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RETAIL THOUGHTS Dilip Kapur ANALYSIS GCC Food Market RETAIL THOUGHTS ANALYSIS HOUSEWARE TRENDS RETAIL TECH WATCH CEO TALKS Dilip Kapur GCC Food Market Home + Housewares Show Oracle Said Daher www.imagesretailme.com March 2017 Bahrain BD5.0 | Oman RO5.0 | Kuwait KD4.0 | Qatar QR50 | Saudi Arabia SR50 | United Arab Emirates AED50 CONTENTS RETAIL THOUGHTS VOL 7 ISSUE 6 6 Defining the art of entrepreneurship RETAIL THOUGHTS ANALYSIS HOUSEWARE TRENDS RETAIL TECH WATCH CEO TALKS Dilip Kapur GCC Food Market Home + Housewares Show Oracle Said Daher NEWS 10 GAP Factory Store launches in Dubai www.imagesretailme.com March 2017 11 ZOOM recognised for best international store design 12 Ferrari World Abu Dhabi to launch ‘Turbo Track’ 14 Aloha Abu Dhabi Festival returns to Al Raha Beach 15 Phased redevelopment of City Centre Mirdif car park 16 Ibn Battuta expansion to add new residential tower ANALYSIS 18 GCC food consumption projected to grow Bahrain BD5.0 | Oman RO5.0 | Kuwait KD4.0 | Qatar QR50 | Saudi Arabia SR50 | United Arab Emirates AED50 22 Fashion trends 2017 YOUNG & ENTERPRISING COVER STORY The global apparel market is 36 A brand with a meaningful cause valued at more than $3 trillion and accounts for 2% of the INTERNATIONAL VIEW world’s GDP. If ranked alongside individual countries’ GDP, the 40 A French brand’s international success story global fashion industry would represent the world’s seventh largest economy... 22 60 53 40 6 36 OMNICHANNEL 53 Setting up an effective omnichannel strategy FOOD WATCH 56 A neighbourhood brasserie hidden in JBR 47 REAL ESTATE LEISURE & ENTERTAINMENT 58 Construction of ‘My City Centre Sur’ Oman begins 44 Bee-life inspired edutainment concept 59 Nakheel receives construction bids for Deira Mall HOUSEWARE TRENDS CEO TALKS 47 Housewares sector bullish despite uncertainty 60 In tune with the times RETAIL TECH WATCH STORE OF THE MONTH 50 Empowering retailers 66 ETRO MARCH 2017 | RETAILME | 3 Dear reader In this issue, we review two critical sectors – food and fashion – affecting the lives of the entire world’s population. In the first report, we look at the global apparel market, valued at more than $3 trillion accounting for 2% of the world’s GDP, according to McKinsey & Company’s The Business of Fashion (BoF) report. Editor-in-Chief Amitabh Taneja McKinsey report states that “fashion is one of the world’s most [email protected] important industries, driving a significant part of the global economy. If ranked with each country’s GDP, the global fashion EDITORIAL industry would represent the world’s seventh largest economy.” Managing Editor The State of Fashion report, McKinsey’s first, lays the foundation Lawrence Pinto for rigorous, in-depth research and analysis of the global [email protected] fashion industry. The report focuses on the themes, issues and opportunities impacting the sector and its performance. Editor Rupkatha Bhowmick Alpen Capital in its latest GCC Food Industry report states GCC [email protected] food consumption will expand at a CAGR of 4.2% from an estimated 48.1 million MT in 2016 to 59.2 million MT in 2021. This DESIGN & PRODUCTION growth is primarily attributed to increase in the consumer base, Creative Head coupled with a higher per capita income, as the GCC economies Johnson Machado stage a sustained economic recovery from the recent downturn. [email protected] Dilip Kapur, the founder and owner of Hidesign, shares his ‘Retail ADVERTISING & MARKETING Manager – Business Development Thoughts’ in this edition. Established almost 40 years ago, today Nikhil Gupta Hidesign is a globally known luxury brand specialising in leather [email protected] goods with craftsmanship and sustainability at its core. It’s a brand that started in the year 1978 with a small sum of 25,000 SUBSCRIPTIONS Indian rupees. Jehan Mandap [email protected] In the ‘Retail Tech Watch’ section, Oracle shares how and where it EVENTS is implementing its retail solutions to help retailers enhance their Misba Naushad omnichannel journey and customer experience. [email protected] We also review the outlook for housewares in 2017, which looks DISTRIBUTORS healthy despite the political and economic uncertainty that characterised 2016 both in the US and around the globe. More than 2,200 exhibitors will take part in the 2017 International Home + Housewares Show from March 18-21 at Chicago’s Sources: McCormick Place Complex. Copies of RetailME March edition will UN, IMF, WEF, WTO, be on display at the show once again this year. Economic Intelligence Unit, Euromonitor, National Statistics, Don’t miss the RetailME April edition, which apart from having National Statistical Planning, special coverage on leisure and entertainment and Gulfood, will National Chambers of Commerce, Department of Tourism and Commerce Marketing (DTCM), Dubai, also have its presence at World Retail Congress 2017. Retail International, AC Nielsen, KFI Research, McKinsey, Al Rajhi Capital, Al Masah Capital Ltd, A T Kearney, Alpen Capital, Cushman & Wakefield, Planet Retail, IDG, Colliers International, CBRE, JLL. PO Box 502316, Dubai, UAE Disclaimer: Every care has been taken to ensure the accuracy of information contained in this publication. Tel +971 4 4467555 Fax +971 4 4469707 However, the publisher will accept no responsibility for any error or omission in the content. Email: [email protected] Copyright © 2016 IMAGES Multimedia fz llc. All Rights Reserved. www.imagesretailme.com No part of this publication may be reproduced without the prior written consent of the publisher/copyright owner. 4 | RETAILME | MARCH 2017 RETAIL THOUGHTS Defining the art of entrepreneurship Dilip Kapur Almost heading towards for its handcrafted, one-off, from what was readily was born into a business its 40th anniversary, today exclusive leather pieces. available in the market – family and also had the Hidesign is a globally Each of his leather pieces is in India and beyond – to I passion to do something of my own. But I was quite known luxury brand tanned using natural seeds keep himself occupied; idealistic, ignorant and didn’t specialising in leather of Myrobalan and barks of thus, started the journey really have a mentor. My goods with craftsmanship Wattle trees. of a brand that would thought process was very and sustainability at its At the age of 15, Kapur become globally known. different and sometimes core. It’s a brand that went to the US finishing Interestingly, Hidesign unconventional too. When I decided to start a leather started in the year 1978 his schooling at Phillips bags found their way business, I thought the brand with a small sum of Academy, Andover, into Germany, Australia name should imply hide 25,000 Indian rupees; Massachusetts. After and the US much before (leather) and design, with its employees being the graduating from the they became popular in ‘de’ in shadows – reminiscent founder himself, Dilip Princeton University in India in the year 1998 in many ways of the 1960s and 70s. It reflected my Kapur who turned International Affairs, he with its first exclusive hippie core. However, when his hobby into an completed his PhD at the boutique. Today Hidesign’s we started working with a entrepreneurial endeavour, University of Denver. His distribution network PR agency in London they along with a cobbler. degrees, however, have spans 23 countries with its suggested that the brand Kapur grew up in the lap no connection with his products present in over name exuded too much hippie-ness and that we of nature at the Aurobindo entrepreneurial dreams, 2,000 stores globally. should consider changing it Ashram in Auroville, a incubated during his first In a conversation with to one word ‘HIDESIGN’ in township in Tamil Nadu, stint as an intern in a Rupkatha Bhowmick, capital letters, which was a India. Quite naturally leather factory. Kapur says it takes a smart idea. he decided to engage Soon he decided to move degree of both passion and While the brand has been around for almost 40 years, with nature, even as part back to Auroville and business acumen to run an most of these years spent on of his business. Today started making leather entrepreneurial endeavour. enjoying creating products Hidesign is very popular bags, distinctly different Here’s a firsthand account.. that reflected our values 6 | RETAILME | MARCH 2017 ANALYSIS Exhibit 2: GDP Per Capita (PPP) in the GCC (2016E) Exhibit 2: GDP Per Capita (PPP) in the GCC (2016E) Qatar Qatar $129,727 Qatar $129,727 Kuwait Kuwait $71,264 Kuwait $71,264 UAE UAE $67,696 UAE $67,696 GCC GCC $60,678 GCC $60,678 Saudi Arabia Saudi Arabia $54,078 Saudi Arabia $54,078 Bahrain Bahrain $50,303 Bahrain GCC food consumption $50,303 Advanced Advanced $47,001 GCC food consumption is expected to EconomiesAdvanced $47,001 Economies $47,001 Economies expand at a CAGR of 4.2% from an Oman Oman $43,737 Oman $43,737 estimated 48.1 million metric tonnes Emerging & Emerging & $11,110 projected to grow Dev.Emerging Economies & $11,110 (MT) in 2016 to 59.2 million MT in 2021, Dev. Economies $11,110 Dev. Economies according to latest GCC Food Industry US$ $0 $30,000$60,000 $90,000$120,000$150,000 US$ $0 $30,000$60,000 $90,000$120,000$report150,000 by Alpen Capital. Source: IMF – October 2016 This growth is primarily attributed to Source: IMF – October 2016 increase in the consumer base, coupled with a higher per capita income, as the GCC economies stage a sustained economic Exhibit 1: Population Growth in the GCC Exhibit 5: Per Capita Food Consumption in the GCCrecovery (2014) from the recent downturn. Exhibit 1: Population Growth in the GCC Exhibit 5: Per Capita Food Consumption in the GCC (2014) 60 “We expect the GCC food industry to 60 60 CAGR: Saudi Arabia 961.grow6 at a sustainable pace.
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