25% tax on international branding services?

© Juan Nel via 123RF.com.

In South Africa (as is the case in many countries over the continent), there is all-too-often a view that the best can only be bought from the big multinationals – from Europe or The States. That you only commission services from home-grown, local companies if you can’t afford the overseas guys. (Or if it's a tender requirement.)

Importing services

In the brand development and expression game we see this all the time. Whether it be research, strategy, identity design or communication, the ‘big guys’ are often importing the services of agencies from the UK, Europe and/or The States, at mammoth cost, and with often lacklustre results.

In 2007 Pick n Pay made a fairly minor update to its identity – a refresh, modernisation of the 40-year-old logo. No problem with that (yes, it garnered its fair share of negative reaction and debate), but the South African branding industry was aghast to learn that it had spent two years working on the change – with the London office of global firm, Landor. And reportedly for a fee of R25m.

Fresh new look for iconic Pick n Pay brand

Louise Marsland  12 Nov 2007

With some of the most talented strategic and creative minds residing here (Cape Town is the Design Capital of the world, after all), did they really lack faith in any one of our great local agencies to produce an acceptable result? There is a plethora of examples of globally-trading home-grown South African brands with award-winning, globally-acclaimed identities that have been created by home-grown South African agencies (including us).

25% tax in the bill

So – we place heavy import duties in certain industry sectors for the purpose of protecting local businesses. Why not also on services? Surely, we should be saying to South African brands; “By all means, go shopping for your rebrand outside of our borders, but there will be a 25% tax on the bill you receive, which will be used to create educational opportunities for our great, aspiring talent.”

South African agencies offer big international brands local flavour

2 Feb 2017

It’s already significantly more expensive to buy these services in from these countries – that would make it all the more pricey. And perhaps we would see more results that are truly relevant and reflective of the unique South African culture and environment because they would instead be created by South Africans.