Friday 31 August 2012

Leveraging supplier funded growth



Most retail/supplier relationships start and end with the transaction of a commodity for cash. 

Whatever your retail product offer may be, retailers have more leverage in today’s retail market when it comes to asking more from suppliers than just their stock.

If you are a multi-brand store, each brand is fighting for recognition, growth and consumer attention, just like supermarkets brands fight for the most expensive real estate - eye level - so must smaller stores consider offering valuable selling real estate positions in stores to suppliers for agreed remuneration contributions. 

The contribution may come in many forms, but is another way the retail offer can be maximised through the back end as well as increasing traffic through the front door.

Some ideas to increase supplier contributions and increase your retail message;
  • Register receipt: Most register receipts have a flip side - suppliers contribute funds for their message or brand logo to be viewed on the reverse
  • Bags: Consider asking all suppliers to have your logo alongside theirs on your carry bags. If you ask several suppliers you may pay for your entire bag inventory through supplier contribution
  • Online: Consider having a fortnightly brand push on your website home page. This keeps your offer fresh and having a brand name pay for its two week period also helps with running e-commerce when times are quiet or during start up.
  • Offline catalogue: If your business is catalogue based, consider asking suppliers for a brand page. If this can be done with several different suppliers, all you may have to do is pay for postage
  • Free point of sale: Suppliers are all about pushing a particular brand or message over a competitor. Supplier funded point of sale increases their brand message instore while creating a branded message to the consumer
  • Supplier funded staff days: Nothing new here as the department stores have had this as their primary offer in the cosmetics industry, but what we’re talking about here is brand days your store may offer in accordance to their respective brand.
Many retailers may also be looking for ways to offset the plethora of increasing retail expenses from increased wages, rents, and margin sacrifice of a sale. Make sure to ask your suppliers to come to the party with contributions, not for the sake of your business but for their own message and branding within your business.

As the marketing, advertising, and customer service channels collaborate to increase business growth, back end supplier funded efforts will play a determining factor when assessing your retail sustainability.

Supplier engagement strengthens the offer between your store and supply. The more investment put in the relationship the more neither side can afford it to fail. Growth is expected and anticipated.

Puberty Blues gains 20% in time shift viewing

Puberty Blues.

Ten program Puberty Blues' consolidated ratings figures increased an impressive 20.4% on the preliminary numbers as 172,000 viewers time shifted the local drama.

An extra 172,000 people recorded and watched the second episode of the scripted series in the week following its initial broadcast on 22 August.

With the increased audience numbers, Puberty Blues commanded consolidated ratings of 1.02 million viewers.

The debut episode on 15 August saw 119,000 time shifted viewers added to its ratings, which brought it to a total of 1.04 million.

Additionally, the series reported 716,458 video views on the Ten website between 22 August and 29 August.


Metcash marketing doubles


Fierce competition between Coles and Woolworths has resulted in grocery wholesaler Metcash spending twice as much on marketing.

Chief executive Andrew Reitzer said the war between the two supermarket giants had caused Metcash, a distributor of groceries and liquor to independent retailers such as IGA, had to increase its advertising just to maintain its customer base.

"We've had to increase our marketing spend and our marketing exposure," he said.

"It just means to hang on to what you've got or to grow as you would expect to grow you're spending twice as much on marketing."

Mr Reitzer also reiterated Metcash's earnings guidance at its annual general meeting in Sydney on Thursday of an earnings per share dilution of between one and three per cent in fiscal 2013, compared with underlying EPS in the prior year.

Metcash had adjusted its earnings guidance on Wednesday after assessing its June capital raising and recent initiatives including taking full ownership of hardware chain Mitre 10.

Previously, Metcash had targeted EPS growth in low to mid single digits in fiscal 2013.

Mr Reitzer also said considering the current low consumer sentiment and the marketing war between Coles and Woolworths, the company's net profit of $90 million for the year to April 30 was a good result.

The result was down from $241.4 million in the previous year.

"The group's results were very strong given the operating environment," he told the meeting.
He said he was unconcerned with the current rollout of Woolworth's Masters hardware stores as the chain, like Bunnings, was targeted more at the DIY market whereas Mitre 10 also sold directly to tradesmen.

"We're not worried at all. We're in a totally different space," he said.

"Masters is like Bunnings it's a big box. We don't have any big boxes. We're more suburban and rural town and 50 to 70 per cent of our business in trade."

Perth #1 in national online activity


Perth's online activity is leading the nation when it comes to digital wheeling and dealing according to Google.

At the inaugural Google eTown Awards ceremony held yesterday, West Australian businesses were recognised for being number one within Australia's digital world.

Google Australia's head of local business Clare Hatton said the awards, which ranked 600 communities based on their online business acumen, were a way to reward metropolitan and regional areas that are "using online better than others" in order to find new customers and grow their businesses.

"We know the digital economy is fuelling Australia’s economy. We already know the mining boom is reshaping Western Australia but this eTown award really shows that the City of Perth's small businesses are also keenly embracing the digital boom," Ms Hatton said.

Australia's digital economy is worth as much as the nation's iron ore exports and is forecast to grow by up to $70 billion over the next four years according to business consultants Deloitte Access Economics.

"We've found 50 per cent of consumers are researching online before they go and buy anything off line so it's hyper critical for local businesses to be online. Having a web presence is more important than having a phone nowdays, getting online is the first critical step toward success," she added.

"[Perth] points the way for communities in this country to embrace this technology in order to ensure businesses grow and our economy as a result grows," Federal Small Business Minister Brendan O'Connor said as he presented the award to City of Perth Lord Mayor Lisa Scaffidi.

The award announcement follows Perth's first ever foray into Sunday trading in the wider metro area and the launch of free WiFi within in some areas of the CBD – an initiative championed by Ms Scaffidi.  

Other 2012 eTown winners included Yarra in Victoria, Adelaide in South Australia and North Sydney and Ryde in New South Wales.

Byron Shire in NSW led the regional rankings ahead of Meander Valley in Tasmania, Cessnock and Wingecarribee shires in NSW and the Scenic Rim region in Queensland.
The awards were established in the UK and the internet search engine has since identified e-Towns in France, Germany and Poland.   

Google, Apple in secret patent talks

A Combination photo showing Google CEO Larry Page (L), in New York, in this May 21, 2012 file photo and Apple CEO Tim Cook in Cupertino, California in this October 4, 2011 file photo. REUTERS/Files

Google Inc Chief Executive Larry Page and Apple CEO Tim Cook have been conducting behind-the-scenes talks about a range of intellectual property matters, including the mobile patent disputes between the companies, people familiar with the matter said.

The two executives had a phone conversation last week, the sources said. Discussions involving lower-level officials of the two companies are also ongoing.

Page and Cook are expected to talk again in the coming weeks, though no firm date has been set, the sources said on Thursday. One of the sources told Reuters that a meeting had been scheduled for this Friday, but had been delayed for reasons that were unclear.

The two companies are keeping lines of communication open at a high level against the backdrop of Apple's legal victory in a patent infringement case against Samsung, which uses Google's Android software.

Last Friday, a jury awarded Apple $1.05 billion in damages and set the stage for a possible ban on sales of some Samsung products in a case that has been widely viewed as a "proxy war" between Apple and Google.

One possible scenario under consideration could be a truce involving disputes over basic features and functions in Google's Android mobile software, one source said. But it was unclear whether Page and Cook were discussing a broad settlement of the various disputes between the two companies, most of which involve the burgeoning mobile computing area, or are focused on a more limited set of issues.

Competition between Google and Apple has heated up in recent years with the shift from PCs to mobile devices. Google's Android software, which Apple's late founder Steve Jobs denounced as a "stolen product," has become the world's No.1 smartphone operating system. The popularity of the software has been in tandem with patent infringement lawsuits involving various hardware vendors who use it, including Samsung and HTC.

The latest complaint was filed by Motorola Mobility, now a unit of Google, against Apple at the U.S. International Trade Commission claiming some features of Apple's devices infringe on its patents. A previous lawsuit between the two in a Chicago court was thrown out by a federal judge, who said neither side could prove damages.

Apple in recent months has moved to lessen its reliance on Google's products. Apple recently unveiled its own mobile mapping software, replacing the Google product used in the iPhone, and said it would no longer offer Google's YouTube as a pre-loaded app in future versions of its iPhone.

Cook took the helm at Apple a year ago, and Page stepped into the top job at Google a few months before that.

The conversation between Page and Cook last week did not result in any formal agreement, but the two executives agreed to continue talking, according to one source.

Google's Larry Page, who sat out several public speaking engagements earlier this summer because of an unspecified medical condition affecting his voice, has continued to run Google's business.

Apple and Google declined to comment on any discussions.

Thursday 30 August 2012

Apple could release mini iPad early as October


Apple will unveil a new, smaller version of its wildly popular iPad in October after the release of the latest version of its iPhone next month, the All Things Digital website has reported.

"First comes the latest iteration of the tech giant's hugely popular smartphone, which will be unveiled at an as yet unannounced event on September 12," the website said.

"Only after the next-generation iPhone is out the door and on sale will Apple announce the smaller iPad it's been working on," it said.

"That device, which is expected to have a display of less than eight inches (20 centimetres), will be uncrated at a second special event, which sources say is currently scheduled for October."

The 10-inch (25cm) iPad has long dominated the tablet market, but faces a growing challenge from smaller models like Amazon's Kindle Fire, the Google Nexus 7 and the Samsung Galaxy.

Apple is expected to launch the miniature iPad later this year, with analysts saying it could allow the California-based company to again best its global rivals despite the death last year of visionary founder Steve Jobs.

Google receiving 6m removal requests a month

 

Google received almost six million URL search removal requests in the last month as copyright holders continue their fight against sites offering copyrighted content for download.

The firm revealed the extent of the requests in the latest update to its Transparency Report Page, as the requests submitted to the search giant now peaked at 1.49 million in the last week of the month, up from 124,860 during the same weekly period last year.

Notable requests received by Google include those from its archrival Microsoft, which submitted 681,227 requests, as well as the British Phonographic Industry (BPI), 554,959 requests, and the Recording Industry Association of America (RIAA) with 841,177.

The data does not include information on how many of the requests Google complied with, though, and the firm had not responded to V3's request for clarification on this matter.

The requests are made to Google under the Digital Millennium Copyright Act (DCMA), which removes liability from the firm if it provides inadvertent access to sites offering illegal material, if they comply with requests to remove content flagged by rights' holders.

Earlier this year Google revealed that it removed 640 terrorist videos from YouTube between June and December 2011 at the request of the U.K.'s Association of Chief Police Officers (ACPO) as part of its half-yearly Transparency update on government takedown requests.

Google caused controversy earlier this month when it said it would add data on the DCMA takedown requests it receives to its search algorithms, in a move that could see sites unjustly punished under the "guilty until proven innocent" system.

"Private browsing" a potential blow to advertisers


Ah, the Internet and privacy. Two things that can never seem to get along together all that well.

From Sun Microsystems CEO Scott McNealy chirping in 1999 that "You already have zero privacy; get over it" to Mark Zuckerberg more recently stating (with a straight face, no less) that "Our work to improve privacy continues today," the issue of keeping our information and browsing histories to ourselves remains, well, an issue.

But that could be changing, at least as privacy relates to the searches we make and the websites we frequent. The newest version of Microsoft's Internet Explorer, IE 10, will come with its Do Not Track setting as the default. (This is opposed to Chrome, for example, which gives users the "incognito" private-browsing option, but doesn't launch automatically.) And judging by how the general public views cookie tracking, Microsoft's IE decision will likely be warmly received by all. Oh, except by advertisers.

By not sharing website browsing information with advertisers, brands will lose the ability to remarket products that potential buyers have demonstrated a previous interest in. Remarketing is one of the most effective forms of online advertising, and knowing who to remarket to and what to remarket to them is extremely valuable data. Many digital advertisers get their highest return on investment (ROI) through remarketing, particularly when luring (OK, "suggesting") that previous visitors return to their site through special discounts or offers. Depending on whom you ask, this is either an annoying invasion of privacy or a welcome message that speaks to a specific, demonstrated need.

I value my privacy on the Internet as much as anyone, but web-goers will be losing out if they switch to private browsing all of the time. Ads that remarket products based on an existing known interest aren't there to be creepy stalkers; rather, they are there to help remind someone who still might be considering a purchase. Sure, we can get a little annoyed when we stop short of buying a new set of golf clubs and then see ads for those clubs pop up on every website we visit for the next two weeks. But at least it's relevant advertising, and, for a lot of us, the remarketing effort will eventually end up in a sale. By taking your web browsing off the radar, you'll find yourself transported to the Internet of yesteryear with random ad after random ad touting products you have no interest in. To me, targeted information about products is more worthwhile than irrelevant products I have no need for. I'd wager that most people - whether they admit it to themselves or not - would prefer a tailored message than a constant flow of advertisements that don't hit home.

It will be interesting to see how advertisers and brands react to the uptick in private browsing. One solution websites might try is asking visitors for permission to remarket to them - although the visitor would then have to alter her cookie settings for your site, should she agree. In the short term, it's probably most reasonable to predict that Do Not Track will affect marketing budgets, since there figures to be fewer clicks to put money toward. We could see dollars being shifted to search network campaigns, social media endeavors, or just being cut altogether.

If you're an advertiser, how do you think changes in private browsing settings will affect remarketing campaigns? If you're a consumer, would you rather be served remarketed ads based on your browsing history, or keep your privacy and have (probably) less relevant ads?

New Idea in "xenophbic" ad squall


New Idea magazine has faced an influx of social media complaints and a case lodged to the Advertising Standards Bureau, denouncing its recent Amish-themed campaign as "very xenophobic".

The campaign profiled a fictional Amish community and showed women modernising their traditional dress and behaviour as a result of reading the magazine.

An ASB spokesperson told AdNews it had received over 50 complaints about the ad's depiction of the Amish, with concerns relating to the "discrimination and vilfication of Amish people".

A determination will be released in the coming days.

Consumers have flocked to the magazine's Facebook page, with one user asking: "Does anyone else find the new ad campaign by the New Idea magazine very xenophobic?"

Another added: "What you are portraying is encouraging young women to go against their beliefs, traditions and parental unpbringing to follow the trashy trends of the celebrities. These 'fresh, new ideas' you are selling are not liberating and do not bring joy to your life."

"It's sad to see a company in Australia stoop so low that it slanders a minority group for its own personal financial gain", said one user.

Another commented: "The lastest ad mocking the Amish and their beliefs has forever tarnished New Idea's image in my eyes. It is easy to mock those who won't retaliate I guess? VERY DISAPPOINTED".

Others pledged to not buy the title any more as a result of the ad, with one user saying it "trashed" the New Idea brand.

The magazine was swift to respond to the complaints. "The campaign was intended to be light hearted and simply show the positive effects new ideas can have in life and we can assure you the ad certainly wasn’t intended to offend anyone", it said in a Facebook post.

Called 'It All Starts With A New Idea', the campaign launched in July to celebrate the title's 110th birthday and redesign.


Over 50s make up 32% of online Aussies


Baby boomers - and not the tech-savvy younger generations- made up the largest proportion of online Australians last month, representing 3.2 million online consumers.

The over 50s made up 32% of all online Aussies in July with 25 to 34 year olds representing 18% and 13% claimed by the 18 to 24 demographic.

Baby boomers spend almost 95 hours per month online and are almost as engaged as generation x and y, according to Nielsen’s managing director of media, Matt Bruce.

“This lucrative and rapidly growing maturing consumer segment which shares many similar marketing challenges to the U.S. Baby Boomer market,” Bruce said.

“Which leads into some top line insights from our Nielsen U.S. Baby Boomers Report, which indicate that in just five years, close to 50% of the U.S. population will be 50 and older and they will control 70% of the country’s disposable income.

“While it’s well established that Boomers have the most money to spend, there is a bias to believe that older people spend less of what they have.”

This bias could explain why in the US less then 5% of all advertising is geared towards the baby boomers.

Over 50s are also heavy social media users, with 72% having visited Facebook in the last month and represented almost a fifth of all page views.

Overall, 15.6 million Australains were online last month, a 1.7% decrease on June.

While less consumers may have surfed the web in July, time spent was up 2.2% to 29 billion minutes.

There was little change in the brands that dominate consumers eyeballs online with Wikipedia recording the largest negative month-on-month audience change of 5%.

Google topped the list of 10 most visited brands and was followed by Facebook, NineMSN/MSN, YouTube, Microsoft and Yahoo!7.

The bottom half of the list is populated by Wikipedia, eBay, Apple and blogs.

Mobile page views jumped 12% on June’s result and have increased 130% since August 2011.

Dell hints at Australian corporate cloud

Dell ANZ boss Joe Kremer says customers want cloud services within Australia's legal jurisdiction.

Dell has given the strongest hint yet it is planning to open a data centre in Australia to offer cloud services to corporate clients.

Speaking at a quarterly business review for the press yesterday, the Dell Asia-Pacific and Japan president, Amit Midha, and the Dell Australia and New Zealand managing director, Joe Kremer, hinted at a data-centre expansion in Australia to cater for clients interested in keeping data onshore.

They said data centres were part of Dell's overall global diversification strategy and pointed to acquisitions and developments in the United States and Europe as an indication of what would be available here.

“We have launched cloud capabilities in North America in Massachusetts, and in Britain with our own unique IP [intellectual property], so not just hardware but security framework from [recent acquisition] Secure Works,” said Kremer.

“No announcements today, but it won't be a long time. You can anticipate what we're doing from other parts of the world.”

Kremer later told IT Pro Dell's existing facilities offered a range of cloud computing services, from self-service, self-configuration at “very aggressive price points” - a market dominated by Amazon Web Services - to full consulting and managed services.

Kremer also said the company had made it clear its intention was to offer cloud services from data centres “in country”.

Dell has been adding non-PC businesses to its portfolio in an effort to become a one-stop shop for enterprises. In the last two years it has bought security, networking, virtualisation, storage and back-up software vendors.

It announced the $US2.4 billion ($2.3 billion) planned acquisition of Quest Software last month.
Quest's 1300 engineers design database management and data protection software, among other products, for enterprises and governments.

Dell also offers consulting services, which Kremer said were increasingly paying dividends for other parts of the business.

It already builds modular data centres for clients, offering design, consulting and hardware through Dell Data Centre Solutions (DCS). Last year it decked out Tier 5, a $100 million third-party facility in Adelaide catering for government and corporate clients.

Its British data centre in Slough opened last November. It was the company's first wholly owned facility.

Asked if providing cloud services from its own data centres would risk cannibalising some of its markets, Kremer said there were several lines of business where the company was both a third-party supplier and a direct vendor.

Amit indicated a Dell offering or announcement would be ready by the end of the year.
“It has taken us longer, but when we come out we will come out with something that is meaningful to the market,” he told IT Pro.

“Look at the companies we have acquired – Quest and Sonic Wall – they are the basic blueprint for a data centre. Quest is a big pillar.”

Australia is in the midst of a data centre frenzy. Several companies have built, are building or have announced local facilities – some with do-it-yourself management, others fully-serviced. Data centre landlords are also gearing up for higher co-location demand.

Last week Rackspace announced a multimillion-dollar fully managed facility in Sydney, also to cater for local data. Demand is also increasing in Western Australia, where Fujitsu is upgrading its facilities.

The heightened activity appears to be driven by customer demand – through compliance or preference - to house data onshore.

At the same time, the Minister for Communications, Broadband and the Digital Economy, Stephen Conroy, has been promoting Australia as a data hub for the region and the world.
Amit said Dell's offering would cater for a public cloud that was “much more business ready”, but he would not be drawn on details.

Phil Hassey, director at analyst firm CapioIT, said that was “corporate spin” but probably meant the company would offer its security, design and full-service capabilities in the facility.

“They are trying to shift towards outsourcing and this will be a location from where to run the infrastructure. I'm assuming it will be public, private and hybrid [cloud services] under one roof.”
Hassey said that like HP, which opened a data centre in Sydney's west in June, Dell would be counting on having the location double as a technology showcase.

“They have the capability to build a good data centre relatively quickly.”

Kremer said he had no preference for location.

“The feedback from customers is they'd like a DC within the legal jurisdiction of Australia, and in New Zealand, they'd like it within New Zealand.”

Ten faces regional rate reduction


Ten Network will face pressure to reduce the rates it charges regional affiliate Southern Cross Austereo as its misfiring programming strategy creates more collateral damage.

SCA, which licenses content from the free-to-air broadcaster in regional markets, said yesterday the audience declines were continuing as a result of "Ten programming challenges". Advertising revenue from television was down 8.2 per cent at SCA.

Brands breaching social T's & C's


About 50 per cent of business Facebook pages are in breach of the Facebook guidelines and State laws and are running the risk of been ripped off the network.

Many major Aussie brands are running illegal competitions and promotions on their Facebook pages and it’s only a matter of time before they are torn down by the social media giant, warns social media law expert Jamie White.

“Facebook is clear that you cannot run a competition or promotion unless you use a third party app,” explains Mr White from Pod Legal. “Basically they don’t want you to use any of the functions of Facebook – likes, shares, tagging, wall posts and so on – to run a competition or promotion.

“Some brands and agencies aren’t fully aware of these rules, and many smaller businesses aren’t aware of State by State legislation around competitions which, if they aren’t followed, could result in financial penalties.”


In 2011, Facebook took down pages belonging to FCUK, Cadbury and also Pizza Hut in India, and according to Mr White even if Aussie companies comply with State laws, breaking Facebook rules could result in a major headache and the loss of the company page.

“Facebook has already taken down pages that broke the regulations in the US,” said Mr White. “And if your page is taken down it can be a big problem to re-build your social media community again.”

While Facebook has its own stringent rules about how competitions and promos are run, each State of Australia has its own strict laws including the need to require permits for some competitions.

Each State has its own laws around "games of chance", for example, inviting Facebook followers to press "like" to enter a draw, and games of skill – such as asking them to send in a photograph or answer questions to win.

“If you want to run a game of chance, then you may need to get a permit from each State," Mr White explains. “I am always surprised at the number of promotions and competitions you see on social networks from businesses who clearly think ‘real world’ laws don’t apply to the world of social media.”

Mr White went on to explain that "Games of chance" should have permits displayed if they accept entries from NSW or ACT, whereas they don’t require a permit in Tasmania, WA or Queensland. You only require a permit in NT under special circumstances and in SA and Victoria, you only require a permit for competitions of a certain value.

And it’s not just Facebook.

“Every social media network has rules and regulations but so few people actually bother to read or follow them –  which means your business could be running the risk of suddenly disappearing from networks.”


Customs contradicts vendors on IT pricing


The Australian Information Industry Association’s claim that customs duty contributes to high IT prices in this country has been flatly contradicted by the Australian Customs Service.

Customs, whose submission to the IT price inquiry being conducted by the Australian parliament at the urging of MP Ed Husic has been published here (submission number 88), states that duty does not apply to IT products.

As a signatory to the WTO’s Information Technology Agreement, Customs says, Australia agreed to eliminate tariffs on computers and peripherals, electronic components, software, and telecommunications kit – such duties were eliminated in 1998.

Someone should mention this to the AIIA, which claimed that the “costs associated with product and service sales in this market” include “GST, customs duty and regulatory requirements”.

Customs also noted that there is “no customs duty on goods such as game consoles, iPads and e-readers. Similarly there is no duty on CDs, DVDs and the like.” GST does apply, of course, on imports over $1,000, and each consignment is subject to a $AU50 processing charge.

Customs also emphasized the legality of parallel importation. Rather than the “grey market” label it so often gets, Customs notes that “the parallel importation of genuine trade marked goods is permitted as a way of encouraging the free movement of goods, enhancing competition and providing lower prices for consumers”.

Treasury backs 'grey market'

Customs isn’t the only department to state that parallel importation is good for consumers. The Treasury (submission 85) makes similar comments, stating that “consumers take advantage of parallel imports to avoid high prices” for physical goods, and are likely to “seek ways to reduce the impact of international price discrimination for digital products as well”.

Even the impact of GST isn’t black-and-white, Treasury states: downloads from overseas suppliers “are generally not subject to GST or customs duty” because of the “difficulty of enforcing compliance by non-resident suppliers who do not have a presence in Australia”.

In spite of a stance which might be regarded as more sympathetic to the IT industry than most of the submissions to the inquiry so far, even Treasury notes that “higher prices that cannot be explained by differences in the cost of supplying to Australia are not optimal for Australian consumers or businesses.”

The Register notes that the inquiry doesn’t seem to have heard from the Department of Foreign Affairs and Trade, which is responsible for our Trans-Pacific Partnership negotiations – and is therefore accused by Greens Senator Scott Ludlam of trying to trade away some of the parallel import rights that are so benignly endorsed by Customs and Treasury.


Wednesday 29 August 2012

Metcash wins $655m liquor deal


Grocery wholesaler Metcash has won a $655 million liquor distribution deal with 1700 bottleshops and other retailers, and flagged earnings-per-share growth of 1 to 3 per cent for the current year amid tough conditions.

In an update to the market Metcash, which will hold its annual meeting tomorrow in Sydney, said the challenging trading conditions were marked by continued deflation caused by the high Australian dollar, low consumer confidence, higher investment in marketing and rising utility costs especially electricity.

Metcash said despite the challenging trading environment it had still forged ahead with a number of growth initiatives including the purchase of Automotive Brands Group, the purchase of the remaining 49 per cent stake in Mitre 10 and the completion of a tender process for a new automated distribution centre.

In its release, Metcash said it had signed a 15-year supply agreement with Liquor Marketing Group and Hotel & Tourism Management, covering supply distribution to 1700 stores trading under an array of banners such as Bottlemart, Harry Brown and Sip N Save.

The financial details of the contract were not revealed but Metcash said the contract represented roughly $655 million of new volume to Metcash’s liquor wholesale division ALM.
The ALM business had sales of $2.33 billion last financial year.

Also updating the market on its financial performance, said it was expecting full-year earnings-per-share growth of 1-3 per cent for 2012-13. At its last trading update the company said Metcash would deliver low to mid single digit EPS growth in fiscal 2013.

The company said all its recent growth initiatives were expected to be EPS accretive in their first full year of operation.

The company also said it remained confident it could maintain a payout ratio of roughly 80 per cent, in line with the past few years, despite an enlarged capital base following a recent capital raising of $325 million.

ACT first state to legalize R18+ games


Adults in the ACT will soon have access to computer games with the rating R18+.

All states and territories have agreed to allow games with the new rating to be sold in Australia, but the ACT is the first jurisdiction to make it law.

The bill passed with tri-partisan support, though the Canberra Liberals failed in a bid to boost the penalty for inappropriate display or distribution of material rated R18+.

Attorney General Simon Corbell says it will help authorities regulate adults-only material.

"This is about making sure that adults are able to view and play and read what they wish as long as it does not do harm to others," he said.

"An R18+ classification ensures that adults can access adult material in computer game form, but at the same time protecting children under the age of 18 from that material."

Witchery under fire again for perceived sexualisation of children


Witchery has once again come under fire for "sexualisation of children", facing a case lodged to the Advertising Standards Bureau and a barrage Facebook complaints.

The image, which appeared in an email brochure and on the brand's Facebook page, was promoting its 8Fourteen children's clothing range. It showed three girls, aged between 10 and 14, with professional hair and make up posing and looking directly at the camera.

The email version was accompanied with the text 'Meet our 2012 It Girls' and the models' respective names.

The ad watchdog told AdNews it had received a complaint regarding the ad's perceived 'sexualisation of children', and a determination would be released within the next seven days. 

The ad, uploaded to the brand's adult and kids range Facebook pages, has attracted over 50 complaints about the mature appearence and sexualised stance of the models.

One user said: "As soon as I saw this photo I felt like looking away, I felt disgusted. It is not a reflection of their ages. Very poor effort Witchery. Plenty of time in life to dress like an adult, strike a sexy pose and not smile."

Another described it as showing "young girls dressed as mini adults." "It makes me feel uneasy looking at this ad. I'm sure the girls are talented and lovely but it's way too provocative."

One consumer wrote: "The styling and the look of the shoot is completely inappropriate for the age of these girls!"

"What happened to having fun and being children? They look so serious! TOO SEXY, poor effort", added another.

The current controversy marks the second time the retailer has faced complaints for its portrayal of children. Last year, its WitcheryKids campaign was thought by the public to show the "adultification" of children.

Witchery was not available for comment at the time of writing.


Rupert Murdoch to get the "Howzat" treatment


The story of Rupert Murdoch’s rise to become the world’s biggest media mogul looks set to become an Australian TV telemovie.

Screen Australia has provided funding development for the work which is being written by Bob Ellis and Stephen Ramsay.

The announcement comes days after Southern Star’s production of Howzat, the story of how Australian media mogul Kerry Packer took on the cricket establishment delivered the Nine Network with 2m+ ratings.

The series has the working title of The News of the World.

The British Sunday tabloid the telemovie is named after was closed by Murdoch last year in the wake of the phone hacking scandal.

Bob Ellis wrote the Australian journalism drama Newsfront and most recently ABC’s Infamous Victory: Ben Chifley’s Battle for Coal while Stephen Ramsey wrote and directed The Baby Boomers Picture Show and Flashbacks.

Ellis told Mumbrella: “What we have done starts at 1960 with his early career when he bought the Daily Telegraph off Packer and then to when he bought News of the World and how he burst on the world of America and became a friend of Nixon and got a license as a foreigner media owner.”

With legal cases still underway over the phone hacking, Ellis told Mumbrella the conclusion was still unwritten. The telemovie is yet to be picked up by a network, Ellis said.

Ellis said, although nothing was locked in, his first preference for the lead would be New Zealand actor Marton Csokas, of South Solitary, The Lord of the Rings trilogy, Dead Europe and the forthcoming Noah, with Russell Crowe.

As well as the telemovie, Ellis said the team was also working on a 14-part miniseries to follow.

Coles accused of profiting from cancer


Supermarket giant Coles is facing allegations that it is profiting from a campaign to raise money to fight cancer.

Coles has been selling bunches of flowers for $6 to raise money for Cancer Council, and only donating $1 towards the charity, a customer has claimed on the brand’s Facebook page.

The customer, AJ Tennant, a copywriter at Traffik Marketing, called the promotion “a quick grab for cash piggy backing on a worthy cause.”

He has demanded that the supermarket gives all of the proceedings from its Daffodil Day campaign to fight the disease.

Coles accused of making money from cancer    Screen Shot 2012 08 29 at 11.43.53 AM 468x180

Coles responded with the following a few hours after Tennant’s original post:

Coles accused of making money from cancer    Screen Shot 2012 08 29 at 11.42.22 AM

A Coles spokesman claimed that Cancer Council has said that the charity “could not run their helpline without the funds raised at Coles”.

The spokesman told Mumbrella in a statement:
All of the profits from our Daffodil Day shopping bag and the sales of Cancer Council merchandise such as pens and pins goes directly to the Cancer Council. The $1 per bunch donation through the sale of fresh daffodils is an additional fundraiser introduced to an existing product line previously sold in our stores and until recently not linked to any charity. We are proud of the efforts of our team and our customers in supporting cancer sufferers and their families. Thanks to their enthusiasm and generosity Coles is the biggest corporate supporter of the Cancer Council.
At the time of writing, the post had been ‘liked’ by more than 800 people and had drawn 63 comments.

Coles has not contributed further to the comment thread at the time of writing.

SBS goes back to a ratings star


The second series of SBS TV's ground-breaking refugee documentary/reality series Go Back To Where You Came From drew a solid 752,000 viewers nationally last night.

The result slotted Go Back To Where You Came From into 10th place on the overnight rankings.

In real terms it is an outstanding result. SBS's audience footprint is considerably smaller than either the ABC's, or that of its commercial rivals.

To command such a large slice of the audience is a major win for SBS. Previously only shows such as the hit British motoring show Top Gear delivered similar audiences to SBS.

The first series, which was screened last year, was watched by 524,000 viewers on its first night and ranked 23rd for the night. It then built to 569,000 and 600,000 for its second and third nights.

This year SBS will screen two more programs, tonight and tomorrow night, and conclude the series on Friday night with a cast reunion and televised debate.

The series takes six Australians on a "reverse" refugee journey. That is, they begin in Australia and back-track to some of the world's most volatile places in an attempt to shine a light on why refugees undertake dangerous journeys across the world.

The first series featured six everyday Australians.

The second series features six celebrities: former government minister Peter Reith, comedian Catherine Deveney, singer Angry Anderson, former ombudsman Allan Asher, model Imogen Bailey and former "shock jock" broadcaster Michael Smith.

In last night's first episode the group was split and sent to Kabul in Afghanistan and Mogadishu in Somalia.

The big result for SBS did particular damage to Ten, at least in perception terms. Go Back To Where You Came From out-rated every show on Ten last night.

In pure ratings terms such comparisons are not always sound - they're a little like comparing apples and oranges - but it does serve to illustrate the particular ratings pressures on Ten at the moment.

Because of Go Back's strong performance, SBS's share was only a few percentage points behind Ten's last night. That will no doubt set tongues wagging.

Inclusive of digital channels that gap widens to about 5 per cent.

Ten's musical theatre talent show I Will Survive sank to 364,000 viewers nationally, an unsustainable figure given the cost of the show and the expectations of the advertisers who have signed on to back it.

Seven was denied a clean sweep of the top five, but won the night overall with a convincing margin: a 33.5 per cent share, compared with Nine's 23.8 per cent.
 

Coles embroiled in contractor racism row


Supermarket giant Coles is at the centre of a row after an ad for cleaners at one of its stores in Hobart stipulated no Asians and no Indians.

Coles says the ad was placed by a sub-contractor, who is now no longer working for the supermarket chain.

It appeared on the free classifieds website Gumtree, and called for experienced staff to clean the Coles supermarket at Hobart's Eastlands Shopping Centre.

It included a list of requirements - that the applicant must have their own transport and licence, and importantly, it says the store requires "no Indians or Asians... please".

Tasmania's Anti-Discrimination Commissioner says she is investigating the ad because it seems to be in breach of the law.

But Stephen Fong, the secretary of the Chinese Community Association of Tasmania, says he thinks someone made a "terrible mistake".

Mr Fong migrated to Australia more than 40 years ago and says things have changed for the better in that time.

"I just think it's probably our ignorance rather than wilfully," he said.

"It's a well-known fact that Australia is the multicultural society and racism is well published and that people soon behave in that manner."

A spokesman for Coles says the advertisement was placed by a subcontractor, who in turn works for the contracting company that manages the cleaning of the store, in the suburb of Rosny.

The supermarket giant says the ad was placed without Coles' knowledge, and that the company was extremely concerned to learn of the ad and its contents.

Cedric Manen is chief executive of Hobart's Migrant Resource Centre, which helps migrants and refugees get job-ready.

"It's actually against the law to advertise like that and I don't think it works towards creating a cohesive and multicultural society here in Hobart," Mr Manen said.

"I think one of the things that would set employers in good stead is to learn of the journeys that some of these people have had and the strengths that they've collected along the way and looking at those strengths and how they could actually make a difference to them in the workplace."

Potential damages

Tasmania's Anti-Discrimination Commissioner, Robin Banks, has launched an investigation into the advertisement.

"It's clearly racially discriminatory and in a very important area of life for many people - the opportunity to work," she said.

Ms Banks said she was surprised when she read the ad, but that she knows racism happens.
"It's why we need to be alert to speak out about it when we see it quite so overtly," she said.

"The risk is that this is a very overt indication of somebody intending to discriminate, but I guess it's possible also that there are people who apply the same filter but don't advertise that they're going to do that."

Ms Banks says anyone who feels discriminated against by the ad could lodge a complaint and potentially fight for an apology and damages from both the advertiser themselves, and the publisher of the ad, Gumtree.

"Under anti-discrimination law in Tasmania it's unlawful to advertise or publish or to display or cause or permit an ad to be published," she said.

"So in this case Gumtree may have some liability."

A quick search of the Gumtree website reveals this is not the only advertisement that seems to discriminate.

Discrimination is apparent in more job ads, as well as ads for share housing.

Gumtree declined our request for an interview.

Instead, corporate communications manager Nat Thomas issued said the website takes its content very seriously and relies on cutting-edge technology, a full time customer service team as well as a "red flag" button which community members can use to alert the site about inappropriate ads.

Coles says the sub-contractor in question is no longer working for the company as a result of the incident.

It says the cleaning contractor will be re-trained to ensure it follows Coles' policy around equal opportunity and non-discriminatory employment.