Dubai
Axiom Telecom, one of Dubai’s biggest mobile retailers and distributors, still sees growth opportunities in the UAE and Saudi Arabia despite a market slowdown and challenges from pure online retailers.
“The market, in general, is slow this year compared to last year. Next year is also expected to be the same as this year. Growth is expected from 2018,” Fahad Al Bannai, CEO of Axiom Telecom, said in an interview with Gulf News.
“We are not thinking of expanding outside of Saudi Arabia and the UAE. We may reevaluate the situation after two years, but right now we can still reap a lot of benefits from these two major markets,” he said.
He said that growth in online sales has impacted its revenues but online will continue to grow and grow faster than brick and mortar stores.
“It will affect offline stores but there will still be consumers who will buy from offline stores. Some players will fall down but the big question is how to differentiate and win market share. Online will be strategic component for us going forward. Our online sales are growing and we will be investing further,” he said.
He said that omnichannel strategy (present both online and offline) will be the key going forward.
Axiom is one of the main distributors for Samsung, Apple, BlackBerry, Lenovo and Huawei smartphones in the UAE.
Axiom is revamping its stores into a new concept with a focus on consumers. It has already revamped four stores in the UAE and plans to revamp further 12 more next year.
The concept stores include live demonstrations, gadget customisation zone, a wider variety of accessories, ample space to walk around, free WiFi, and services, and ultimately offer customers a one-stop-shop for all their mobile needs.
Al Bannai said that the new concept stores, which are costing us twice as much as the traditional stores, have given them a new growth opportunity. The average year-on-year growth is between 20-30 per cent and result in a substantial increase in footfall at its stores.
“Even during tough times, we are investing but investing in the right way,” he said.
Axiom said that ‘concept stores’ are the new mantra for the millennial generation.
“Today, UAE shoppers are looking for a more fulfilling retail experience and we look forward to expanding this concept to all our stores across the region. We are very optimistic about the concept,” he said.
Axiom has around 80 outlets in the UAE and around 60 in Saudi Arabia.
Mannai group holds a 35 per cent stake in Axiom while Al Bannai owns 35 per cent, 26 per cent by Dubai Holding and four per cent by Al Zarouni Enterprises.
