Dubai: The Al Aqili Group has developed a preference for luxury where its fledgling retail division is concerned. And it's starting to look like being a good fit.
Al Aqili Retail says it has just finalised an agreement with the upscale Dutch menswear and accessories brand, The Society Shop, for the latter's first presence outside of Europe. Starting with a store in Dubai Festival City, Al Aqili Retail said it planned to build a wider regional network for the brand as and when opportunities arose.
The acquisition of the Gulf-wide rights for The Society Shop comes after the Al Aqili Group's securing of the franchise for the British fashion-and-home accessories label, Laura Ashley, late in 2008. The tie-up with Laura Ashley came about after the brand had been absent from the regional market for more than a year after parting ways with the earlier franchisee, Al Shaya of Kuwait.
"The Al Aqili Group's decision to develop the retail side of the business to add to the existing consumer goods distribution and furnishings happened at about the same time," said Abhay Nadkarni, executive director for marketing and commercial, Al Aqili Retail.
"So when the Laura Ashley deal happened in 2008, it offered us a brand that would be ideal for our retail plans. It had status and offered a wider range by being in both fashion and home accessories."
Fast roll-out
With the market being at its peak, Al Aqili retail's plans at that stage involved a fast rollout of stores across a wide territory to build up momentum for Laura Ashley's return. But then the downturn came and put all such plans in cold storage. Just four stores have since opened: one in Dubai Festival City, two in Mercato, and one in Khalidiya Mall, Abu Dhabi.
But Nadkarni said he did not necessarily see it as an opportunity lost. "In fact I would even say we got lucky by entering the market in 2009 after the downturn hit, we did not have to service a large fixed-cost base," he said. "Now, when we consider new stores, it can be done at much lower rental terms than would have been the case. Our business model has been changed to suit the present circumstances, and it's working fine."
Two more Laura Ashley outlets are due to open shortly at Bahrain's Seef Mall, which has gone through a major renovation programme.
For The Society Shop, plans are to get the first store up and running, to give time for the brand to settle in its new environs and then consider taking it into new territories, Nadkarni said. "In Holland, it's a household name, and what works for The Society Shop is that it's a multi-brand retailer and not limited to its own offerings," Nadkarni said. "That definitely gives us an advantage over single-brand stores."
A shopper can have his pick of suits, priced anywhere between Dh2,900 and Dh11,000 and available in a selection of natural fabrics. If the shopper's inclinations are towards something more casual, that's all there. In fact, Nadkarni said the eclectic choices on display in a wide price band were The Society Shop's "sweet spot".
‘Vibrant market'
Nadkarni dismissed the contention that new entrants in the men's wear brands had to serve a longer gestation period in the local market. "While men's fashion may not be in the same league as women's and less prone to impulse buying, there's still a vibrant market for it," he said.
"When it comes to formals, there's a growing base of professionals who need to be dressed at their best at all times despite the weather. With The Society Shop, we are broadening the choices they have to get what they want from a single store."
Now that its portfolio had doubled, Al Aqili Retail said it did not intend to stop with that.
Its eye was on brands that would give its existing line-up a complementary feel. "Even otherwise, we wouldn't mind having multiple brands in each category," Nadkarni added.
"As for the economy in general, recovery would be much faster for businesses that have a regional footprint."
