Page 66 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

50 Dubai & Co.

Reality: Gulf consumers embrace global brands and
products. They will buy from a multinational if its offering
best meets their needs.
Another common misconception about the GCC—and about
the Middle East in general—is that consumers are somehow averse
to global brands, especially those from the United States. Some
business leaders, subscribing to the view that most people in the
Arab world “hate us,” assume that Western brands will not be
accepted and therefore attempting to enter the market is futile.
These executives wrongly equate distaste for US foreign policy with
dislike of US brands.
The truth, on the contrary, is that many US and other Western
brands have been extremely successful in GCC markets. This can be
noticed immediately by anyone who walks into a major GCC shop-
ping mall or supermarket. Consider, for example, Dubai’s popular
Deira City Centre mall: of the shopping center’s 347 stores, nearly
80 percent are multinational brands with Western roots, and over 40
percent are American. At City Centre, one can find core American
retail chains, including DKNY, Polo, Calvin Klein, Forever 21, and
even a RadioShack. The signs are in English and the store logos are
the same as those one would find in an American mall. For those
with more European tastes, there are the United Colors of Benetton,
NEXT, Zara, Burberry’s, and more. Should you fancy something
more risqu`e, try the trendy Bebe. These retailers and dozens more
have been brought to the GCC by local partners who recognize their
markets’ taste for such merchandise. These savvy businesspeople
understand that GCC consumers do not reject Western brands, as
long as those brands are managed responsibly. Later in this book,
we will discuss the complexities involved in “responsibly” market-
ing to GCC buyers.
Western-brand fast-food restaurant chains are another
type of business that is highly successful throughout the GCC.
McDonald’s, Burger King, KFC, Pizza Hut, and a host of other
American food chains are prevalent in major cities, shopping
centers, and airports. Many readers may be surprised to learn that
there is a prominent KFC just steps away from the Sacred Mosque
in Makkah, frequented by pilgrims from the Muslim world and
beyond. Influential business families secure franchise agreements