02/10 12:33 PMNewsline
South Africans hanging tough
amidst global economic turbulence
Following a year of slowing economic Webber. “Government leaders, bankers, worse. This resulted in a score of 75.7.
growth at home and in the face of and analysts have, in general, been saying “At the time of the survey, employment
an imminent global recession, South that the South African economy will not in South Africa, as measured by the Labour
Africans remain optimistic about the see a major downturn, as will likely be Force Survey, was in decline,” Schüssler
immediate future of their national the case in other markets. South Africans explains. “Consumers were rightfully less
economy, this according to the latest appear to share this optimism.” optimistic about employment prospects
MasterCard Worldwide Index of Consumer As has been the case since MasterCard in the next six months, as the major
Confidence. began conducting the survey, the newspapers headlines were already
The Index is based on a survey that indicator that South Africans feel most screaming about new job losses being
measures consumer confidence on optimistic about is Regular Income. announced.”
prevailing expectations in the market When asked whether they expected their On the other two indicators, Stock
for the next six months. It is calculated regular income, including bonuses and Market and Quality of Life, South Africa’s
based upon percentage response figures, fringe benefits, to either increase, remain scores were 71.7 and 76.3, respectively.
with zero as the most pessimistic, 100 as the same, or decrease over the next six Both scores represent increases from six
most optimistic and 50 as neutral. The months, 66.2 per cent of respondents said months ago, but both remain well below
scores are based on answers to questions they expected it to increase, while just 7.2 South Africa’s scores a year ago.
relating to five key economic indicators: per cent said they expected it to decrease. Of the eight markets surveyed in the
Employment, Economy, Regular Income, This resulted in a score of 90.2. MEA region, South Africa climbed from
Stock Market, and Quality of Life. “This is the only indicator that increased the sixth most optimistic market to the
A total of 3 200 consumers were over the last year,” says T-Sec chief second most optimistic in just six months.
surveyed across the region between 14 economist Mike Schüssler. Lebanese, Egyptian, Qatari, UAE and Saudi
October and 11 November 2008. With The South African employment index Arabian consumers are all less optimistic
100 being the highest possible level of has had the lowest average over the past than their South African counterparts. On
consumer confidence, South Africa’s ten surveys. In the current survey, 61.5 per a greater scale, looking at the APMEA (Asia
current score is 78.7. Although this cent said they expected the employment Pacific, Middle East and Africa) region,
represents an increase in confidence from situation in South Africa to be better over South Africa is the third most optimist
six months ago, it is five points below the next six months, 18.8 per cent that market, with Kuwait leading the region
South Africa’s score for the first half of they expected it to remain the same, and and Vietnam close on its heels.
2008 and is also just shy of South Africa’s 19.7 per cent said they expected it be
historical average of 79.4. Still, South Africa
reported the Middle East and Africa (MEA)
region’s second highest score – currently
only consumers in Kuwait are more
optimistic about their market’s economy.
When asked whether they expected
the economy in South Africa to be better,
remain the same, or become worse over
the next six months, only 14.7 per cent of
the respondents said that they expected
it to become worse. When combined
with the 56.5 per cent who expect South
Africa’s economic performance to improve
and the 28.8 per cent who expect it to
remain the same, the resulting Index score
for the Economy came to 75.7. This is up
nearly three points from six months ago,
but still two-and-a-half points short of
South Africa’s score a year ago.
“One gets the sense that South African
consumers feel relatively optimistic about While South African consumer confidence is still shy of its historical average, as well as its
the next six months,” says MasterCard score a year ago, it is nevertheless on the rise again. In fact, South Africa is now the second
South Africa country manager Jeni most optimistic country in the Middle East and Africa region.
Home Goods Retailer – February 2009 | 13
0902 HGR.indd 13 2009/02/10 12:33 PMNewsline
◄ page 12 | FeSTIVe SeASOn TrADInG
Although sales at Mr Price were 20.3 For furniture retailer Etienne Lewis
“Hirsch’s plans to examine the areas per cent higher in the December quarter December is usually much like any other
where we grew last year to identify further than a year ago, its homeware division month in the year. “That said,” he adds, “we
growth opportunities and work on those struggled. However, group sales, which were fairly busy, especially after Christmas,
products which were stagnant in 2008. included homeware, rose 21.4 per cent and in January day-to-day sales were up
I believe a huge market exists for these in December alone, indicating that 50 per cent up on last year.”
products. Consumers previously did with- Christmas gift sales were healthy. But Mr “I do not believe that the effects of the
out them because of the tighter economy Price Home and Sheet Street quarterly 2008 economic meltdown are going to
and they are consequently now like a sales rose only 8.2 per cent, barely ahead go away this year, says Behrens. “I think
tightly coiled spring poised for release.” of divisional inflation of 7.1 per cent, we shall experience an uphill journey for
Clicks expects retail trading conditions despite the fact that the Durban-based quite some time yet. An aspect which is
to remain challenging in 2009 with group had added 12.1 percent more coming through strongly is the longer-
continued pressure on consumer trading space to this division. term effect the National Credit Act and
expenditure, despite relief from the The aggressive growth in space con- tight trading conditions are having on
declining fuel price and further expected firms a statement by the company last business plans and practices. All the
cuts in interest rates. The strong value year that it would close some unprofitable groups are taking steps to eliminate waste,
offered by the retailer continued to appeal smaller-format homeware outlets, but that close unprofitable operations, become
to consumers under financial pressure overall space in the division would rise. more productive and efficient, and clearly
and its stores experienced “robust” festive measure and isolate retail trading from
season trading. “Consumers were more Independents financial services operations and ensure
discerning and conscious of how they Among the smaller, independent traders that each of them is independently
spent their money over this Christmas results were very mixed, according to viable. A lot of attention has and is
period,” the company says. “In seeking out Behrens, but the middle to upper end of being paid to debtors’ books and
value for money, shoppers focused on the market was definitely stronger than collections. Relative to the slaughter in
smaller, more practical gifts. They left their the entry level. “The majority reported that the home loan and motor finance arena,
shopping late and also appeared to have consumers were conservative with their collections and debtors’ books in the
deferred purchases to the post Christmas purchases, seeking value-for-money rather furniture retail sector, at this stage, appear
period and into early January.” than luxury.” to be faring far better.”
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0902 HGR.indd 14 2009/02/10 12:34 PMNewsline
Linea Classica
showcases in style
Linea Classica’s Mario Fiorina, Lewis Weinstein, Milton Kahn
and Louise Hauptfleisch.
It has taken furniture manufacturer Linea Classica only
four years since its establishment in 2004 to become a
household name, as it were, within the industry. Now
the company has just launched its brand-new lifestyle
showroom, and if the response by the trade is anything
to go by, it can look forward to a prosperous 2009 and
beyond.
The new showroom, located at Linea’s premises in
Malvern, Johannesburg, showcases Linea Classica’s
latest furniture offerings in beautifully arranged and
accessorised room settings. Two additional sections,
comprising bedroom suites and dining room suites make
up the rest of the showroom.
“Now retailers can show even more of our products
to their clients, especially those they don’t have on their
shop floor,” says Louise Hauptfleisch, who is responsible
for putting the showroom together. “We are open six
days a week, including Saturday mornings.”
Partners Lewis Weinstein, Mario Fiorino and Milton
Kahn have built Linea Classica on the four pillars of
service, quality, excellence and reliability and attribute
the success the company enjoys today to an unwavering
commitment to these principles.
“We pride ourselves on running a customer-oriented
factory and will undertake to move heaven and earth to
get the product to the customer on time,” says Weinstein,
who heads up the company’s sales and marketing
division. “Indeed, a major part of our success is owing to
the fact that our customers know we are available 24-7.”
Only hardwood and veneers are used in the
manufacture of Linea Classica furniture, of which
complete ranges are available in a wide array of finishes,
including ebony, dark mahogany, light mahogany,
cherry, walnut, oak and limewash.
Research and development also forms an integral part
of the Linea Classica operation. Design ideas are sourced
from leading international trade fairs and tailored to suit
South African market requirements. “While we try to visit
a different fair each year, we have found that the fairs in
Malaysia and Singapore are best suited to our market,”
says Weinstein.
“We at Linea are certainly not complacent and are
looking forward to a prosperous and successful 2009.”
The new Linea Classica showroom showcases the company’s
products in complete room settings.
Home Goods Retailer – February 2009 | 15
0902 HGR.indd 15 2009/02/10 12:34 PMNewsline
Shoprite pays tribute
CEA Recruitment to suppliers, enjoys
strong growth
CONSUMER ELECTRONICS & APPLIANCES
The Shoprite group
We invite candidates interested in the paid tribute to
positions listed below or looking for a career move its suppliers at a
glamorous annual
to submit their CV in condence.
awards ceremony
held in Stellenbosch
MARKETING MANAGERS, PRODUCT/
in November 2008.
BRAND MANAGERS, MARKETING CO-ORDINATORS Among those
honoured were
• Diploma/degree in marketing
Ampie Pretorius
• Must have relevant proven experience of Amalgamated
• Understanding of marketing, advertising and Appliances in
media related functions the non-foods
category, and Eshu
• Candidates must be articulate, analytical and have Seevnarayan of
strong presentation skills Lylax Bedding in the
• Consumer electronics industry experience an furniture category.
advantage Commenting on
the group’s strong
SALES MANAGERS, REGIONAL MANAGERS, turnover and profit
KEY ACCOUNTS, SALES REPRESENTATIVES growth for the year Whitey Basson – experienced increased
ended June 2008, furniture sales.
• Relevant sales and marketing Shoprite chief
experience/qualication executive officer Whitey Basson says the company is now
• Successful sales background reaping the benefits of its substantial long-term investments
in infrastructure. Shoprite ended 2008 with a profit of R1 586
• Customer orientated billion, 46.1 per cent higher than the R1 086 billion of the
• Industry experience an advantage previous year.
“When the credit crunch started to bite and consumers
• Strong negotiation and communication skills
found their disposable income shrinking, Shoprite, with
• Must be able to identify new business its reputation for offering the lowest prices, was ideally
opportunities and expand on customer base positioned to benefit from the need of consumers across the
• Product knowledge training income spectrum to obtain the most value for their money,”
says Basson.
• Good administration, planning and “The furniture division operated in a highly competitive
organisational skills market yet, despite the constraints imposed by the National
• Computer literacy (MS Ofce, email and Internet) Credit Act, a succession of interest rate increases and a general
slowdown in spending on capital goods, it nevertheless
ADMINISTRATIVE POSITIONS achieved a turnover increase of 5.6 per cent, this in an
environment characterised by virtually no inflation on
PA’s / Secretaries imported high-technology white goods and while most of our
Ofce/Sales Administrators competitors were not able to report any real growth.”
Credit Controllers Credit sales continued to decline, specifically in the House &
Debtors Clerks Home chain, with customers struggling with severely reduced
cash flows. On a positive note, Basson adds, the OK Furniture
Shipping Clerks
chain, which mainly services the lower end of the market,
Warehouse/Stock Controllers continued to show double-digit sales growth.
“Although we are concerned about high food inflation,
Enquiries: the cost of energy and the unavailability of products, we
Cherry Swanson nevertheless believe the long-term prognosis for the economy
Cell: 082 780 7976
is favourable, provided it manages to weather the current
Tel: (011) 463 1177, Fax: 086 501 5059
e-mail: cearecruit@mweb.co.za
difficult conditions.
PO Box 71876 Bryanston 2021
0902 HGR.indd 16 2009/02/10 12:34 PMNewsline
Information sharing crucial to improve
finance access for SMME
Effective information sharing is crucial to ensure access to finance
for South Africa’s small, micro and medium Enterprises (SMME), a
research report commissioned by the National Credit Regulator
(NCR) has found. According to the report, compiled by the Centre
for Competitive Credit at the Political & Economic Research
Council, acceptance rates for granting loans significantly improve
when the financiers have access to suitable information about
payment behaviours of small businesses.
One of the biggest obstacles faced by SMMEs is access to
finance. Financiers have little knowledge about the payment Gabriel Davel – promoting the national credit register.
behaviour of a SMME and are thus reluctant to provide finance.
“The default assumption by many financiers is that insufficient The report also found that by World Bank standards, South
information equals high credit risk,” the report states, adding Africa has a remarkable level of SMME activity compared with
that financiers feel more comfortable to provide finance if they similar economies. A survey conducted in 1997 showed 22 small
can see that an SMME has a good payment record with other businesses per 1000 people. By 2007 this figure has more than
providers of goods and services. doubled to 58.
NCR chief executive officer Gabriel Davel says the report con- Studies done on data from South American countries, Japan
firms that improvement on information sharing will enhance ac- and the US all reveal that acceptance rates improve dramatically
cess to finance by SMME. “The National Credit Act has built a solid without compromising on quality of the debtors book when a
foundation for this to happen. The establishment of a national wide range of payment behaviour indicators of SMMEs are taken
register of credit agreements will further improve the quantity into account by the credit provider. A study from Colombia
and quality of information.” The report found that the national indicated that the use of data by credit providers on payment
credit register will be an ideal tool to promote information shar- behaviors towards non-financial items such as cell phones and
ing of SMME data if it incorporates key functionalities that have utility bills can greatly increase acceptance rates of applicants of
globally shown to improve access to credit. SMME loans. However, for credit providers to provide credit more
The risk faced by financiers of collateral being pledged more widely they need access to suitable data sources.
than once to different financiers could be mitigated by having According to the report, information solutions can help
a register of collaterals. The report reveals that in countries bridge the divide between the formal and informal economies
where these items were introduced in credit application reviews, by putting much needed data in the hands of credit providers.
higher acceptance rates resulted. “This was especially true for In South Africa, a way to overcome this information barrier is by
groups that were underserved by the financial mainstream. Thus, sharing key data via the proposed national credit register. A copy
appropriate credit information sharing can both expand credit of the research report can be obtained from www.ncr.org.za/
access and more importantly, distribute it more equitably.” Research_reports.html.
LG Elec tronics shares festive season joy
During December LG Electronics held an afternoon of Christmas
festivities for the children of Lambano Sanctuary, a home for
babies that have contracted HIV.
The children were collected from their home in Wychwood and
transported to LG’s offices in Boksburg, where they were treated
to a Mac Donalds Happy Meal, sweets, chips and cold drinks.
A host of exciting activities entertained the children until
Father Christmas arrived on a red fire-engine, complete with
lights blazing and siren blaring. LG employees demonstrated
their creative flair through bright designs face-painted onto the
children’s excited little faces and gifts which they had purchased.
Jump castles, miniature basketball nets and other ball games
kept everyone very busy.
“Our staff truly managed to capture the essence of Christmas
this year,” says marketing director Dr Michelle Potgieter. “They
gave generously, despite current challenging financial times. We
are proud that we are able to spread some festive cheer among
The staff of LG Electronics spread Christmas joy among children from those who really need it, and even if just for a little while, let
Lambano Sanctuary. these children experience that Life is Good.”
Home Goods Retailer – February 2009 | 17
0902 HGR.indd 17 2009/02/10 12:34 PMNewsline
Logitech wins
seven CES innovation awards, ships billionth mouse
For the second year running Logitech of the first public demonstration of the
has won seven 2008 CES Innovations computer mouse, Logitech has shipped
awards for excellence in design and its billionth mouse, 23 years after it first
engineering, including the Logitech® introduced its first retail mouse in 1985. It
G13 advanced gameboard, which won reached the 100 millionth mouse mark in
the Best of Electronic Gaming award, 1996 and sales of Logitech mice topped
and the Harmony® 1100 advanced 500 million seven years later. Today,
universal remote, which won the Best of Logitech sells mice in more than 100
Home-Theatre Accessories award. The countries worldwide and manufactures
company was also named an honouree an average of 376 000 mice per day and
in electronic gaming (G35 headset and 7.8 million every month.
Driving Force GT racing wheel), audio “During the last few decades, the way
components (Squeezebox Boom) and people use computers has changed
computer peripherals (Z-5 speakers and dramatically – what was once strictly
Illuminated keyboard). a business tool has become highly
“Logitech is privileged to be honoured integrated into our personal lives,” says
by such a prestigious panel of judges,” Quindlen. “Logitech has continually
says Logitech president and chief pursued innovations to meet those
executive officer Gerald Quindlen. changing conditions, introducing – in
“This once again confirms our strong the last five years alone – the world’s first
commitment to innovative design and laser mouse, hyper-fast scrolling and the
engineering. We are very excited that nano-receiver.
these Logitech products can share the “Looking to the future, the gesture-
spotlight with so many other innovative based Logitech® MX™ Air mouse and
products from around the world.” the hybrid Logitech® diNovo Mini™
palm-sized keyboard hint at what can be
Significant milestone expected from Logitech’s next generation
Coinciding with the fortieth anniversary of innovations.”
Gerald Quindlen – celebrating achievements.
Back to school for Umlazi bursary students
Looking forward to starting the new school
year at Umlazi Comtech High School on
full bursaries from Game Stores are (front)
Thembekani Magcaba, Mbali Myaka,
Nompumelelo Thusi, Thandazile Nkosi
and Nompumelelo Dlamini and (back)
Blessing Mngadi, Mpumelelo Kubheka
and Nothile Mbotho. All these Grade 10
learners are boarders on Game bursaries for
the third year running, having passed last
year’s exams comfortably. With them is Iris
Naidoo of Game Stores, a company which
implements a continuing social investment
programme focusing on empowering
disadvantaged learners to develop to their
full potential.
18 | Home Goods Retailer – February 2009
0902 HGR.indd 18 2009/02/10 12:34 PMCorporate Profile
The new face of
– refreshed, rejuvenated
and ready to go
One of South Africa’s largest electronic and
furniture buying groups, Furnex is sporting a fresh
organisational structure underpinned by a brand-
new technological investment which ensures
that the company is ideally poised to provide a
significantly enhanced service to its members.
A R6 million investment in IT, the staging
For a number of years, LG has been an integral part of a highly successful trade show and a solid,
of the annual Furnex trade show at The Dome in experienced management team are some of the
North Johannesburg. And because of the important reasons why Furnex is gleaming brightly in the
link Furnex provides between their members and midst of a listless economy.
suppliers, it’s always important for LG to show Furnex is a black-empowered buying
support for Furnex and their members as well as be company, with 40 per cent of its shares being
involved with the show. held by Imbani Holdings. Andy Simaan is the
At this year’s event, LG is proud to display its other major shareholder, with management
LG80 TV. With its high glossy black design with making up the balance. Andy Simaan has
trademark silver chrome line, this flagship LG extensive retail experience and will in future
product has an intelligent sensor that can save up take a more active role in Furnex, as its CEO
to 69.5% energy and enhances picture quality by at an interesting time with the current
adjusting automatically. The unit features automatic development of the economy and the
slide-out speakers, built-in 3.1-channel virtual industry.
surround sound and amazing picture quality in a The major electronics and furniture
beautifully designed TV. retailers have in particular being
And with its full HD LCD screen, it will ensure that undergoing significant changes due to
every bit of action you watch will be an awesome the economy and the implementation
visual delight. of the New Credit Act, although this was
The LG80 automatically enhances and amplifies implemented the previous year it is still
the sound of human voice frequency range to having a profound affect on retailers in
provide high-quality dialogue when background various ways.
noise swells so that you will not miss a word thanks
to LG’s innovative “Clear Voice.” New business model
Furnex has recently implemented a
strategy, which is to focus on the most loyal
members and suppliers within the group
and to streamline its operations to ensure
both member and supplier enjoy a far more
page 20 ►
Home Goods Retailer – February 2009 | 19
0902 HGR.indd 19 2009/02/10 12:34 PMCorporate Profile
◄ page 19 | Furnex
Improved administration resulted in members benefiting from
favourable service. This decision was not As a buying group, Furnex is both a considerably improved service. Said
based on the existing economic climate “collector” of negotiating power and an MD Andy Simaan “This was Furnex’s
but on a review of the buying business administration “factory”. The new structure single, major hurdle since the take
model and existing members and cost strengthens Furnex’s negotiation skills. The over to allow us to achieve satisfaction
structures. The new model seeks to efficient administration of all transactions between member and supplier within our
improve service in all areas and ensure between members and suppliers is also accounting portfolio. We are confident
members receive loyalty and exclusivity a key part of the business and within that this has now been achieved and
from Furnex. which IT plays an integral role in providing Furnex can get back into the arena of
quality services to the members at trading and servicing its members in a
Forum members all times. sales and after-sales capacity”.
As part of the rejuvenation of Furnex, Following the last changes in its In addition to the new accounting
the company has invited its loyal shareholding, Furnex was faced with systems, Furnex electronically scans all
electronics and furniture members to numerous administrative challenges, key documents resulting in access to
become shareholders in the company. which impacted on the accounting and documentation being vastly improved,
These members will be known as Forum services to its members. As part of its and enabling queries to be quickly and
members and will actively participate with strategy to overcome this hurdle, the easily tagged and tracked. Furnex is
Furnex in negotiating with suppliers and company invested more than R6million moving rapidly towards a near complete
securing good deals for the benefit of over the last two years in acquiring new paperless document management system,
themselves and other Furnex members. and cutting-edge IT systems which have which will further simplify the way it
The preferred exclusive, national buying group for all your electronic,
appliance and furniture goods; offering:
• Personalised Member and Supplier services
• Advanced IT and strong Administration systems
• One stop for electronics, appliances and furniture
• Focussed attention on carefully selected Members
• Supplier base catering for all needs with a large range of goods
If you are interested in becoming a member of the Furnex Buying Group,
please contact Lillian Jackman on 011 221 3400 or Ljackman@furnex.co.za
0902 HGR.indd 20 2009/02/10 12:34 PMCorporate Profile
interfaces with its members, making it placing the trading risk on our shoulders already firmly established foundations.
easy and painless for them to transact and preparing to commit to bulk “Most of the changes have already been
with the company. Statements are now container deals.” implemented with visible success.”
user-friendly and easy to understand and The skills base at Furnex is
communication is done seamlessly via Bullish outlook predominantly administrative, supported
fax or email. Additionally, members and Furnex remains a buying group at by a fully dedicated IT department and
suppliers can now access their information heart, providing its members with a call centre. “Only the highest calibre
over a secure Internet interface. single buying source for all electronics, staff are employed at Furnex, and all
The launch of Furnex Online at last appliances, furniture and bedding. “This boast excellent people skills, which are
year’s trade show now enables clients to is our core business and will remain imperative in a service-based company
view available product ranges online and our key focus, but it does not mean such as ours” concluded Simaan.
order from a web-based catalogue that we won’t evaluate any ancillary and Furnex’s membership is focused on
already boasts several thousand items and entrepreneurial opportunities that come approximately 250 selected members
is growing rapidly. our way and will continuously look for and is geographically widespread across
“Instead of merely being a conduit for growth opportunities within our core a diverse range of products in electronics,
stock movement between suppliers and competencies to add value to our current appliances, furniture and bedding. The
members, we are now able to actively member base.” company results show that the new-
look for opportunities to enhance The current economic slowdown is look company is not only attracting new
members’ margins through effective viewed as an opportunity and Furnex members, but most importantly increased
negotiation with suppliers”. “This includes is using it to further strengthen its business from existing members.
LG Electronics proves “Life’s Good When it’s Green”
LG Electronics, a global leader and tech- mobile phones use the Eco-Design. eliminate use of hazardous materials
nology innovator in consumer electronics, Such Eco-Products are resource- and to help reduce the impact to the
recently announced its “Life’s Good When energy-efficient, generating less waste. environment.
it’s Green” initiative, the foundation of its • Hazardous Materials – LG adheres • Environmental Safety – LG’s
global sustainability program. to strict requirements regarding the stabilisation policy encourages
“With Life’s Good When it’s Green, we’re management of hazardous materials in sustainable development and eco-
focusing on environmentally sustainable its production processes. production to help improve energy,
solutions, developing Eco-Designs and • Take-Back & Recycling – LG environment, safety, and health.
distributing Eco-Products to help create Electronics has established several • Environmental Communication –
a safer, cleaner country and world,” says take-back programs and recycling LG Electronics has developed an eco-
Dr. Michelle Potgieter, Marketing Director facilities, allowing consumers to return label to mark LG products as either
for LG. “We are committed to establishing end-of-life products. Products are environmentally-friendly or energy-
clear operational accountability and recycled in a responsible manner. saving products in order to ensure
creating products that not only enhance • Climate Change – Through their that customers are positively aware of
consumers’ lives, but also encourage an manufacturing, LG’s goal is to reduce the aspect of environmental safety in
environmentally responsible lifestyle.” greenhouse gas emissions by 150 LG products.
The key concepts to Life’s Good When it’s kilotons per year by 2020 and in their
Green initiative, include: products, LG intends plan to reduce By putting all these standards and
• Eco-Design – LG’s strategy to reduce greenhouse gasses emitted over the requirements in place, LG ensure to make
the environmental impact of a lifetime of its products by 30 megatons sure that Life is not only good, but better
product’s development, production, by 2020. when it’s Green.
and circulation while improving • Eco-Supply Chain – This program
efficiency of resources, recycling, and requires that LG’s vendors also comply
reducing hazardous materials. with national and international
• Eco-Products – LG’s Eco-Products regulations. LG will work to require
from HDTVs to clothes washers to its supply chain vendors to reduce/
0902 HGR.indd 21 2009/02/11 3:23 PMCorporate Profile
LG Products coming to the
Furnex Show
As a global technology leader in consumer connection firmly puts LG ahead of The LG HT33S
electronics, LG has a number of products its global competitors with advanced supplements its already
and lined up for display at this year’s features like BD Live. This enables users long list of features
Furnex Show, showcasing all aspects of to connect to the internet and download with some innovative
home entertainment and appliances. video images, subtitles and other data as entertainment extras.
From home theatres to HD-TV’s and the well as enjoy related quizzes and multi- The iPod docking
latest Blu-Ray players and ultra modern player interactive games. system allows users to
appliances, LG will feature some of its For consumers who expect nothing but easily enjoy their MP3
latest products available in South Africa the best sound sound, the BD300 delivers collection by simply
some of which recently won no fewer audio that is bit-for-bit identical to the plugging the iPod
than 14 prestigious Consumer Electronics original master track thanks to the Dolby into the LG HT33S. For
Show 2009 Innovations Awards. True HD and DTS-HD which deliver high gamers it delivers vivid
bit-rate audio. sound via its optical port.
LG60 HDTV Not only can the BD300 play the latest Thanks to its
With its high gloss black design with Blu-Ray titles, but DVDs and DivX discs as interoperability, which
trademark silver chrome line, this flagship well. In addition, thanks to its USB port, takes into account the
LG screen is the benchmark of style and the BD300 provides even more memory increased number of
elegance. capacity for content which has been input devices in today’s
With its Full HD screen, it comes downloaded off of the Internet. The unit is home, LG HT33S has the
standard with an intelligent sensor compatible with MPEG4 video, JPEG, MP3, ability to convert existing
that can save up to 69.5% energy and and WMA file formats. standard-definition DVDs
enhances picture quality and brightness into full HD1080p via HDMI
by intelligently adjusting itself with its LG's new HT33S Home Theatre upscaling. A variety of file
Intelligent Sensor. System formats such as DivX, DVD,
For those who enjoy not only a crystal- Emphasising its compact and unique CD, MP3, WMA and JPEG are
clear visual experience, but something to design without compromising sound easily accommodated through
tantalise their ears as well, the LG60 has quality, the LG HT33S is the newest USB. HT33S users also can easily
invisible speakers embedded in strategic home theatre system, specially tuned by convert audio CD files into MP3
spots behind the front cabinet and use renowned audio expert Mark Levinson. files and directly save them in
minute vibrations to turn the entire front The glossy piano-black and stylish USB memory as well.
bezel into the speaker system creating a parabola units
3.1-channel virtual sound system without functions as an
the need for external speakers. interior accent
In addition to this, the LG60 automati- for almost
cally enhances and amplifies the sound of any home.
human voice frequency range to provide Its compact
high-quality dialogue when background design also
noise swells so that you will not miss means easy
a word thanks to LG’s innovative “Clear installation and
Voice” feature. fewer channel
speakers
BD300 Blu-Ray Player introduce an
The LG BD300 Blu-Ray player provides the additional
ultimate visual and audio experience. space-saving
Its Full HD resolution via HDMI element.
BD300 Blu-Ray Player LG60 HDTV
22 | Home Goods Retailer – February 2009
0902 HGR.indd 22 2009/02/11 3:23 PMHOME PRODUCTS ABOUT US CONTACT US
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0902 HGR.indd 23 2009/02/10 12:49 PM0902 HGR.indd 24
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