Riva - the Kuwait based fashion brand targets Franchising Middle East show for GCC expansion

Riva - one of the most successful local fashion brands whose roots were established in Paris, intends to invest significantly across the GCC in the next five years. Franchising Middle East show is poised to set the stage for Riva as the brand pursues expansion.

"Riva has establishd itself as a hugely successful Middle East fashion brand since its origin in 2001. Within a span of five years we have developed sales in far excess of our original targets. O n average, we have achieved an increase of 25 percent sales year on year. This success has motivated us to expand in a big way,"

confirms Kris Barber, Business Development Manager Riva.

Owned by the Kuwait based Armada Retail Concept group, Riva presently retails from 11 stores across Kuwait and the UAE and aims to establish a total of 50 outlets across the GCC in the next five years. 2007 will also see store openings in the Burjuman Centre - Dubai and Al Wadha Mall in Abu Dhabi. By spring 2009 RIVA plans to add another five new outlets in Dubai alone.

Riva is also set to follow in the foot steps of international brands which have successfully taken the franchising route to establish themselves in the Middle East markets. The brand will be investing significantly to develop successful franchise partnerships across Saudi Arabia, Egypt, Jordan , Lebanon, Syria, Oman and Qatar.

According to Kris, "By 2009, we intend to establish around 30 franchised stores in Saudi Arabia alone and around 10 in Egypt and Jordan. Riva's participation in Franchising Middle East is the most important step towards the realization of our strategic objectives. We perceive FME as the gateway to our franchising success in the Middle East, as it is the largest franchising show in the Middle East that attracts serious trade visitors from across the region. In addition to identifying strategic partnerships, the show will create highly beneficial brand awareness and prove to be a valuable networking exercise."

According to Abdul Rehman Falaknaz, President International Expo Consults- the organizers of FME; "Over the past few years, fashion has emerged as an area of high focus as far as franchising partnerships are concerned. An increasing number of local and international fashion brands are aggressively seeking the Middle East markets. The factors responsible for this interest include the booming Middle East retail sector that is estimated to be worth 100 billion per annum , the growing awareness of fashion brands and trends in the region, and also the fact that the region particularly Dubai is attracting lot of international tourists who lap up the brands at comparatively lesser price tags due to absence of taxes. These factors have prompted many fashion brands to focus on Middle East as a highly lucrative market."

Riva specialise in mid-to-high end ladies fashion and accessories. The brand regularly releases new collections that coincide with the local calendar and the transition from spring/summer to autumn/winter is far more gradual than most other European brands.

"We attribute our success to a fast turnaround or flash collections that are in and out of our stores on a 'buy when you see" basis. Riva is hugely popular among Middle East customers due to intricate embroidery detailing, heavy embellishment, rich colours and the luxurious fabrics used in our collections. This look is also becoming extremely popular throughout Europe. Though our clientele is predominantly regional, our expatriate customers have increased by 10 -15 percent. Our modern collections have an ethnic twist, which make them very popular among our western customers. In the near future, Dubai and Abu Dhabi will account for around 20-25 percent of our business revenues from this segment."

Kris attributes the increasing international interest in Middle East fashion to the greater influx of people from the West, both as tourists and as residential communities and also due to the greater exposure of the Middle East in the international fashion press and T.V. These factors have encouraged Riva to develop a European management office in Paris and consider new retail opportunities in France and the U.K.

The brand has also made a huge investment in redesigning the new store interiors as well as developing new corporate graphics and a highly fashionable colour scheme that will take the business forward to new heights in the future. The new RIVA website will be launched at the FME event and will act as a platform to show new collections and the latest news related to the brand.

Though things might be looking up internationally for local fashion, most of the regional home grown brands are challenged as the retail mix of 80/20 (international brands versus home grown) in the leading malls, puts the stakes very much against them. More than 50 percent of retail sales are generated from international brands. This concern is also voiced by Kris, "as new shopping malls continue to evolve in the region, leasing companies tend to disregard local brands in favour of European high street brands operating through larger local franchise companies. This approach has restricted growth for local fashion businesses and resulted in the duplication of European High Street brands within many of the modern shopping malls."

As an endeavour from Mohammed Bin Rashid Establishment for Young Business Leaders, Franchising Middle East aims to promote the interests of small and medium business enterprises and strives to provide a leveling ground of opportunities. The exhibition scheduled from March 5-7, 2007 at Dubai World Trade Centre provides a chance for home grown enterprises to seek both regional and international business partners.