Advanced distribution practices driving growth of region's retail sector

The event offered retail experts the opportunity to assess how far the retail sector in the region has evolved, from the early days of the souks as the main port of call for people looking for bargains, through to today's more diversified markets.

One of the local innovators in the area of retail distribution, Source IT, exhibited at the event. Founders Chris Rae and Ahmed Al-Azzawi spoke with attendees about the techniques which have enabled them to support the launch of successful brands like i-Mate in the market.

"The Middle East retail channel is evolving rapidly, and retailers need to adapt to these changes. Consumers are sophisticated, they recognize and reward good service, and brand loyalty is much harder to foster," explained Ahmed Al Azzawi, director, Source IT. "It's no longer enough to pile goods high and sell them cheaply - retail outlets need to have a sales strategy that ensures them long-term success in the market."

There are currently approximately 35,000 consumer electronics stores in the Middle East, which means that competition levels are high and companies are forced to innovate to survive.
Having pioneered practices such as box bundling in the region - where a number of products are sold together to provide a comprehensive solution - and promoted credit financing options in co-operation with leading retail banks, Source IT has established itself in the market for companies looking to prosper.
In addition, the company has begun to provide specialized training for sales staff in the retail outlets they distribute to, which senior executives feel is becoming increasingly important for customer retention.

"What companies are beginning to realize, from vendor level all the way down to the shop floor, is that it service is becoming the key differentiator for both local customers and visitors to the region. Selling unique products, adding value to the purchase, and treating every customer as an individual - all these are key for those retailers that want to retain customers and grow their market share," commented Chris Rae, sales director, Source IT.
Source IT's success has resulted in a number of awards from leading companies, including IT distributor of the year from Plug-ins Electronix.