Country: UAE

Spanish fast-fashion retailer Zara, owned by the Inditex Group, is gearing up to expand its sister brand. The lesser known brand called Lefties, which is inspired from the word “leftovers”, started out as an outlet store to move last season’s stock at reduced prices. However, in the last few years the fashion brand has really stepped out of Zara’s shadow and started creating an independently designed line.

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The small brand is looking at a large global retail expansion, starting from its debut flagship in Saudi Arabia. The latest store, which is set on an area of over 1,700 sq. metres, is situated at the Al Nakheell mall that houses other Inditex brands already and is one of the biggest shopping destinations in Riyadh. The shopping centre, which is also welcoming other Inditex brands, is one of the main shopping destinations in the Middle East.From its start in 1993, Lefties has trudged out from its home in Spain to the international markets of Portugal, Mexico, Russia and Qatar boasting of stores in over 127 locations.

The store is slated for an opening on April 13 and will house Lefties exclusive collection of apparel for women, men and children. The report also states that the company has specifically hired new designers, pattern makers and merchandisers for creating the new collection.

Japanese sportswear specialist ASICS has officially opened a subsidiary in Dubai, the first fully-owned sales and marketing organization of the true sport performance brand in the Middle East as part of the brand’s strategy to further expand its footprint in emerging markets whilst reinforcing its premium positioning.

Besides launching ASICS Middle East LLC, the company also plans to strongly increase marketing investment in the region as well as developing direct relationships with key retailers. It has also set up efficient logistic operations to allow for fast deliveries to retailers in the region.

“The new organizational structure will help deliver accelerated growth, replicating its success in Europe where we are the leading premium sportswear brand, as well as a popular lifestyle brand in ASICS Tiger. ASICS is currently underrepresented,” said Alistair Cameron, CEO – Europe, Middle East and Africa operations, ASICS.

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Furthermore, the company is looking to build the brand across other categories by delivering marketing leading products across other sports, including training, tennis and rugby. At present, the best performing regional markets for them are UAE and Saudi Arabia.

“By 2020, we want to become the number one running brand in the region and be in the top five premium sports and lifestyle brands league,” added Cameron.

United Arab Emirates-based online retailer Souq.com has raised US $ 275 million funding from international investors, to strengthen its technology, like payment processing, to help increase the scale of its operations by enhancing logistics, and hire more employees. The company will also utilize this fund to launch new product categories (beauty and fashion).

Ronaldo Mouchawar, Chief Executive Officer of the company said, “The start-up scene has changed so much since Souq launched over 10 years ago, and the size and scope of this kind of funding is encouraging for entrepreneurs.”

He further informed that the company has also made small acquisitions over the time and would continue to do so in future as well.

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The e-commerce giant of Middle East region, which trades fashion, household goods among others, averred that investors partaking in the funding round comprised Tiger Global Management, Naspers, Standard Chartered Private Equity, International Finance Corporation and Baillie Gifford. “The e-commerce market in the Middle East is growing very fast and is expected to reach US $ 20 billion this year,” Mouchawar explained.

Set-up around 11 years back as an auction site, Souq.com has advanced into a retailer and a marketplace for third-party sellers. It attracts more than 24 million unique visits per month, the company claims.

Dubai-based retail conglomerate, Apparel Group announced its investment plans worth US $ 120 million in order to open 300 new stores across the globe, in 2016. The retailer also has plans to enter Iran by the end of 2017, apart from increasing its reach in Africa, Asia, and the GCC (includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates).

At the recent inauguration of Apparel Group’s latest store, Shoe Gallery at a mall in Abu Dhabi, Nilesh Ved, Chairman of Apparel Group revealed that the company is already in talks with a few brands with which it has franchise agreements, to enter the Iranian market. The Group, which is already present in 14 countries has plans of expanding its reach to at least 25 countries by 2020, with a special focus on Africa.

“We are getting into South Africa as we have just acquired a company, and we should be there by March. Getting into South Africa will open the doors for us in Sub-Saharan [Africa]. By 2018, we should be in Kenya and Nigeria as well,” said Ved. He further disclosed company’s plans of adding 30 stores in India, in 2016, and 100 stores in the GCC.

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Apparel Group is also looking at adding five new brands to its existing list of 55 brands including Aldo, Aeropostale, Kenneth Cole, Tommy Hilfiger, Nine West, Calvin Klein, and Tim Hortons among others. Besides, the Group is planning acquisitions in near future, about which, no details have been disclosed until now, but an announcement is expected in next six months.

Italian luxury menswear label Ermenegildo Zegna recently signed a JV agreement with UAE-based Al Tayer Group for expanding its sales through boutiques and other points of sale across UAE. A 354 sq, m. flagship store has already been opened at Mall of the Emirates, and another store is expected to be open by 2017 in The Dubai Mall.

Ermenegildo Zegna operates 525 stores worldwide, out of which 298 are directly owned, and others through point of sale in department stores such as Harvey Nichols, Bloomingdale’s, and Galaries Lafayette. Al Tayer Group manages 35 luxury brands including Alexander McQueen, Boucheron, Bottega Veneta, Dolce & Gabbana, Emilio Pucci, Giorgio Armani, and Jimmy Choo.