Time to commit

The Middle East has long been viewed as a potential goldmine by international companies. But those that really want to make it have to make a genuine commitment to the market, say industry experts.

While the Middle East has long been heralded for its untapped potential, there are still too few suppliers making a genuine commitment to the region, Philipp Selva, president and CEO of Selva, has suggested.

“You find a lot of excellent interior designers and decorators here but in terms of stores or factories really putting their energy into the GCC, I don’t really see them on the market. It’s not like Germany or other countries, where around every corner you find a number of high-end retailers,” Selva said.

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The benefits of making a true commitment to this market – with a representative office or dedicated showroom, for example – are manifold, noted Michael Khouri, regional sales manager, Middle East, Fritz Hansen.

The high-end furniture specialist established a representative office in Dubai over a year ago, attracted by the region’s growth potential and spurred by a strong performance in 2007. “Personally, I think it is definitely beneficial for suppliers to have clear representation here, rather than just having distributors,” Khouri maintained.

“Firstly, it means that you’ve got an immediate line of communication between the supplier and the distributor, so you can actually support them in selling the product the right way.

“As a company, we believe in partnerships,” Khouri continued. To reiterate this point, distributors are not called distributors; instead, they are always referred to as partners.

Fritz Hansen’s Dubai office was created to cover the Middle East region in its entirety. The company initially established distribution lines and then, in order to offer its partners additional support once it was required, went on to launch a dedicated office.

The office does not sell directly. Instead, it focuses on support, business development and education. Essentially, it is about making sure that there is clear market understanding of the brand.

“A lot of the time, especially for a product like Fritz Hansen, where it is quite a specialised, luxury, high-end product, you need to know how to approach the market and how to support the market,” Khouri pointed out.

“Unfortunately, some distributors in our market try and overload a portfolio full of brands so that they can get involved in as many opportunities as possible, without actually specialising. I guess we offer a specialisation in our product which some other companies don’t,” he maintained.

Having an ear to the ground enables the company to adapt quickly – and encourages its distributors to be equally agile. “Obviously, we are a changing and dynamic company, and we work in a dynamic market, so we need to make sure that we are responding to market needs,” said Khouri.