Dubai: While it is on track for the first Lulu branded outlet’s opening in Malaysia, Abu Dhabi headquartered Emke Group confirmed other Far East markets are now on its radar. It recently opened an office in Thailand, which could be the platform to consider a wider role there, according to a top official. Vietnam is rated as another live possibility.
“Each of the Far East markets have had a role when it comes to sourcing the merchandise for our outlets in the Gulf and elsewhere,” said M. A. Youssufali, Managing Director at Emke. “Using our exposure and understanding thus gained, we are in a far better position to tap direct retail opportunities in those markets. At some point, we would have reached saturation in our Gulf operations in adding new outlets. To counter that, new markets are necessary and the Far East offers us that platform.”
It was three months ago that Emke entered a memorandum of understanding with a Malaysian government agency as a prelude to launching hypermarkets there. The land bank for the locations have been acquired and matters were speeded up by access to a single-window clearance, according to Youssufali.
Key personnel have been signed up to man the senior ranks of the new operations. The target is to have the first of five planned hypermarkets — with average sizes of 170,000 to 200,000 square feet — ready by the third quarter of 2015. “The Malaysian retail marketplace is already quite mature — but Emke Group has always used our scale to create a viable business for us in whichever market we are in,” said Youssufali. “We will do the same in the Far East as well.”
Indonesia could be next. “Getting a location in Jakarta will obviously assume priority, and if all goes to plan we could have something concrete planned by end 2015,” Youssufali added.
Meanwhile, other UAE based entities — be it in retail or real estate — are looking towards Malaysia, both in exploring opportunities there as well as pulling in investments from Malaysians into the UAE.
A Dubai-based developer grouping has just confirmed Malaysia based IQI to represent its recently launched Dh2.3 billion Royal Estates project in Dubai Investments Park. It is the one where the Bollywood actor Shahrukh Khan has taken on the brand ambassador’s role.
“We are confident the decision to appoint IQI, one of Malaysia’s premier international investment and advisory company, is the right choice ... and it will spearhead our sales not only within Malaysia, but will also focus on Singapore, Hong Kong, Thailand and Dubai markets,” said Osman Valli of Aristocrat Star Real Estate Developments, one of the three entities backing the project.
Meanwhile, the promoter of the fast-food brand ChicKing has tweaked the strategy for its entry into Malaysia. “When we signed a deal last year with a Malaysian partner, it was to create a joint venture which would launch outlets in that market,” said Fariq Halim, CEO of Bfi Management. “But then we decided it was better to have a franchising alliance rather than directly owned outlets.
“So, now, we have the Malaysian partner in a master-franchisee’s role and he will choose and support the sub-franchisee operations.”
Three outlets have opened and a fourth is scheduled for later this month or early next. “The big American brands dominate the quick-service F&B landscape in Malaysia,” said Halim. “But a mix of right locations and right partners can give ChicKing a foothold and which can be developed further.”
For sure, the bulk of the sourcing will be done from within the Malaysian market itself, which will in turn have a telling effect on keeping expenses down as opposed to relying on imports. The franchise led push could also see the ChicKing brand take wings in other Far East territories.
But the primary focus with franchising will be to get into Saudi Arabia and Qatar as well as some of the African markets. Of the 80-odd outlets in its network, more than 50 per cent are owned by the promoter.
