A LOVE AFFAIR WITH THE MIDDLE EAST

The year was 1998.  Slightly over a year into my international development role, I decided we had to be more committed in our activities in the Middle East.  Blessed with very supportive bosses (their famous phrase was ‘Go get it!’ Not forgetting to add ‘Figure out the resources on your own and bring back the dough!’), armed with a cabin-size Samsonite and a bunch of to-dos in my head, I left for Dubai.

We had a small business in Saudi Arabia and a somewhat struggling one in Oman.  The volume was insignificant.  The potential was huge.  With 4 cars to every household, temperature averaging over 40°C, undefined solar tinting regulation, highly fragmented low end market with 3M as most popular brand, it was more intuitive than scientific to conclude we had to be there.

My aim was to build brand and channel partnership throughout Gulf Cooperation Council (GCC) countries.  The outcome was for Middle East territory to contribute to no less than 15% of our total revenue.  There were no more than 20 Singapore companies operating in UAE at that time.  While Dubai was becoming a trading hub with its tax-free policy and a land known for fast cars and luxury back then, it was still far from what it is known today. 

There was no Ski Dubai, no Burj al-Arab, or the Palm.  Driving 50 km in my rented Peugeot 206 with 1.4 litre engine from Bur Dubai to Jebel Ali (JAFZA) was a challenge everyday with impatient cars honking and overtaking mine.  To add to the commotion, my confusion with left hand drive didn’t help very much (sure...I am a self professed lousy driver).  The long stretch along Sheikh Zayed Road was not much of a view then as it was still largely undeveloped relative to what we see at present.

While it is very tempting to write a lot more on my personal experiences there from various angles, I shall keep focus on the business perspectives.  To cut the long story short, within 3 years of venturing into the GCC, we achieved our targets and V-KOOL became one of the best brands throughout GCC. 

Below are some quick headlines on how we got started there (they were relevant to our context at that time and things might have been very different now).

#1       FORGET ABOUT REMOTE CONTROL.  MAKE IT HAPPEN!

Don’t fool yourself that success can happen by remote control.  SMEs are often constrained by resources.  We were as well at that point.  Without deep pockets and operating on lean headcount, we made a decision to ‘go for it’ consciously.  We had a plan.  We didn’t believe in remote control and letting things happen its way.  We controlled our destiny. 

We carefully forecasted our growth.  It was an investment to us, as opposed to cost.  Surely from office rental, apartment rental, manpower cost etc. it seemed challenging for a small company (we were small then).  But we had ambitious plan.  We knew the potential of the market.  We were excited by the numbers projected.  We wanted to make it happen and the only way was to be firm in our execution.

We set up a small office at Jebel Ali Free Trade Zone (JAFTZA).  It was a conscious decision as we did not want to fuss over sponsors.  We wanted our energy and focus to be invested in getting the brand and channels up.  JAFTZA offered us the perfect solution then.  Setting up an office there was a breeze.  I was deeply impressed with the pro-business operating environment. 

We were fortunate to have met some of the most helpful and efficient government officials there.  In fact, the irony was that the commercial sector was not as efficient as compared to the government.  The office renovation by the contractor and set up of furniture from IKEA was a big disappointment with the snail pace and often, non-responsive customer service approach. 

Nonetheless, setting up a regional office in Dubai was a strategic move for us to pursue our plans for Middle East as the first step.  Our role was not to duplicate what our franchisees/partners were doing but to complement and support them.

#2       LEVERAGE ON NETWORK & CONTACTS

Any initial start up in a foreign land is always challenging.  Getting advice from those who have gone through similar tracks would be critical.  Through Singapore government trade agency, we were fortunate to be introduced to a Singapore logistics company that has been operating there for a few years before us in JAFZA. 

The generosity and kindness from Dickson, the General Manager of the logistics company went a long way in easing us in the start up; from getting around the place, relevant contacts to get the office started up, understanding of the business culture and climate, and how to get things done in JAFZA.  The office was set up in no time.

Above all, as a one-man-operator (OMO) in a foreign land, the friendship and warmth extended by Dickson and his family made a significant difference.    

#3       TAKE A LONG TERM VIEW WITH YOUR PARTNERS

It was almost a white space for us despite having business partners in Saudi Arabia and Oman.  The market was not optimized.  The biggest challenge then was in gaining market share. 

It is almost easy to always point a finger at others as an afterthought that they are not doing their job.  But we took the approach of reflecting on our own strategy on how and what we could have done better to help our partners realise the market potential.

It was not easy.  We knew we were in this for a long haul and our efforts could only be realised with our partners.  Understanding the strengths and the gaps of our partners, we re-strategized.  Gaining trust is critical.  So is earning respect.  Every partner has his idiosyncrasy…just like you and I.  Move on and focus on the bigger picture.  Once the vision is aligned, working together to achieve the common target is easier. 

We ran our annual planning exercise together, did our monthly strategy review; we worked closely as a team, eventually developing trust and mutual respect.  In no time, we opened up all the key markets in GCC. 

#4       BE ON THE GROUND

Just because you have partners does not take away your responsibility to be hands on to know the markets.  While we were the supplier/franchisor and by definition our business scope would be wholesaling while our franchisees took care of channel development and retail business, we adopted a hands on and involved business model.

We understood that our products were revolutionary and new to the GCC.  Flushed by prominent brands at much lower priced products in the market, the introduction of a premium category at a 10x price point needed a different stroke.  What worked for us in Asia might not be the same for Middle East.  We were mindful not to adopt a cookie cutter approach. 

We needed to understand the psychology of the buyer.  I spent a large part of my time talking to potential end-users, salesmen, car dealerships, and our partners’ team etc.  We formulated our go-to-market and re-strategized many rounds.  We changed our pitch, introduced new demonstration tools, and continued to evolve. 

Being on the ground, understanding the issues faced and helping to solve problems help us become a valuable member to our partners.  Most importantly, invest the time to know your partners well.  This includes not just the business challenges of your partners but knowing their families as well. 

When you are accepted and treated like family members by your Middle East partners, business dealings operate at a different level.  We were able to convert the initial scepticism into trust and respect. 

#5       LOVE THE MARKET

It’s always meaningless to do something if you do not have the passion and love.  It’s not easy to naturally assume everyone has the market affinity.  In fact, subsequently when our Dubai office expanded, we had difficulty posting young Singaporeans to be stationed there.  I recalled one of our staff literally ‘ran back’ after two weeks there. 

I have a very personal relationship with the Middle East.  I love the diversity of its people, culture, history, and markets.  Some of my best enduring memories came from this part of the world.  Many of my best friends are from there.  I have met wonderful, brilliant and inspiring people all over the GCC and am grateful for their mentoring and friendship.

Love the market you are in and be passionate about it.  Success comes easier if you have that fire in the belly and twinkle in the eyes.  Almost two decades after, Dubai remains home in my heart and Middle East continues to be my love affair.  I miss the ‘cranes’ in the Dubai city skyline already…for those who understand what that is…

About the Author, Yin-Yin Yeo

Yin has a deep passion for markets, in particular, relating to foodservice, automotive, specialty chemicals and digital. Stemming from her two decades of senior leadership roles with MNCs, SME and government agency, Yin specializes in international business, general management (commercial), growth strategies and M&A operations. Her career has taken her to over 20 countries where she spent her time living and working in key cities of Singapore, Shanghai, Beijing, Shenzhen, Tokyo and Dubai.  This article is personal to the author and does not form any part of corporate or academic views.