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An internationally successful and An internationally successful and innovative Fashion Accessory innovative Fashion Accessory concept for any retail outlet!concept for any retail outlet!

Represented in South Africa by Focus Marketing (www.focusmarketing.co.za)Represented in South Africa by Focus Marketing (www.focusmarketing.co.za)P.O.Box 25193 Gateway 4321; Tel: (031) 561 1210; Fax: (031) 561 6413P.O.Box 25193 Gateway 4321; Tel: (031) 561 1210; Fax: (031) 561 6413

Email: Email: darryl@focusmarketing.co.zadarryl@focusmarketing.co.zaWebsite: Website: www.focusmarketing.co.zawww.focusmarketing.co.za

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Africa Gold – a fully co-ordinated Africa Gold – a fully co-ordinated international partnershipinternational partnership

Inch of GoldWorldwide

(founded 1982)

Retail SA

Focus MarketingSouth Africa

(founded 1985)

Young Entrepreneur Franchisee Drive with the IDC and

Commercial Banks

Africa Gold Franchised Displays

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Executive SummaryExecutive Summary ““Africa Gold” is the culmination of a joint venture between:-Africa Gold” is the culmination of a joint venture between:-

Inch of Gold, International - the internationally successful Fashion Chains and Inch of Gold, International - the internationally successful Fashion Chains and Accessory company founded in 1982;Accessory company founded in 1982;

Focus Marketing - a well known Franchise and Product Marketing Company Focus Marketing - a well known Franchise and Product Marketing Company operating since 1985 in South Africa (see operating since 1985 in South Africa (see www.focusmarketing.co.zawww.focusmarketing.co.za); and); and

SA’s Franchisee financing Institutions – viz The Industrial Development SA’s Franchisee financing Institutions – viz The Industrial Development Corporation of South Africa (the IDC) and selective Commercial Banks;Corporation of South Africa (the IDC) and selective Commercial Banks;

The objective is to establish this unique and internationally successful concept of The objective is to establish this unique and internationally successful concept of retailing Fashion Chains By-the-Inch in South Africa by empowering young retailing Fashion Chains By-the-Inch in South Africa by empowering young entrepreneurs;entrepreneurs;

Inch of Gold now operates in more than 900 outlets throughout the USA, and almost Inch of Gold now operates in more than 900 outlets throughout the USA, and almost 500 throughout Canada and Europe, offering:-500 throughout Canada and Europe, offering:-

revolutionary and custom-made (while-you-wait) fashion chains and accessories revolutionary and custom-made (while-you-wait) fashion chains and accessories with an unconditional lifetime guarantee;with an unconditional lifetime guarantee;

24 years of proven and profitable sales to a wide cross section of consumers;24 years of proven and profitable sales to a wide cross section of consumers; Focus Marketing has been appointed in South Africa to promote the Inch of Gold Focus Marketing has been appointed in South Africa to promote the Inch of Gold

concept under the trademark “Africa Gold” with the objective of:-concept under the trademark “Africa Gold” with the objective of:- Building the “Africa Gold” brand into a well known range of unique and Building the “Africa Gold” brand into a well known range of unique and

affordable Fashion Accessories attracting all consumers - from young to old;affordable Fashion Accessories attracting all consumers - from young to old; Turning dead space in stores and shopping centres into profitable rental spaces Turning dead space in stores and shopping centres into profitable rental spaces

(The concept can be traded in any area from 2m2 to 15m2 and has a high shopper (The concept can be traded in any area from 2m2 to 15m2 and has a high shopper interest due to its unique retailing concept);interest due to its unique retailing concept);

Promoting young entrepreneurs (especially from PDI backgrounds).Promoting young entrepreneurs (especially from PDI backgrounds).

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Alternative Designs - KioskAlternative Designs - Kiosk

• New design for a Large Retail kiosk (Gateway, Menlyn Park, Midlands Mall, Pine Crest)

• Size:- 2,5m x 2,5m = 6,25m2

• Height:- 2,65m

• Ideal locations:–

a) Shopping Mall Atriums

b) between or underneath escalators

• Fashion chains and accessories are accessed by attendants from front and back and can be locked inside at night

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Alternative Designs – Wall StandAlternative Designs – Wall Stand

• New design for various shopping centers nationwide

• Size:- 2,5m x 1m = 2,5m2

• Height:- 2,65m

• Ideal locations:–

a) Against any unused wall;

b) Between or underneath escalators

• Fashion Chain displays and Accessories are accessed from the front and locked inside at night.

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Alternative Designs at Selective Alternative Designs at Selective Shopping CentresShopping Centres

• A “Wall Stand” kiosk at Waterfall Mall - 2,5m across, 1m wide and 2,65m high;

• Hosts a 36 reel display;

• Turnovers average R2 200 per day

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Alternative Designs at selective Alternative Designs at selective shopping centresshopping centres

An 8m2 “Open” Shop at Westville An 8m2 “Open” Shop at Westville Mall returns R2200 per dayMall returns R2200 per day

A 3m2 “Barrow Kiosk” or “Mall Cart” at A 3m2 “Barrow Kiosk” or “Mall Cart” at Gateway/Menlyn Park returns R2500 per dayGateway/Menlyn Park returns R2500 per day

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A Mall Cart at Meerensee, Richards A Mall Cart at Meerensee, Richards BayBay

• This cart is 2m across, 1m wide and 2,5m high;

•It displays 36 reels;

•Turnovers average R2 000 per day

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Test Market Results prove Africa Gold Test Market Results prove Africa Gold Retail Display Stands attract consumersRetail Display Stands attract consumers

The retail display concepts shown in the previous slides were test The retail display concepts shown in the previous slides were test marketed at various venues throughout SA from November 2005 to marketed at various venues throughout SA from November 2005 to date, achieving excellent results with minimal marketing effort:- date, achieving excellent results with minimal marketing effort:-

24 reel “Mobile” Party Plan and Flea Market displays (2,5m2) 24 reel “Mobile” Party Plan and Flea Market displays (2,5m2) returned sales of R3 900 per day, on average (these are only returned sales of R3 900 per day, on average (these are only traded for limited days in a month); traded for limited days in a month);

30 reel “Fixed” Retail barrow/mall cart displays (3m2) at 30 reel “Fixed” Retail barrow/mall cart displays (3m2) at Gateway, Umhlanga, and Menlyn Park, Pretoria, have returned Gateway, Umhlanga, and Menlyn Park, Pretoria, have returned sales in excess of R2 500 per day (traded 31 days a month);sales in excess of R2 500 per day (traded 31 days a month);

A 30 reel “open” shop display (8m2) at Westville Mall has A 30 reel “open” shop display (8m2) at Westville Mall has returned sales of R2 200 per day, on average, with much lower returned sales of R2 200 per day, on average, with much lower rents; rents;

All the above yield a 40% gross margin and offer about a 6 month All the above yield a 40% gross margin and offer about a 6 month payback; payback;

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Focus Marketing’s Retail Concepts for Focus Marketing’s Retail Concepts for SA make Africa Gold a must!SA make Africa Gold a must!

A strong brand name and advertising campaign for the South African A strong brand name and advertising campaign for the South African market under the trademark “Africa Gold”, which is to be extensively market under the trademark “Africa Gold”, which is to be extensively advertised; advertised;

An array of attractive, easy to manage and cost effective display stands:-An array of attractive, easy to manage and cost effective display stands:-1.1. Small 12 or 24 reel “Mobile” displays for private “parties”, corporate Small 12 or 24 reel “Mobile” displays for private “parties”, corporate

meetings, flea markets, festivals, fairs, fetes, sports and/or music meetings, flea markets, festivals, fairs, fetes, sports and/or music clubs; clubs;

2.2. Medium sized 24 to 36 reel “Fixed” displays for mall Medium sized 24 to 36 reel “Fixed” displays for mall carts/barrows/kiosks or small shops (from 3m2 to 7,5m2);carts/barrows/kiosks or small shops (from 3m2 to 7,5m2);

All marketing pamphlets and signage is professionally produced to suit All marketing pamphlets and signage is professionally produced to suit the unique character of each retail outlet and their target market;the unique character of each retail outlet and their target market;

Importantly, the concept can be adapted to any size of operation – Importantly, the concept can be adapted to any size of operation – “dead” space in shopping centres can be easily transformed into “dead” space in shopping centres can be easily transformed into tradeable areas; tradeable areas;

All franchisees and staff are expertly trained to enhance the image of All franchisees and staff are expertly trained to enhance the image of Africa Gold and the Shopping Centres in which it trades;Africa Gold and the Shopping Centres in which it trades;

Focus Marketing coordinate an effective marketing effort to attract Focus Marketing coordinate an effective marketing effort to attract consumers to the Africa Gold displays.consumers to the Africa Gold displays.

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Retail Franchise CostsRetail Franchise Costs (including all product, shop fitting and display materials, start-up advertising (including all product, shop fitting and display materials, start-up advertising

materials, administration guidelines and training)materials, administration guidelines and training)

1. A 12 Reel Party Plan Display (2m2) inc 1. A 12 Reel Party Plan Display (2m2) inc VAT:-VAT:-

R 85 326R 85 326

2. A 24 Reel Retail Kiosk/Mall Cart 2. A 24 Reel Retail Kiosk/Mall Cart display (4m2) inc VAT:-display (4m2) inc VAT:-

R183 105R183 105

3. A 36 Reel Retail Shop display (8-3. A 36 Reel Retail Shop display (8-12m2) inc VAT:- 12m2) inc VAT:-

R 264 064R 264 064

Note: the above figures are estimates and include all items required to enable a franchisee to simply and quickly commence trading. These costs will vary depending on the size of the party plan required or retail outlet available.

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Revolutionary Process facilitates Revolutionary Process facilitates Lifetime GuaranteeLifetime Guarantee

1313

InchInch of Gold chains - retailed on of Gold chains - retailed on manageable displays that can be placed on manageable displays that can be placed on

any table or counterany table or counter

1414

The Product Range The Product Range STYLES 1-10 – 18k Layered GoldSTYLES 1-10 – 18k Layered Gold

Retail Prices from R100 for a bracelet to R500 for a necklace

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STYLES 11-22 – 18k Layered STYLES 11-22 – 18k Layered GoldGold

Retail Prices from R100 for a bracelet to R500 for a necklace

1616

STYLESSTYLES 23-34 – 18k Layered 23-34 – 18k Layered GoldGold

Retail Prices from R100 for a bracelet to R500 for a necklace

1717

STYLES 35-46 – 18k Layered STYLES 35-46 – 18k Layered Gold Gold

Retail Prices from R100 for a bracelet to R500 for a necklace

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STYLES 47-56 – 18k Layered Gold STYLES 47-56 – 18k Layered Gold Crystal Selection Crystal Selection

1919

STYLES 57-68 – 18k Layered Gold STYLES 57-68 – 18k Layered Gold Crystal SelectionCrystal Selection

2020

STYLES 69-78 – Layered Stirling STYLES 69-78 – Layered Stirling Silver CollectionSilver Collection

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STYLES 79-86 – Layered Stirling STYLES 79-86 – Layered Stirling Silver CollectionSilver Collection

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Clasps and Link SelectionsClasps and Link Selections

2323

Crystal Pendant Selection 1-7Crystal Pendant Selection 1-7

Retail Prices from R100 to R150

2424

Charm & Pendant SelectionCharm & Pendant Selection

Retail Prices from R100 to R150