JEDDAH: 3M, with global sales of over $26 billion, is investing heavily in research and development (R&D) to keep an edge in the growing market for innovative products for the diverse consumer and office business market.
Last year, the company invested $1.43 billion and in the last five years over $7 billion in R&D, said Osama Hammoudeh, general manager of 3M Saudi Arabia. 3M, which started its operations in Saudi Arabia in 1980, is trying to develop products targeted specifically at this market, he added.
Saudi Arabia, with a population of about 28 million, is considered the biggest market in volume and value sales in the Gulf Cooperation Council (GCC) countries.
Hammoudeh said companies, both multinational companies (MNCs) and regional ones across the board, are trying to customize product offerings to the Saudi market. These customizations are based on the cultural and behavioral mix of the target audience.
In fact, not only are companies customizing products, but most importantly communication. "So above the line of communication -- TV, print, radio and even the Internet -- as we go along, will increasingly become more focused to the Saudi audience. Below the line communication will be further tailored on a city-specific level; so what you might see in Riyadh, will be completely different from what you may see in Jeddah," he added.
"The fact is that most MNCs entering this market have realized its potential and are fighting tooth and nail to gain both market share and consumer mind share," Hammoudeh told Arab News.
3M, with operations in more than 60 countries and over 76,000 employees, manufactures over 55,000 products, including adhesives, abrasives, laminates, passive fire protection, dental products, electronic materials, medical products, electronic circuits and optical films.
With its popular brands such as Post-it, Scotch, Nexcare and Scotch Brite, 3M enjoys major market share in the Kingdom. "It would be suffice to say that we are leaders in the adhesive notes and flags category. The tapes category is generic with the name Scotch so we enjoy a sizeable presence there," he added.
"We are looking at establishing our presence in the affiliated stationery categories of glues, scissors and, most importantly, writing tools in the Kingdom," Hammoudeh said.
Regarding consumer health care -- Nexcare and Futuro, he said, we are constantly increasing our share in bandages through the Nexcare brand and in braces and supports through the Futuro brand.
The company launches various campaigns directly with its vast consumer base in the Kingdom. Recently, it launched the Raiders campaign, which was specifically for the Post-it and Scotch brands. He said: "We designed this campaign for Saudi Arabia since it is the biggest potential market for Post-it and Scotch brand products in the entire Gulf region."
When asked about plans for a 3M plant in the Gulf region, Hammoudeh said: "3M products are manufactured globally across countries. We specifically look at manufacturing in countries which have a significant sales volume or which have a potential for the same. About Post-it and Scotch, a majority of the products come from the US only. Where the region is concerned, we have a conversion facility for Scotch-Brite in Sharjah - a first for this region for 3M and a unique Customer Innovation Centre in Dubai," he added.
© Arab News 2011
