South Africa - International Franchise Association

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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.
Trade Promotion and Advertising Return to top South Africa has a sophisticated advertising industry. Advertising agencies provide a full range of services and the majority of the larger agencies are subsidiaries of prominent international agency groups. Major media outlets include television, radio, newspapers and magazines, outdoor advertisements, cinema and the Internet. The deregulation of the airwaves has introduced more competition through a further independent television channel and independent radio stations. The key figures in South Africa’s advertising industry are the Association for Communication and Advertising (ACA) (www.acasa.co.za); the two major media bodies, the National Association of Broadcasters (NAB) (www.nab.org.za) and the Print Media Association (PMA) (www.printmedia.org.za); and finally the Advertising Standards Authority of South Africa (ASA), which regulates South African advertising standards. Advertising agencies in South Africa are no longer solely remunerated by clients on a commission system. Fee arrangements are becoming increasingly common and specialist media buying companies are taking a growing market share of media purchases in South Africa. Customarily, the various media offer 16.5 percent commission to recognized advertising agencies provided payment is made within the stipulated 45-day period. Additional information can be obtained from the following association: Advertising Standards Authority Willowview, Burnside Island Office Park Tel: +27 (0)11 781 2006; Fax: +27 (0)11 781 1616 Mr. Fred Makgato Email: freddy@asasa.org.za Website: http://www.asasa.org.za Names and addresses of major advertising agents, newspapers, magazines, market research companies, and public relations consultants along with their current rates, can be found in the Advertising and Press Annual of South Africa available from: Infixion Medio (PTY) Ltd. Tel: +27 (0)11 835 2221; Fax: +27 (0)11 835 2631 Email: Yolanda.Hegurtha@infixion.co.za Website: www.infixion.co.za Major English-language South African newspapers include: Business Day www.businessday.co.za The Star www.thestar.co.za The Citizen www.citizen.co.za The Sowetan www.sowetan.co.za The Times www.thetimes.co.za Mail and Guardian www.mg.co.za Sunday Independent www.sundayindependent.co.za Major English-language periodicals for business include: Financial Mail www.free.financialmail.co.za Engineering News www.engineeringnews.co.za
Page 1 and 2: Doing Business in South Africa- 201
Page 3 and 4: South Africa is well integrated int
Page 5 and 6: • Telecommunications Equipment; a
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Page 11 and 12: Close Corporations: Close corporati
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Page 15 and 16: BEE Codes of Good Practice and othe
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Page 21 and 22: U.S. trademark and patent registrat
Page 23 and 24: • For more information about regi
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Page 27 and 28: electricity producers in the world.
Page 29 and 30: Meanwhile, a significant pipeline o
Page 31 and 32: The U.S. Commercial Service in Joha
Page 33 and 34: The Department of Communications So
Page 35 and 36: Opportunities Return to top • mar
Page 37 and 38: power generation constraints in Sou
Page 39 and 40: Other matters that are enjoying clo
Page 41 and 42: visit our website: http://www.buyus
Page 43 and 44: For More Information The U.S. Comme
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Page 47 and 48: Date: October, 2013 Venue: NASREC,
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Accreditation Return to top The fol
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Web Resources Return to top ATA Car
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Return to table of contents Chapter
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dimension is weighted, with ownersh
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Racially discriminatory property la
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Development Program (APDP). It will
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A proposal to amend the four pieces
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long-awaited spectrum auction, ensu
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OAS Convention: In 1996, the Member
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corruption related events and devel
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workers. The Act created the Commis
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in South Africa 2004 2005 2006 2007
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For most payment processes, two rel
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Foreign exchange may also be provid
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Industrial Development Corporation
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Private Bag X17, Bellville, 7535 Te
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There are two major international a
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gifts or to be sold, exchanged, or
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