Midas turns 30

Having survived big hair, leg warmers and the rise and fall of the Sony Walkman, and having grown from a single store in 1983, to 298 franchised outlets serving customers across South Africa, Swaziland, Zimbabwe, Botswana, Namibia and Lesotho, Midas aims to offer service and products in the vehicle parts and accessories business, as well as the broader lifestyle travel equipment industry.

"Despite the lingering effects of the recent global economic crash, the local motor vehicle manufacturing industry has reported close-to-industry-record capital expenditure levels, illustrating a growing affinity for anything vehicle- or travel-related, so it comes as little surprise that a 30-year-old organisation like Midas has been able to stand tall in our somewhat unpredictable economy," says Stefan Le Roux, Marketing and Franchise Director for Midas.

Consistent application of sound business principles, combined with many years of relationship-building with its franchisees and suppliers, has enabled the brand to position itself as a category leader in the automotive market. That said, Le Roux is quick to point out: "We have not done it alone. Our franchisees and their loyalty have been crucial to building the legacy. It is our commitment to ensure that we are continually adding value to their business to ensure that they are as successful as they can be."

Franchisees with benefits

One of the many benefits to franchisees is that the group provides ongoing marketing and merchandising support, as well as IT connectivity to regional warehouses. The brand is able to offer no less than 72,000 line items, and has the capacity to take receipt of 600t of parts from suppliers, while still offering the customer competitively priced quality guaranteed parts and accessories.

Equally, Midas' customers and suppliers have played a critical role in contributing to the brand's success. Le Roux explains: "Three decades in business proves that every level of our success - remaining relevant, offering quality products and good service, helps entrench that spirit of brand loyalty amongst customers."

Additionally, the group's growing pool of outdoor travel suppliers, including Campgear and Intex has enabled it to meet the needs of a burgeoning travel public in Southern Africa.

"Staying true to our core business principles, such as integrity, is critical for any business to sustain its long-term growth," Le Roux adds.

The future of the automotive components industry in South Africa looks promising. NAACAM - the National Association of Automotive Components and Allied Manufacturers - reported combined annual sales amongst its 390 members of R57bn, a 12% improvement over 2011. Similarly total turnover of the entire component-manufacturing sector, excluding duplication, is estimated at R86bn, up from R80bn in 2011. Midas is leveraging this growth, with a particular focus on Sub-Saharan Africa.

Midas continually reviews product quality, relevance and positioning, to ensure that it is in line with customer needs and desires. "An influx of imported product has made it imperative for us to maintain product quality standards - particularly as the market moves from DIY (Do-It-Yourself) to DIFM (Do-If-For-Me), which requires us to ensure that we meet the needs of trade customers, in terms of quality, product range and technical expertise."

About Midas (stores)

Midas is a group of franchise-owned retail stores designed around the needs of any vehicle owner, providing service and products in the automotive parts, accessories and lifestyle travel equipment areas. The group is one of nine subsidiaries within the larger Midas Group, an entity operating in the replacement automotive parts industry.

The first Midas Parts Centre was franchised in 1983, and subsequently the 30-year-old brand has evolved to over 293 Midas franchised outlets in Southern Africa including Swaziland, Zimbabwe, Botswana, Namibia, Lesotho and South Africa, catering not only for automotive parts and accessories but lifestyle travel equipment too. Each Midas store is equipped with fully trained salespeople offering a nationwide guarantee on products, promising the customer protection against any manufacturing defects. Products may be returned to any of the group's store should the latter occur, provided proof of purchase is presented.

Customers are able to buy products across a wide range of categories, including Service Parts, Batteries, Tools, Power Tools, Hardware, Workshop, Lifestyle, Heavy Duty and Trailer Spares, Car Care, Safety and Security, Tune-Up and Styling. Quality brands include: NGK, Willard Batteries, luk, ate, Ferodo, and many more.
For more information go to www.midas.co.za

NAPA celebrates 40 years in business

Surviving the rigours of the current economic climate is getting tougher, so it comes as welcome news that automotive parts buying and marketing co-operative, the National Automobile Parts Association (NAPA) Limited, is celebrating its 40th year in business.

The company was established in 1973 to service parts and accessory outlets nationwide and today, it services 107 member stores in South Africa, Namibia, Botswana, Swaziland, Zimbabwe and Mozambique. NAPA ascribes its sustained forty-year growth to sheer service excellence, underscored by a commitment to building long-standing client relationships.

"Looking back, the key lessons we have pulled from our success have been largely centred around the need to tailor one's business to suit the demands of the customer. This entails not only thoroughly understanding their business, but also understanding where their needs are and how we can meet them, head on," explains Megan Naiker, Managing Director for NAPA Limited.

Market-leading brands, including 3M, Bosch, Castrol, NGK, Shell, Exide, ATE, Partquip and Willard, use NAPA as a product distribution and marketing platform. As a negotiating and trading intermediary, NAPA links its members to any one of its partner suppliers, ensuring that its members receive the best possible deal. Members can place minimum volume or value orders on any of the represented suppliers' brands.

Looking to the future, Naiker says: "Our business is not only about expansion, it's about adding value to the service that our members experience and the NAPA team is constantly seeking out new ways to ensure that we honour this commitment to value. For instance, we see the industry shifting more from wholesale to retail, which will require NAPA to evolve accordingly."

Despite the automotive industry maintaining its marginal growth overall, businesses still face the daunting prospect of closure. According to a recent Angel Investment Network report, contributing factors include a lack of succession planning and dysfunctional management, risk-averse decision-making, poor accounting and a lack of cash flow, and declining demand for an organisation's products and services.

Naiker concludes: "For any business to survive, let alone grow, it must remain relevant, and like NAPA, constantly add value to a client (or member's) business."