Eros Group to open six new stores in UAE
Consumer electronics retailer eyes GCC region expansion in 2012
Consumer electronics retailer Eros Group has revealed that it will open six new retail stores in the UAE in 2011, as part of its expansion plans in the country. The power retailer, which currently has 28 retail outlets across the UAE and one in Tanzania, says the expansion strategy has been designed to enhance customer touch points in the country.
Niranjan Gidwani, deputy chief executive officer, Eros Group, said the company is currently evaluating select markets in the GCC region that will form part of further expansion plans in 2012. "The group has shown sustained growth in previous years with the company continuously expanding to newer areas to provide customers with closer touch points. Our aim is to enhance our value-added offerings through these customer touch points. We are committed to providing our customers with the perfect digital home solutions," he said.
Gidwani said the Eros Group is in a unique position as it retails the brands it distributes through its own chain, Eros Digital Home. "The exceptions are in mobile and IT solutions where we offer consumers multi-brand options," he said.
Gidwani added that in a market as diverse as the UAE, there is always room for all types of business models to co-exist although global brands are seeking retail partners and large volume distributors to better meet cost efficiencies through improved logistics and better buying capabilities.
He said value added services have already become the name of the game in the power retail space. "In-store extended warranties, helpdesks and in your home technical assistance is now provided by most retailers as value added services. "There is still scope for more value added services to be introduced, and I am sure retailers will start providing these as the market matures further," he said.
Gidwani said the retail channel has undergone major transformation since 2008 and the new landscape has seen more empowered retailers emerge that are seeking to differentiate themselves not through product price but value additions to the customer. "This is a more mature business model and will provide customers much more benefits in the region," he said.
He explained that because the consumer electronics channel is currently operating on very tight margins, which have continued to be eroded due to the volatile nature of the currency markets, Eros Group as a distributor ensures that this segment is protected from issues such as grey marketing. "We take the issue of grey marketing quite seriously and work closely with statutory bodies in addressing it which is a problem for all stakeholders," he said.