Page 191 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Making Your Pitch: Marketing to GCC Buyers 175

products and services that seem most relevant. Then, stock a greater
proportion of those items at locations in your GCC countries than
you do elsewhere. If, for example, advanced mobile phones appeal
more to buyers in GCC countries than to buyers elsewhere, devote
more retail space to phones in Qatar than you do in, say, Istanbul or
Sarajevo. At first glance, the concept seems so obvious that you’d
expect everyone to use it.
Executing a portfolio adaptation, however, can be much more
challenging than it seems. One implication of a customized portfo-
lio is that it will differ from other retail locations worldwide.
Regional managers need to be able—and empowered—to adopt a
merchandising strategy that differs from the global head office’s
international vision. Perhaps the hot item that global marketing
seeks to push worldwide this year simply won’t fit the Gulf market.
The general manager in each GCC locale must have the latitude to
assert a strategy he or she feels is effective and must be supported
in procuring inventory that may vary from the global guidelines.
Another challenge in executing this approach is that of acquiring
reliable and analyzed data. While modern inventory and purchase
scanning technology makes capturing this information possible,
the difficulty lies in accurately analyzing the data (at the distributor
or franchisee level or at the global headquarters) and communicat-
ing the analysis between the main office and the region alone. From
my experience advising retail clients, I can assure you these things
are more easily said than done.
One sector in which portfolio customization can frequently be
found is the apparel industry. Especially in women’s fashions,
international retailers are discovering more about local market
needs and highlighting the products in their global portfolios that
best meet those needs. Among the distinct needs of the GCC
market are, according to expert analysts, “a steady flow of new
products which are well-designed, use lightweight fabrics all year
round and offer long sleeve and skirt options for those wishing to
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cover up.” Good design, of course, is a competency to which all
fashion retailers would wish to lay claim. The other aspects of this
target business model are not a perfect fit with every retailer.
A steady supply of new products, according to industry
analysts, is perhaps more important in the Gulf than elsewhere,
because of the youthful demographics of the region. Teenage girls