The lipstick effect drives the franchise beauty industry

Based on the theory that in hard times consumers will still buy luxury goods even if there is a crisis, the lipstick effect sees women, for example, instead of buying expensive treatments or clothes, settle for their favourite lipstick or luxury perfume.

Capitalising on that global theory, the Health, Beauty & Body sector in South Africa contributes 6% to the ‘franchise pie’ and with 74% of franchises owned by women, this sector continues to perform well despite the struggling economy.

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Fairness in franchising

fairness-in-franchise

As the business environment gets more difficult due to socio-economic and political influences in South Africa, the question of fairness in franchising has become a hot topic – both locally and internationally. FASA regularly fields complaints from franchisees on the fairness of their contracts in relation to everything from false promises, non-disclosure by the franchisors of failed franchisees, selling of outlets in close proximity of fellow franchisees to excessive supplier costs and marketing contributions and the refund of deposits.

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OBC Chicken & Meat welcomes the retail market inquiry

OBC Chicken & Meat was one of the companies that made their submission to the Competition Commission on the power wielded by the major national supermarket chains over enforcing exclusive provisions in their lease agreements against challenger retailers and speciality stores. It welcomes the preliminary findings and will be submitting its comments to the Commission.

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Food ordering apps tops the list in mobile apps

food-apps-mobile-apps

We all do it quite automatically. We download an app for this and for that. It has become central to our lives. It all started with those gaming apps that keep us glued to our mobiles but has moved on to include store and shopping apps and more recently food apps that give us access at our fingertips. There is no question that the purpose of apps is changing – instead of being a means of entertainment or a means to waste time playing games, they’re playing an active role in the consumer’s daily journey to purchase.

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4th Industrial Revolution – Franchising adapts to a changing world

4th-industrial-revolution

The buzz word in global circles is ‘adaptability.’ With technology forging ahead at an unprecedented rate and talk of a 4th Revolution takes hold, adaptability has became the mantra as we end the decade and face the 2020’s.

It’s a known fact that when the world economy undergoes changes – either positive or negative – franchising is the first to act on those changes. As the one business sector with its ear close to the ground when it comes to picking up shifting consumer trends, it is also the one best suited, through its franchise systems, to effectively make the necessary changes to stay in the game, change the game or climb onto another bandwagon.

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Chicken Xpress – The people’s champion opens in Springs

chicken-xpress

Walk through the popular Springs Mall food court on any given day and you will be attracted to the bright red and orange Chicken Xpress outlet and the queues of people waiting for their taste of a truly South African brand whose values are firmly based around the local community. There you will spot dynamic husband and wife team Perri and Lea making sure that every customer gets the 5-star Chicken Xpress treatment. These enthusiastic franchisees opened their first store in KwaThema in 2018, and their 2nd store in the bustling Springs Mall has proved a great success. “Since we opened we have had some amazing trade flowing through the doors and a great reception from the centre and the surrounding area.”

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Second-hand clothing sector spawns franchise retail fashion opportunity

Secondhand clothing fashion

Research by McKinsey State of Fashion shows that more than half of fast-fashion items are thrown away in less than a year, with 11 million clothing items a week (or 300 000 tonnes a year) in the UK alone landing up in landfills. The answer, it seems, is to never put clothes in the bin and rather, like FASA member 2nd Take, turn it into a successful franchise.

Gumtree SA reports having more than 20 000 items of clothing listed on their site and their survey shows that 65% of responders have ten or more items in their wardrobe that they never wear. Globally, the 2nd hand market is becoming the largest growing consumer sectors. Even designers like Stella McCartney launched an initiative called ‘The future of fashion is circular’ – promoting the purchase of sustainable quality clothing that retains its value and can then be resold to expand its lifespan, avoiding landfill or an incinerator.

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