Eros Group set to introduce a new platform in December
EWe will be a Dh4 billion company by 2025 as the group is confident to achieve this target through organic growth in business. Today, our annual turnover is ranging between Dh1.5 billion and Dh2 billion despite a slowdown in global economy Mohammed Badri, Director, Eros Group
ros Group will introduce a new platform in December to align its business model in line with the market trend to become a Dh4 billion company by 2025, its top official says.
The Dubai-based business conglomerate has made significant investment to overhaul its branding — both online and offline— by replacing Eros Digital Home to eros. ae to increase sales and enhance delivery and logistics options.
“Consumer buying trends in retail and e-commerce business have changed after the Covid-19 pandemic introduced a new lifestyle and work culture in past two years. We have aligned our business strategy in line with the market trends to cater to the consumers’ needs,” Mohammed Badri, director of Eros Group, told Khaleej Times during an interview.
Eros Group is a 53-year-old organisation specialising in the distribution and retail of consumer electronics, mobility, IT, home appliances and convergence products. It partners with more than 14 international brands, operates 17 retail stores and three service centres across the UAE.
Banking on online sales
Badri said e-commerce sales gained momentum during the Covid era and registered a significant growth in past two years.
“Now, online sales contribute 20-25 per cent to our business annually. We see another 10-15 per cent growth in online sales over the next two years,” he said.
Referring to successful business strategy, he said Eros Group registered a 10-15 per cent year-onyear growth in 2020 despite a challenging environment in the wake of Covid-19 pandemic.
“I’m confident to sustain the similar growth this year as the group turned the challenges into opportunities with better planning, business strategy and product management to cater to the consumer requirements during the pandemic,” he said.
“We see so many business opportunities in e-commerce business and developed good relationships with online marketplace websites such as [but not limited to] amazon and noon. The group has been investing more in ecommerce to increase online sales but to enhance delivery and logistics options as well,” he said.
Badri said Eros Group has various business channels and it does not rely only on retail and e-commerce to sustain growth in coming years. “We utilise our strengths such as B2B, export market and other business modules,” he said.
“Distribution is our strength and we never stop building of Eros products portfolio even in the pandemic era. We have a close eye on consumer buying trend and develop wide range of products to serve the consumers’ needs,” he said.
Retail is an integral part of the group’s business strategy as the consumers never stop shopping, said Badri who sees constant development in the sector.
“We, at Eros, believe that the combination of retail and e-commerce is healthy for business,” he said.
Badri said innovation is part of the Eros Group DNA in today’s competitive business environment and the group would soon add logistics services to its portfolio.
“Logistics service has become an important business line for any industry. We are ready to venture into this segment to manage our supply chain more efficiently,” he said.
Expansion drive
Badri said Eros Group is keen to expand its footprint in the UAE and the region.
“We always look for prime locations to expand our presence. Recently, we inaugurated two new stores at Nakheel Mall and City Centre Al Zahia while another outlet will soon be inaugurated in Dubai Hills,” he said.
To a question, he said the group benefits from its base in the UAE, which is strategically positioned at the crossroads off Asia, Africa and Europe with a serving ability to over two billion people.
“Eros Group has expanded beyond its borders to serve not only customers in the UAE but also on select markets in the Middle East and North Africa region,” he said.
Setting ambitious targets
The young energetic Emirati business leader sets high business targets for the Eros Group and said 100 per cent growth in annual turnover is expected in next four years.
“We will be a Dh4 billion company by 2025 as the group is confident to achieve this target through organic growth in business. Today, our annual turnover is ranging between Dh1.5 billion and Dh2 billion despite a slowdown in global economy,” he said.
About the competition in the market, he said it is good for the business.
“Eros Group offers wide range of products with value-added services. We cater to all segments of society and offer them various options to but a product. If some buyers are unable to buy an expensive product, they have options to select other items that fit well in their budgets,” he said.
“Eros Group introduced seven new brands from Italy, China, Japan and India into its portfolio in past
two years. Some brands such as Hitachi and TCL cater to the needs of many segments and we are constantly looking out to expand our portfolio in line with the consumer buying patrens,” he said.
Challenges head
Badri said supply disruption and rising freight charges are two major challenges being faced by the businesses.
“Shortage in supply of products and higher freight charges are two serious charges that can affect the sales, but I hope situation will improve with the ease of travel restrictions,” he said.
To a question about impact of Expo 2020 on economy and business, he said mega event will boost consumers and investors confidence across the region.
“Expo will attract people from allover the world and increase footfalls to all areas of the country. Our plan is to get the attention of these tourists and visitors that will ultimately benefit the businesses and economy of the country,” he said.
In reply to a question, he said value-added tax (VAT) has no adverse impact on retail sales of the group. “Yes, initially everyone was worried about VAT. But the government introduced the new levy in a very professional way and now after three years, it has become a part of business and contributing significant role in the country’s economic development,” he said.
About the economic outlook of the UAE in general and Dubai in particular, he said economy is no more dependent on oil and performed well in difficult times.
“Today, we have more diversified economy and it has a bright prospects ahead to record sustainable growth in coming years,” Badri concluded.