1 00:00:00,160 --> 00:00:01,240 Speaker 1: Join the conversation. 2 00:00:01,520 --> 00:00:02,600 Speaker 2: Join the conversation. 3 00:00:02,960 --> 00:00:06,960 Speaker 1: You're with Kate talk welcome back in the nine forty seven. 4 00:00:07,040 --> 00:00:11,440 Speaker 1: Let's check in on Solaka's top one hundred brands. It 5 00:00:11,560 --> 00:00:15,200 Speaker 1: is the twenty twenty six verdict. It is out and 6 00:00:15,280 --> 00:00:18,640 Speaker 1: helping us to make sense of it. David Wingfield, Strategy 7 00:00:18,680 --> 00:00:22,720 Speaker 1: and Insight Consultant and Brand Finance Africa as of twenty 8 00:00:22,760 --> 00:00:25,599 Speaker 1: twenty six. I think David welcome first and foremostly and 9 00:00:25,640 --> 00:00:29,840 Speaker 1: other people would maybe recognize the brand or recognize the 10 00:00:29,920 --> 00:00:37,319 Speaker 1: name in association with another brand. David, are you there? 11 00:00:38,880 --> 00:00:43,800 Speaker 1: Maybe you should mute David via via zoo Zuoma. We're 12 00:00:43,800 --> 00:00:46,320 Speaker 1: gonna We're going to try and fix that connection. And 13 00:00:46,360 --> 00:00:49,879 Speaker 1: I think the interesting thing is that some of the 14 00:00:49,880 --> 00:00:52,279 Speaker 1: players are there. Some of the players are are there, 15 00:00:52,320 --> 00:00:55,320 Speaker 1: and they have been there consistently. The twenty twenty six 16 00:00:55,400 --> 00:00:59,520 Speaker 1: report shows a total brand value of seven hundred and 17 00:00:59,560 --> 00:01:04,600 Speaker 1: seventy one billion brand. It's very significant and it represents 18 00:01:04,600 --> 00:01:07,920 Speaker 1: a twelve percent increase year on YEA. So now the 19 00:01:07,959 --> 00:01:11,200 Speaker 1: big threes and you'll be familiar with them. Emptyn, Verticmmon, 20 00:01:11,240 --> 00:01:13,959 Speaker 1: Standard Bank dominate the top of the table and they 21 00:01:14,000 --> 00:01:18,080 Speaker 1: have been dominant. But the real story lies in the 22 00:01:18,160 --> 00:01:22,440 Speaker 1: very disruptive strength of retail fin tech hybrids. We're going 23 00:01:22,480 --> 00:01:25,440 Speaker 1: to find out exactly what retail fin tech hybrids are 24 00:01:25,520 --> 00:01:29,000 Speaker 1: all about, while of course getting a broad overview of 25 00:01:29,040 --> 00:01:34,080 Speaker 1: the top performing brands. David Wingfield now with us. Welcome David, Hi, Karence. 26 00:01:34,200 --> 00:01:37,119 Speaker 1: I'm great, Thank you. I was suggesting that other people 27 00:01:37,120 --> 00:01:41,880 Speaker 1: would associate you with another brand, but I see you've 28 00:01:42,080 --> 00:01:44,200 Speaker 1: moved to different spaces. 29 00:01:45,280 --> 00:01:51,040 Speaker 2: I have, ye oh, yeah, yeah, I have. I essentially 30 00:01:51,040 --> 00:01:52,920 Speaker 2: work with Brand Finance nine on my own. 31 00:01:53,200 --> 00:01:56,960 Speaker 1: Yes, yeah, but you used to be ahead of group 32 00:01:57,000 --> 00:02:01,240 Speaker 1: marketing at Abscess, so that's correct. I was, yeah, and 33 00:02:01,360 --> 00:02:06,480 Speaker 1: a man who understands the language. Indeed, let's look at 34 00:02:07,040 --> 00:02:08,799 Speaker 1: some of the rising stars of twenty twenty six. I 35 00:02:08,840 --> 00:02:10,960 Speaker 1: think we're well familiar with the ones that dominate the 36 00:02:11,000 --> 00:02:13,520 Speaker 1: top top area. Tell us about the surprises. 37 00:02:15,000 --> 00:02:17,959 Speaker 2: Well, I suppose, men, as you say, everyone knows the 38 00:02:18,280 --> 00:02:22,040 Speaker 2: ones that dominate, you know, the top five in South 39 00:02:22,080 --> 00:02:25,040 Speaker 2: Africa or in terms of brand value MTN, voter COOM, 40 00:02:25,120 --> 00:02:29,480 Speaker 2: Standard Bank, FMB and ABSA. But the ones that were 41 00:02:29,480 --> 00:02:31,720 Speaker 2: the real big surprises, I guess are always the ones 42 00:02:31,760 --> 00:02:35,120 Speaker 2: that make really big moves and there's probably two worth 43 00:02:35,160 --> 00:02:40,160 Speaker 2: talking about. The one is Pep. It is the fastest 44 00:02:40,200 --> 00:02:43,880 Speaker 2: growing brand in South Africa. It's brand value increase seventy 45 00:02:43,919 --> 00:02:47,280 Speaker 2: six percent in the past year. And the other one 46 00:02:47,320 --> 00:02:51,160 Speaker 2: is Boxer which screw fifty five percent. So two very 47 00:02:51,160 --> 00:02:56,400 Speaker 2: interesting ones, big big movers. The reasons for that. Pep 48 00:02:56,560 --> 00:02:59,560 Speaker 2: is a is a very very interesting case. It's it's 49 00:02:59,600 --> 00:03:03,440 Speaker 2: not just a simple marketing story, you know, just from 50 00:03:04,280 --> 00:03:07,280 Speaker 2: the way their business works, the way it's transformed. It 51 00:03:07,400 --> 00:03:10,880 Speaker 2: really has evolved from just being a value retailer to 52 00:03:11,400 --> 00:03:16,720 Speaker 2: something that really looks at community based financial services solutions 53 00:03:16,760 --> 00:03:18,960 Speaker 2: as well. So they rarely have found a way to 54 00:03:18,960 --> 00:03:23,080 Speaker 2: look after their customers. Their revenue is up and you 55 00:03:23,080 --> 00:03:26,239 Speaker 2: know that they now operate in the in what you 56 00:03:26,280 --> 00:03:31,160 Speaker 2: would call the fintech sector. They you know, they offer 57 00:03:31,600 --> 00:03:34,519 Speaker 2: these kind of fintech solutions to their customers. That's growing 58 00:03:34,600 --> 00:03:40,160 Speaker 2: significantly in terms of their their their earnings. They sell 59 00:03:40,320 --> 00:03:43,480 Speaker 2: a lot of smartphones. They's sold fourteen million of them 60 00:03:43,760 --> 00:03:47,520 Speaker 2: in the full year of twenty twenty five. That's quite interesting. 61 00:03:47,600 --> 00:03:51,080 Speaker 2: Eight eight and every ten prepaid handsets in South Africa 62 00:03:51,240 --> 00:03:55,400 Speaker 2: is from PEP. And then they have you know, they 63 00:03:54,720 --> 00:03:58,440 Speaker 2: have yeah, they have foot phone, yam and very active 64 00:03:58,680 --> 00:04:04,400 Speaker 2: customer based. They are extending their zero feed banking services 65 00:04:04,400 --> 00:04:07,520 Speaker 2: to over six thousand stores, so they really are They 66 00:04:07,680 --> 00:04:11,280 Speaker 2: challenge traditional retailers and they challenge traditional banks. So they 67 00:04:11,320 --> 00:04:14,360 Speaker 2: are a really interesting story. And then, as I said, 68 00:04:14,400 --> 00:04:17,600 Speaker 2: the other one is Boxer Clown Jewel of the Pick 69 00:04:17,640 --> 00:04:20,600 Speaker 2: and Paid group. Obviously they are the first Standard and 70 00:04:20,720 --> 00:04:23,760 Speaker 2: Discover retailer that was listed on the JC. They are 71 00:04:23,880 --> 00:04:30,679 Speaker 2: growing significantly. The secret to their success they're very very simple. 72 00:04:31,360 --> 00:04:36,960 Speaker 2: They have a very very simple model where they're located 73 00:04:37,000 --> 00:04:40,120 Speaker 2: in townships in Perry Urban. They get really really close 74 00:04:40,800 --> 00:04:44,080 Speaker 2: and they do full service convenience at really good prices. 75 00:04:44,120 --> 00:04:48,000 Speaker 2: And then they have a fantastic rewards program. So they 76 00:04:48,040 --> 00:04:50,680 Speaker 2: are again those two brands the ones that really stand out. 77 00:04:50,960 --> 00:04:54,440 Speaker 1: Yeah, so let's let's understand how we arrive at the 78 00:04:54,440 --> 00:04:58,599 Speaker 1: top one hundred. Is it an objective measure? It is 79 00:04:58,640 --> 00:05:01,359 Speaker 1: a total kind of revenue. Can you attribute to to 80 00:05:01,400 --> 00:05:03,640 Speaker 1: the brand or are they are they? How the factors 81 00:05:03,640 --> 00:05:05,760 Speaker 1: that are are part of the equations. 82 00:05:06,080 --> 00:05:09,400 Speaker 2: So what we do parents is that we we we 83 00:05:09,480 --> 00:05:14,920 Speaker 2: run a survey in South Africa that covers pretty much 84 00:05:15,040 --> 00:05:18,359 Speaker 2: every single sector and what it does cover every sector. 85 00:05:19,200 --> 00:05:22,200 Speaker 2: So we work out how strong brands are. Okay, So 86 00:05:22,200 --> 00:05:24,800 Speaker 2: so we ask people are how where are their brands? 87 00:05:24,800 --> 00:05:27,440 Speaker 2: How familiar are they and then we ask them some 88 00:05:27,520 --> 00:05:31,360 Speaker 2: attribute you know, based questions, but dependent on segment, so 89 00:05:31,360 --> 00:05:35,359 Speaker 2: so on sector. So for example, in in banking, it 90 00:05:35,360 --> 00:05:38,320 Speaker 2: would be how easy people are to deal with and 91 00:05:38,480 --> 00:05:40,240 Speaker 2: how easy it is to do X and y do 92 00:05:40,279 --> 00:05:43,000 Speaker 2: they offer got digital solutions? Et cetera. And what we 93 00:05:43,040 --> 00:05:46,920 Speaker 2: do then is we calculate a brand strength score, which 94 00:05:46,920 --> 00:05:49,599 Speaker 2: we call the Brand Strength Index. It's indexed out of 95 00:05:49,600 --> 00:05:54,600 Speaker 2: one hundred, and we then we we we take that 96 00:05:54,680 --> 00:06:00,440 Speaker 2: score and we then we look at the published revenue 97 00:06:00,600 --> 00:06:04,920 Speaker 2: and projected revenue of those of all of these entities, 98 00:06:06,080 --> 00:06:10,240 Speaker 2: and we then calculate a brand vandue. So three objective study. 99 00:06:10,279 --> 00:06:14,080 Speaker 2: Everyone has has a fair shape in it. So yeah, 100 00:06:14,120 --> 00:06:19,320 Speaker 2: it's objectively calculated and that's how we do Okay. 101 00:06:19,360 --> 00:06:21,279 Speaker 1: So yeah, I think we all need to understand brand 102 00:06:21,320 --> 00:06:24,599 Speaker 1: strength versus value, and I think we've got a better 103 00:06:24,640 --> 00:06:28,320 Speaker 1: sense of it now. So we've you've reported twelve percent 104 00:06:28,560 --> 00:06:31,120 Speaker 1: increase in value to seven hundred and seventy one billion 105 00:06:31,800 --> 00:06:35,560 Speaker 1: off the back of what a period of stabilization, you 106 00:06:35,680 --> 00:06:40,520 Speaker 1: call it will sustained recovery phase, you calling it. So 107 00:06:40,560 --> 00:06:44,480 Speaker 1: you say the sentiment is driving this growth positive? 108 00:06:44,640 --> 00:06:48,760 Speaker 2: Yeah, I mean I think you know brand brand strength growth, 109 00:06:49,360 --> 00:06:51,680 Speaker 2: you know it is corporate South Africa. People have a 110 00:06:51,800 --> 00:06:54,880 Speaker 2: trust in the brands, the brand that the brands are 111 00:06:56,240 --> 00:06:58,600 Speaker 2: from a from a strength point of view, they are 112 00:06:58,720 --> 00:07:02,119 Speaker 2: very very strong brands. I meant Africa has spectacularly strong brands. 113 00:07:02,160 --> 00:07:07,000 Speaker 2: Even by comparison on the global stage. If you compare 114 00:07:07,040 --> 00:07:10,400 Speaker 2: our banking brands on our Caalco brands with some of 115 00:07:10,440 --> 00:07:13,840 Speaker 2: the international our retail brands with international competitors, they do 116 00:07:14,000 --> 00:07:19,280 Speaker 2: very very well. So there's a very strong fundamental brand 117 00:07:19,320 --> 00:07:24,360 Speaker 2: strength with South African brands. And then obviously from you 118 00:07:24,360 --> 00:07:28,080 Speaker 2: know they are, they are reporting solid growth the corporate 119 00:07:28,080 --> 00:07:32,600 Speaker 2: sector in South Africa, notwithstanding the economic challenges the country 120 00:07:32,920 --> 00:07:39,280 Speaker 2: may have, but so the sectors of growing and because 121 00:07:39,320 --> 00:07:44,280 Speaker 2: of that, I guess brand brand strength is stable and 122 00:07:44,360 --> 00:07:48,240 Speaker 2: therefore obviously the brand value will will creep up over time. 123 00:07:48,320 --> 00:07:52,800 Speaker 2: So twelve percent is a very decent performance for brands 124 00:07:52,800 --> 00:07:54,840 Speaker 2: in South Africa, and. 125 00:07:54,800 --> 00:07:58,360 Speaker 1: I guess David Wingfield, Strategy and insight consultant at Brand Africa, 126 00:07:58,360 --> 00:08:00,760 Speaker 1: we're talking about twenty twenty six top one and the 127 00:08:00,760 --> 00:08:03,640 Speaker 1: most valuable, strongest and fastest growing South African brands at 128 00:08:03,760 --> 00:08:07,480 Speaker 1: nine to fifty five. The time checker is getting an 129 00:08:07,480 --> 00:08:11,640 Speaker 1: absolute perfect core. They've been taking market share. There's a 130 00:08:11,720 --> 00:08:14,960 Speaker 1: high value newcomer in Savannah. Savannah is interesting. 131 00:08:18,160 --> 00:08:22,280 Speaker 2: Yes, Savannah is one of those that's always been, you know, 132 00:08:22,320 --> 00:08:26,240 Speaker 2: one of those brands that that they when they when 133 00:08:26,280 --> 00:08:31,120 Speaker 2: they originally launched that brand, they were very much what 134 00:08:31,160 --> 00:08:33,560 Speaker 2: would you call a disruptive brand. They kind of disrupted 135 00:08:33,559 --> 00:08:37,280 Speaker 2: the character category, and they've done a really good job 136 00:08:37,320 --> 00:08:40,720 Speaker 2: over the past number of years it just even from 137 00:08:40,720 --> 00:08:43,800 Speaker 2: a line extension point of view, obviously into into things 138 00:08:43,960 --> 00:08:48,400 Speaker 2: like alcohol free, but also just some of the other 139 00:08:48,440 --> 00:08:51,200 Speaker 2: things that they have done with that brand, just into 140 00:08:51,520 --> 00:08:55,720 Speaker 2: you know, some of the different variations they've launched. So 141 00:08:55,720 --> 00:08:59,839 Speaker 2: so they continue to continue to confound people and the 142 00:09:00,240 --> 00:09:02,840 Speaker 2: continues to go from strengths to strenk Let's. 143 00:09:02,600 --> 00:09:04,720 Speaker 1: Talk about that feel that you've been in for forever. 144 00:09:04,760 --> 00:09:08,280 Speaker 1: Your twenty twenty six data shows African banks punching above 145 00:09:08,320 --> 00:09:12,200 Speaker 1: their weight in brands strength, but lagging in total value. 146 00:09:12,480 --> 00:09:15,320 Speaker 1: You've also reported a neo bank threat. You're saying global 147 00:09:15,320 --> 00:09:17,840 Speaker 1: players are looking to access Africa It's one point four 148 00:09:17,840 --> 00:09:22,720 Speaker 1: billion market via via platforms like Time Banks. That's very interesting. 149 00:09:23,400 --> 00:09:24,880 Speaker 1: Can we expect a shakeup? 150 00:09:25,720 --> 00:09:28,559 Speaker 2: Yeah. I think one of the things about just in 151 00:09:28,600 --> 00:09:31,880 Speaker 2: context with African with African banks, is that African banks 152 00:09:31,880 --> 00:09:35,600 Speaker 2: are very very strong relative to their global competitives. Obviously 153 00:09:35,640 --> 00:09:39,840 Speaker 2: because we are they are so much smaller, and obviously 154 00:09:39,880 --> 00:09:44,080 Speaker 2: with the currencies that we generally operate in on the continent, 155 00:09:44,360 --> 00:09:47,920 Speaker 2: our value tends to be lower. So Standard Bank, for example, 156 00:09:48,280 --> 00:09:53,360 Speaker 2: is globally so Africa's globally Africa's most valuable bank, but 157 00:09:53,400 --> 00:09:55,880 Speaker 2: it only ranks one hundred and twenty nine in terms 158 00:09:55,880 --> 00:10:00,320 Speaker 2: of global banking value. In strength, though, we have very 159 00:10:00,400 --> 00:10:04,720 Speaker 2: very strong brands on this continent cap Tech FND from 160 00:10:04,800 --> 00:10:09,199 Speaker 2: South Africa, Equity Bank and Kenya Commercial Bank in Kenya, 161 00:10:09,320 --> 00:10:12,280 Speaker 2: and so some very very strong banks. What is coming 162 00:10:12,320 --> 00:10:15,319 Speaker 2: though is that you know, banks like Time Bank have 163 00:10:15,400 --> 00:10:18,719 Speaker 2: been do very very well. They now obviously have a 164 00:10:19,440 --> 00:10:24,880 Speaker 2: partnership with with with New Bank. The you know, they're 165 00:10:24,920 --> 00:10:31,640 Speaker 2: just re re uh renamed to go Time. So so 166 00:10:31,679 --> 00:10:35,720 Speaker 2: we expect that that will over time that partnership will grow. 167 00:10:36,160 --> 00:10:39,760 Speaker 2: New Bank is really really really big in several emerging 168 00:10:39,800 --> 00:10:41,800 Speaker 2: marts in the world. And then the other big one 169 00:10:41,840 --> 00:10:45,319 Speaker 2: is that Revolute, the huge UK digital bank has applied 170 00:10:45,320 --> 00:10:47,920 Speaker 2: for a license in a bank license in South Africa 171 00:10:48,520 --> 00:10:52,559 Speaker 2: last year and they will obviously come in and compete. 172 00:10:52,600 --> 00:10:56,160 Speaker 2: And everywhere Revelutes has been they have made a success 173 00:10:56,160 --> 00:10:59,360 Speaker 2: of it, so they will do the same here. 174 00:11:00,000 --> 00:11:01,920 Speaker 1: We're gonna have to wrap it down. I think everybody 175 00:11:01,920 --> 00:11:03,840 Speaker 1: should go and get a sense of where things are at. 176 00:11:03,920 --> 00:11:06,920 Speaker 1: Through the twenty twenty six top point hundred most valuable, 177 00:11:06,960 --> 00:11:10,360 Speaker 1: strongest than fast growing South African brands. The conversation with 178 00:11:10,440 --> 00:11:12,520 Speaker 1: David Wingfield brings the time to two minutes to ten 179 00:11:12,520 --> 00:11:12,800 Speaker 1: o'clock