Luxury Brand Adopts Franchise System to Expand in The UAE


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Luxury Goods Manufacturer Montblanc has announced pla ns to expand retail franchise operatio ns in the UAE by opening boutiques in premium malls and department stores. Experts hope that this aggressive strategy will provide the company with enough outlets to take advantage of the much anticipated market rebound.

This was confirmed by Mr. Joe Nahhas, Regional Brand Director of Montblanc: “Montblanc’s investment strategy in the Gulf countries is anchored in the fact that the Gulf and Middle East countries are poised for an economic recovery and with increasing confidence in the economy, investment in luxury products is expected to grow.”

Montblanc, famous for its jewellery, classic timepieces, eyewear, leather goods and stationary, earlier announced a similar strategy of expansion in Saudi Arabia, with planned openings in the Kingdom, located in Red Sea Mall, Jeddah and Kingdom Centre, Riyadh. As a result of the Dubai World debt restructuring, which was publicized recently, there has been a major return of market confidence in the real estate and property sector in Dubai.

Nahhas remarked:  “Montblanc’s 2010 retail expansion in the UAE began with the launch of a 170 m² boutique in Abu Dhabi, the opening of our 90 m² boutique in Mirdiff City Centre in March and a refurbished and expanded boutique in Ibn Batuta Mall. These will be followed by further new and refurbished boutique locations in the coming months. The success of Montblanc in the UAE is a direct result of the brand’s synergy and strong ties with the Rivoli Group, long time retailer of Montblanc in the UAE.”

About the locations of new franchise outlets, Nahas said the following: “The opening of new Montblanc boutiques ensures that we can provide a wide range of our products to our clients throughout the UAE at convenient locations across the country. Choosing the right location is a key success factor. The Mirdiff City Centre boutique is a prime example of this strategy. We want to empower Rivoli to meet the demands of our clients and thereby grow their business and revenue.”

Chief Operating Officer of Rivoli Group, Shanu Nag, commented as well: “Over the years Rivoli has strategically invested in establishing the Montblanc brand in the UAE. Having years of experience in the region’s retail industry, Rivoli has always concentrated on bringing the best retail environment to offer luxury products. Even in the present economic environment Rivoli continues to invest in the region with new stores and more luxury products for Montblanc. Our new stores in Mirdif City Centre and the new look, refurbished outlet at Ibn Battuta are recent additions to our commitment towards Montblanc,”

Montblanc has outlets in more than 70 countries. The company’s recent investments in the exciting Middle Eastern countries include both their own boutiques and outlets through franchise partners and shop-in-shop concepts covering the Saudi Arabia, Kuwait, UAE, Bahrain, Oman and Qatar. This expansion demonstrates that the business opportunity is still very much committed to the company’s expansion in this region.