Bucking market trend with new product

Dubai: Call it the ‘frozen in the headlights' syndrome. Businesses here, whatever the size, are loath to take on any new venture which has not been proven, in the midst of the downturn. Stick with the tried and tested strategies and chances are that the business will still be there when the turnaround comes, is what company owners say.

More often than not, this has translated into a do-nothing strategy. But you will not have Sabu Abraham, managing director of ClimaGulf, following in this direction. As an engineering company specialising in air-conditioning and heating, the business has not been immune to the decline in local project activity.

And for the building projects that are still around, the emphasis is more on getting the work done at the lowest cost possible than anything else.

Attractive proposition

However, Abraham has chosen this very time to introduce a new product, Breezair, with a proposition that should entice potential customers — lower operating costs. He has managed this through an exclusive licencing agreement with Seeley International, an Australian company.

Breezair works on the principle of evaporative air-conditioning, which means that it uses filtered natural air and, more tellingly, has lower operating and maintenance contracts, compared with refrigeration air-conditioning.

But is the local market ready to accept any change from the status quo in this respect? "Yes, due to the current business environment, there's a controlled or limited expense budget in most organisations," said Abraham. "But we are introducing new products since we are firm in the conviction that markets need them. With signs of a recovery on the horizon, these could well become the norm."

This is where timing and a degree of good fortune play their part. The local marketplace has in the past proven to be a difficult one to crack for many cutting-edge products or services, primarily because people are just not ready to try out new concepts. In a soft market, acceptance is much slower to happen. But Abraham believes it will not be the case with his new product.

"Look, no business can, I think, ignore evaporative cooling concepts and products on two counts: one, they reduce overheads and, two, they improve productivity and thereby maximise gains.

"In times of recession, these in themselves can help companies not only to stay afloat, but to improve their bottom line since top line [growth] is restricted. Since we are offering concepts to assist businesses in this respect, we're confident that acceptance won't be too difficult [to achieve]. "We do see a marked difference in market sentiments from the previous year, which is a positive sign."

Abraham adds that, so far, Breezair has not relied on new project activity in promoting the business, but on the existing premise of target clientele. "Here we can demonstrate qualitative and quantitative improvement in the work environment, which gives us the space to operate, irrespective of the status quo in new project activity."

The product is being pitched at the local manufacturing sector, automotive workshops, restaurants and fuel stations, as well as warehouses and schools. The initial response has been encouraging, according to the ClimaGulf chief.

"We have got approvals from clients in six to eight large application areas including companies in the warehousing and manufacturing sectors in Jebel Ali Free Zone and vehicle testing centres in Dubai," said Abraham. "At others, discussions are still on and we are confident of concluding them successfully.

Focus

"Our major focus is on developing the right sales and service dealer network throughout the Emirates, to ensure a sustainable pre and post-sales service is made available at the doorsteps of each client."

If this works in the UAE, ClimaGulf has high hopes of spreading Breezair to other markets in the region. Also, Abraham is hoping that the company's take on new products will be picked up by others. "We are exploring the possibility of expanding over the next 12 to 18 months," he said.

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