Page 193 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Making Your Pitch: Marketing to GCC Buyers 177

Zara delivers. The GCC market is young—exactly Zara’s core audi-
ence. And, equally important, Zara’s ability to develop a wide range
of products without undertaking huge production runs lets the firm
deliver products to the Gulf that suit the region’s needs. Zara stores
in the GCC countries feature, for example, many more long skirts
and long-sleeved shirts than Zara stores elsewhere. And while these
items may not sell as much outside the GCC market, Zara’s business
model does not inhibit niche products. In fact, the high-innovation
culture of Zara values the creation of niche products that resonate
with some consumers but may not become global bestsellers.
Zara has 47 stores in the Middle East, of which 29 are in GCC
countries. In these stores, new items are put on display each week
and attract large numbers of buyers. Moreover, Zara’s Mediterranean
roots serve it well in the Gulf region, where lightweight fabrics for
warm weather are valued. Local managers, with the support of
Zara’s renowned inventory and stocking system, have apparently
been able to monitor sales closely and keep requesting the goods
that move. Zara does not even need to create anything especially for
the Gulf; it needs only to make sure that products with GCC-appeal
find their way to the region. From the Gulf buyer’s perspective,
Zara represents fashion that fits.
Adapting the product portfolio need not be expensive. It
requires some analysis, but not the most advanced systems in the
world. Achieving the third degree of adaptation is more a matter of
mind-set and of empowerment than of cost. And the benefits, when
executed effectively, can be remarkable.

CUSTOM PRODUCT DESIGN
The fourth and highest degree of adaptation goes beyond cus-
tomized marketing and a customized product mix—it takes the
notion of customization down to the product level. Firms that pur-
sue this strategy develop products or services especially for the
GCC markets, investing in the design of these offerings with the
belief that incremental sales will more than cover the costs. Taking
this step requires careful consideration, but can be warranted when
it leads to deeply compelling customer propositions.
McDonald’s, which has over the years developed a knack
worldwide for balancing its global brand with small local touches,