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by ArabianBusiness.com staff writer on Monday, 15 December 2008
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After 15 years in the business, the UAE’s Multiplex International now plans to invest in Oman and Qatar.
From 12 employees to more than 100 today, Dubai's FMCG and cosmetics distribution powerhouse Multiplex International continues to expand amid the economic downturn.
"We plan to increase our overall turnover by 30% in 2008, by increasing distribution and opening new offices in Qatar and Oman in the first quarter of 2009," reveals Vinod Adnani, founder and managing director, Multiplex International LLC.
We expect a lot more expansion as many more new companies are coming in, including Wal-Mart which is rumoured to be looking for local partners now.
"In spite of the current financial crisis around the world, Oman and Qatar have not been affected at all, compared to the overheating in the UAE market. These markets are focused on the trade, rather than real estate."
Adnani founded the company in 1993, before it moved into distribution in 1996, bringing in exclusive brands from Europe and the US and distributing into all of the major supermarkets, hypermarkets, department stores, pharmacies and Duty Free channels.
The company's existing UAE offices in Ras Al Khaimah, Fujairah, Abu Dhabi and Sharjah report weekly to the Dubai office, which monitors all of the sales staff, promoters and merchandisers.
Multiplex International has an 11,000ft2 warehousing facility in Dubai's Al Quoz of which 5,000²ft is fully air-conditioned to store climate-sensitive products, such as colour cosmetics, skincare products, creams and lotions.
"We are already working with some of the biggest retail groups including Carrefour, Lulu and Lifestyle. Currently we are employing seven people in Oman through our partners, and we like them to shift them on our visa and have them dedicated to us full-time, between seven and 10 employees for Muscat, and between five and seven for Qatar."
Selecting brands based on the needs of customers in the region has resulted in a line-up including Eylure, Perfect 10, Sweet Breath, City Chick, Elegant Touch, Bioskincare, Enfresh, T-Zone, Byly Depil, Baylis & Hardings, Sweet Breath, mp3, Rhino, and Youthair.
To fuel its future growth, the company will focus on operations at its new distribution offices and expand the distribution of its baby care brand Corine De Farme, beauty accessories from Xcluzive, oral care brand Dr Fresh, and Elegant Touch.
The company has two main colour cosmetic brands Prestige Cosmetics and Essence, with the former geared towards the mature woman and the latter targeted at 13 to 25 age year olds.
"For Essence, we look mainly at supermarkets and hypermarkets, while for Prestige we are already available at Lifestyle and Debenhams. We are excited about Landmark Group's new concept coming into the market Beauty Bay, which will open at Oasis Shopping Centre on Dubai's Sheikh Zayed Road."
THE DISTRIBUTOR: Worst of global credit crisis is over
"I strongly believe that the worst of the global credit crisis is over and that we have already moved into a post credit crunch era. Multiplex is optimistic about the year ahead and is comfortable on the road to achieve 30% growth," says Vinod Adnani, founder and managing director, Multiplex International LLC.
"We have already undertaken a comprehensive check on our costs and resource use. We take measures to ensure that all unwanted costs are cut. This means more judicious use of stationery and careful planning of travel itineraries for our key staff," he adds.
According to Adnani, the mainstay of the retail industry is customer confidence and domestic demand. In a credit crunch situation, it is customary for buyers to be more judicious with their spending, which means restricting spending on non-essential products.
Multiplex International's product range has a balanced mix of products, and several of them form part of the everyday beauty care regimen of people, he says.
"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, and we are confident of attaining 30% growth in the coming year."
Asked whether consumers' spending patterns have changed, such as opting for cheaper products, Adnani says that "cosmetic use is about the trust the user enjoys about a particular product. It is more like a habit, and the general trend is for customers to move up the ladder of luxury preferences than come down. This has not been altered perceptibly."
"I strongly believe that the worst of the global credit crisis is over and that we have already moved into a post credit crunch era. Multiplex is optimistic about the year ahead and is comfortable on the road to achieve 30% growth," says Vinod Adnani, founder and managing director, Multiplex International LLC.
"We have already undertaken a comprehensive check on our costs and resource use. We take measures to ensure that all unwanted costs are cut. This means more judicious use of stationery and careful planning of travel itineraries for our key staff," he adds.
According to Adnani, the mainstay of the retail industry is customer confidence and domestic demand. In a credit crunch situation, it is customary for buyers to be more judicious with their spending, which means restricting spending on non-essential products.
Multiplex International's product range has a balanced mix of products, and several of them form part of the everyday beauty care regimen of people, he says.
"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, and we are confident of attaining 30% growth in the coming year."
Asked whether consumers' spending patterns have changed, such as opting for cheaper products, Adnani says that "cosmetic use is about the trust the user enjoys about a particular product. It is more like a habit, and the general trend is for customers to move up the ladder of luxury preferences than come down. This has not been altered perceptibly."
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