The Sunday Mail
ICONIC stationery firm Kingstons Holdings Limited (Kingstons) is currently re-engineering its business model by forging alliances with local partners in order to consolidate its hold over the stationery business, while at the same time leveraging on ICTs to design products and solutions targeted at the educational sector.
The firm, which has a 65-year history in the business, believes that there is need to re-invent its service model from a traditional retail to a more customer-oriented model.
In an interview last week, Kingstons acting group chief executive officer Mrs Kiitumetsi Zawanda said there will be emphasis on e-products as a new line of business.
“Kingstons is re-inventing its service model from a traditional retail to a more customer-orientated model that will see us taking advantage of our wide branch network and create solutions for schools, universities and colleges within their respective areas. This will include giving them access to ICT hardware like e-book readers, laptops, palm tops at soft terms through our network of international suppliers and strategic alliances.
“We are also looking into developing an e-commerce website for distribution of local e-learning materials, music and related information. In a nutshell our business model will reflect increased focus on customer needs . . .
“We are consolidating our diversification drive into ICTs to include products and solutions tailor made for our target market which is predominantly the education sector.
“This will see us increasing our investment in e-learning in support of the Government initiative of computerising schools and in line with the technological advancements. We are witnessing a significant change in the business model from the traditional retail of stationery and brick and mortar solutions to media and information.
“In support of this drive we have participated in applications for local commercial radio licences and we are quoting international, regional and some local investors for strategic alliances in this drive,” said Mrs Zawanda.
Kingstons, which has managed to survive the turmoil that stalked the business especially after the switch from the Zimbabwean dollar to the multi-currency system, has various strategic business units (SBUs) within the book and stationery industry that are designed for the cross-section of the market.
Competition by new entrants into the market over the past couple of years gnawed at the company’s market share, but there is optimism that the business will be able to bounce back.
Added Mrs Zawanda: “ As a group, Kingstons still accounts for the widest branch footprint compared to any other stationery company; it has made it into the Zimbabwe’s heritage seller and we are built on a firm and solid foundation.
“We recognise the fact that our market share might have been slightly eaten into by fragmented players but, however, we believe our brand is very strong and with the current project that we are undertaking we have a 12-month plan to re-position ourselves on the market as all these plans are at various stages of implementation.
“However, like most companies it should be taken into consideration that we were not spared by the economic hardships that Zimbabwe faced just before dollarisation and the current liquidity crunch that the industry is facing.
“This situation affected our customers as much as it is affecting the business. We are very optimistic that the programmes we are implementing in our turnaround strategy will take the group to greater heights . . .
“The future is bright at Kingstons and we expect to re-launch ourselves in the next 12 months with much emphasis on refreshing our brand and our entry into the media and communication industry.”
Besides the stationery business, the group’s property portfolio is considered as the profitable unit that is on a steady growth path.
Also, Kingstons Entertainment, another SBU with interest in music production and related services, has been seriously affected by piracy, which has resulted in a decision to scale down operations in the retail and production of music.
