Giving a touch of sartorial colour to Arab fashions

Dubai Fouad Abdul Raza Rahma didn't take the easy way out when it came to launching his retail venture.

The easy option would have been to pick up the local franchise rights for an up and coming international brand and try to make it popular here.

That would have been way too easy. Instead, Rahma, a career banker, set up Colors Touch, a store chain carrying mid- to up-scale designer-wear for Arab women. Not just that, he simultaneously introduced a cosmetics and skincare range under the Colors Makeup label.

"From the beginning our concept was to create a local brand which will grow to cater to a pan-Arab audience," said Rahma.

"One, there are no global brands in the realm of Arab women's wear that we may be able to hitch our business fortunes to.

"Second, being Emirati, our advantage is inherent — we know the design sense of the audience and, more importantly, the cultural sensitivities.

"The aim of Colors Touch is to become a completely homegrown brand for women."

But it also meant that the start-up costs would be higher as opposed to the franchising. In Rahma's case, this meant setting up a production house and finding the skilled labour to give the personal touch to the designer-wear.

The initial investment thus came to Dh2 million, and more is being made even now to expand the merchandise — a children's line, for instance — as well as to get into new ventures.

Rahma had to put up the first Dh1 million and tapped outside funding support for the rest. His plans include adding six more outlets in Dubai before year-end, including a strategically vital location in Jumeirah. As of now, there is a Colors Touch outlet in the Arabian Centre. But would Rahma also consider additional mall locations given that rentals are again on the rise?

"If they do and add to our costs, we will be concerned since in the initial growth phase it is very important to have control over expenses," he said.

"Having said that, the one internal decision we have taken is that even in the case of a rent hike, we will absorb it and not pass it on to customers. We will work to offset the issue by increasing our sales volumes."

Target

The internal target is to attain break-even at the end of 2013 and Rahma says the business networth is valued at Dh5 million. But wouldn't the business be better off by sticking to women's wear in the initial phase and then getting into cosmetics?

"The cosmetics part is under a subsidiary Colors Makeup Paris," said Rahma.

"We do represent brands like Jioney from the US, but we have an arrangement with them to make our own formulations in certain categories.

"Since we do have a large collection of designer party-wear, apart from the jallabiya and abayas, it was natural to have a cosmetics portfolio. Women who come to buy our clothes have been attracted to our make-up collection.

"We have our kiosks because we can reach out to a larger audience without incurring much costs. We will soon have a standalone cosmetics store."

Guess Rahma just wants to get on with it.

Expansion: F&B is next option

As if getting into a highly saturated retail sector wasn't enough for a new business, Fouad Abdul Raza Rahma wants to raise the odds further by considering entering the food and beverages (F&B) sector.

There are two options he is working on. One is Choco Laty, conceived along the lines of a delicatessen. The first one would open in the Arabian Centre and a second most likely in Dubai Festival City. Rahma argues that there is a connect between selling designer-wear and chocolates. "Though entering into food for a fashion entity may look odd, we believe the addition makes for a perfect combination," he said.

Business tips

• Stick to what you know best during the launch phase. That helps the business adapt quickly to the needs of the hour.
• Seeking support not just about having funds available from banks. Get guidance, as well as business orders, from business houses owned by locals. They all want to encourage new Emirati entrepreneurs.
• Keep adding to the product mix to diversify the revenue base.