success in retailing – south africa - absaetfcib.absa.co.za/sitecollectiondocuments/philip...
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Success in Retailing - South AfricaBY PHIL IP KRAWITZ
EXECUTI VE CHA IRMAN, CA PE UNI ON MA RT GROUP
BARCLAYS SOUTH AFRICAN RETAIL CONFERENCE : 7 OCTOBER 2014
Outline
• Defining success
• What drives us
• Our story
• Our keys to success
• The changing environment
• The future outlook
Defining Success
• “Success is getting what you want – happiness is wanting what you get.” – Harvard
• “Define success on your own terms, achieve it by your own rules, and build a life you’re proud to live.” – Anne Sweeney
• “Stop chasing the money and start chasing the passion.” – Tony Hsieh
• “Success isn’t about how much money you make. It’s about the difference you make in people’s lives.” – Michelle Obama
What Drives Us
People philosophy
• “The quality of the company is equal to the quality of its people”.
• If we can attract, train, care for, retain and inspire better people than the opposition, we win!
• The deal:- You will be employed by us for as long as you continue to add value to this company. In return, we will give you: o Fair remuneration
o The tools to do your job
o Meaningful and important work; and
o The training necessary to make you employable here or elsewhere
What Drives UsMarketing philosophy
“Marketing is the profitable creation of consumer satisfying goods and services”.
Our Mantra!
18861933
19451946
19481962
19721981
19841990
20002005
20082011
TODAY2016
P. Krawitz and Co. founded by
grandfather, Philip Krawitz, in
Johannesburg
Moves to Cape Town – renamed Cape Union Mart
First store opens cnr Corporation and Mostert St.
Arthur Krawitz
takes over
First import permit
Acquires own property
from Woolworths
Philip Krawitz (Jnr)
joins as student staff
Arthur has a heart attack and
Philip leaves University to run
the company
Philip completes Advanced
Management Programme at
Graduate School of Business
18 Cape Union Mart
stores
50 Cape Union Mart
stores
First Old Khaki store
André Labuschaigne
joins the company as
CEO
K-Way Factory
bought from Hepworths
Second store opens in
Sanlam Centre, Parow
79 Cape Union Mart stores, 48 Old Khaki stores,
23 Poetry stores
180 stores planned
200 stores strategy
Our Story
First Poetry store
Our Keys to SuccessOur People • Treat your business like a business, and your
family like a family!
• It’s all about the passion! Im tirtzu, ein zoaggada!
• Employ people who are much smarter than you.
• Get ordinary people to do extra-ordinary things.
• The mark of an exceptional company is how it treats the exceptions in its company.
• Create constructive conflict.
• Accept responsibility for taking people from where they are, to where they can be!
• Pay as much as possible!
Our Keys to SuccessOur customers• Find out what they want
• Create it or obtain it
• At a profit for ourselves
• Make sure it satisfies
• Excite the customer
• “You didn’t have to do that”
• Cherish the children
• The 5 Way guarantee
o Price Match
o Cash Refund
o Price protection for sales
o We guarantee fair wear and tear
o Accept all credit cards 7 offer bank exchange rates
Our Keys to Success
Our vendors• View them as partners
• Think long term
• Tough but fair
• Punctual payment policy
• Try and let them grow with you
• Protect your supply line
Our Keys to Success
Corporate citizenry• Embrace the Environment
• Go beyond consumer legislation
• Remember you are simply a tool for the achievement of societal goals
• If you are expecting dividends from society, make investments
o Training
o Capital Equipment
o CSI
o Use your resources, experience, connections and capacity to change the world from what it is, to what it can be!
The Changing EnvironmentThe new South Africa
• Respect for all people
• Race plays no part
• Gender discrimination is out
• The Irish coffee theory goes
• Demographic revolution
o Black middle class goes from 1.,7 million in 2004 to 5.4 million this year
o White middle class goes from 2.8 million in 2004 to 3 million this year
o High earning blacks (earning more than the average white) go from 120,000 in 2001 to 1.9 million this year
o 60% of Government spending goes on social services (health, education and protection)
o Tax payers earning above R750,000 will pay more than 30% of all income tax collected while earning about 24% of personal incomes
• Better educated
• Globally aware
• Quality conscious but value driven
The Changing EnvironmentThe internet revolution
“The decision on what to buy and who to buy it from will be made before the customer leaves to go shopping”
The Changing EnvironmentThe crisis of supply
• “South Africa will face a crisis of supply rather than a crisis of demand”.
• Re-shoring will dominate the economic landscape.
• Customers will subscribe to “local is lekker”.
• Local manufacture will revolutionize lead times and customization.
Our K-Way Factory
The Changing Environment
500,000
35,000
2005
2014
150
200
The Future Outlook• Don’t write off Africa.
• A better educated population will offer a lucrative marketing opportunity.
• The middle-class will increase dramatically together with a very attractive “black diamond” market.
• Global competition will sort out the men from the boys.
• Tony Leon got it right –“From 1948 until 1994 the Nationalist Party did everything in its power to bugger up this country. It failed! Since 1994, the ANC has been in power, they too are doing everything possible to bugger up this country! They too will fail!”
Thank you for listening
The End