#SAFranchiseFriday featuring Mica

BACKGROUND
Mica is a leading independent hardware group founded by a collective of store owners with the ambition to bring a community hardware store to every town. Mica combines the buying power of the group with the expertise of its individual store owners to deliver an extensive value for money offering.

In 2004 a corporate company acquired the Mica brand and proceeded to establish corporate-owned stores to complement the trading member platform, but today Mica is once again a member-owned brand where the person who owns the store, runs the store.

THE CONCEPT
Mica’s voluntary trading partner business model allows for ease of buying without infringing the entrepreneurial flair of its store owners. While Mica enjoys a high level of spontaneous awareness amongst consumers, the success of the brand is attributed to owner-managed stores.

Mica’s range of exclusive brands spans an extensive selection of categories and their array of product choices also serves to differentiate Mica stores form their competition while providing store owners with additional margin opportunities. Depending on the trading partner’s choice of business model, whether it is Mica Build, Mica Paint & Hardware, Mica Home Warehouse or Mega Mica, the product selection will include paint, power tools, DIY and hardware, and garden and building supplies.

To best meet the needs of their target market, Mica has segmented their market offering. Mica Paint & Hardware, the ‘expert around the corner store’ and Mica Home Warehouse with their selection of DIY, hardware and home improvement products, target homeowners and DIY enthusiasts. While Mica Build, targeted at artisans, small to medium contractors, and homeowners, specialises in building and construction materials, Mega Mica offers a mega range of products under a single mega roof.

In striving to realise the ambition of its founders to establish a community of hardware stores, Mica outlets are conveniently located in close proximity to their target market.

FRANCHISOR SUPPORT
Trading members in the Mica family receive ongoing training and support provided by an experienced team, while new members are assisted during every step of the store establishment process.

Regular in-house training sessions aim to improve the retail skills of all team members and ensure that they are knowledgeable about the products they sell.

The Mica merchandise and buying department is responsible for category management, sourcing innovative ranges, and facilitating supplier negotiations. Through the collective buying power of the Mica network, members have access to highly competitive deals and pricing.

FRANCHISEE PROFILE
Owner involvement is a non-negotiable criterion for Mica trading members. Members will benefit from prior experience in the retail environment or building and DIY trade.

SNAPSHOT

HISTORY
Founder: Anthony Palmer Heathcote-Hacker
Year founded: 1983
Area of origin: Durban, KwaZulu-Natal
CEO: Nareen Daya

NETWORK
1st SA franchise opened: 1984
Number of SA outlets: 160

FRANCHISE AGREEMENT
Management fee: R3 000 pm
Marketing fee: Available on request
Agreement term: Open-ended

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R3 500 to R5 500 per sqm
Franchise joining fee: R100 000
Working capital required: Available on request
Total average set-up cost: Available on request
Average monthly turnover: R1,5 million
Achievable gross margins: 35%

WANT TO KNOW MORE?
Contact Armand Feldtman on +27 11 479 3300 or email armand.feldtman@mica.co.za
www.mica.co.za