What's in store

[L-R] Mikdad Babhrawala, Rania Lahori, Steven Pardoe and D.L. Narayanan.

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Is the recent opening of a number of interiors-related stores and showrooms a sign of renewed confidence in the market? CID speaks to the experts to find out.

Recent months have seen a number of new interiors-related stores and showrooms coming onto the market. Existing companies have been expanding or strengthening their presence, while new brands have been establishing a footing in the region. While this invariably means greater choice for interior designers, it may also signify greater confidence in the industry as a whole.

The recent opening of the new Mirdif City Centre brought the likes of Pottery Barn, Freedom Furniture, and the UAE’s 11th Home Centre, to Dubai’s retail market, while Crate and Barrel opened its first store outside of North America in the Mall of the Emirates in March.

March also saw the opening of a new Western Furniture showroom on Dubai’s Sheikh Zayed Road. The 22,000ft² facility showcases five mid- to high-end Italian brands, Italsofa, Zanette, Tomasella, Minifoms and Calligaris, as well as the US-headquartered Lexington.

Representing a significant investment, the new showroom is a mark of the buoyancy of the retail sector, according to Mikdad Babhrawala, general manager, Western Furniture. “I’m very upbeat about the market in terms of retail business. What we realised in 2009 was that, although the market was in decline, because of the product we are offering, we did more or less the same as we did in 2008.”

Babhrawala is expecting 2011 to be a particularly strong year for the business and is looking at potentially expanding into a number of new markets. “We are looking at Oman and we are also looking very closely at India. In three years time, we plan to have three or four showrooms in India. We already have a small presence in Abu Dhabi, in Abu Dhabi Mall, and we are negotiating to have a stand-alone unit there also. Doha could be another possibility,” he said.

However, while market confidence played a significant role in Western Furniture’s decision to invest in a new showroom, it was not the only incentive, Babhrawala revealed. Depressed market conditions have had a considerable impact on real estate – and opened up the possibility of picking up prime retail space at more affordable, realistic rates.

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“There was an opportunity, which I took,” said Babhrawala. “This was the kind of a property that you might not get otherwise. The price was tempting and the partners were ready. This whole thing came at a time when we could not say no, so although the market was kind of repressed, we said let’s do it. And since we opened, we have been very happy with the amount of footfall and the business we are generating. So I think it was a very prudent decision.”

German kitchen manufacturer, Hacker, which opened its first showroom in Dubai on June 1, also recognised the benefits of expanding during a downturn. “Launching during a downturn means your business is lean, streamlined, hungry and motivated, which make the upturns even easier. Dubai has also become more realistic in terms of leases, rents and overheads during the past year, making our location and showroom size feasible,” said Steven Pardoe, director, Hacker.

The Middle East is seemingly still an attractive proposition for international brands. “Not only is Dubai becoming known as a luxury travel destination, but it is fast becoming the centre of commercial trade both in air and sea. The Middle East in terms of luxury brands and shopping pull is now the new London for clients coming from Africa and Asia,” said Pardoe.

And even if confidence in Dubai has faltered slightly, the emirate still acts a vital gateway into other, highly lucrative markets. For the recently launched Arte Vivo, a manufacturer of high-quality, custom-made furniture products, Dubai is the ideal setting for a satellite hub.

“Lots of people have said to us, why have you started a new venture, in Dubai, at this time? Why would you take the risk? But we set up the company here not necessarily to only target the Dubai market. We are here for the whole Middle East, but we are also here for Africa, India and Sri Lanka, and even as far afield as Russia. We are looking at Dubai as our satellite hub. We want to target Abu Dhabi, and we are looking at Qatar and are working on some projects there right now. We’ve also quoted for a number of hotels in India and we are getting quite a lot of interest from Saudi as well,” explained Mike Pass, managing director of Arte Vivo.

The company’s preferred partner is Pacific Traders, a Philippines-headquartered manufacturer with 37 years of experience. Arte Vivo launched its showroom – a vital tool in enabling potential customers to fully understand the brand – in March. “We would like our clients to see the quality and the craftsmanship that goes into each piece of our furniture. All of the furniture that you see in the showroom is manufactured in Cebu, Philippines,” Pass pointed out.