24 / 220
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
/
22
For over 16 years, Blue Label has
delivered on its strategic objective of
distributing electronic tokens of value
in emerging markets. In a targeted
approach driven by data analytics,
we continue to expand our range of
products and services while increasing
our distribution footprint through a
vast network of POS devices and
electronic wallets, enabling consumers
to transact conveniently.
Physical and virtual tokens are
delivered through the deployment
of various technologies embedded in
our technical vending solutions. We
liken our distribution methodology to
a virtual delivery system, whereby our
sophisticated proprietary technology is
the carrier enabling such transactions.
Incremental costs are minimal, as
the heavy lifting to establish the
distribution network is already in
place, resulting in profit margins
filtering directly to the bottom line.
In deployment campaigns, we observe
merchants benefit through increased
turnover of our products, as well as
those of others from the moment our
POS device is installed. The longer
duration that a device operates in
the market, the more transactions it
records and the less churn is
encountered. Hence, we are a
‘magnet
for foot traffic’
– be it in South Africa,
India or Mexico.
In South Africa, the Group distributes
a range of offerings, including
prepaid airtime, starter packs for
voice, data consumption and content
downloading; a complete range of tier
one to tier four hardware devices, such
as branded and unbranded, new and
refurbished handsets and tablets;
finance for the mobile device element
of postpaid and hybrid contracts;
prepaid electricity and water e-tokens;
ticketing for the events, sports and
transport sectors; as well as fintech
and value-added services, such as
debit and credit card acquiring, bill
payments, Lotto, money wallets and
transfers and other value-added
services.
This variety and depth of digital
products and services, along with
merchants and consumers increasingly
adopting more tech savvy practices,
places Blue Label at the convergence
of the next Industrial Revolution.
Blue Label complements its
distribution by embracing the retail
channel in serving consumers in ‘
the
last mile
’. The relevance of this is that
the operator of the last mile of the
channel determines merchandising
practices and pricing, as the POS
terminal is located in this part of the
channel and in most instances is
placed there by Blue Label.
Blue Label
is
a “magnet for
foot traffic”
The Joint Chief Executive Officers’ report