Capitec is over­all brand leader in S Africa

The Star Early Edition - - BUSINESS REPORT - Di­neo Faku

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CAPITEC, South Africa’s third largest re­tail bank, is not only one of coun­try’s fastest grow­ing bank brands, but the fastest grow­ing brand over­all, ac­cord­ing to a re­port re­leased yes­ter­day by Brand Fi­nance, a branded busi­ness valu­a­tion con­sul­tancy.

This as the sur­vey, which de­ter­mines the most pow­er­ful and the most valu­able brands by coun­try, said South Africa’s brand value had in­creased by 3 per­cent year-on-year to R395 bil­lion in 2017.

Jeremy Samp­son, a di­rec­tor of Brand Fi­nance Africa, said South Africa was in many ways typ­i­cal of an emerg­ing mar­ket with an econ­omy founded on nat­u­ral re­sources and min­ing, un­der­pinned by bank­ing and telecom­mu­ni­ca­tions.

“How­ever, when a coun­try is strug­gling to grow at 1 per­cent whilst its brands grow by 3 per­cent it says much about the fu­ture po­ten­tial if not in­ter­fered with.”

The sur­vey also found that South Africa’s bank­ing sec­tor com­prised of nine brands, which out­per­formed all oth­ers, with a to­tal brand value of R100bn, mak­ing up nearly 25 per­cent of the to­tal brand value of the table.

The Brand Fi­nance sur­vey named Capitec, whose value grew by 25 per­cent to R5bn, as one of the strongest brands in the coun­try.

Ear­lier this year Laf­ferty’s 2017 Global Bank Qual­ity bench­mark­ing study ranked South African banks as the most sound in the world, reaf­firm­ing the po­tency of the in­dus­try.

Capitec adds more than 120 000 new cus­tomers a month, with about 8.4 mil­lion cus­tomer at present.

It scored 83.3 per­cent on the South African Cus­tomer

New cus­tomers gained by Capitec ev­ery month

Sat­is­fac­tion In­dex in April 2016, mak­ing it the best in terms of cus­tomer sat­is­fac­tion.

The Brand Strength In­dex in Fe­bru­ary also recog­nised Capitec as the world’s 8th most pow­er­ful bank­ing brand in the world.

The bank has pre­vi­ously said its suc­cess was based on its sim­pli­fied and af­ford­able prod­uct of­fer­ing, which pro­vides a com­pet­i­tive ad­van­tage over the of­ten com­plex prod­ucts of­fered by com­peti­tors.

The sur­vey also recog­nised First Na­tional Bank (FNB) as one of South Africa’s strongest brands.

FNB flew the South African flag high when it was named fourth on the Brand In­dex Strength In­dex af­ter the In­dus­trial and Com­mer­cial Bank of China, Bank Cen­tral Asia and the Bank of China.

“It (FNB) is the first fi­nan­cial ser­vices firm in South Africa to launch its own smart­phone; the com­pany is al­ready a pioneer na­tion­ally and it may well be that the tech­no­log­i­cal ad­vance­ment is to gear it up to com­pete on an in­ter­na­tional level,” said the sur­vey.

Telecom­mu­ni­ca­tions was sec­ond in terms of brand value af­ter bank­ing with R73bn, with Africa’s largest mo­bile op­er­a­tor, MTN, re­main­ing South Africa’s most valu­able brand, with a value of R40.8bn, up 10 per­cent.

The re­tail sec­tor is in third place, with a to­tal value of R49bn, the sur­vey found. Spar was the fastest grow­ing re­tail brand, up 15 per­cent in value to R10.4bn and Sho­prite, the most valu­able re­tail brand, was 2 per­cent higher to R11.1bn, while Clicks was up 7 per­cent to R3.4bn.

“The tough trad­ing en­vi­ron­ment in South Africa is likely to per­sist, es­pe­cially in light of the po­lit­i­cal un­cer­tainty un­der­min­ing con­sumer con­fi­dence. As a re­sult, the long-term out­look of the re­tail in­dus­try re­mains to be seen; re­tail­ers will have to dif­fer­en­ti­ate them­selves in or­der to re­main com­pet­i­tive in a chal­leng­ing en­vi­ron­ment,”

PHOTO: KAREN SANDISON

A branch of Capitec Bank in Pretoria. The bank, South Africa’s third largest, is the coun­try’s fastest grow­ing brand over­all.

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