Businesses positioned to reap from the festive season

MTN-Rwanda has reduced international tariff rates by 50 percent and in response, Rwandatel introduced the festival package for its customers, where one’s airtime is doubled per top-up As we get closer to Christmas, competition among business has stiffened with the struggle to register high sales identified among big corporations in all sectors of the economy. The big businesses have centred their battle for customers on promotional packages, which include discounts and competitions. For example, Rwanda’s telecom industry has geared up to reap big from the season by arranging packages that entice clients into topping-up with more airtime and calling extra minutes. MTN-Rwanda has reduced international tariff rates by 50 percent and in response, Rwandatel introduced the festival package for its customers, where one’s airtime is doubled per top-up. Though Rwandatel’s promotion can be viewed as a strategy for pulling clients to its recently launched GSM product, the package is only meant for this festival season. In the pay-TV industry, Star Africa media, a Chinese company operating in Rwanda, has shipped digital television sets with decoders attached, in a move to beef up its consumer base in Rwanda. “Our vision is clear; we need to digitalise the population not some people, that’s why our services are affordable for all to have access on developmental technology,” Ken Xie Chief Executive Officer told The New Times in an interview last week. DSTV—South Africa’s satellite television introduced a promotional package known as ‘ultimate family view,’ where it offers 50 percent discount to every purchase. This is viewed as a marketing tool to outwit GTV, which currently owns a big share of the pay-TV market in the region, basing on its exclusive rights to broadcast the famous English premier league. In the retail and wholesale trade, Nakumatt, Kenya’s supper market chain which opened in Kigali recently, seems to have taken competition to another level. Since its opening, the mega departmental store has continuously unveiled strategies aimed at making business more competitive. Nakumatt has initiated Christmas bonanza where it will reward its cash prizes worth Rwf24m to its customers. But, the prize coupons are only availed to customers who make purchases of Rwf10,000 and above. The banking sector which is healthier than ever, is experiencing more branches with institutions like Finabank, Ecobank and Bank of Kigali (BK) targeting the densely populated areas of Kigali. This being a reflection of the increased demand of the banking services, especially cash withdrawals during this period when huge spending is inevitable, more branches have been opened around major shopping centres. Hotels and entertainment centres too have packages that vary but with discounts. For example, buffet arrangements have been made at different hotels with special offers that favour families. However, things seem to move in a totally opposite direction for small businesses. Local traders battle festival season As big companies are strategically positioning themselves to consolidate up their customer base, local traders, dominated by conventional business approaches are pessimistic they will not register higher turnovers in this period. “Usually we make lots of money during this season. There’s a bit of increased revenue so far but not the way we expected,” said Rehema Mukama who runs an apparel boutique in Kigali city centre. She added that, “It depends on the purchasing power of the public. This year has not been good for businesses. The fall in demand started in March (This year) we expected things to improve after the genocide commemoration week in April but there was no change,” she added. A source at SOGECORWA, a hardware shop in Nyarugenge district preferred to be anonymous. She said that she does not expect her sales to differ much from the usual days, saying that there is generally low purchasing power in the public. However, traders in the commodity market are optimistic that this week their sales turnover may increase since the consuming public tends to splash out cash in the last days towards Christmas. “We are likely to experience some change starting from December 23,” said Vénéranda Mukazaire, a cashier at Chez Venant supermarket. It is common in the 12th month that people will spend much since it is a period of excitement in the Christian world. It is during this period that people visit each other frequently mainly travelling to the countryside, which also translates into more business to public transport operators. Ends