Case Study: G&M International

G&M International was formed 30 years ago but current Chairman and UAE national Abdul Majeed Bolooki bought the company six years ago and now runs it alongside his wife, who is a Director. G&M is the UAE agent for high-end electronics firm Bose but when Mr Bolooki took over, its future was far from certain.

Turning things around

'When I decided to step in and take over, the firm was on the brink of collapse. The previous owners had built up large debts and they effectively abandoned it and left the country. I have a background in banking and I think that really helped me get this company together and fix it.'

Since Mr Bolooki's involvement the company's fortunes have turned around and it now boasts retail outlets right across the UAE. G&M has seven stand alone stores and three shop-in-shop outlets, with the majority in Dubai, but the firm also has a presence at the Marina Mall in Abu Dhabi and the new Emax Big Box store in Sharjah.

'We concentrate on the top end of the market and with the many luxury developments emerging in Dubai, this gives us a constantly increasing client base. With Dubai's booming economy pushing up salaries, this too brings more people into our potential market.

'But our commercial business is also expanding impressively. We offer sound system solutions to hotels, restaurants and night clubs for instance. In fact, we have just doubled the size of our Projects Division in order to meet an anticipated surge in demand. Right now, our retail side makes up 75 per cent of our business, but we hope that our systems integration division will soon be providing up to 50 per cent of our revenue.'

G&M International has a philosophy of not just being 'box movers' but offering advice and demonstrations of their products to customers. The firm's main office features three demonstration zones which have been fitted out as a hotel room, a corporate board room and a night club - complete with strobe lighting and the latest fog machines.

'We don't just want to sell a customer a product, we want to make sure it is the right product and it fits their requirements. For example, we will go to a customer's house, do a survey and then give them recommendations. We offer genuine sound solutions. Our business has grown about 30 per cent this year so our approach is clearly working.'

The world's local bank

G&M International's recent growth has of course been aided by the support given to it by the HSBC and it was the bank's global and regional standing that attracted Mr Bolooki.

'We started banking with the HSBC two years ago and one of the main reasons we chose them was because they seem to have been here forever! They have been in the UAE a long time and so they know the culture of the people and the needs of the market. Plus, it is really true that they are the world's local bank. They have a prominent global reputation but they are also attuned to the region.

'We have a lot of dealings with Europe and the US and so banking with the HSBC makes sense on an international level. But choosing the right bank is important because, for us at G&M International, we see it as a long-term relationship and I believe the HSBC is also committed for the long-haul.'

Branching out

The financial uncertainties besetting G&M when Mr Bolooki took over are now firmly in the past and he is rightly proud of the firm's progress in recent years. He is also keen to see the company flourish and recognises the part the HSBC will play in this.

'We have signed agreements for three new outlets in Dubai at Festival City, Dubai Mall and Business Bay in the next year or so. We are looking to grow solidly and steadily and we are hoping that we can expand our business with our bankers alongside us.

'Dr Amar Bose once said that in order to be better, you need to be different, and by supporting our customers and helping them to find the right product, we are striving to do just that.'