Dubai luxury retailer BinHendi to embark on international expansion drive
BinHendi Enterprises, the Dubai-based luxury retailer, is set to embark on an international expansion drive despite a 15 per cent drop in forecast sales caused by regional political turmoil and a decline in Russian tourists.
BinHendi plans to boost its investments by as much as 40 per cent in the year.
The group, one of the biggest and oldest retailers in the country, is eyeing expansion in the Middle East and North Africa, India and East Africa to tap into growing wealth, said Mohi-Din BinHendi, the founder and president of the group since it was set up in 1974.
“There are malls that are coming up and there are opportunities availing themselves in different parts of the world,” said Mr BinHendi. “Our mission and vision is to be among the top 10 best retailers in the GCC and the Mena region.”
Although the UAE commands 75 to 80 per cent of the group’s revenue, BinHendi plans to add more outlets in Kuwait, Oman, Qatar, Egypt and India.
It aims this year to enter Saudi Arabia via Jeddah and Riyadh and venture into East Africa next year with outlets in the Kenyan capital of Nairobi.
“We want to go to East Africa, to Nairobi, because real estate is available and the market there is also very lucrative,” said Mr BinHendi.
The group, which has high-end brands such as Hugo Boss and Zilli, is looking to introduce watch brands as well as outlets such as Big Mama’s and Papa’s Pizzeria to the UAE.
“The whole game looks very rosy for us for the future,” said Mr BenHendi. “At the moment, we have to take these cuts in daily sales because of the prevailing situation.”
BinHendi will fund 80 per cent of its investments from banks, he said.
The group expects sales to drop by 10 to 15 per cent this year as its biggest customers from Russia stay away from the UAE because of to the collapse of their currency and slower economic growth. Russia’s economy is suffering from a near 50 per cent drop in oil prices and western sanctions.
The other big customers from China, India and the Middle East cannot compensate for the loss of Russian tourists, he said.
The group, which also has food outlets such as Japengo Cafe, has introduced more than 75 brands to the UAE in fashion, watches, jewellery, accessories, furniture, fine dining and other sectors.
