AV Integration September 2019 by Sun Circle Publishers

INTEGRATION September/October 2019

www.av-integration.co.za

IN THIS ISSUE

EXXARO CORPORATE INSTALL SA RETAILERS NEED TO GET SMART RETAIL OPENS AV OPPORTUNITIES

FEATURE

PRO-AV FOR THE RETAIL MARKET

Featuring a patented ceiling tile beamforming mic array with a superior architecture for reduced complexity and cost. COLLABORATE Live 1000 is a complete professional video collaboration system with state-of-the-art audio and video technology, designed for medium and large meeting rooms.

INTERACTIVE TECHNOLOGY VISUAL COLLABORATION INTERACTIVE TECHNOLOGY MEETING ROOM SOLUTIONS

VISUAL COLLABORATION SIMPLE WAYS FOR PEOPLE TO MEETIN TACKLE COMPLEX PROBLEMS, SIMPLE WAYS FOR PEOPL TOGETHER. TACKLE COMPLEX PR ACTIVE LEARNING ROOMS SIMPLE WAYS FOR PEOPLE TO INTERACTIVE TECHNOLOGY

VISUAL COLLABORATION

INTERACTIVE TECHNOLOGY

MEETING ROOM SOLUTIONS

VISUAL COLLABORATION

BYOD WIRELESS SHARING

TACKLE COMPLEX PROBLEMS, MEETING ROOM SOL TO ACTIVE LEARNING ROOMS TOGETHER. ACTIVE LEARNING ROOMS

SIMPLE WAYS FOR PEOPLE TO TACKLE COMPLEX PROBLE PRESE TOGETH ACTIVE LEARNING ROOMS

BYOD WIRELESS SHARING BYOD WIRELESS SHARING PRESENTATION SOFTWARE PRESENTATION SOFTWARE

BYOD WIRELESS SHARING

PRESENTATION SOF

Mindstec Distribution (South Africa) Tel: +2711 803-0093/0096/0098 Email:Mindstec info@mindstec.com Distribution (South Africa) Tel: +2711 803-0093/0096/0098 Email: info@mindstec.com

First Floor, Building 2 703, Woodmead Office Park 20 First Floor, 2 703, Morris StreetBuilding East Woodmead, Woodmead Office Park 20 Johannesburg Morris Street East Woodmead, Johannesburg

IN THIS ISSUE

CONTENTS

EXXARO INSTALL • PRO-AV FOR RETAIL • INDUSTRY PROFILE

KRAMER ACADEMY AVIXA-APPROVED PRO AV COURSES

B-TECH UNVEILS IMPROVED SCREEN MOUNTING INTERFACES

A SOUND RETAIL SOLUTION

BLENDED REALITIES THE NEXTGENERATION SHOPPING EXPERIENCE

BARCO PARTNERS WITH UNILUMIN

AV FOR THE RETAIL SECTOR

ELECTROSONIC TO DISTRIBUTE RGBLINK

SA RETAILERS NEED TO GET SMART

6 CLEARONE AND SHURE DO BATTLE IN U.S. COURTS

26 MALLS ARE ALIVE AND WELL IN SA

30 RETAIL OPENS OPPORTUNITIES FOR AV INTEGRATORS IN SOUTH AFRICA

36 EYE ON THE FUTURE OF LED

42 ADRE’ PANSEGROUW PROFILE

BRICKS VS. CLICKS

EDITOR'S COMMENT

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EDITORIAL Nicole Barnes – Editor editor@pro-systems.co.za +27 (0)66 489 3482

SPRING IS IN THE AIR

Greeting and welcome to the spring edition of AV Integration magazine. As we enter the third quarter of a somewhat anxiety-provoking year for many South Africans, it is easy to feel overwhelmed by the many factors, both inside and outside of our local control, that continue to undermine our economic growth. I am sure that I am not alone in noticing that sales are harder to close than ever, and more skilled professionals are seeking opportunities in the AV and integrated technology fields abroad.

The picture may look a little gloomy; however, as the weather warms and the days get balmy, it is important to remember that South Africa is still alive with opportunities – even if we have to look a little harder to find them. In the spirit of the recently launched #ImStaying campaign, a Facebook group dedicated to the South African women and men of all races and religions who remain loyal to South Africa, our spring edition is dedicated to unpacking new opportunities and success stories in the professional AV sector in the country. To start with, we spoke with the managing director of Frog AV, Adre’ Pansegrouw, about the first phase of a groundbreaking integrated technology deployment recently achieved for EXXARO, one of South Africa’s leading resource firms. The project is a stellar example of the enterprising spirit of South African business, which despite trying conditions, is still willing to make sizable investments in the infrastructure needed to remain internationally competitive. We also chatted with Adre’ about her incredible professional journey, which saw her rise through the ranks to become the owner and managing director of one of the country’s most innovative and successful integrated technology solutions businesses in the country. Our feature in this issue unpacks the enormous potential for growth that recent trends in the retail sector have opened up for AV integrators in shopping centres across South Africa. Despite our current floundering economic performance, South Africa is home to some of the largest and most prestigious shopping malls on the continent and ranks sixth in the world for total number of shopping centres in a country. While online shopping continues to play a disruptive role in traditional brick-and-mortar retail markets, modern shoppers are not all flocking to their browsers to purchase goods, and shopping centres around the country continue to attract visitors. According to industry experts, audiovisual and integrated technologies have an enormous role to play in keeping physical retailers competitive in the ever-evolving retail market – which is opening new doors for integrators in South Africa. Enjoy the read

Nicole Barnes

David Cornwell – Journalist david@suncirclegroup.com Cover image: Fourways Mall picture courtesy of Accelerate Property Fund

PUBLISHERS PUBLISHER

Simon Robinson | simon@suncirclegroup.com

SALES

Claire Badenhorst | sales@suncirclegroup.com

WEB

Michael Lotriet | web@suncirclegroup.com

DESIGN

Trevor Ou Tim | design@suncirclegroup.com

SUBSCRIPTIONS

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ACCOUNTS

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Editorial Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of AV Intergration or any employee thereof. Sun Circle Publishers makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Sun Circle Publishers reserves the right to delete, edit, or alter in any manner it sees fit comments that it, in its sole discretion, deems to be obscene, offensive, defamatory, threatening, in violation of trademark, copyright or other laws, or is otherwise unacceptable. All contents of this publication are subject to worldwide copyright protection and reproduction in whole or part, in any form whatsoever, is expressly forbidden without the prior written consent of the Publisher.

INDUSTRY NEWS

KRAMER ACADEMY AVIXA-APPROVED PRO AV COURSES Kramer Electronics has raised the bar with its online and face-to-face training sessions – providing certified industry training in a choice of languages. The AVIXA-accredited Kramer Academy, launched at the end of 2018, proved an instant hit with system integrators, AV/IT consultants and Kramer customers as they earned CTS RU points while learning advanced topics and best practices working with the very latest AV over IP technology systems. Developed to enhance IT and AV professionals’ and consultants’ knowledge and expertise, Kramer Academy has now developed a multilingual AV/IT educational platform with training on-demand, which can be easily accessed from anywhere around the world using any PC or mobile device.

Kramer training room

Kramer Academy is now truly global, supporting English, Chinese, French, Spanish, German and Russian languages. Course attendees can earn valuable CTS RU points ranging from 1-12 depending on the selected training. “By using innovative, state-of-the-art learning techniques and platforms, Kramer Academy offers our partners a dedicated hands-ONline experience, allowing them to easily learn and practice various IT

BARCO PARTNERS WITH UNILUMIN Barco has engaged in a strategic partnership with Unilumin to strengthen its position in the growing LED market. Barco has engaged in a wide-ranging partnership with Unilumin to secure cost-competitive supply of high-quality LED display components, which will allow broader penetration in its core markets with differentiated Barco LED visualisation hardware and software solutions. Since its foundation in 2004, Unilumin has established itself as one of the largest suppliers of LED display products with state-of-the-art technology. According to Barco, the companies will combine their competences and work together in the development of innovative technologies and

new products. “While Unilumin has the capability and the knowhow to produce large volumes of quality LED products, Barco’s LED image processing platform guarantees unprecedented results in every situation,” says Barco. The companies have signed a strategic partnership agreement, supply agreements and a joint development agreement that governs the collaboration between the partners. As part of this collaboration agreement, Barco confirms its intent to acquire a minority stake of 5% into Unilumin through a share transfer. In addition, Barco plans to buy shares of Unilumin from Unilumin’s majority shareholder and CEO Mingfeng Lin, for an amount of approximately € 54 million to obtain a minority stake of 5%. Both parties expect the share-acquisition transaction to be closed as soon as possible, pending regulatory approvals.

configurations, setup encoders and decoders, and boost their audio understanding using simulators. Our certification paths are tailor-made for sales and tech professionals,” said Uri Jospe, corporate training manager for Kramer. “Kramer Academy also offers a unique IT boot camp environment for integrators, support engineers and other users to safely practice common tasks such as configuring an IT switch for AV streaming or setting up encoders and decoders for various use cases,” added Jospe. “It is not enough to provide the latest and most innovative Pro AV technology. We understand that the key to success from our and our customers’ perspective is to educate and to provide knowledge enhancement,” emphasised David Margolin, vice president of marketing. Access to Kramer Academy is open to all integrators, distributors, AV/IT engineers or consultants until further notice. To learn more, please visit www.KramerAV.com/academy

According to Barco CEO, Jan De Witte, “Barco’s heritage includes some of the most impressive customised LED installations all around the world. However, LED technology continues to develop at a rapid pace and starts to open up interesting opportunities in mainstream markets in the entertainment and enterprise segments. With this partnership, we are strengthening our global competitive play as we further expand the hardware component of our ‘hardware + software + services’ proposition towards our target markets.” “Barco is our route to the high-end market offering access to a broader and more global audience,” adds Mingfeng Lin, CEO of Unilumin. “In addition, this cooperation also allows us to leverage Barco’s image processing capabilities in LED solutions. Both companies are convinced that the mutual recognition of each other’s strengths will result in a win-win opportunity and a long-term beneficial partnership for everyone involved, including the customer.”

ELECTROSONIC TO DISTRIBUTE RGBLINK Electrosonic SA recently announced being appointed as the sole distributor for RGBlink in the Southern Africa market. RGBlink is recognised for its dedication to developing and manufacturing quality video processing products, making video accessible to a broad range of visual markets. RGBlink’s comprehensive product range will extend Electrosonic’s turnkey solution offering to the professional audiovisual industry in Southern Africa, particularly for the growing digital signage market. Pro Av display product manager at Electrosonic, Riaan Van Der Westhuizen, explains that video wall processor demands vary with the quantity and type of inputs and outputs, as well as the bandwidth and processing power, required. “Unlike many competing products, RGBlink’s video wall processors are designed for modular systems, which offers wider scalability to fit the needs of integrators working on projects of any size,” says Van Der Westhuizen. Van Der Westhuizen points out that RGBlink’s video wall processors open up in layers, instead of pre-set layouts, which means that switching between inputs and display windows is seamless. Additionally, the video wall processor supports scheduling and remote wakeup, which allows full control of the video wall. In terms of value proposition, RGBlink’s solutions come at an attractive price point for developing markets, without compromising on the quality or functionality of the installation. “RGBlink offers state-of-art video wall processing and fits perfectly with our ProSpectre range of displays among other products. The video wall processors can be paired with Kramer’s AV over IP based units to provide a powerful solution for control room applications. We are confident that by adding RGBlink’s products to our catalogue we will add further value to the turn-key solutions that we provide integrators working on projects for the commercial market in the region,” Van Der Westhuizen concludes. For more information, please contact www.electrosonic.co.za

INDUSTRY NEWS

CLEARONE AND SHURE DO BATTLE IN U.S. COURTS ClearOne has recently disseminated a press release welcoming the recent decision by the U.S. District Court in the Northern District of Illinois granting the company’s request for a preliminary injunction preventing Shure Incorporated from manufacturing, marketing, and selling the Shure MXA910 Ceiling Array Microphone for use in its “drop-ceiling mounting configuration.” The Court determined that such sales are likely to infringe ClearOne’s U.S. Patent No. 9,813,806 (the “Graham Patent”). The Graham Patent, entitled “Integrated beamforming microphone array and ceiling or wall tile,” covers, among other things, a beamforming microphone array integrated into a ceiling tile as a single unit. ClearOne’s beamforming microphone array ceiling tile incorporating the innovative technology of the Graham Patent, the BMA CT, debuted earlier this year and is now shipping. Zee Hakimoglu, ClearOne Chair and CEO, said in a statement following the judgement: “This is an incredibly valuable ruling for ClearOne and its business. It validates the strength and importance of ClearOne’s intellectual property rights, and it stops Shure from further infringing those rights pending a

full trial. ClearOne remains committed to creating innovative solutions in installed audio conferencing and will vigorously enforce its patents.” A spokesperson from Shure published a response following the release of the statement from ClearOne, stating that: “We are disappointed and disagree with the Court’s decision, which is not a final determination on this matter and we intend to appeal immediately. We continue to believe that the ‘806 patent is invalid and that we do not infringe on the ‘806 patent, and we look forward to presenting the merits of our case to a jury.” Shure goes on to reassure its clients that: “This injunction does not impact any existing products currently installed. Shure is committed to ensuring best-in-class MXA910 products remain

B-TECH UNVEILS IMPROVED SCREEN MOUNTING INTERFACES B-Tech AV Mounts, an industry-leading designer, manufacturer and distributor of audiovisual accessories, recently announced a series of performance-enhancing updates to its System X VESA 400 interface arms.

Ideal for assembling video walls, menu boards and other multi-screen applications, the range provides customers with a clean and uncomplicated solution for mounting any medium to large size screen (up to 50kg) to B-Tech’s System X horizontal mounting rails. With universal compatibility, tool-less micro-adjustments for perfect alignment of displays (in either landscape or portrait orientation), coupled with its simple ‘hook-on’ design for quick and easy installation, the System X range has become the go-to choice for integrators. Developed further by B-Tech’s leading design team using invaluable feedback from

available to its customers and is prepared to modify and supply the product in a way that is compliant with the Court’s order, as needed.” Shure has reassured its global customer base that the ruling only applies to the U.S. “Since ClearOne only has U.S. patent rights that are at issue, Shure further understands the Court’s Order to pertain to only MXA910 products which are supplied from the U.S., for example, Shure’s distribution centre in Wheeling, IL, United States. Shure does not believe that the injunction will affect customers in Europe, Middle East, Africa, Asia, Australia and New Zealand, who receive the MXA910 from our distribution centres outside of the Americas. In these regions, we expect that the MXA910 Ceiling Array Microphone can continue to be marketed, sold and installed without restrictions.”

the market, the company has recently added some significant enhancement to its standard (BT8390-VESA400MAF), and pop-out (BT8390-VESA400MAP) interface arms. Updates to both models, which are now in stock and available, include increased height and depth adjustments using thumbwheels with directional guides to assist with the micro-adjustment, a more compact design allowing for a closer to the wall installation and improved lateral movement of the screen once mounted. Screen size compatibility has been expanded, and the interface arms now feature two rows of interface holes for a more user-friendly attachment to screens.

MAKING DEEPER CONNECTIONS

COLLABORATE Join with the worldâ&#x20AC;&#x2122;s leading Audio and Video technology innovators and solutions providers

EXPERIENCE Be inspired by industry insights at our conferences, keynotes, presentations and masterclasses

NETWORK Connect with the international business marketplace

INSTALLATION CORPORATE

MINING THE VALUE OF AV TECHNOLOGY The new head offices of EXXARO in Centurion are a powerhouse display of integrated AV technologies. We caught up with Frog AV and Mindstec to learn more about this turnkey solution, which has delivered a world-class AV backbone to the offices of the major mining company. According to Chris Smith – Principal Architect at EXXARO – “We were looking for a cost-effective integrated solution with ease of use, which could be easily integrated into the Microsoft Office Suite. Previously we had normal, projector-type of boardrooms, and we decided that we want to move away from them due to their quality and the cost of operation. We also specified that connectivity to the equipment in the boardroom must be seamless and wireless, and must enable any type of computer to connect to the equipment.” From Adre' Pansegrouw’s perspective, the managing director of Frog AV, “The brief covered an enormous scope. We have a long-standing relationship with EXXARO, and I therefore had a very clear idea of what

their vision was for the project – which included a solid installation at their head office in Pretoria that would allow for wireless, online collaboration and video conferencing, which would then be deployed at all of the company’s mines in Mpumalanga and Limpopo on the same network. EXXARO where looking for a standardised solution that would operate seamlessly to connect all of its sites.” She continues, “They wanted something clean – all of their services run on the cloud now, and they did away with most of their physical servers. There is no cabling whatsoever; they wanted to connect wirelessly. They wanted a fresh look, and the ability for end-users to walk into a meeting room and make a Skype call without carrying a laptop. All the rooms are fully automated, so when you walk into the room everything switches on automatically and you are greeted with the interactive landing page of the wireless connection – either on the video wall or a screen in front of you at the table, depending on the size and configuration of the room.”

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Adre' explains that the Frog AV team was systematic in its approach. “In tackling the EXXARO project, we designed three different ‘recipes’ for the differently-sized venues. The EXXARO team then decided how many of each rooms they wanted, and we simply replicated the three different configurations over the five floors of office space, ultimately including the implementation of 83 boardrooms. The benefit to a phased implementation such as at EXXARO is that we had the opportunity to design, implement and troubleshoot the installation at head office first. Thanks to the lessons that we learned deploying the head office installation, we are more equipped to extend the system to all of the company’s business units.”

Featuring two first-in-country installations – in the form of the Crestron Flex control solution and the T1V Suite of collaboration technologies – Smith is highly satisfied with the operability of the solution. “We got it right the first time, and the use of the equipment is very user-friendly, working the same throughout all the boardrooms. This will be the technology, from an AV perspective, that we will roll out to all out BUs, and it will be the standard solution that we will deploy in the future for all our boardrooms.”

INSTALLATION CORPORATE

CONTROLLED BY DESIGN

“With a scope as large as this one, it is a really good idea to use one brand of technology across the project to avoid compatibility issues down the line,” says Adre'. “In terms of infrastructure, Crestron is ahead of all of the competition in this respect, because they develop their network management software to serve as a turnkey solution that provides for almost every aspect of AV infrastructure and control.” Crestron Flex was launched in January 2019. This unified communications and collaboration solutions technology supports any web collaboration application, or natively runs the most popular third-party UC applications, including Microsoft Teams and Skype for Business. After the EXXARO contract was awarded to Frog AV, the team redesigned the system to incorporate this latest Crestron solution, which is based on the award-winning XiO Cloud IoT platform. In the words of Rupert Denoon, the regional director for Crestron in South Africa, “The modern workplace is fast-paced, flexible and dispersed, and South African businesses need technology that not only keeps up but evolves with the organisation. Crestron’s Flex solutions uncouple hardware and software, which means that an end user will only need to invest in hardware once while being able to switch between a wide variety of software platforms as the need arises. This flexibility goes a long way to allay many of the fears that customers have around being stuck with a single solution or platform despite their changing needs.” Adre' explains the practical benefits of these latest innovations: “In the past, the licencing for Microsoft was not hosted on the Crestron product. Therefore, people had to walk into a meeting with their Microsoft-licenced notebooks to connect to Skype. The new range from Crestron comes with a room-based codec, with Skype for Business and Microsoft Teams natively embedded. The Crestron Flex range is actually Microsoft-certified, and Crestron is one of the only manufacturers that offer a Microsoft-certified Skype solution for the AV environment. As a result, users can start up a Skype meeting without having to have a computer in the room.” In addition to all of the building’s rooms being fully automated using Crestron Control, Adre' delves into the important role of management and monitoring that the solution caters for.

“In the past, if I installed a system and something malfunctions, I was able to send an AV technician to the site to establish if it was an audio or video problem, and then troubleshoot a solution. “Now, all of the client’s AV assets are integrated onto their network structure, and troubleshooting now needs to include the IT team as well as the AV specialists. We installed Crestron Fusion for EXXARO, which enables us to monitor all and manage all of the offices. Crestron Fusion, meanwhile, allows us to monitor usage of all of the rooms and we can use this data for managed maintenance and to assess usage patterns to ensure that resources are deployed in alignment with the company’s real needs and to make informed decisions about the scaling needs of the company over the long term.” This ability to use AV infrastructure to provide real-time insights into business operations has been further augmented, in EXXARO’s case, by the integration of ServiceNow’s cloud-based digital workflow platforms. “EXXARO has changed over to the ServiceNow platform to log calls when something is not working properly. Our engineers were able to integrate Crestron Fusion with ServiceNow on the backend – so when something is malfunctioning, the system creates a ticket automatically. We adopted a phased implementation approach at EXXARO’s head office, and future phases will be informed by the data gathered from the first phase of the implementation. As a result, future phases will be informed and optimised by real usage rates.”

INSTALLATION CORPORATE

DISPLAY OF EXCELLENCE Of course, this solid communications spine would mean nothing without multiple high-functioning, user-friendly interfaces – and this is where, as Adre' explains, Mindstec entered the picture. “We used Mindstec for all the interactive displays throughout the EXXARO offices, integrated with Flipbox software. We also used their T1V software for the video walls.” Nathan van Zyl, lead channel manager at Mindstec, says: “Because Adre' and her team had built a very sophisticated technological environment, we just had to ensure that we had specific technology built into our displays and our software platforms to allow for the overall integration with the backend systems.” He outlines some of the advantages of the Flipbox software that Mindstec regularly integrate into their interactive screens: “From our perspective, the use of use of Flipbox is a real advantage. The application is very similar to a mobile phone, with one-touch launch of applications – and we can lock the homepage and so keep the look and feel consistent across every display.” For this first phase of the EXXARO implementation, Mindstec installed standard-sized 65-inch screens throughout the building, as well as two 86-inch screens in the executive boardrooms. In all of the spaces except the four-seater huddle rooms, these screens are fully interactive LED displays from the WavexTouch range, sporting built-in infrared touch frame overlays. Adre' says that, “The Wavex infrared technology is so responsive – we tested different brands, and this was the way we wanted to go. The Wavex suppliers have also been so fantastic to deal with; they changed things both on the component and software level to make the integration operable.” Nathan also highlights the role that Mindstec’s T1V software played in the installation. “This was an interesting component, because it basically evolved from a relatively straightforward interactive video wall – where people could share content and hold meetings – into something far more complex. After multiple demos and lots of meetings with the key stakeholders at our showrooms, we came up with a much bigger solution after introducing them to the T1V Suite.

“This is a customisable off-the-shelf piece of software,” he explains. “It allows a client to really adapt the technology to their specific requirements. It means we don’t have to try and fit a square peg in a round hole; we can build the solution on the basis of what they are trying to achieve.” Nathan outlines how the total solution comes together: “We install a display in the form of a large video wall. We have our custom-built interactive overlays on top of that, and the software sits in the background. This software has a whole range of different customisable modules that you can call up – but, what’s interesting, is that not is this the first deployment of T1V in South Africa, but EXXARO’s specifications presented a first for T1V, in terms of what they were trying to achieve with the software. “T1V has a lot of experience in interactive timelines and interactive mapping, but what EXXARO wanted was completely different: they needed a platform where stakeholders could meet and really interrogate their business intelligence dashboards. They needed an executive briefing centre; a way to be able to meet and instantly drill down into the various business intelligence data sets they have, to identify any pain points that required immediate attention.” Nathan reflects a “challenging and exciting” installation – during which the company had to make various software and firmware adaptions to meet the requirements of the project – by saying: “With Frog AV being so creative and strategic in their thinking around the project, it brought to a light a lot of new capabilities that stretched the potential of our technologies.” Adre' concludes: “With such a big and ambitious project – where we were really trying to accomplish something that no one else has achieved until now – you need to be able to rely on your partners every step of the way, even when plans change according to the client’s needs. Thankfully, Mindstec really walked the extra mile for us – and more.”

“Frog AV was so creative and strategic in their thinking, it brought to a light a lot of new capabilities that stretched the potential of our technologies.” – Nathan van Zyl, lead channel manager at Mindstec

RETAIL PRO-AV EXPERT OPINION

AV FOR THE

The rapid advancement of technology continues to radically change the way that we engage with the world, and one of the frontiers of the digital revolution is how we shop.

In the past, going shopping was an unavoidable part of life. However, armed with my smartphone and a credit card, I am able to buy groceries, order a new charging cable for my phone, send my mother flowers for her birthday and have dinner delivered without leaving my desk. Buying power is shifting to the millennial generation who, having grown up in a connected world, are very different to our parents. Traditional marketing strategies that have worked for decades are suddenly becoming irrelevant as the variables that inform consumer behaviour have shifted beyond the imaginations of even the best analysts in little over two decades. It has, therefore, never been more important for retailers, in both the digital and physical markets, to analyse their customers’ priorities and expectations, and to tailor their marketing and products accordingly. While some might argue that online retailers hold all of the cards in our ever digitising world, advanced AV technology is proving to be a huge leveller for physical retailers the world over.

THE EXPERIENCE ECONOMY In the early 2000s, some analysis grossly overestimated the impact that online shopping would have on the brick-and-mortar retail industry. While more and more people are turning to their browsers to find the products and services that they need, people still want to go shopping. When predictions were made about an impending mass-migration from shopping malls to online stores, the unpredictable impact that social media would have on people’s buying behaviour could not be factored into the equation. According to KPMG’s Global Retail Trends Report 2019, new figures show consumers continue to spend less on buying things, and more on doing things – hence the rise of the experience economy.

RETAIL PRO-AV EXPERT OPINION

RETAIL SECTOR Today, there are more than 2.56 billion social media users globally, and nearly every one of them is deeply invested in sharing their lived experiences online, be it the food that they are eating, the concert they are attending, or an amazing experience at a concept store. By creating a more immersive experience, retailers can drive people to their stores and ensure they leave not just with products but also memories. Regional director at Crestron South Africa, Rupert Denoon, shares a first-hand account of the impact that the experience economy is having on the retail sector in the U.S., and how South African retailers can use advanced AV technology to catch up. We then take a look at the concept store recently launched by a fine jewellery brand in the U.S., James Allen, which takes maximum advantage of AV technology to create an unforgettable experience for visitors.

DEEP RETAIL Every customer with a smartphone is a source of data, and the e-commerce market successfully uses this data to gain a competitive edge over traditional retailers. Deep retail is described by KPMG as “the use of profound learning about customers, to allow for retailers to develop personalised, tailored shopping experiences, products and services.” The use of deep retail in targeted marketing has resulted in online retailers knowing what their customers want, even before they know it themselves. The result is that today’s consumers expect an exceptionally personal level of service, and a highly tailored experience, and don’t want to have to wander aimlessly through a store searching for products.

Bruce Genricks, managing director at Electrosonic SA, shares his thoughts about how Smart Digital Signage in brick-and-mortar retail stores can level the playing fields, allowing traditional retailers to use facial recognition and data analytics software for target marketing in a physical location.

SA RETALIERS NEED TO GET SMART

BRICKS VS. CLICKS

A SOUND RETAIL SOLUTION

MALLS ARE ALIVE AND WELL IN SA

RETAIL OPENS OPPORTUNITIES FOR AV INTEGRATORS IN SOUTH AFRICA

BLENDED REALITIES

EYE ON THE FUTURE OF LED

DISRUPTING THE DISRUPTORS Traditional retailers are under increasing pressure to change the way that they engage with customers to fulfil their rapidly-evolving needs. As pointed out by Brad Grimes, senior director of communications at AVIXA, “More than ever before, today’s retailers are leveraging immersive audiovisual and digital technology to infuse their brick-and-mortar stores with innovative design and cutting-edge functionality, which is fuelling a new growth-wave.” AV technology, including video walls, digital signage solutions, immersive sound, artificial intelligence, data-driven marketing enabled through smart signage, augmented and virtual reality, have proven to be the bricks that retailers need to build the experience-based offerings that today’s consumers crave. While South Africa remains behind the majority of developed economies in terms of e-commerce versus traditional retail sales, the pressure is on the physical retail market to adapt preemptively, before it loses its grip on the evolving South African consumer. – Nicole Barnes Editor AV Integration

RETAIL PRO-AV EXPERT OPINION

BY RUPERT DENOON,

SA RETAILERS NEED TO GET SMART REGIONAL DIRECTOR, CRESTRON SOUTH AFRICA

In a recent interview, regional director at Crestron South Africa, Rupert Denoon, spoke with AV Integration about how integrated technologies can equip South Arica’s traditional retailers with the tools they need to remain competitive in the digital age.

A SHIFT IN FOCUS The adage “safe as houses” has rung true for property management companies in South Africa for more than half a century, with profitable retailers reliably renting spaces in shopping centres for years, yielding strong profits and generating impressive growth in the sector. However, as buying power shifts to younger generations, the playing fields are rapidly changing. Consumers who have grown up with the internet have more choice about how they purchase goods and services, which is placing traditional retailers under increasing pressure to compete for customers.

During a recent trip to Los Angeles, California, Denoon took the opportunity to explore one of the world’s trendiest shopping districts and compare it to his shopping experience back home. “E-commerce has had an enormous impact on the retail sector in the U.S., and brick-and-mortar retail stores are putting up a solid fight,” he says. “One of the most striking trends is that shops are increasingly becoming experience centres, in contrast with the somewhat bland retail outlets that we see in South Africa. Shopping centres offer professional-level audio and lighting design, with interactive digital displays and video walls – and in some cases even live entertainment. Stores also offer opportunities to merge the physical experience with

RETAIL PRO-AV EXPERT OPINION

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South African fast-food franchise, Nando’s, recently deployed a countrywide upgrade across all of its branches, specifically aimed at taking advantage of the experience economy. The driving goal behind the project, implemented by leading South African integration specialists Triac, was to enhance the dining experience by carefully managing the environment in all of its restaurants to create a consistent and impactful experience for dinners, while also enhancing efficiencies in service, power usage and human resources. The integrators at Triac designed a bespoke solution for Nando’s to manage lighting control, audio distribution and other peripherals as the new brand standard. The system is an integrated solution that was seamlessly deployed across many locations countrywide. Triac was recognised for their creativity and unique application of Crestron technology in this project at the recent Crestron EMEA Integration Awards, held in Amsterdam during Integrated Systems Europe 2019. “Nando’s has always identified itself as a forward-thinking brand that enjoys pushing the boundaries. It is, therefore, not surprising that they are one of the first retailers in South Africa to see the opportunities presented by the experience economy,” says Denoon. “By adopting the latest in Crestron’s enterprise control solutions across all of its outlets, Nando’s has succeeded in adding a whole new layer to its product offering. One can go so far as to say that Nando’s is no longer simply selling its uniquely flavoured chicken, but is also selling a unique and sought-after experience, which is quickly becoming synonymous with the brand.” In today’s connected marketplace, customers can order food online from a vast array of vendors and have it delivered straight to their doors. However, if you want to be a part of the highly valued ‘Nando’s experience’ – where the lighting is always perfect, and the music is always on point, you have get off the couch and go out or risk missing out. Selling customers a memorable, unique and (in social media terms) shareable experience is the cornerstone of the experience economy, which leading economists predict will be the major driving force in consumer markets moving forward.

CATCH-UP TIME digital platforms, such as store-specific apps, to engage consumers on every imaginable level. The placement of merchandise is almost secondary to the experience on offer. However, once you are in the store and having a great time, it is easy to spend money.” This trend is exemplary of what has been termed the experience economy, which the Harvard Business Review succinctly describes as a market where “a company intentionally uses services as the stage, and goods as props, to engage individual customers in a way that creates a memorable event.” Creating memorable experiences for customers is enormously valuable, especially in the age of social media, where a well-timed post from a social media influencer can result in thousands of people becoming aware of your brand and rushing to your store for fear of missing out on the latest trend. “The majority of South African retailers are somewhat behind the curve in this respect,” Denoon points out. “There are not many retail stores in South African that are creating the kind of experiences that would entice young people to ‘take a selfie and share’ and, as a result, customers may as well stay at home and purchase goods online.”

As noted by AVIXA, and several other authorities in the retail sector and audiovisual market, AV and integrated technologies are the bricks needed to build experience-based retail spaces that appeal to the modern consumer. Denoon states that, in his experience, the majority of retailers in South Africa fail to pay sufficient attention to the technology in their stores, which seriously undermines customer experience – a risky prospect in today’s experience-based economy. “There is a general trend in South Africa for shops to spend a lot of money on shelving, mannequins and carpentry, with lighting, digital displays, and audio equipment often left as an afterthought.” Some retailers in the country seem to be still working on the assumption that shoppers will continue to arrive in droves, even though the market is rapidly changing. Those that fail to adapt their business models are at risk of losing their share of the market, as consumers turn to online shopping to purchase groceries, clothing, appliances and electronics, among other goods and services. To remain competitive, physical retailers have to adapt, and investing in integrated audiovisual technology to create experiences that customers will perceive as valuable continues to prove one of the more successful globally strategies.

Rupert Denoon, regional director at Crestron South Africa, points out five critical factors that retailers should consider when designing stores for the modern customer.

BE DYNAMIC

RETAIL PRO-AV EXPERT OPINION

PRESENT SOMETHING WORTH SEEING Deploying digital signage in a store presents an array of opportunities for retailers, including displaying dynamic marketing material for a range of products on offer while creating an engaging and dynamic visual experience for customers in your store. Content can be updated regularly and centrally managed using cloud-based technology, which means that retailers with multiple outlets can create a consistent look and feel throughout their stores.

Immersive environments engage all of the senses and respond to changing conditions. Managing your AV assets using centrally managed, cloud-based platforms, such as those offered by Crestron, means that lighting, audio and content on your displays can be programmed to cycle through a range of pre-programmable themes. As a result, in-store environments can be set up to respond to the time of day, with brighter cool light in the morning and warm and dim lighting in the evening, and audio levels can adjust automatically in response to ambient noise levels inside the store. Content on digital displays can be updated with the touch of a button, allowing retailers to make last-minute changes to their marketing material and quickly deploy campaigns in response to current affairs.

BE CONSISTENT Cloud-based content management, together with state-of-the-art control technology, means that a design team can conceptualise, create, programme and deploy lighting schemes, set audio levels, and manage displayed content across multiple locations in real-time. As a result, retailers can precisely manage their brand identity across multiple locations and ensure a consistent and reliable customer experience for every customer at every store, all of the time.

Retailers need to identify a target market and ensure that the environment that they create in their stores appeals to the identified audience. Elements such as lighting levels and immersive audio set to the appropriate levels are key to creating an appealing experience for your customers.

The only thing that is worse than a bland or unmemorable experience is a bad shopping experience. Malfunctioning displays, poor-quality audio that is offensive to your target audience or lighting that is too harsh, too dim or malfunctioning will likely dissuade customers from ever returning to your store. One of the greatest benefits of investing in integrated technologies is the monitoring and maintenance functionalities that these solutions enable. All of the AV assets within your retail chain can be monitored in real-time, and dysfunctional units can be identified and repaired almost instantly, and often remotely, using state-of-the-art AV technologies.

KEEP IT TIDY

TAKE CONTROL

BRICKS VS. CLICKS RETAIL PRO-AV EXPERT OPINION

BY BRUCE GENRICKS, MD, ELECTROSONIC SA

AV TECHNOLOGY SET TO LEVEL THE PLAYING FIELDS

The rapidly-evolving digital revolution continues to change the way that people interact with the world on every level. In no space is this more apparent than in the retail sector, where the emergence of online shopping has forever changed the way that goods are bought and sold. In this highly competitive market, audiovisual and integrated technologies are increasingly bridging the divide between the virtual and physical shopping experience for retailers and consumers across the world.

RETAIL PRO-AV EXPERT OPINION

CHASING TRAFFIC Over the past two decades, the emergence of online shopping has changed the role that physical retail outlets play in the consumer market. In the past, consumers had no choice but to visit shopping centres to purchase goods, and retailers have built their marketing strategies around the assumption that people will always arrive to shop. All this changed in 1994, when entrepreneur e and innovator, Jeff Bezos, launched Amazon Inc. At the time, the internet had only been publically

available for about four years, and the concept of e-commerce was in its infancy. However, in line with Bezos’ prediction, e-commerce quickly emerged as the most ground-breaking disruptor in the retail sector since the introduction of mass production in the 19th century. According to Bloomberg, Amazon Inc. currently boasts a market value of just under a trillion U.S. dollars and is set to generate more than $259 billion in U.S. retail e-commerce sales this year alone. According to the U.S. Department of Commerce, American consumers spent approximately $514 billion online in 2018, up 14.2% from 2017, and these figures are projected to grow exponentially over the next five years. While the e-commerce market in South Africa remains well behind some of the more developed economies, it is quickly gaining traction. According to the findings of World Wide Worx’s Online Retail in South Africa 2019 study, online retail represented 1.4% of total retail sales in 2018, surpassing the R14-billion mark for the first time. One of the driving factors behind the growth in online shopping is the rapid rate at which South African’s internet user base is expanding. In the year 2000, approximately 2.4 million South Africans had access to the internet. Over the past 19 years, this number has expanded to include more than 30 million internet users in South Africa and continues to grow. As a result, more people can shop online, and South Africa’s traditional retail market is starting to feel the pinch.

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Jasmine Prince

HITTING THE TARGET

Engaged Sales Agent Sandton Area Travelling to Zanzibar

If you have ever opened your internet browser and seen an advert that makes you suspect that Google is listening in on your conversations, you have felt the power of targeted marketing. Online retailers have a massive advantage over their brick-andmortar competitors. Thanks to the power of social media, advanced data analytics and digital profiling, Amazon knows a customer’s biometrics, shopping history, hobbies and interests the moment that they log onto their Amazon accounts. The company then uses this data to present its customers with products and services that they know will fit the consumers’ personal needs.

RETAIL PRO-AV EXPERT OPINION

Male, 37 Russell Anston

In a relationship Civil Engineer Bedfordview Area Wishes he could play an instrument

“Internationally, retailers are purposefully rewiring themselves in the ever-evolving retail landscape to enable the ‘experience economy’. Retail isn’t dead, only boring retail is dead." – Edgars

Targeted marketing enables online retailers to analyse their customer base and sell products and services directly to the consumer. This ability goes far beyond simple biometrics such as age, gender and location. Consumers routinely divulge very personal and specific information about their habits, preferences, travel plans, hobbies and interests on social media, all of which is analysed in real-time to ensure that the products displayed online are aligned perfectly with the customer’s immediate needs. Traditional retailers still rely on old-school marketing techniques, such as baiting customers to walk through their stores to find high-demand products or placing products in positions that support impulse purchasing. These strategies are very hit-and-miss, and most consumers are wise to these tactics, which makes them less effective. In light of the highly advanced and accurate targeted marketing strategies used by online retailers, physical retail outlets are under increasing pressure to find innovative ways to compete.

SECURING A CATCH In response to the pressure applied by the e-commerce market, future-focused physical retailers are turning to AV integrators to design, specify, and install the technology needed to bring shoppers back to the malls.

The first consideration that needs to be addressed is attracting shoppers back into shopping centres. In the past, centre management would secure an anchor tenant in the form of a high-profile department store to draw people to the centre. Smaller retailers were then offered rental space around the anchor tenant, who would then be able to take advantage of the foot traffic created. However, the drawing-power of anchor tenants has been significantly diluted by online shopping options. In response, property management companies and retailers are increasingly investing in ‘shoppertainment’, such as cinemas, theatres, musical displays, digital showrooms and arcades as draw-cards. A recent example of the shift in focus can be seen at the recently re-launched Fourways Mall in Johannesburg. According to Accelerate Properties, “The Fourways Mall will be differentiated by its focus on shoppertainment, offering entertainment, convenience and a unique experience aimed at the whole family that enhances the shopping environment for all.” Embattled retail giant, Edcon, has used the opportunity presented by the re-launch of Fourways Mall to launch its new “Edgars Experience Store.” The flagship department store is designed to provide consumers with a fully immersive shopping experience. The idea is to enhance opportunities presented by the physical environment that cannot be offered online – including personal shoppers on the floor, spaces that encourage social engagement, and installations that are intended to entertain consumers while they shop.

RETAIL PRO-AV EXPERT OPINION

Female, 35 Astrid Dalston

In a relationship Accountant Northcliff Area Enjoys cycling on weekends “Internationally, retailers are purposefully rewiring themselves in the ever-evolving retail landscape to enable the ‘experience economy’. Retail isn’t dead, only boring retail is dead. To thrive in a time where customers can do anything, anywhere and get personalised real-time experiences both online and in real life, big retailers need to make the shift,” Edgars says in a recent press statement. Retailers are also trying to integrate the online shopping experience with store visits, drawing online shoppers back into stores. “Shoppers can now shop online or on their mobile devices, choose a store for delivery, and collect their order at no additional cost. This online service is now available at the new Edgars, Fourways Mall,” Edgars explains. Many shoppertainment attractions rely on the professional AV industry to design, install and manage integrated audiovisual systems, creating new opportunities for AV installers. While these strategies do contribute towards supporting the brick-and-mortar retail market, they do not surpass (or even match) the enormous edge that targeted marketing gives those in the e-commerce space. Fortunately for those in the property management business, AV technology also holds the keys to targeted marketing in the physical environment, providing the opportunity to, truly, level the playing fields.

LEVELLING THE PLAYING FIELD As retailers across the world take down their printed posters, pull-up banners and lightboxes and replace them with digital signage solutions, technology is starting to gain a strong foothold in the traditional retail environment. By deploying audiovisual and integrated technologies in physical retail outlets, stores are able to introduce biometry, artificial intelligence, facial recognition technology and data analytics to the physical shopping experience, thus diluting the advantage that e-commerce currently enjoys. Fast-evolving Smart Digital Signage technologies incorporate facial recognition, data analytics software and

artificial intelligence to make digital displays able to respond much like an online retail store. As a customer approaches a display, facial recognition sensors are able to identify the person and link them with their digital footprint, including social media accounts and purchasing history. The display will then automatically show content that is targeted at the individual looking at the screen. Should the person’s eye contact with the display waver, different and more engaging content can be displayed, or the screen can target a new customer who wanders into view. The capabilities of Smart Digital Signage in the physical retail sector go far beyond targeted marketing. Facial recognition technologies in stores can also be used to improve instore security, as shoplifters caught on camera can instantly be identified and prosecuted. Shop management can also use their AV assets to analyse the way that people move through their stores, where marketing material is most successful and where, in the physical environment, sales are highest. As a result, stores can be designed and redesigned based on data rather than on assumptions, improving sales rates. The possibilities are endless, and the technology already exists. There is little doubt that the digital revolution is changing the way that world economies work, often at a pace that threatens to leave businesses that cling to traditional models out in the cold. Fortunately, while technologies that push the boundaries of what we thought possible as little as a decade ago are being developed, there are also solutions being created that are designed to marry the old and the new in interesting and ever-more profitable ways. The advancements in AV technology designed for the retail sector are just such solutions and promise to open a whole new world of experiencebased shopping for the modern consumer.

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A SOUND RETAIL SOLUTION

Tiaan Hoogstad of Alpha Technologies, the sole distributor of Bose Professional in South Africa, speaks about the benefits of investing in top-quality audio solutions in the retail space. 22

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WHAT ARE THE ADVANTAGES OF HAVING HIGH-QUALITY AUDIO IN THE RETAIL ENVIRONMENT? People spend a lot of money on shop-fitting, lighting, signage, and so on, but often audio is an afterthought. However, like anything else, you’re only as strong as your weakest link. If you have got the best shopfitter, the best lighting and the best location, why wouldn’t you want the best audio system when audio makes a such a big difference to customer experience? There is real science behind keeping people comfortable in a space without them even realising it is happening.

“Most retailers are trying to make sure that customer experience is at the forefront of their offering. In Audio, you have to make sure that the delivery mechanism is as good as the quality of the source. We always try to select Bose because it delivers on that requirement, and it is superbly reliable.” – Craig Perry, DMX Africa

WHAT AUDIO PRODUCTS WOULD YOU RECOMMEND FOR THE RETAIL SPACE?

WHAT SHOULD RETAILERS CONSIDER WHEN INVESTING IN AN AUDIO SYSTEM?

Bose is a very unique brand which is synonymous with quality. You get Bose in Mercedes cars, Ferraris, the noise-cancelling headphones for business class passengers. There’s that ‘upper class’ feel to Bose, and when you look at the retail space, Bose offers a product that is more than a box in the corner. Apart from its power and high performance, it’s aesthetically pleasing, so it’s favoured by interior designers and shopfitters. Also, you don’t need the same number of speakers as you often do with other brands. The dispersion of Bose is different, so you need fewer speakers to fill the same space. Plus, you’re reaping the benefit of Bose’s years of extensive research into offering the best possible product. The Bose range is extremely versatile, whether the required atmosphere is quieter and more reserved, such as an exclusive salon, or vibey and upbeat like RocoMamas.

When designing a retail space, it is critical that you consider all five senses when trying to shape the customer experience. Just as you would be overwhelmed or bothered by lights that are too bright or too dim, the same applies to sound. There is a fine art to making people feel comfortable in a location, even if they aren’t aware of the intricacies involved. If you walk into a restaurant and there’s no music, most people will feel uncomfortable – even if they don’t realise why. By the same token, if you walk in and there’s very loud music or poor quality sound, it’s also off-putting. We’re trying to educate the market on this issue. It’s so subtle that people don’t always immediately see the value of getting it right. The audio system should ideally be part of the design of a space from the start.

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WHAT AUDIO PRODUCTS ARE BEST SUITED TO THE RETAIL SPACE? The Bose FreeSpace range has been a real winner for us – it’s the perfect product for the retail space, and you also see it in many hospitality spaces. The PowerShare range of amplifiers are also excellent. The EdgeMax 90 and EdgeMax 180 speakers are popular choices as in-ceiling products. They offer a very large coverage area which is usually reserved for surface mount speakers, but in a flush-mount design. Then, we’re very excited about the new DesignMax range, which we launched at Mediatech in July. It’s a beautifully designed premium loudspeaker range above the FreeSpace range and is coming in December. Also, despite the perception that Bose is expensive, in the professional market, when it comes to things like ceiling speakers, our pricing is actually comparable to that of the competition – but with all the Bose magic behind it.

TELL US ABOUT SOME OF YOUR SUCCESSFUL INSTALLATIONS

“What we love about the Bose brand is that it is a premium product that sounds and looks great. It’s also reliable and easy to install. Working with Alpha Technologies is always a pleasure. As a partner, we’re made to feel like part of the family, they offer excellent technical support and always go the extra mile to support our projects.” – Darnell van Wyk, Phoenix 5 Productions

Pick n Pay Clothing is a very important customer for us – we’ve been working with them for close to ten years now. Most of their branches have Bose systems deployed. H&M has also been using Bose in their premium stores. RocoMamas now has around 80 restaurants using Bose products. We’ve done Vida e caffè branches, Armani stores, Superdry stores, Foschini, MAC Cosmetics, NYX Professional Makeup and many others.

P R O F E S S I ON A L

AU THORISED DISTRIBUTOR

BUSINESS MUSIC SYSTEMS FROM BOSE PROFESSIONAL Quality. Selection. Service. Merchandise. Every business strives to deliver them— whether it's a block away or a click away. But what diﬀerentiates your business is the experience you create for your customers and guests. So turn on the music. Few things in life create better moments than music. And the better it sounds, the better the experience. That's the kind of experience you can create with components and systems from Bose Professional.

Web: www.alpha-tec.co.za Tel: +27(0) 11 462 5495

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MALLS ARE ALIVE AND WELL IN SA

E-COMMERCE MODELS IN SOUTH AFRICA In South Africa, there is a range of e-commerce models used, which tend to be differentiated based on factors including the technical platform used, delivery model, payment processing methods, marketing and customer service. There are also different supply arrangements, with some stores acting as marketplaces with independent suppliers, others as full-service virtual retailers and others that provide an online channel for bricks and mortar retail stores. Online stores also differ in terms of the size and complexity of their offering, the categories in which they compete and their range of stock. Various retail stores within South Africa have noted the importance of online channels, and though online shopping often accounts for a small portion of total sales it is still seen as important. There is some agreement that there is scope for e-commerce sales to rise as a channel for bricks and mortar stores, particularly among the higher LSMs. Some interviewees pointed to sales in other countries in which they were active as a comparator as an indicator of the direction in which they believed their online offering would grow. For example, Mr P notes in its Annual Report: “Although online has a relatively low market share in South Africa, we believe this will grow over time, much the same as in other markets”. In interviews, Woolworths pointed to similar growth potential, comparing its 0.7% online sales in South Africa with 4.3% at its David Jones stores and 15.5% online at its Country Road Group stores in Australia (Woolworths 2017).

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Online retail is one component of wider digital transformation (or digitalisation) of the economy. While it presently still represents a small proportion of all retail sales, internationally these sales are increasing significantly in some product categories (such as books, electronic goods and clothing) and online sales are growing rapidly overall. E-commerce can be efficiency-enhancing and has the potential for consumer benefits in the form of lower prices and greater choice. E-commerce can be a route to market for smaller firms, lowering their transactions costs and increasing their exposure to many more customers. In some countries e-commerce is also being used to extend retail services to the rural population. In addition, e-commerce can have beneficial disruptive benefits on existing industries spurring greater innovation and efficiency in the general retail sector.

The statement that ‘retail is dead’ carries a sense of dread for traditional retailers globally, as e-commerce continues to gain traction. Many of the industries that service physical retailers, including AV integrators, may fear that the door of opportunity in the retail sector is rapidly closing. However, a recent research paper, developed by The University of Johannesburg for the Industrial Development Think Tank, has found that South Africans are likely to continue spending their weekends at the mall, creating new opportunities for AV integrators in the sector.

Technological advances are changing how economies operate around the world. In retail, there is increased reliance on digital platforms and the data that they provide for a range of purposes including advertising, demand management and as a new mechanism for reaching consumers and new markets. These changes have an extensive effect on how businesses operate and as a result on various industries and value chains within the South African market.

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RETAIL PRO-AV INDUSTRY REPORT

OMNICHANNEL RETAIL MODELS However, focusing on the choice between online and physical shopping misses the dynamics between the two and the interplay between online and offline markets. In line with international patterns, retailers interviewed in South Africa point to increased use of hybrid models. For example, “click and collect” models (used by retailers such as Pick and Pay and Mr P) allows consumers to purchase online and fetch their products at a store. There are products that allow consumers to purchase online and take a code to a counter to pay in cash (such as Pay@ and SCodes). Stores often facilitate online returns. Many interviewees have noted the need for an online platform as complementary to their core business. Mr P notes in their annual report that 50% of their customers collect online purchases in-store, and 20% of these customers make an additional purchase while in the store. In addition, another interplay between physical and online stores they note is that 65% of their customers browse online before shopping in-store (Mr P, 2018). However, there was a sense that online sales are generally small (generally under 1%) and that bricks-and-mortar retail would continue to play a strong role in South Africa. In fact, there has even been a reverse movement in some quarters with Yuppiechef, which started as an online store opening physical branches in Cape Town. On their launch founder, Andrew Smith stated: “For a long time we believed that e-commerce was the future of retail and that eventually this channel would ‘win’ and the others would ‘die’. We were wrong. For many South Africans shopping is one of our favourite past-times — spending a Saturday at a mall, meeting friends and eating out. Or perhaps for certain products you prefer the physical shopping experience — browsing, getting advice and the immediacy of the purchase. Shops and malls are not going to disappear any time soon. We believe that the future of retail is ‘omnichannel’, which means a combination of physical stores and e-commerce.” (Yuppiechef, 2017)

THE FUTURE OF RETAIL IN SA Enhanced use of online channels by traditional retailers can lead to concerns over the impact that it will have on commercial property and employment in physical branches. Internationally, this has been the case. However, unlike other markets where there is a sense that online sales are partially responsible for closures in offline retail, and lower footfall in malls, there was no sense that the growth in e-commerce would lead to store closures or reductions in South Africa at this stage. In contrast, stakeholders strongly emphasised the shopping mall culture in South Africa and stressed that offline retail was not under threat, particularly in areas such as grocery. Instead, it was seen as a complementary channel. As such, it appears likely that while online retailing will provide an additional sales channel, it is unlikely to reduce employment in the traditional retail sector in the short-term and is likely to remain fairly labour intensive as it grows. In our interviews, several common explanations have been given for why online retail in South Africa has not grown to the extent it has in other countries.

This article is extracted from the recent research paper Online Retailing in South Africa: An Overview by Sha’ista Goga, Anthea Paelo and Julius Nyamwena of the University of Johannesburg (UJ). The paper forms part of a series of studies on the challenges of industrialisation undertaken by the Industrial Development Think Tank (IDTT).

SOURCE: Goga, Shaista and Paelo, Anthea and Nyamwena, Julius, Online Retailing in South Africa: An Overview (March 1, 2019). CCRED Working Paper No. 2/2019. Available at SSRN: https://ssrn.com/ abstract=3386008 or http://dx.doi. org/10.2139/ssrn.3386008

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RETAIL PRO-AV INDUSTRY REPORT

THE SHOPPING CULTURE IN SOUTH AFRICA:

A strong emphasis on mall culture means that shopping is seen as a form of entertainment. This together with the high concentration of malls and shopping centres means that bricks and mortar shopping is prevalent.

POSTAL SERVICES:

The postal services have been the lynchpin for e-commerce growth in several countries as it provides a cheap option for postage. However, in South Africa, small businesses and consumers are hesitant to utilise the post office due to concerns over goods not arriving or arriving too late.

DELIVERY COSTS:

At present the cost of delivery in South Africa is high relative to goods purchased. While there are arguments that the price has come down and that it is in many instances in line with international markets (outside of subsidised free delivery), the fact that delivery can be around R100 means that consumers need a fairly large basket of goods to make the fee worthwhile

TRUST IN ONLINE PAYMENT SYSTEMS:

Surveys have suggested that concern over online fraud is an additional barrier to the adoption of online shopping in South Africa. However, measures to enhance credit card protection have significantly reduced fraud rates.

Mall of Africa, Waterfall City, Midrand, Gauteng

RETAIL PRO-AV INDUSTRY REPORT

RETAIL OPENS OPPORTUN FOR AV INTEGRATORS IN SOUTH AFRICA

“More than ever before, today's retailers

are leveraging immersive audiovisual and digital technology to infuse their brickand-mortar stores with innovative design and cutting-edge functionality, which is fuelling a new growth-wave.” – Brad Grimes, senior director of communications at AVIXA Diamond Pavilion Shopping Mall GLA: 38,000m2 (GLA)

North Cape Mall GLA: 32,000m2 (GLA)

There are approximately 2000 premium retail shopping centres in South Africa

South Africa, Canada and the U.S. have the highest level of shopping centre supply relative to household consumption expenditure

GLA = Gross Leasable Area 30

Tyger Valley 88,973m2 (GLA) Canal Walk 146,828m2 (GLA)

Parow Centre 85,082m2 (GLA)

V&A Waterfront 69,000m2 (GLA)

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NITIES

Menlyn Park 177,000m2 (GLA)

Wonderpark Shopping Centre 90,413m2 (GLA)

Centurion Mall 112,828m2 (GLA)

Mall of Africa 130,000m2 (GLA)

Northgate 90,782m2 (GLA)

Fourways Mall 178,000m2 (GLA)

Nelson Mandela Square 92,789m2 (GLA)

418m2 GLA for every 1,000 people in SA

Sandton City 199,140m2 (GLA) Eastgate Shopping Centre 145,240m2 (GLA) Westgate 109,000m2 (GLA) Cresta Shopping Centre 104,143m2 (GLA)

Liberty Midlands 77,754m2 (GLA)

Gateway Theatre of Shopping 150,320m2 (GLA) Loch Logan WaterfrontÂ 80,000m2 (GLA) The Pavilion 119,000m2 (GLA)

South Africa has the sixth most shopping centres in the world

Baywest Mall 86,995m2 (GLA) Walmer Park 43,020m2 (GLA)

South Africa has a population of 57 million and 24,000,000m2 of GLA

SOURCE: South African Council of Shopping Centres (SACSC) https://sacsc.co.za/

RETAIL PRO-AV CASE STUDY

BLENDED REALITIES

THE NEXT-GENERATION SHOPPING EXPERIENCE Listen to the webinar, hosted on https://www.avixa.org/: https://youtu.be/pUDV6Ddn43A

Leading retail jewellery brand, James Allen, has proven to be a major market disruptor with their highly immersive e-commerce store, JamesAllen.com. James Allen Schultz, co-founder and CCO of the brand’s parent company R2net Inc., recently featured on an AVIXA-sponsored webinar hosted by managing editor of VMSD Magazine, Carly Hagedon, and chaired by Brad Grimes, senior director of communications at AVIXA. During the discussion, Schultz unpacks James Allen’s use of the latest AV technology to create a ground-breaking experiential retail location in Georgetown Washington. 32

RETAIL PRO-AV CASE STUDY

MARKET DISRUPTIONS JamesAllen.com is the brainchild of Oded Edelman, James Schultz, Michele Sigler and Dean Lederman, who combined their collective experience in jewellery, diamonds, retail and e-commerce to launch one of the world’s largest privatelyheld online diamond retailers in 2006. James Allen CEO, Oded Edelman, has a long family tradition in retail jewellery and when it came time for him to launch his own enterprise, the self-described innovator was determined to marry his heritage with current trends in technology. “As the younger generation is reaching an age that they can afford fine jewellery, they also have an ingrained understanding that they can search and self-educate to find the best quality, selection and price,” Edelman said in a 2015 interview with Forbes. “This stands in sharp contrast to a few years ago when a consumer could only go to a few jewellery stores, see one or

two diamonds in each of these stores, and end up purchasing one of the few they considered without the ability to understand what they see in the store.” By contrast, JamesAllen.com offers shoppers the opportunity to browse through hundreds of thousands of conflict-free high-quality diamonds, all shot in 360 0 HD, while learning about how to make an informed decision about purchasing diamonds and fine jewellery. James Allen sets itself apart as an e-commerce retailer by creating a highly immersive online experience, using state-of-the-art web design, e-commerce technology and 3D photography to create the most intimate, educational and detail-oriented platform possible. To enable the high-tech 360 0 imaging that best showcases diamonds on offer, R2Net launched a sister company, Segoma Imaging Technologies, which specialises in 360 0 Diamond Display Technology specifically intended to assist traditional retailers display jewellery to online consumers. In August 2017, listed diamond retail giant, Signet Jewellery, purchased R2Net for a staggering $328 million. In a statement following the deal, Signet explained that they decided to acquire R2Net Inc. to take advantage of the company’s

RETAIL PRO-AV CASE STUDY

“We wanted to open a store that would serve a an incubator of new ideas and technology” – James Allen Schultz, co-founder and CCO, R2net Inc.

THE BEST OF BOTH

expertise in transitioning traditional jewellery retailers into modern e-commerce platforms, while further developing James Allen’s stellar performance as a brand. “We’re excited to continue executing Signet’s customer-first, omnichannel strategy with this new shopping experience from JamesAllen. com, integrating both our digital and physical retail platforms. The world-class innovation and technology at the core of JamesAllen. com’s business will come to life in the new location, redefining the jewellery-shopping experience for our customers,” says Signet CEO, Virginia Drosos.

While the majority of the shift in retail is from the traditional brick-and-mortar model to e-commerce, James Allen affirmed their reputation for breaking with convention when, in December 2018, it opened an experiential retail location in Georgetown, Washington D.C. “Following our acquisition by Signet Jewellery, we wanted to open a store that would serve as an incubator of new ideas and technology,” says Schultz. “Our business has been a 100% pure-play e-commerce enterprise, so opening the first store is the company’s foray into the traditional retail market.” In line with the company’s innovative spirit and next-generation attitude, Schultz and his team set out to create a retail experience tha would appeal to the millennial generation. “We wanted to make sure that the ‘technology first’ approach that we built on for the James Allen e-commerce store was also reflected in our physical store. We also wanted to make sure that the culture of our web-based company, which is very educationally driven, was also reflected in the store.”

RETAIL PRO-AV CASE STUDY

The James Allen Georgetown experience retail location features a range of digital technologies, geared towards marrying the virtual and physical customer experience. “We have been sparing in our use of [display] cases, which is unusual for a traditional jewellery store. Instead, we felt that many of the people coming in would be able to use digital technologies to see our virtual inventory – rather than having thousands of pieces and millions of dollars of inventory that we would then have to secure and insure,” Schultz explains. In line with their strategy to blend the physical and e-commerce experience, the James Allen’s retail space features a coffee bar with tablet-based technology that enables customers to browse and grade diamonds online and view peer-to-peer comparisons. “To tie in our store with our website, we have a coffee bar in the store, and we have iPads sitting on the bar, where we display the same 360 0 video of our products that you can see on our website – but we have ‘gamerised’ it. Customers can sit down and earn credits by grading diamonds, based on the cut, colour carat and clarity of the stone. This serves to educate the customer about what to look for in a diamond, all while hanging out at the coffee bar and enjoying a latte.”

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The James Allen experience space is designed around audiovisual technology, including virtual-reality edutainment experiences, senor-triggered multidirectional speakers, floating 3D holographic signage and dynamic digital displays. Highlighting some of the more innovative and impressive aspects of the installation, Schultz points to the creative use of directional speakers to create a virtual sales agent on the floor. “We have three directional speakers installed in the space, one of them above the display case. There is a butterfly – which is the store’s logo – on the floor, and when you step on it, a motion sensor in the speaker realises that there is someone in front of the display case and they start to hear about the products that are in that case,” he explains. “We have also used directional speakers in a more playful ways. There is a butterfly motif on the floor in front of one of the green walls, and when a visitor stand on it, they can hear birds chirping. This has nothing to do with jewellery – but it delights the visitors when they come into the store.” The retail space relies heavily on digital signage solutions, but the team have again displayed their understanding of the connected generation by employing social media in their approach. “We have incorporated sepia screens in the icon wall that faces the street.

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AV BRIDGES THE DIVIDE

“We wanted to make sure that the ‘technology first’ approach that we built on for the James Allen e-commerce store was also reflected in our physical store." – James Allen Schultz, co-founder and CCO, R2net Inc.

These screens show a loop of stories of young couples getting engaged. Importantly, the videos are produced by our customers, who share their engagement stories with us through social media, and we are re-sharing these stories within our store. It’s a great talking point because we can let clients know that the next time that they come in, it could be their story that is on display,” Schultz points out. The team have been as creative with the use of digital signage by including Kino-mo Hypervsn hologram fans. “We can either display messaging across the three fans, such as our name and logo and have the butterfly flutter away, or we can display some of our actual products, such as a holographic version of three of our best-selling rings,” says Schultz. The hologram fans are also motion-triggered, making the environment feel responsive and interactive.

A PERFECT MARRIAGE James Allen has achieved a perfect blend between online shopping and brick-and-mortar experience-based retail. By bringing together virtual inventory, huge choice and customer education and a unique and immersive in-store experience that is worth remembering and sharing, James Allen is set to continue their trajectory as a trendsetter in a digitally connected, experience-driven world.

EYE ON THE OF LED

RETAIL PRO-AV CASE STUDY

After seven years of refining their operations, Eyecom have emerged as one of the continent’s leading LED specialists – manufacturing, installing, repairing, servicing and conducting sales from their headquarters in Cape Town, South Africa. AV Integration caught up with Eyecom owner, Paul Bowling, to discuss the company’s unique business model, its involvement in the new Fourways Mall redevelopment project, the current market desire for LED in the retail sector and where this technology is headed in the near future.

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LOCAL EDGE As Paul Bowling explains: “Eyecom originally did installations and servicing of LED screens, but in the last four years we’ve decided to manufacture our own screens in South Africa. We looked at what the African market specifically needed, and instead of just importing LED screens like everybody else does, we just import the LED modules – which are flown in. This speeds up the response time and the screens come in custom-made to any size.” As Bowling outlines, this unique approach to servicing the LED industry can lead to significant savings: “Usually, a client makes the enquiry and confirms the order. The supplier would then request a minimum of 50% deposit, because China always needs 100% payment. The order would then be placed in China, they would manufacture the screen and then it would probably be put in a container and shipped to South Afica – so about four or five weeks later, the grids arrive. But a supporting frame still needs to be manufactured, probably locally, and only then would you be able to do your installation. “That’s a turnaround time of six to eight weeks, at the quickest. Meanwhile, our standard turnaround time is 10 days. We are much more responsive and we hold stock in country – and all of this has resulted in a cheaper, more lightweight screen for the market.”

RETAIL PRO-AV CASE STUDY

FOURWAYS IN FOCUS Bowling, whose career in LED started nearly 20 years ago in the UK, sums up the Eyecom approach as follows: “We have tried to build a turnkey business: everything to do with LEDs, and nothing more.” Having been involved in projects as varied as control rooms, board rooms, universities, casinos, petrol stations and food courts all over Africa – including the continent’s biggest-ever digital rollout at the Media24 building – he explains how the recent Fourways Mall redevelopment project came to benefit from Eyecom technologies. “We supply a lot of integrators, and many have recently moved from the LCD to the LED industry. Those integrators have relationships with Woolworths, Super Dry, GHD, Primedia and others. So, in total, just for the Fourways Mall project, we did 15 screens for Woolworths, one large screen each for Super Dry and GHD, four screens for Primedia, and then four and seven screens for two other retailers, respectively. These 32 screens were all manufactured and dispatched within one month.” Asked whether there were any design challenges encountered during the process, Bowling says: “There were no problems whatsoever. You work with the interior designers for these retailers and get a clear idea of the specifications – Woolworths, for example, took an assortment of sizes. On their lift carousel, they’ve got six screens each measuring 6.5m high by 2m wide. These were built in two pieces, because we wanted to simplify the operation as much as possible. The technical requirements for those screens are, simply, to connect the power to the top half and bottom half, connect the data to the same, and then plug it into your power outlet. “This simplified approach is a core aspect of what we do. Because, for us, this means – as LED experts – we don’t have to do every single installation. It encourages integrators to move to LED from LCD because they’re not scared of the technology; they know they can install it. And when a designer says I need a screen of X size, we can build it to that specification and still retain the ease of installation you get from standard-size screens. We’ve done a screen that measured 640mm by two metres – we can really cater for every design.”

RETAIL PRO-AV CASE STUDY

LED BOOM After manufacturing about 60 Eyecom screens in 2017, this number jumped to over 100 last year and the 2019 figures are well on course to surpass 200. Bowling confirms that this does seem to be a boom time for the LED industry, and shares some thoughts about possible reasons for this growth. “We have found that a lot of integrators have moved from LCD to LED technology,” he says. “Our screens come pre-cabled and pre-configured and so installation is as easy as hanging the screen – you don’t need to be an LED technician. This increased ease of installation has certainly been a factor from our side. “LED has come down in price,” he continues. “Three years ago we did a big installation for a client on a six millimetre screen – and now we’ve just quoted them for another mould, this time our four millimetre model, a higher resolution screen, and the price is the same. “But,” he says, “the push has really come from the brands – this sense, from their point of view, that they have to be digital and cutting-edge. The old LCD technology has a lot of physical restraints: the physical size you can build, for example, the lifespan of the screen, the cost – because at the professional level, LCDs are now more expensive than LED. To give an example, one retailer was using a three LCD monitor by three LCD monitor configuration to build a wall. We can now produce that same size screen in LED – not only cheaper, but we can be a lot of more creative because we’re working with modules which are only 320 by 160mm, and so we can make a mosaic. LEDs also use less power – and, if one module fails, we only have to repair that one component. With LCD if one display of nine fails, then the whole wall essentially fails because you can’t leave the display running with one screen off, and you can’t fully recalibrate the wall so that the colours remain true.”

Bowling’s final point is a fascinating insight into the pace of technological evolution in the LED industry: “Most service-level agreements typically last two or three years. To see a return on investment, you therefore need to view LED technology as a consumable item. They’re not designed to last forever anymore. There’s no point in investing huge sums of money now in a 6mm screen that guarantees you a 10-year lifespan; in just a few years, everybody else will be installing 1mm screens and you will be left behind with ‘old technology’ before you’ve even paid your costs. “That’s why another core component of our business model is our three-year, worry-free warrantee. Our screens come with spare parts and so if there’s a problem the technician can easily switch it out and avoid any downtime. That faulty part is then sent back to us and in three or four days, usually, it’s repaired – to the same standard than if it had been sent to China, which takes about three or four weeks, plus extra costs on transport and duties.”

ANALYTICS AND ACCOUNTABILITY Although Bowling is adamant that Eyecom is “in the right place, at the right time, with the right technology”, this does not mean that the company is content to rest on its laurels, however. He describes some interesting innovations that will soon be integrated into Eyecom LED screens. “One route we are currently developing is the audience tracking component of our LED screens. This means that the screen itself can give some accountability for its presence – Am I doing my job? Are people looking at me? Is the content relevant? – and advertisers and brands can actually see that the screen is reaching the audience they want to reach. “With these innovations, we will be able to provide data indicating that people are looking at the screen for X period of time; the technology can also tell you basic demographic information about the audience, as well as their facial response to the screen – did they smile? Or frown? For how long did they linger in front of the screen? The interface for this is basically a webcam; it’s the technology in the background that runs all of these analytics. “We now feel like we’ve refined the technology for the physical screen – it’s user-friendly, it’s supportable for the African market, it’s easy to install,” Bowling concludes. “The next step is our screens being monitored from a remote location and adding that performance accountability and analytics value to advertisers. We want to know that all of our screens are representing Eyecom to their full potential at all times.”

“We have tried to build a turnkey business: everything to do with LEDs, and nothing more.” – Paul Bowling, owner of Eyecom

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interview PROFILE

Adre’ Pansegrouw is the managing director of Frog AV, one of the leading AV integration

specialists in South Africa. AV Integration spoke with Adre’ about her professional and personal journey – from her start as a sales representative for an AV company more than 20 years ago, to her current position as a highly respected industry leader and innovator in the field. Frog AV, based in Centurion, Gauteng, is a leading audiovisual solutions expert that provides a wide range of professional AV services and products to resellers and the corporate market. Over the past 20 years, the company has grown from a small start-up specialising in the distribution of projectors, to one of the most trusted and innovative companies in the pro-AV market in South Africa. Frog AV boasts an impressive portfolio of clients and projects. They have been responsible for the design, implementation and on-going support of installed AV technology at the Tshwane University of Technology for more than six years, and delivered a state-of-the-art video wall and video conferencing solution for the country’s State Security Agency. Most recently, Frog AV was contracted by EXXARO, one of South Africa’s largest resource management firms, to implement state-of-the-art video conferencing and collaboration solutions at their head office in Pretoria, which is to be extended to EXXARO’s mining operations in Limpopo and Mpumalanga in the coming year.

HOW DID YOU BECOME INVOLVED IN THE AV INDUSTRY?

When I was in my early 20s and looking for employment opportunities as a general administrator, I came across an advert for a sales position at an AV installation company. The advert continued to appear, week after week, until I decided to apply and was offered the job. I started working for ETA Audiovisual in their internal sales department and quickly fell in love with the AV industry and realised that sales is my calling. Within six months, I had reached a point where I was ready to take the next step in my career. While waiting for a position to open in ETA’s off-site sales team, I took a job in Rivonia that had me commuting for more than four hours a day. The time spent travelling had a profound effect on my productivity, which was very frustrating. To my enormous relief, ETA called me a few months later to let me know that a position had opened up for me in their external sales division. I leapt at the opportunity – and have never looked back. I am extremely grateful for the opportunities that my early employers gave me because it set me on the road to a career in an industry that I remain deeply passionate about.

WHEN DID YOU START YOUR OWN BUSINESS? My husband and I started Frog AV at the end of the year 2000. A representative from LG approached me at one of the local AV tradeshows and mentioned that they were looking for a local distributor for LG projectors. My MD at the time decided that it was not the right opportunity for him and I decided to give the contact to my husband who was freelancing at the time, and encouraged him to follow up on the opportunity, which he did. A few months later, we registered Frog AV, and I decided to resign from my position at ETA to take on the business full-time.

We developed a very strong relationship with LG and started to demo and sell LG projectors, one unit at a time. We worked very hard to overcome the challenges that many start-ups face, such as not being able to establish a line of credit as we had no collateral and little support from the formal banking sector. Our business model was fairly simple; we would take a few projectors, demo them, sell them, and wait for payment before being able to pay for the stock. Soon we were selling hundreds of units in this manner until we reached a point where LG decided that it would be in their best interests to formalise the relationship. They offered Frog AV a national distributorship deal; however, we still did not have the collateral needed to take it on by ourselves. One of my clients stepped in and signed a 10 million rand surety to enable us to take on the contract. We were so successful that we found ourselves in a position to buy them out in a year. I am extremely proud of how we have grown, and while our current team is smaller than ever, we continue to grow our turnover despite the current trying economic climate.

WHAT SETS FROG AV APART FROM ITS COMPETITORS? Frog AV has established a reputation for being extremely detailoriented. We set the highest possible standards and work towards not only meeting but surpassing expectations. One particular client accused us of being ‘anal-retentive’ about our rack work, which is the highest praise in my books. My team and I have always remained focused on being highly responsive to developments in technology and our client’s changing needs while maintaining the highest quality standards, our integrity and our identity as a family-run business. I am a big-picture thinker, and I have built Frog AV on the principle that projects are long-term investments rather than opportunities for short-term cash flow. I believe in building relationships with our clients and walking a long road with them. I enjoy working with my clients to develop the best AV solutions and implementation strategies to suit their specific needs and am always looking for ways to improve our designs, respond to changing conditions on-site, and add value. I always ensure that any solution that we propose is future-proofed through quality, flexibility and scalability and that all of the products that we install are backed by solid warranties and aftersales support. Clients want technology that works consistently, improves business operations, and adds value to their lives. We are in the business of delivering AV solutions that serve our clients’ needs and comply with the highest industry standards, no matter how big or small the project. Our business development strategy is driven by this client-centred ethos, which is a huge differentiating factor in our highly competitive market.

PROFILE

“No one person can take credit for the success that we have enjoyed over the years. We work as a team by supporting each other, acknowledging our own and each other’s strengths and weaknesses, and remaining committed to learning from our failures as much as from our success.”

4 PROFILE

WHAT IS YOUR VISION FOR FROG AV MOVING FORWARD? Frog AV is a small company by design, as we have found that keeping the team leaner allows for more agile decision-making processes. A few years ago, we opened a second operation in Cape Town. However, it didn’t really work for me, and we sold the branch a year later. I am a very hands-on manager, and I found that splitting my time between the two offices did not add value to the business and diluted my efficacy as a manager and business leader. It was, however, a great learning experience, because it confirmed my belief in a compact business model, with hands-on management overseeing a highly cohesive team. I do envision growth for Frog AV, but I will not jeopardise our highly successful formula by opening new branches or taking on more than we can comfortably deliver on, or by compromising on our standards and service levels in the name of growth. Our current model continues to give us an edge over some of our larger competitors, and I strongly believe in growing the business upon this foundation.

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WHAT DO YOU THINK ARE THE LEADING TRENDS IN AV TECHNOLOGY IN SA? The pro-AV industry has grown in leaps and bounds in the twenty years since we opened our doors. When we started, projectors with pull-down screens were the order of the day – a model that is quickly becoming redundant with the emergence of AV over IP-based technologies. Much like in the rest of the world, South African businesses are under enormous pressure to adapt to a rapidly digitising world. Increasingly, South African corporates are getting wise to the enormous potential of the Smart Office to boost productivity and reduce overheads. We are seeing a lot of companies investing in digital displays, video conferencing infrastructure and collaboration tools for their boardrooms, meeting rooms and huddle spaces. When implemented correctly, incorporating these technologies supports higher productivity levels and more positive working experiences for staff.

WHAT ARE SOME OF YOUR PROUDEST ACHIEVEMENTS? Frog AV started as the most humble of start-ups and has grown into an organisation of which I am extremely proud. The company is, essentially, a family business, and we have remained true to the values of dependability, loyalty, honesty and commitment that I founded the company on almost 20 years ago. While we have built up an impressive portfolio of highly successful projects over the years, I don’t see this as the most accurate measure of our success. In my view, our achievements are best reflected in the relationships that we have with our suppliers and clients. I have been working with some clients for well over a decade, and I am privileged to call many of them my friends. I am also extremely proud of the team that we have built at Frog AV. Every member of the team has internalised our commitment to quality, value and client relationships, which is reflected in all that they do. When we deploy an installation team on site, I am always confident that they will represent our company and our brand to our credit, and foster a relationship of trust. Our technical manager, Gustav Pansegrouw, is deeply passionate about teaching and training and takes every possible opportunity to

develop his teams’ skill level, driving both professional and personal growth. We have, therefore, not only fostered talent as an internal resource, but we are also contributing to developing a professional skills base for the industry as a whole.

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WHAT ARE SOME OF THE CHALLENGES THAT YOU HAVE HAD TO OVERCOME TO REACH THIS POINT IN YOUR CAREER? One of the most interesting challenges that I have overcome has been establishing my reputation as a respected technical authority in a male-dominated industry. I am one of only two women in the country who own successful AV integration companies, which demonstrates how much gender bias remains in the industry. I have specialised in system design since Frog AV started to work as a system integration company. As a highly innovative person, I find system design an interesting way to express my creativity, and I love the technical aspects of my work. As a very hand-on manager, I enjoy spending time onsite with my team and am deeply involved with the technical side of the business. I have had to work very hard to overcome gender stereotypes that are not particularly kind to women in technical fields, especially when in leadership roles.

WHAT ARE YOUR PASSIONS AND INTERESTS OUTSIDE OF YOUR CAREER? One of the greatest lessons that I have had to learn as a business owner and a person is the importance of living a balanced life. There have been times in my career where I have done nothing but work, to the detriment of my physical, emotional and spiritual wellbeing. A few years ago, I realised that investing in myself is as critical to my success as investing in the business. I decided to start eating a healthier diet, began exercising regularly and set some boundaries to manage my time more effectively. One of the most important changes that I made was acknowledging my need for spiritual enrichment and worked consciously to develop my relationship with God, and started going to church more regularly. I have experienced enormous personal growth through this process, which has not only improved my life but my relationships with others and the business as a whole. I now work hard to fill all of my tanks, be it my physical health, mental and emotional wellbeing, or my spiritual life. I am in optimal condition to perform once all of my tanks are full, and the people around me feed off this energy, which sets the whole team up for success.

“We have worked very hard to establish a company culture where values such as relationship building, transparency, authenticity and honour are core to everything that we do.”

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