Blue Label Telecoms plans to leverage Edcon's credit base at new standalone 'Edgars Connect' stores, says joint-CEO Mark Levy.
Blue Label announced the joint venture with Edcon at its full-year results presentation in Johannesburg yesterday.
"It's our foray into retail, our ability to have an environment where we can push our own products and services through. I think what is great is it takes cash and then it also has the ability to leverage the Edcon credit base. They have a massive customer base of 12.5 million customers so leveraging that and being able to push your own product into a different environment provides another channel, in essence," according to Mark Levy.
The joint venture has already seen 22 Edgars Connect stores open across the country, with a total of 46 planned by the end of September. The company has big expansion plans, with a target to open 100 stores by the end of the year and 400 over the next 24 months.
Blue Label owns 51% of the joint venture, while Edcon holds the remaining 49%. Joint-CEO Brett Levy says the companies will invest a combined R300 million in Edgars Connect over the next two years.
Brett Levy says consumers must not see Edgars Connect as a cellular store but rather as a completely new concept.
"Anything that will connect via a SIM card will be sold through these stores. This is a new concept to SA and a concept that is the future of the world.
"It is our belief, in the next two to three years you will see a conversion of all products and services that will connect via SIM and this is what this store will provide: an end-to-end solution across the SIM in its entirety, not limited to a tablet or cellular device," according to Brett Levy.
Blue Label says these stores are a preparation for the growth of the Internet of things and the intelligence of electronics going forward.
"All products are going to have a SIM card in the future; for example, the new intelligent Samsung washing machine or tumble dryer both run off a SIM card. All the new Samsung and LG fridges are SIM-based," notes Brett Levy.
He says Blue Label has found a great partner in Edcon and it sees huge possibility in being able to access the Edgars credit customer base.
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