History of the business

Elective Invetments was created to create real empowerment for Rural communities through ownership in the retail supply chian.

Elective Investments is a culmination of 25 years of hard work and practical solutions that took two and a half years to actually formulate into a company "Elective Investments".
Elective is 100% BEE and was started with a loan and Equity funding from Khula

We are currently focused in carving our niche in the Christmas Decoaration Business which we put a value of R100 million per annum
We manufacture, supply, merchandise and desig products for this retail niche.

The concept of Elective Investments and its initial branding, "The Story of an African Christmas" was first initiated on the 15th November 2001, as a new industry to create job opportunities and drive sustainable revenues in South Africa.

The first part of the project was to test the Christmas concepts "The Story of an African Christmas") and this was done through the National Enterprize Business Award won by Gavin Tonks for the Best Business Expansion 2003-11-19.

Moulds had been created and product manufactured, with the help of Mars Manufacturing, to evaluate acceptance and price sensitivity in the market place

After extensive research and testing of the process, over a period of two years, resulted in the business plan presented to the Khula Fund. [January 2003]

Extensive planning and independent modelling was done by Firm Capital on behalf of Khula to ensure viability and sustainability.

Northern Cape Arts and Crafts have sponsored the process in offering support for training offered to their Raaswater community. This has resulted in a group of 32 people capable of doing value added painting on the baubles

This process has resulted in the creation of Elective Investments Pty Ltd.

We are now at the point where we need to employ key people, create a showroom and our own stores [KZN and Johannesburg] and become export ready.

Future of the business

The growth of the product and the need for retailers to source local products has increased pressure for us to add components to our initiative with regards to creating industry to create job opportunities and drive sustainable revenues in South Africa.

We have added a bioaugmentation product to engage rural communities in job creation projects and are actively pursuing retail and supply chain opportunities

In 2004 we secured a significant contract for supply to the Metcash Group during September and October 2004. We are looking forward to repeating this opportunity in 2006.

Currently, we are also exporting to the USA and have been afforded the opportunity to respond to enquiries from Switzerland.

2006 will see us becoming a stable and dependable source to the retail industry for local and export based on our tried and tested local formulations

We are in the process of creating a new industry in South Africa offering job opportunities to new job market entrants and work opportunity through value added decorative programs to thousands of first level job seekers (as done in China and India).

The sale of new products carrying the images and dreams of South Africans is guaranteed. The focus on tourism and investment opportunities is addressed with this model, and we intend to take our opportunity into the world markets

This project is a mix of manufacture; brands, tourism and retail supply chain in lifestyle product categories from gifting to Christmas and Halloween for export

The ownership is 51% community owned. We are targeting rural community projects as owners and product suppliers to this project.

Significant Others : Staff & Business Affiliations

All staff are mostly outsourced professionals tasked with specific projects to keep the company lean and focused.
(-see 'Contacts Page' for Contact Details)

Project Consultant and Director
Gavin Tonks
Cell : 082 745 0055
Direct Line : 011 708 1167
E-mail : pvtgtd@yebo.co.za
Johannesburg
For More About Gavin Tonks click here .

The Story of an African Christmas Factory
Mars Manufacturing & Machine Management
Pietermaritzburg

Graphic Design & Development
The Design Trap
Cell : 082 462 2559
Johannesburg

Financial Controllers
Firm Capital
Johannesburg

Staff Broker
Violet Mavula
Johannesburg

Equity Partners
Khula Equity
Pretoria

Agreements :

• Mars’s Contract : Manufacturers contracted to ensure delivery and control on equipment and production
• Firm Capital : Contracted financial management services
• Avantu : Exclusive distribution contract for bioaugmentation products for rural schools
• Metcash : Christmas Decorations supply mandate
  

Creating jobs :

Our project will engage thousands of rural people in the development and manufacture of our product ranges.

We envisage engaging at least 30 000 beaders to translate one and a half tons of beads a year into products of international status.

Value Added Program :
Baubles : Hand painted
Baubles : Beaded
Baubles : Covered
Textile : Felting and embroidery
Resin caste products : Selection of moulds
Multi packing :

New entry opportunities for young job seekers

Biougmentation Project :
We have 27 people engaged through our first Franchise partnership of Ron Walter and David Papenfus.

Warehouse :
We have a R1, 2 million Christmas Decoration Program running that has Violet Mavula supplying 3 casuals a day to sort and count ready for store delivery

Metcash Group :
Through the intervention of Allan Herman who joined Metcash Group, we have secured a significant contract for supply during September and October 2004.

Business Philosophy

• Right place, right time, right price!

We are in the business of Niche marketing and intend to be the first choice business partners at all levels of our business dealings

• "Do once what others say you cannot do and you will never by tied by their limitations again"

Flat lining business models of of pricing and costing to ensure volume based business able to compete with China in both quality and price

• Our standpoint : Innovative, Creative and Cutting Edge

Mission & Vision

This BEE Community Owned Initiative has the vision to build a world-class design and procurement company, with a product range that aggressively dominates the South African market and, successfully competes in the European, and US lifestyle markets.

• To engage rural communities into mainstream South African economy through real ownership and opportunity
• To put a franchise store in every rural community so trucks bringing staple products can return with their manufactured products
• Ensuring self sustaining business cycles ensuring cost effective manufacture and delivery at every level
• Using this base to ensure position to sell the se goods to trageted markets
  

Business Objectives

• The creation of a new Industry taking our niche as a supply chain company in the world markets alongside China and India
• The creation of sustainable jobs
• The transfer of ownership to PDI individuals
• The creation of wealth for all participating communities and the investment of projects in the community like a shopping Centre from profits generated
• The employment of youth and the creating of opportunity in retail, manufacture and tourism
• To be the first choice business partners
• To use creativity, design and the uniqueness of the South African environment to develop a global business incorporating rural communities
• To supply raw materials to developing SMME in our supply chain at realistic prices to reduce current unrealistic input costs
• To supply an export platform for developing SMME within our product development projects
• To create a finance fund for the ordering of inventory from developing SMME in order to develop sustainable manufacture
• To supply high street window space for SMME products in lifestyle categories
• To promote tourism through the development of Trade routes, tradesecrets SA / Grass route, Bead route and African Christmas route
• To ensure the rural development creates viable manufacturing units that sustain themselves through local markets and supply us for retail markets and export programs under our brands

Project Description

What does the company intend doing / Outline of the proposed facilities and services

• Develop the resource supply chain of high quality products that can create high margin value added products raw material sourced from China and India value added through our supply chain with products like, silk, beads, wax, and cloth
• Train and mange the development of niche market products
  Candles, bath and body, Christmas decorations and textile for lifestyle programs in mass market retail chain stores and exports
• Supply outlets niched according to production and brand for these projects
• Become the value-added chain with the correct financing available to drive this initiative
• Create a head office focused on sales and exports encompassing our developments and other products produced in SA under our brands
• Introduce the new tourism products that promote regionally the tourist attractions for consumption of tourists
• To utilise African history and feelings to develop niche market programs for export where competition is reduced because of the desirability of the products
• To partner with overseas business to drive both local potential for their brands and our exports
  

Dynamic Interaction and Results

• Metcash Group
  First year trading with the Metcash Group.

We have received the Christmas Decorations supply mandate as of Christmas 2004 for all Stax & Trade Centre stores.

• Avantu
  In 2004 we signed an exclusive first Franchise distribution agreement for the Biougmentation Program.

This agreement was signed with Leda, the NPO created through NBI funding, to create support and leanership programs with the rural schools (currently 562). The agreement was signed through Ron Walters and David Pappenfus with Avantu to distribute to 36 000 rural schools in South Africa with the bioaugmentation program with a current budget of R194 000 000.00 per annum.
This is to help our rural communities to access a sales program while the factory and other business initiatives get underway.

• Hello Kitty
  We have reached the next level of discussions with Sanrio with regards to promoting and producing product for the brand Hello Kitty, as the SA Agent.

This will be a significant business deal when it is signed.

We started this program in October 2004-06-19. Disney has offered to extend their licence to SA Greetings to include characters on our baubles.