..brands from all nations will continue to seek new consumers in new international markets..
In 1989, with the opening of two menswear stores in partnership the Al Hokair brothers Fawaz, Salman and Abdulmajeed, the foundation of Retail business in Saudi Arabia was laid and came to be known as the Fawaz Al Hokair (FAH) Group. In a short span of 20 years, through 18 million customer base, annual turnover around 5 billion Saudi Arab Riyal, and employee strength over 12,000, the Group has manifested to be the retail landscape of Saudi Arabia through successfully pioneering franchising, and marking presence in Food, Entertainment, and Fashion Lifestyle Retail. The Group also has strong presence in Real Estate. Through subsidiary Arabian Centres, it has unparalleled experience and understanding of the dynamic GCC commercial real estate market. Fawaz Alhokair Real Estate is regarded as the leader responsible for the construction and development of Saudi Arabia’s most successful retail developments. The Fashion Retail segment includes over 80 international fashion brands, 1000+ fashion stores, as well as more than 5,000 employees, and a leading market share in women's and kids wear. Born in 1968, the driving force behind the fashion retail business, Dr Abdulmajeed is a member of the Board of Directors of Fawaz Al Hokair Group and is also the Managing Director of Fawaz A.Alhokair & Co (SJSC). Dr Abdulmajeed, Doctor of Medicine- Dermatology from King Saud University, has a hands-on approach to running the largest growing network of stores and international stable of brands. His ability to spot trends well in advance, ensures a steady flow of the latest international concepts into the stores and across the Kingdom. In his appearance in Face2Face, conversing with Ms Madhu Soni, Sr Editor & Correspondent, Dr Abdulmajeed Al Hokair, shares the mantra that goes behind this huge success particularly in lifestyle-apparel retail.
Mr Majeed, while extending Face2Face team’s warm welcome to the talk, let me also request you a word picture on your Group’s positioning in Lifestyle-fashion Apparel Retail.
We are the market-leaders in our domestic market, the Kingdom of Saudi Arabia and, through Fashion Retail, we continue to expand internationally, by identifying and filling the ‘white-space‘ within the markets we choose to enter, such as Kazakhstan, Azerbaijan, Georgia to name a few.
So, what mantra goes behind this huge success in lifestyle-apparel retail? How do you see global retail market shaping up?
We have no specific mantra, per-se, because to drive forward a single call to action, a single mission statement, would remove the individual contribution and entrepreneurial flair you will find at every level within our business.
Insofar as the global retail market-place is concerned, we believe that brands from all nations will continue to seek new consumers in new international markets, creating competition for retailers and an abundance of choice for consumers. Specifically, as a retail franchise company, it will offer our business continued and sustained competitive advantage.
Well, that is good. <br></br> But, as you too know, rise in cotton prices in last one year is sending jitters across clothing manufacturing all across the globe, which in turn is abating the margin for retail players. Your viewpoint on this would be-
We are not in the business of manufacturing, ours is the business of retail franchising and so I will not comment specifically on cotton prices. What I will reaffirm though is that, through retail franchising and joint venture collaborations, retailers can continue to deliver capital free growth, and to mitigate rising costs.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.