MEET THE CEO
Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, visits Khaleej Times as part of our ‘Meet the CEO’ initiative. He discussed trends in the gold and jewellery sector
Shamlal Ahamed, managing director of International Operations at Malabar Gold & Diamonds, talks about Dubai as the ‘City of Gold’, and how innovation, a focus on designs, and customer service have helped propel the brand as one of the Middle East’s largest jewellery retailers.
Speaking at a ‘Meet the CEO’ session at the Khaleej Times office, he details his journey in the industry over the years and the importance of having the right team, the right store location, and the right marketing strategy to retain and attract new customers.
As long as there is love and affection, there is going to be a demand for gold and jewellery products The VAT is a lot like Salik; in the beginning, a lot of people were unhappy about it, but today they are used to it Dubai is still one of the cheapest destinations where you can buy gold
Technologies such as artificial intelligence and data analytics are impacting the way we do business
In retail, your success is heavily dependent on your location
You need to have the support of the right team, otherwise you will not be as successful as you want to be Visitors go to Switzerland and buy chocolates; they buy perfume in Paris; and come to Dubai and shop for gold
Adedicated team and a business model that is built on trust, teamwork and hard work is what Shamlal Ahamed, managing director — international operations at Malabar Gold & Diamonds, credits for the company’s success over the years.
Speaking at the ‘Meet the CEO’ series at the Khaleej Times office, Ahamed highlighted his journey from when he first started working at the company in 2002 to its position today as one of the Middle East’s largest jewellery retailers.
Ahamed made no secret of the fact that his first foray into the business was met with less than stellar success. “It was a failure, however, I was able to learn a lot from that experience. In retail, your success is heavily dependent on your location; we chose a location that was wrong for us. Secondly, you need to have the support of the right team, otherwise you will not be as successful as you want to be.”
Speaking about the importance of having great role models when learning the intricacies of doing business, Ahamed credited his father for guiding him.
“My father is my mentor and he is the most hard-working person in the company. Even today, he works over 12 hours every day. I didn’t find it difficult to carry forward the dedication to work that I learned from him.”
On the topic of digital innovation, he said that technology plays a big role in any industry.
“Today, you have technologies such as artificial intelligence [AI] and data analytics that are impacting the way we do business. Implementing these technologies to enter new markets, target different demographics and expand our footprint is a fantastic and exciting experience.”
Use of data analytics
“We have more than 2.5 million customers who have shared their data with us,” he continued.
“We can use it to understand their behaviours and their needs in order to serve them better. We are able to get valuable feedback from them on what type of designs they like, what type of promotions attract them and when they are in the mood to buy. AI gives us the opportunity to reach out to customers better.”
This is especially important in a market where customer behaviour is rapidly changing and there is not much loyalty towards brands anymore. Many shoppers, Ahamed said, look to buy only when they see promotions. This means that the company is focused on launching a lot of promotions that are based on the preferences of its customers to retain them as loyal shoppers.
“If you have data, then you can tailor your promotions to fit a customer’s profile,” he stressed.
“Every celebration is important to us. Shoppers buy for every occa-
sion they feel is important to them — be it weddings, birthdays, anniversaries or religious festivals. For every special event, there is a scope for gifting products. We believe that we are in an industry where, as long as there is love and affection, there is going to be a demand for gold and jewellery products. Weddings, of course, are a big driver of the business, as are festivals such as Diwali and Eid.”
Asked if the introduction of value-added tax (VAT) had dampened buying sentiment, Ahamed revealed that there had been a reluctance
among shoppers in the initial stages of introduction of the tax, but the effect had worn off once customers got used to it.
“Today, if you look at the market, you will see that it is much the same as it was before the tax. The VAT is a lot like Salik that drivers pay; in the beginning, a lot of people were unhappy about it, but today they are used to it. In addition, the VAT has been set at a mere five per cent. If you look at the difference in prices between India and the UAE, then even with the introduction of the VAT, there is a 9-12 per cent difference in gold prices. Dubai is still one of the cheapest destinations where you can buy gold. In addition, there is also the good news that tourists will be able to get a VAT refund for their purchases,” Ahamed said.
Gold tourism
Dubai, he added, still proudly holds on to its title as the ‘City of Gold’, where people from all over the world come to shop for jewellery.
“We like to refer to it as gold tourism. Visitors go to Switzerland and buy chocolates; they go to Paris and buy perfume; and, they come to Dubai and shop for gold. Last year, there were 15 million tourists that arrived in Dubai. During that same period, 2 million tourists visited the Dubai Gold Souk — these are impressive numbers.”
Asked about growth plans for the region and for the international market, Ahamed replied that expansion was definitely on the cards.
“This year, we have entered the US market and we are focused on expanding more in the subcontinent as well. In future though, we want to look at other markets such as Malaysia and Singapore. While we have a very strong presence in the UAE, we want to look at the rest of the GCC as well; Oman and Kuwait are two markets where we are interested in expanding our reach. New countries that are on our radar include Bangladesh, Egypt and Turkey, through which we can enter Europe.”
He disclosed that most of these markets can be described as unorganised.
“There is space for an organised player such as ourselves in these markets. Our target right now is to have 750 stores worldwide by 2023. Right now, we are at 250 stores and the plan is to add 500 more.”