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Fighting against counterfeit products
Dubai-based Al Madani Group has been in the apparel business for the last 50 years. The group currently operates 70 retail outlets spread across the UAE, occupying 60,000 square feet of retail space. Mohammad Al Madani spoke to Gulf News about the country's expanding retail sector as well as his company’s business.
- By Saifur Rahman, Business News Editor
- Published: 00:00 March 6, 2007
- Mohammad Al Madani spoke to Gulf News about the country's expanding retail sector as well as his company's business.
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Dubai-based Al Madani Group has been in the apparel business for the last 50 years. The group currently operates 70 retail outlets spread across the UAE, occupying 60,000 square feet of retail space. Mohammad Al Madani spoke to Gulf News about the country's expanding retail sector as well as his company's business.
Gulf News: How has the retail scene in the apparel business changed?
Al Madani: It has expanded and became more sophisticated. It has become difficult for operators due to the rising cost of operation. Higher rents in shopping malls and higher wages are putting pressure on our business.
The apparel retail business is becoming risky as growing operating costs are eating into margins. Besides, the influx of fakes and counterfeit products are an issue that we have to constantly deal with.
What measures are taken to stop the influx of fake products?
The Department of Economic Development undertakes periodic checks, and screens out the fakes. However, recently, we have taken a different approach to tackle it.
We have started engaging the average retailers, and began supplying them the genuine branded products from our stocks.
We have started with eight retailers. The number is now growing, and we find a strong desire among them to replace fakes with genuine products.
This is going to help us eliminate the counterfeit products from the market. Those who used to buy fake products, are now buying genuine products from us. This way, we are eliminating the counterfeit ones.
Aren't businesses still growing?
Yes, we are growing as well. We are witnessing about 30 per cent growth in sales across our brands. We sold about 1.5 million Hang Ten casual wears alone.
We are expanding our retail presence by more than two thirds to 100,000 square feet from the current 60,000 square feet.
Right now, we operate 70 retail stores in the UAE including 46 Hang Ten and 18 Levis outlets. Last year we generated Dh100 million in sales.
How do you retain customers?
By offering good branded products which are good value for money. Besides, we are improving the customer service element. We have launched a training programme for all our sales and merchandise professionals.
Considering the way retail trends are changing, I think we can only retain customers by trying to understand their needs.
Besides, we are expanding our customer loyalty programmes by adding value to them. Right now we have 7,000 Hang Ten loyalty cardholders. But we are going to re-launch our programme to include all the brands.
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