Grocery players ask: What credit crunch?

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ADNANI: We have moved into a post-credit crunch era.

Consumers are tightening their belts when it comes to spending on non-essential products, prompting promotions within lower price categories.

"In today's interlinked world, it is only natural to expect the global economic downturn to affect businesses anywhere. Dubai too has been impacted by the turmoil, however the quick measures adopted by the Government have contributed a long way in strengthening customer confidence," commented Vinod Adnani, founder and managing director, Multiplex International.

The Dubai-based FMCG and cosmetic products distributor, which works with "power retailers" including Emke Group, Géant, Spinneys and HyperPanda, has not been hit by the credit crunch as "our products are not exorbitantly priced, which means they do not affect the budgeting controls of customers. We have been fortunate to more or less successfully weather the current situation".

More international retailers are now prioritising the Middle East in their long-term growth plans, he said, and "this is because of the stronger levels of liquidity and comparatively, the more robust market sentiments that prevail here".

"I strongly believe that the worst of the global credit crisis is over and we have already moved into a post-credit crunch era. Multiplex is optimistic about the year ahead and it is comfortable on the road to achieving 30% growth in the coming year," Adnani claimed.

David Edwards, managing director, IMES Consulting Group, said the only delay on the influx of global companies will be "the need to focus on difficulties in their core home markets".

Yassin O Al-Attas, external relations manager for Procter & Gamble Gulf FZE said the company provided the kind of staple products that "consumers continue to need and continue to purchase, such as toilet paper, shampoo and detergent, even when dollars are tighter".

"P&G is focused on the importance of innovation in tough times. In P&G's product categories, product innovation brings recognisable performance differences valued by customers, and which they respond to," Al-Attas said.

"Innovation-driven trade-up is working as we see premium-priced products such as Gillette Fusion, Venus, Clairol Perfect 10 and Olay Regenerist grow market share," Al-Attas added.

The company expects "some short-term market share volatility as we are leading pricing in many categories. Competitors, in general, are raising prices as well. They are facing the same cost pressures as we are. We are confident that our market shares will recover as price gaps return to more normal levels".

As P&G will invest in innovation, Al Attas said it expected its overall value scores to improve and "to emerge from this economic cycle stronger than ever".

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