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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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Operational overview
SA Distribution is the predominant
contributor to the Group’s revenue
and profitability. The principal
operating companies therein are
The Prepaid Company, Cell C, Blue
Label Connect, Blue Label Distribution,
TicketPro, 3G Mobile, Cigicell,
Prepaid24, Utilities World, Reware,
Edgars Connect and Transaction
Junction.
Overview
As the leading distributor of prepaid
airtime and electricity in South Africa,
this segment is well positioned to
supply its expanding suite of products
and services through its widespread
distribution footprint of approximately
150 000 devices. Distribution channels
range from Mom & Pop stores, spaza
shops, independent stores, wholesalers,
petroleum forecourts to multi-channel
retail and corporate banking partners.
SA Distribution’s unique ability to
deliver both virtual and physical
products to an extensive distribution
footprint through a single company
with a proven platform across different
channels to market, differentiates it as
the market leader in South Africa.
Products include, but are not limited
to, physical products such as hardware
(POS terminals, handsets, tablets and
accessories), prepaid starter packs,
postpaid contracts and virtual products
such as prepaid airtime, prepaid data,
prepaid electricity, prepaid water, bill
payments, voucher products, gaming,
money transfers and ticketing.
The informal sector contributes
approximately 85% to
SA Distribution’s revenue, with the
remaining 15% derived from the
corporate and formal retail sectors. In
reaching into and uplifting rural
communities, SA Distribution utilises
unique and diverse route-to-market
strategies. Solutions are facilitated by a
fleet of trucks accompanied by foot
soldiers, with further opportunities
available through
Start your own
Business
initiatives, which include
bicycle traders and informal vending
points or the option of purchasing
Business in a Box
from sales agents or
retail partners. In addition, incentives
are offered to retain merchants and
reward their growth, resulting in
further opportunities to cross- and
up-sell our merchandise.
The majority of SA Distribution’s
revenue continues to be derived
from the sales and distribution of
prepaid airtime, electricity, data and
starter packs.
The South African Distribution segment
(SA Distribution) is the largest distributor of
prepaid products and transactional services
in South Africa, covering both the
wholesale and retail markets. The product
range includes prepaid airtime, data, starter
packs, postpaid contracts, hardware,
electricity, water and all forms of
ticketing and financial services.
These products are supplied
across a diverse distribution
footprint reaching all South
Africans, thereby achieving the strategic objective of positioning
core products and services within arm’s reach of urban and rural
communities.
South African Distribution