Insyte Weekly: SA Government's Plans to Attract More Chinese & Indian Tourists, Shoprite Sells Furniture Business to Pepkor, Brazil's Music Industry Boom, and More

Significant events occurred this week that could significantly impact the business world. In South Africa, Shoprite announced the sale of its furniture unit to Pepkor while the local government stated it would implement an initiative to attract Chinese tourists. Internationally, this issue covers stories about Brazil’s Music Industry, the USA’s gaming industry and how edtech continues to address pressing issues for the global education system. Here’s a breakdown of some of the week’s top stories.

Media & Entertainment

Zo Ahmed announced that Ayaneo, a Chinese handheld gaming console maker, has entered the U.S. market, making its devices more accessible to American buyers through Best Buy and its website. Previously available only via imports, Ayaneo’s 7-inch Next Lite and 8.4-inch KUN models are now sold domestically, offering faster shipping and local support for returns. The $999 KUN model features a Ryzen 7 7840U processor, 16GB RAM, and 512GB SSD but faces stiff competition from devices like the ROG Ally and Lenovo Legion Go. The $399 Next Lite offers a more budget-friendly option with a Ryzen 7 4800U APU, 16GB RAM, and a 1280x800 display. However, its performance lags behind competitors. Ayaneo may need to release more models to appeal to a broader audience.

As reported by Tim Ingham, Brazil's recorded music industry saw significant growth in the first half of 2024, with revenues increasing by 21% year-on-year (YoY) to BRL 1.442 billion (USD $257 million). Streaming, which makes up over 99% of the market, generated BRL 1.430 billion (USD $255 million), with subscription streaming up 28.4% and ad-supported streaming rising 6.6%. Physical music sales accounted for a small 0.6% of the market. Paulo Rosa, President of Pro Musicá Brasil, attributed the growth to the efforts and investments in national music production, marketing, and artist development. This strong performance contrasts with slower growth in markets like the U.S. and reflects Brazil’s dominance in Latin America.

According to Ashley King, Apple Music has around 200,000 paid users in India, trailing behind local competitors Gaana (1.4 million), Wynk (500,000), and Spotify (3 million). However, Apple has formed a strategic partnership with Bharti Airtel, offering its music and video streaming services to the telecom firm’s premium customers for free. This deal could significantly boost Apple Music’s user base by absorbing Wynk’s 500,000 users. Despite this, Apple faces stiff competition in India, especially from Reliance's massive merger with Disney, which gives Apple a tough battle ahead in the media and entertainment sector. Apple holds only 5% of India's smartphone market, with Android dominating, supported by Spotify’s presence as the default music option on Samsung devices.

Edtech

According to Chris Newbould, The Very Group, a major digital retailer based in Liverpool, has launched a Data Academy in collaboration with tech training provider Multiverse. The academy aims to enhance the data skills of 11 of the company's data professionals through a 39-month Advanced Data Fellowship course. This degree-level program will help the professionals build on their existing skills and focus on strategic initiatives to support data-driven decision-making, increase efficiency, and boost productivity. The partnership with Multiverse, the UK's first EdTech unicorn, will allow Very to better use data to improve customer experience and unlock growth opportunities.

As revealed by Cate Lawrence, Berlin-based Edtech social enterprise EIDU is transitioning to an open-source model, making its proprietary platform available for third-party modification. Founded in 2015, EIDU partners with governments in low- and middle-income countries (LMICs) to digitalize education systems affordably and sustainably. Backed by Google.org and Founders Pledge, the platform supports teachers and learners in resource-limited settings using offline-capable technology. By opening its code, EIDU aims to boost global education outcomes, especially in LMICs, where literacy rates are alarmingly low. The platform is already integrated in over 6,000 schools in Kenya, demonstrating significant improvement in learning outcomes.

Tourism

South Africa's Department of Home Affairs is launching the Trusted Tour Operator Scheme (TTOS) in January 2025 to boost tourism from China and India. The scheme will streamline visa processing for tourists from these countries by allowing vetted tour operators to manage group applications, reducing red tape. This is expected to increase visitor numbers, as South Africa currently receives very few tourists from these major markets. TTOS is part of a broader plan to drive economic growth and job creation through tourism, with future plans for fully automating visa processes for faster and more secure outcomes.

Retail

According to Reuters, Shoprite, South Africa's leading grocery retailer, has agreed to sell its furniture business, including the OK Furniture and House & Home brands, to discount retailer Pepkor for approximately 3.2 billion rand ($179 million). The deal, representing about 4% of Pepkor’s market value, will be settled in cash. It involves more than 400 stores across South Africa, Botswana, Lesotho, Namibia, Eswatini, and Zambia, excluding operations in Angola and Mozambique. The sale includes Shoprite’s furniture credit loan book, related insurance, and inventory. Shoprite’s CEO, Pieter Engelbrecht, stated that the sale allows the company to focus on its core grocery business. Pepkor sees the acquisition as an opportunity to enhance its product offerings and expand into under-represented regions.

As reported by Nqobile Dludla, South African grocery retailer Pick n Pay has announced that its discount chain, Boxer, could raise an estimated R8 billion ($450 million) from an initial public offering (IPO) later in 2024. The company, led by CEO Sean Summers, is undergoing a turnaround plan to recover from declining market share and losses, including a R1.5 billion trading loss in its core supermarket business for the year ending February 2024. To reduce debt and improve performance, Pick n Pay recently raised R4 billion through a rights issue and now plans to list Boxer. The IPO aims to reflect Boxer's growth potential and unlock shareholder value.

How can we help grow your business?

Market Insyte offers personalised market research services tailored to entrepreneurs' needs.

If you would like to schedule a business model consultation, feel free to book a session here

If you would like us to conduct a personalised market research study, feel free to schedule a complimentary discovery call 

Browse our public market research library