How we work
Blue Label is a mobile technology company that specialises in prepaid products and the electronic distribution of virtual merchandise and value-added services, including the full and seamless reconciliation of billions of nano transactions.
Our Company philosophy is to relentlessly drive financial inclusion for the mass market. We combine technical innovation with entrepreneurial flair to bring products and services associated with the developed world directly to the doorsteps of people who may be geographically and economically isolated from the mainstream. By doing so, we create jobs, support the growth of small businesses, and help bridge the digital divide.
We know that prepaid provides certainty and believe that if a product can be digitised, we can create it and distribute it.
Our competitive advantage is that we are entrepreneurs in a mainstream business environment. We focus on managing the last mile of the m-commerce distribution network, and on product and service innovation. We aim to do this better than anyone else. This is a business model that generates healthy cash flows.
We offer suppliers and merchants a way to sell multiple products and services without incurring extra costs. We use neutral aggregation and intelligent switch capabilities in our proprietary technology to offer multiple products and services that are distributed through a single interface. This allows the convergence of all suppliers under one roof.
Our main operating areas are South Africa, Mexico (Blue Label Mexico) and India (Oxigen). Our business model is based on strategic partnerships underpinned by long term contracts, and we market our products directly to customers through our expanding distribution channels and our growing number of retail outlets in small towns and township shopping centres.
Our strategy is to extend our global footprint of touch points , both organically and through acquisitions. This is so that as a single distributor, we can use a variety of delivery mechanisms and numerous merchants or vendors to provide multiple prepaid products and services to serve the ever-growing need for these.
Prepaid products and services bring social and economic benefit to users, especially in areas where people lack access to bank accounts and do not qualify for credit. Because distribution of physical products can be logistically difficult, access to pay-as-you-go products is empowering.
With the wide array of products and services on offer, prepaid cash consumers in all parts of the economic pyramid are now able to demand equal treatment and can access first world products and services conveniently, affordably, and with greater accessibility and choice. Prepaid helps its users stick to their budgets, and there are no shocks at month end like in the postpaid world. Many postpaid consumers migrate towards prepaid in order to control their spending and to increase their financial flexibility. We also provide a hybrid contract, which is a postpaid contract with a specified limit that can be topped-up by a pay-as-you-go product or service.
We generate significant cash from our operations because of our high volumes and our favourable trading terms. We earn interest on our cash balances.
We earn annuity income from our subscription based businesses, and we know that retaining our customers is a key strategy for this. We earn a rebate or activation bonus after every starter pack is distributed and successfully activated. For the life of each starter pack, we earn ongoing annuity revenue with each top-up. We have a number of affinity programmes to lessen turnover of our starter packs. We follow a proven strategy of bringing additional products and services to new and existing subscribers to build annuity revenue.
Sales of commodities, products and services
We distribute virtual and physical electricity tokens on behalf of the utilities, and prepaid airtime on behalf of mobile network operators.
Our distribution system can be compared to a virtual railroad delivering a constantly increasing variety of prepaid goods. We know the value of distribution in the economy, and we know how to gain the most leverage from it. It is our belief that whoever owns the last mile of the distribution channel, theoretically owns the whole thing. Since the point of sale (POS) terminal is always located in the last mile, the person managing it decides what products and services may be sold from it. Our strategy is to make sure that they are products and services from the Blue Label Telecoms Group.