Solid sales

Genius Computer Technology (GCT) has unveiled details of an innovative new incentive programme to drive sales-out activity for its Genius and Edimax brands by rewarding retail stores for the level of stock they carry and sell. Milad Jabbour, president and CEO of Genius, spoke exclusively to Channel Middle East about how the programme will work.

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Solid sales Milad Jabbour, president and CEO of Genius. (ITP Images)
By  Andrew Seymour Published  June 17, 2010

Genius Computer Technology (GCT) has unveiled details of an innovative new incentive programme to drive sales-out activity for its Genius and Edimax brands by rewarding retail stores for the level of stock they carry and sell. Milad Jabbour, president and CEO of Genius, spoke exclusively to Channel Middle East about how the programme will work.

What are the reasons for launching the Power Retail Programme (PRP)?

We have been studying the market and looking at new ideas following the financial crisis. Genius products should be acceptable to the market in terms of value, so brand plus price must be very reasonable to the end-user. I believe that now is the right time to increase the business, so we felt that we should focus on making sure that sales-in are managed properly, with more SKUs and higher stock value. Our current stock to sales ratio is more than 50%. This is a very good sign as the information I have from some customers is that the ratio for other brands is around 30% to 35%.

How will retailers benefit from the new incentive programme?

It will be a good index for retailers to understand which product lines can help them increase their profitability. Based on the sales-in, this programme will provide them with a number of indoor sales people, a number of promotions and a number of discounts to be able to do the sales-out.

Is the PRP limited to the UAE, or will you be introducing it elsewhere in the region?

Right now we want to implement it in the UAE. Within Genius there are two different divisions: export and local. So in the UAE we play the role of a local distributor, like our distributor in Qatar or Kuwait or Egypt or Saudi Arabia. There is no advantage for Genius Computer Technology Dubai at all. There will be a similar pricing structure, information and SKUs elsewhere, the only difference is that we have taken the initiative to build this programme and convince retailers that it will bring them more business.

There are five levels to the programme: Base, Silver, Gold, Platinum and Platinum Premier. Is it a case of the more investment you make in Genius products, the more rewards you can expect?

Yes, at the same time as driving sales-out, the programme is designed to reward the retail stores that offer us the most stock value, more SKUs and more space. And they will definitely receive more added value from us.

Is there a limitation to the number of retailers that can join the PRP?

There are no limitations. It is important to point out that the criteria is per outlet though, not per retailer. So if one retailer has five outlets, it depends on the stock value of each outlet, not the total value of all five. Hypermarkets are also included in this programme. So far we have seen a positive response towards Platinum Premier, so I think we’ll have at least 20% of outlets in this category.

How long will the programme run for?

It will go for one year and it is renewable, and after three months we will carry out a review. We are making a commitment to the retail stores. If we put in a stock value of AED100,00, for example, and the sales-out do not reach 50% in a certain period then we have to drop the stock value and take back some goods to match the ratio. All that makes the retail stores feel very positive and comfortable.

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