South Africa - International Franchise Association

containers and logistics management. The Terminal currently handles 1,271 ships with a
total gross tonnage of 25,756,823.
Selling Factors/Techniques Return to top
New products entering the South African market require extensive market research and
mass advertising to identify potential customers’ buying patterns and preferences. This
applies particularly to unknown brand names, as South Africans are very brand
conscious.
One way of launching a new product in South Africa is by exhibiting at a trade show.
Promotional “give-aways” are also very popular. An editorial and/or advertisement in a
specialized trade publication will also enhance awareness of the product. Although
South Africa has eleven official languages, promotional material is typically printed in
English.
Direct selling has certainly found a niche market in South Africa. Direct sales to
individuals on a personal one-on-one basis by freelance agents are fast becoming a
multi-million dollar industry in South Africa. Examples of products sold in this way include
costume jewelry, plastic containers, lingerie and personal products and personal health
and herbal type products.
Amendments to the Consumer Protection Act (CPA), effective since 2011 have changed
many aspects of business in South Africa by introducing new legislation concerning
manufacturers and service providers. The new legal framework aims to protect the
consumer through controls on product liability, sales and marketing practices and
fairness in consumer contracts, among other issues. In essence, the CPA shifts the
burden of proof from the current consumer seeking redress to the supplier to prove his
indemnity.
Many regulations detailing the workings of the new Act remain to be tested and it will
take time for the full implications of the Act to become apparent. Apart from the contractlaw
elements of the CPA it will have a broader impact on Health, Safe and Environment
(HSE) and on the consumer. For a more detailed discussion of the amended Consumer
Protection Act, please see:
http://www.michalsons.com/the-consumer-protection-act-a-heads-up
Electronic Commerce Return to top
Consumer response to electronic commerce has increased. While acceptance of B2C
interaction has grown, South Africans still primarily use websites for information gathering
rather than purchasing. Since 2011 South Africa faces declining cost structures in terms of
ADSL and wireless Internet connection. The migration to e-commerce is slowly gaining pace.
Cell phones are slowly replacing wallets, as banks, card operators, retailers and
communications companies provide alternatives to cash as a means of payment. Mcommerce,
where cell phones are used to pay for goods and services, has advanced
beyond mobile banking to debit and credit transactions. M-commerce is particularly
attractive in Africa due to the rapid increase in the number of cell phones and the limited
access to the Internet, and poor fixed-line infrastructure.