Thursday, Aug 06, 2009
Dubai: Index Living Mall, the leading manufacturer and exporter of furniture products in Thailand, has officially opened its first full-scale franchise in the Middle East in Dubai with an investment of $5 million (Dh18.35 million).
The company, which claims to be the third largest home retail chain in Asia, will provide the management, marketing and brand-building know how as well as supply the products to the franchise.
The flagship outlet at The Dubai Mall occupies 50,000 square feet.
"We selected Dubai as the first outlet outside Thailand because the emirate is the business hub of the Middle East," said Pisith Pattamasatayasonthi, President of Index Living Mall Co.
He said during a crisis period there is always an opportunity.
"Economy is a cycle, it has ups and downs. Sometimes if the economy is good, investment becomes expensive and it is very difficult to get a good location like this. So we have made use of this opportunity. It is the right time for investment," he said.
"We plan to open around eight more outlets in the next three to five years depending on the success of the Dubai launch. We are in talks with Abu Dhabi, Qatar and Bahrain, but nothing concrete. India is on our radar," he added.
"We will also be bringing Thai culture to Dubai through this outlet. We will promote Thai handicrafts and delicacies. When people think of Thailand, agriculture comes to their mind first. But that is not true. The Thai economy has earned $1,200 million from furniture exports despite being a small figure," Pisith said.
Dubai is the 18th outlet. The company has 17 outlets in Thailand with a total retail space of two million square feet.
Under the franchise contract, Retail is Detail, a family-owned business unit of Gill Capital, is committed to opening more Index Living Mall outlets across the Middle East. Gill Capital brought Royal Sporting House to Dubai and it was sold to Emaar in 2007.
"Our aim is to bring new and exciting brands and concepts to the retail industry. The Index is our third venture apart from Stella Luna, iwannagohome. Our next store will be Ethan Allen to be opened soon. We will have eight outlets by year-end, Sanveer Gill, Director of Retail is Detail, said.
The Thai company's turnover was $200 million in 2008. "Our company was growing about 15 per cent in the last five years, but this year due to the crisis we expect about 5 per cent growth," Pisith said.
By Naushad K. Cherrayil, Staff reporter
Gulf News 2009. All rights reserved.
