Turkish clothing giant to expand in GCC

Dubai: Despite the global recession, Turkish clothing maker and seller Koton is planning to expand its reach in the region by opening eight more shops in the Gulf Cooperation Council next year, the company's top official told Gulf News.

Three of the proposed stores are scheduled to open in the UAE, while the others will be in Saudi Arabia, expanding the company's GCC network from the current 27 to 35 stores.

According to Koton chairman Yilmaz Yilmaz, the Middle East still offers great opportunities for growth, so they will continue to expand their business throughout the region by building strong franchise relations.

"There are still great opportunities available within the Middle East as the market has not yet matured. If you compare the potential shopping mall facilities in the Middle East with those available within mature markets, the opportunity for growth here is obvious, Yilmaz told Gulf News.

"The successful structure and the inner potential of Koton has been recognised by many world-renowned retail companies, and as a result, powerful franchising relations have been made with international companies including Landmark International, which has opened 23 Koton stores within the region," Yilmaz added.

Since it was launched in the region at the beginning of 2004, Koton now runs three outlets in Dubai and one store in Abu Dhabi. The company also has two shops in Bahrain, 18 in Saudi Arabia and three in Kuwait.

Despite the strong competition from more established players such as Zara, H&M and New Look, Koton's operations in the UAE have been robust, with sales increasing by more than 50 per cent between 2007 and 2008.

The company attributed its success to its strong franchise relations, as well as its effective campaign that targets young metropolitan professionals. So, although operation costs in the UAE are higher than those in developing countries, Koton is all geared for expansion.