LOCAL MARKET
Why it's not all plain sailing for top international brands in SA
Many international brands like clothing retailer H&M and pizza maker Domino’s are soaring in the international markets but are struggling in SA, leading local brand managers to modify their long-held belief that SA’s local brands will ultimately crumble in the face of the colossal might of their international relatives. SA has over the past decade seen the introduction of a host of international brands, some of which have thrived while others have struggled. But the resilience so far of at least some local brands is forcing local firms to become more sceptical about the brand value that big global brands bring with them. The most obvious example is the travails of Taste Holdings, which has coffee shop Starbucks and Domino’s Pizza under its wing. But neither have brought with them a hoped-for gold strike, and in its results for the year ended February, Taste’s revenues were down 5% to R1.04bn, while operating losses reached a staggering R228.3m. Other examples abound. Until changing ...
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