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.
Sounds interesting.<br></br> Going little more region specific, can we request your observation about investment environment in apparel-retail in Emirates, presently?
As important as they are, the Emirates do not define retailing within our region: The Kingdom of Saudi Arabia remains the largest single market, and will do so for the foreseeable future and, similar to all markets, retailers will choose to devote management time and financial resources in the Emirates as an opportunity cost to making a similar investment elsewhere.
And, are there, in offing times, any chances for the group to consider expansion beyond emirates? If so, which zones are likely to entertain this plan?
By the end of 2011 we will have created a major retail group across the Middle East, North Africa and the C.I.S Region.
We wish all the best for that. <br></br> Kindly also tell us that in what ways Middle East fashion consumer buying and preferences trends differ to Western zone.
I would say that the consumer within the Middle East is fashion savvy and on top of international trends, but tends to interpret these trends into a way that still allows them to live up to their own traditions and values. We cater to this by offering them the best of what is available in the world and capitalize on this quickly by getting back into stock all of the products, trends, colors and styles that they show the highest indication towards, thus offering the consumers preferred choices rather than what is dictated to them.
True; after all Consumer is King! <br></br> In that case, with a range of (80) hi-end western brands in its folio, how is FAH Group able to cater the tastes of such consumer category, then?
Within our brand portfolio we seek to balance three essential criteria of demographics, lifestage and lifestyle: We have always sought to anticipate our customers’ needs and wants, and the continued evolution of our brand portfolio reflects that: Our recent joint venture with Burberry - as part of a structured move into the luxury market alongside the rapid rollout of FG4 in the value apparel space is testimony to how we cater to all sectors.
On that note, segment wise, against which market will you tick as more lucrative amongst -Women, Men, and Children wear?
Women’s and children wear complimented with Footwear and accessories are our most lucrative segments to date, however we are seeing rapid growth in younger male consumers starting to penetrate more into International fashion trends.
Dr Abdulmajeed, as the last point, in gratitude for your time and comments, let me request your findings on eco and sustainable clothing demands-
Our brand partners have clearly documented strategic imperatives relative to eco friendly and sustainable operations, and we continue to support them however we are able in this regard.
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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.
