kulula today announced its intention to extend its current financial services offering beyond credit cards and to launch a wealth offering in a joint venture with Liberty Life.
This latest brand extension offering will include life insurance and will offer great value, simple and transparent products consistent with the kulula brand.
Joint Chief Executive Officer of Comair, Gidon Novick, said "The combination of kulula's strong brand and market agility and Liberty's experience and infrastructure is a good business fit and will bring a refreshing change to these financial services."
Novick added, "This is a big move for us and we're currently looking to appoint a young, dynamic CEO to head up this division which we've called kulula wealth."
kulula is currently South Africa's biggest on line retailer and the largest and most profitable low fare airline. According to a recent Orange Index Survey as well as research done by Added Value, kulula is one of the most respected consumer brands in South Africa.
The internet will be a key channel to market and products will be packaged and serviced in an engaging way in accordance with the kulula brand and culture.
Deon de Klerk, Chief Executive of Strategic Ventures at Liberty, said "Liberty is exploring a number of opportunities to expand and grow its existing business in terms of wealth offerings, geographic expansion and diverse markets. One avenue entails commercial partnerships that enable Liberty to extend offerings to customers and demographic groups who want to be serviced in a different way to traditional models. This joint venture supports our strategy and we are excited to have secured a partnership with kulula.
The venture will launch its first range of products into the market later this year.
- kulula is a division of listed group, Comair Limited
- Liberty Life has been existence for 50 years
- kulula's current travel offering includes low fare flights, car rental, hotels and package holidays
- kulula sells over 2 million flights per annum
- The kulula credit card currently has a base of over 20,000 customers
- The kulula web site has over 700,000 unique visitors per month and generates over R1,3 billion in annual revenue
- The annual life insurance market in South Africa is worth R8BN (source: LOA 2005)
- Over 20% of US households have purchased life insurance direct (source: LIMRA International)
- 30% of UK households prefer to purchase life insurance on-line (source: CAP Gemini 2006)