Midas Group Industry Awards
| by Austin Gamble
Spirit of
Partnership
The 2014 Midas Group Supplier
Acknowledgement and Appreciation Awards
Evening took place on 21 August at Emperors
Midas Group Industry Awards
Palace, Kempton Park. For various reasons,
this evening has become an automotive
aftermarket industry event not to be missed.
O
ver and above the networking
opportunities with a veritable
who’s who of the automotive
aftermarket, suppliers and guests
also get to hear first-hand from Midas
executives the state of the aftermarket,
and a peek at the Midas crystal ball as
to what the future holds. In addition, a
well-chosen keynote speaker gives a
speech that is guaranteed to give food
for thought, plus inspirational insights.
Not surprisingly, the 2014 evening
delivered as expected, and the highlight
of the evening was the address by
Brand Pretorius, a doyen of the South
African motor industry, and someone
whose opinion and thoughts are highly
regarded. Pretorius was asked to give
guidelines for sustainable success in a
rapidly changing business environment,
and his 45 minute address was delivered
in his inimitable style, and it left the
audience spellbound.
In his opening remarks, Pretorius hit the
nail on the head with his observation
that what was clearly evident to him,
in speaking to the guests and listening
to the opening presentations, was the
spirit of partnership amongst the Midas
family, and that this spirit was the key
to the future success of the group. The
highlights of his speech can be seen in
the accompanying block.
Midas executives Shane Stevens and
Warren Espinoza set the tone for the
evening by outlining initiatives taken by
Midas to adapt to the changing business
environment. These initiatives include
investment in procurement teams, to
provide further support to brands, which
the group has identified as an important
part of the Midas philosophy. Stevens
also noted that with consumers having
access to a wide range of information,
it is important for sales people to
be technically competent, and that
suppliers must take cognisance of this,
as well as putting resources behind
ongoing technical training and technical
support. With regard to the awards,
Stevens congratulated the suppliers on
their improved performance in 2014,
despite having to contend with strike
activity which impacted supply levels.
On a positive note, Stevens mentioned
that the awards were closely contested
with tight scoring, which was an
indication of an overall improvement in
performance.
Warren Espinoza noted that 2014 was
effectively the 60th anniversary of
Midas, as the beginnings of Midas could
be traced back to the establishment
of an auto electrical repair business
in downtown Johannesburg in 1954
by Alex Cruickshank. Today, 60 years
later, Midas is part of the Imperial
stable, and the future is being defined
by the establishment of an automotive
aftermarket parts division, under
the stewardship of Malcolm Perrie.
Regarding the financial results of Midas,
Espinoza said that he was pleased with
the performance, describing it as “as a
good result, considering the prolonged
slowdown of discretionary spend that
the industry is experiencing”. And as a
hard parts man myself, I was pleased
to hear that it was the “traditional hard
parts that picked up the slack”.
Espinoza also used the opportunity
to give the suppliers a distributor’s
perspective of the current market
situation:
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The environment is not buoyant –
with tough headwinds
| words in action
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Supplier expectations are
unrealistically high
There is a proliferation of new
brands – all fighting for market
share and challenging established
brands
Established brands need to protect
their market share – via increased
market activity and increased
marketing
The proliferation of brands may
seem attractive to consumers – but
it is not financially viable for Midas
to carry all of these brands
Midas will support the brands
it carries – but there are strings
attached
The workshop market drives the
aftermarket
The industry needs to eliminate
expenses in the supply chain suppliers and distributors need to
work together
Technical training and support is
very important – most suppliers are
doing this well
BBBEE ratings remain important
– implementation of new codes in
May 2015 makes it more onerous,
and supplier ratings are critical
for Mi das to maintain their current
rating
Regarding the future, Espinoza said
that Midas is well positioned in the
market. Key focus areas in the coming
months will be the Behr-Hella Silverton
integration, the relocation of the national
distributor centre, the management of
credit risk, and an increased focus on
brands carried. He emphasised that
success comes from people, strategy
and product, and that trust and respect
are the cornerstones of the partnership
that Midas enjoys with its suppliers.
september 2014