The retail landscape has transformed dramatically in the region as malls become a way of life. Reseller ME finds out from Neelesh Bhatnagar, CEO, Emax Electronics on what is next for the eight-year-old retailer as it reaches its 100th store milestone by 2017.
Emax Electronics’ first official store was sprawled across 100,000 square feet in Sharjah in the UAE and even after eight years, it remains the largest electronic store in the Middle East today.
It takes immense foresight and confidence and not to mention courage to begin with a “big bang” as its CEO, Neelesh Bhatnagar puts it. But staying firm to his belief and not heeding the naysayers, Bhatnagar went ahead and took the risk of opening a large-sized store to debut in the electronics segment in the region and from then, there was no looking back – building the Emax empire across the GCC which represents more than 800 brands over 20 plus categories.
With over 56 stores across the UAE, Saudi Arabia, Oman, Qatar and Bahrain today, the retailer expects to open its 100th store by mid-2017. However, Bhatnagar is not too concerned about growth as he believes with the kind of investments and efforts being put in, growth is a natural progression. “Growth is a natural result of our efforts. Our ultimate aim is to present electronics to the common man in a simplified manner. With every new store, our intention is to increase and enhance the customer experience. Our objective of ‘Electronics Simplified’ differentiates us in the market and has worked out well for us,” he says.
When Bhatnagar envisioned Emax, eight years ago, he had intended it to be a large-format destination retail chain, but the current market scenario demanded otherwise. He explains, “Today rather than being large format destination stores, our strategy is to be present in the malls in slightly smaller formats. Our aim is to be the mall player of the GCC.”
What has also undergone a transformation in the market is the importance given to presales and post-sales services over the recent years. Today a customer do not purchase a product simply by itself but also considers the presales and post-sales services available with it. The expertise in this offering was lacking from retailers in this part of the region as compared to its European counterparts. Bhatnagar says, “Here selling electronics was more about moving the brown boxes containing the gadgets. We have raised the bar with respect to presales and post-sales. This is where customers need guidance and people now understand the meaning of service.”
Also with very little product differentiation present in the market today, services will play a large role in helping customers decide on a purchase. Identifying this opportunity, Emax has developed its after-sales service called, Smart Care and delivers presales in terms of customer experience, display, touch and feel and also provides buying guides to help the customer ask the right questions to the salesmen, enhancing his purchase decision. “I’m glad some of the competitors are also following suit but one has to remain ahead of the game,” he adds.
Presently an electronic anchor store in most prominent malls, Emax has been growing consistently at 30 percent year-on-year for the last three years. The retailer also has an online store through the Landmark Group and although the response has been encouraging, Bhatnagar says it will be some time before e-commerce takes off full-fledged in the region. “Shopping is a lifestyle and a passion for customers here and with a mega mall situated every one and half kilometres, they are spoilt for options. The amount of retail space being added in the UAE is also to a large extent. Therefore, I believe the impact of e-commerce growth may not be as significant here as it is in the western countries. However it is definitely a trend that is here to stay and we are gearing up for it.”
With accolades for being the largest electronics retailer in the region, the secret for a successful business, says Bhatnagar, is offering value to the customer without compromising on the pricing, promotion and marketing.
“People are price conscious here, therefore the benefit you get by being better than your competition is not about the price but you achieve a larger volume of business and gain customer loyalty. The winning combination involves offering the best presales and post-sales service simultaneously with best offers on the floor,” says Bhatnagar. “Since the customer is not willing to pay a premium for better service, we must be more efficient and cost-effective – this should be the name of the game to be successful in this business. Also, efficiency is the difference between profit and loss.”
With the 100th store milestone just over the horizon, what is next in store for the retail conglomerate? According to the CEO, the retail chain aspires to be a place where customers can come and learn about electronics while on the floor.
“We need to take the leadership in terms of bringing a technology to the common man’s grasp, allow him to understand what it is all about. I tell my staff that whenever a customer walks in and out of Emax, he should have learned something about technology by walking on the floor, irrespective of whether he made a purchase or not. Personally I want Emax to be a place where customers come and learn,” he says. “Sales will fall in line, showrooms will keep opening, market shares will keep increasing; all this will happen naturally. Once the basics are right, customer loyalty and sales will follow.”
Electronics is a fast growing category and as the market matures further and customer demands transform, it will increasingly become difficult to rise above the competition. However, as Bhatnagar says, with the basics established concretely, the growth possibilities are immense and it is up to each player to grow the market efficiently.
