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Finding a place in a crowded world

When Portuguese lifestyle brand Sacoor Brothers set up shop in Dubai a little over three years ago, its promoters and owners knew it was not going to be an easy market to break.

In a playing field already flooded with some of the biggest names from Europe and around the world, Sacoor Brothers, although already a household name in its home country, was going to have to face up to some tough competition.

It had to go for the jugular.

And that, according to Gonçalo Veloso, who spearheads Sacoor Brothers' international operations, meant going back to fundamentals.

"We were very strong on our service style, that is what has defined us from the start. We knew that if we provided the best service, people would come," he says.

There are now six Sacoor Brothers stores in the Middle East, of which four are in Dubai. Two more are scheduled for the region, a fifth in Dubai and a new one in Kuwait, which will bring the total number of global stores to 55 before the end of the year, says Veloso, whose company recorded an annual turnover of €50 million (Dh261.4m) last year.

"Part of our success is because there was a need for a brand such as ours in the mix. There are few companies that offered the kind of service style, the quality and the retail environment and our price points," he says.

Like its first store at Dubai Festival City, each Sacoor Brothers outlet features live classical music during peak hours, a "Sacoor Lifestyle Zone", which includes a bar service offering tea and coffee and a dedicated tailor's room service, so customers can walk in and walk out with fitted clothes.

A monthly audit system is employed to monitor all franchises and outlets around the world.

The service style in the UAE is slightly different from the brand's Portuguese stores, says Veloso.

"It's better and grander because we wanted to differentiate ourselves in a new market. We wanted to stand out by offering things other retailers didn't."

Globally, Sacoor Brothers has also invested heavily in advertisement, sponsoring famous Portuguese and Brazilian personalities.

Current campaigns include stars from hugely successful TV series CSI: Miami and Prison Break.

Started by four brothers in Lisbon in 1989, the brand covers a range of men's, women's and children's ready-to-wear, including shoes and accessories. Starting off with Spain, Belgium and Romania, its international expansion in the Middle East has now become a priority to the brand, says Veloso, whose company has partnered with Bahrain-based Jawad Business Group in the region, which also owns the franchise of brands such as Mango, FCUK and Accesorize among others in the Middle East.

"The region is characterised by a very particular social and economic conjuncture and the acceptance of top European brands is a reality. Then there is the potential it has, making it a fantastic marketplace."

Despite the travails of being part of the current international retail market, the UAE and the region has however shown strong growth numbers for the brand.

"Our store at Dubai Festival City posted a 23 per cent sales increase in July from the same period last year, while our Portuguese stores showed 14 to 15 per cent growth," says Veloso, who recently supervised the opening of a new outlet at The Dubai Mall.

Another store is scheduled to open before the end of the year at a new mall in Mirdif.

The company has also adopted various branding modifications keeping in mind the sensibilities of the regional market and the customers it wants to win. "If you look at our Portuguese and European stores, our brand is usually associated with our logo, which is a greyhound, and which features prominently in all our properties. But in keeping with cultural and religious sensitivities, all our Middle Eastern stores feature the Sacoor name instead of the logo," he says.

"I think this is a great example of just how important this market is to us and the faith we have in our customers here."

Uncertainties in global markets have, however, halted other expansion plans for now, says the official.

"We only want to focus on the best projects and on markets that we are confident with. At this point in time, we don't want to risk anything. We need to know and see to be sure.

"I think now the focus should be on building up the brand," he says.

For now, Sacoor Brothers is finalising expansion plans in Poland and as markets heal, will look at entering Russia, Ukraine, Lebanon, Syria and Jordan. South East Asia is also on the road map.

"These are difficult times for everyone, the crisis is hitting us all, everywhere. I think the most important thing for us is to focus on current plans and build on what we have and aim to continue to give the best," says Veloso.

By David Tusing

© Emirates Business 24/7 2009