Retail exhibitors gearing up for GITEX Shopper & Consumer Electronics Expo 2007 are revealing mixed feelings about the event after experiencing strong competition and slim profits at last year’s show.
UAE-based electronics retailer Jacky’s – which said last year’s intense competition impacted its margins despite a recorded boost in sales – is expecting another competitive event this year.
“We are anticipating GITEX Shopper to remain as competitive as ever… but [the competition] is a healthy element that helps bring in more foot traffic and adds to the credibility of the event,” said Ashish Panjabi, Jacky’s chief operating officer.
Last year’s exhibition was hailed as the most successful yet, drawing 133,139 (audited) visitors – a 12.14% compared to 2005 – as well as 157 exhibitors. The event reported sales exceeding 84 million dirhams ($23 million).
However despite generating unprecedented levels of business for UAE retail exhibitors, many at the 2006 event said they were forced to slash prices in a bid to secure business on the intensely competitive show floor.
Plug-Ins Electronix, a member of the Al-Futtaim Group’s electronics division, recorded a 40% increase in sales at last year’s GITEX Shopper.
But divisional manager Bradley Bennett told ECN Middle East magazine, “We faced such intense competitive pressure to shift stock, our margins were slashed by up to two-thirds.”
Although competition from rival retailers impacted Jacky’s margins last year, Panjabi told ArabianBusiness.com that working to increase volumes at the show can help to generate profits.
“I wouldn’t necessarily say profitability dropped last year, as the increase in volumes does make up for natural depreciation in prices that happen every year,” he said.
“Profit margins will be compensated by increased volumes and we have to measure the size of the pie and not the slice of the pie at the end of the day,” Panjabi added.
Jumbo Electonics, also exhibiting at the show again this year, agrees that competition will undoubtedly grow again this year.
“The number of players increases each year; there is no doubt about that,” a Jumbo spokesperson told ArabianBusiness.com. “However our main concern is the rise in ticket price from 15 to 20 dirhams, which might deter visitors to the show this year.”
Jacky Electronics will be exhibiting at stands CA1,CB1,EA40, Central, East & West Halls.
Plug Ins Electronix will be exhibiting at stands CE3 in Central Hall.
Jumbo’s Electronic will be exhibiting at stands CA4 CB5 CB6 CB7 CB8 CD3 CD4 CE4, all in Central Hall.
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