INTERVIEW: Ali Mohammed Akbar Khan, AJM Kooheji
by Stuart Wilson, Wednesday 8 April 2015
AJM Kooheji Group offers extensive retail channel reach in Bahrain and beyond for the brands that it represents. AJM Kooheji will be represented at next month’s DISTREE Middle East, which gathers together hundreds of senior executives from the region’s leading distributors, retailers and e-tailers. Channel EMEA caught up with Ali Mohammed Akbar Khan, assistant general manager at AJM Kooheji, to learn more about the company’s plans for 2015 and beyond.
Channel EMEA (CE): Can you give us an overview of AJM Kooheji’s current operations?
Ali Mohd Akbar Khan (AK): Our retail operations are extensive in Bahrain covering almost 90% of the organised retail market. We also operate in Erbil, Qatar and UAE. We are looking at expanding our business horizons to a few more countries in the GCC in the year 2015. We currently operate through four large retail stores of our own in Bahrain. Besides these stores our products are supplied to all the leading hypermarkets, supermarkets, power retailers and dealer stores. We also have a strong business-to-business (B2B) team to manage all corporate purchases in Bahrain.
CE: What are your three main reasons for attending DISTREE Middle East? What do you hope to achieve at the event?
AK: The main reason for us to attend DISTREE Middle East is to connect with new brands which we can add to our portfolio. It also gives us an insight into the innovative technologies in the region. Most importantly, it gives us a premium business networking opportunity.
CE: Which product categories and business development opportunities represent the greatest opportunity for growth for your company in the Middle East?
AK: We usually look at brands and companies who move in accordance with the latest innovations and trends in the market. Currently, we are looking at products like wearables, smart technologies and IoT (Internet of Things) devices.
CE: What makes AJM Kooheji’s operation stand out in the market?
AK: We believer in the three Ts of business: thought, trust and track record, which differentiates us from others in the market. Being a company which is more than 120 years into its business life with a vast trading background gives us an edge over our competitors.
CE: How challenging is the margin situation for your business? What support do you expect and want from vendors and distributors?
AK: It is a very dynamic and challenging market that we encounter on a day-to-day basis. Most of the vendors and distributors do not under the concept of mutual success, hence fall behind in the difficult race of our industry. At the same time there are some vendors and distributors who have strong core values and understand the mechanism of business because they come from deep roots and strong fundamentals supported by a robust business model. Ctroniq, represented by Headlinks, is one such brand who we hold in high regard. They understand all the different fluctuations in the market and adapt to such scenarios with ease. We are excited about our recent tie-up [with Ctroniq] and we strongly believe that they are built to last. The brand Ctroniq is also a front runner and should be tagged as one of the best value-add brands who believe in long terms results and associations.
CE: What are you seeing in terms of the development of e-tail in your market? How are you planning and adapting to this?
AK: E-tail will be a phenomenon and strong medium of sales. It is already a strong medium of sales in many countries. It will be one of the main channels of sales in the near future. Having said that, it does not mean you write off the organised retail structure – without this your e-tail channel will not prosper. This is the tried and tested formula and it can never be replaced.
CE: What have been the major developments for AJM Kooheji in the Middle East in the last year?
AK: We have signed some reputable and strategic brands to add value to our whole spectrum of business. In the year 2015, we are looking at expansion with a broader footprint in the region. A few discussions on new technologies and innovating new customer experiences in shopping are also in the pipeline.
CE: How quickly is your business growing in the Middle East region? What market trends have you identified that are impacting your business segment?
AK: The growth trend has been as anticipated and the barometer is increasing steadily. We are expecting a lot of developments and a spike in growth in the year 2015. The market trends have always been challenging but with a strong business model it becomes easy to manoeuvre business segments with minimal impact.
CE: What are the biggest issues and challenges facing the Middle East retail channel at present?
AK: Transparency in business practices and fair price practices as we see in Europe needs to grow more in this region. This is a healthy model for all the major players in the market. We see different customer behaviours and in this market the company which will bring in the best value proposition will walk away with the laurels. The main challenge is to innovate and be different in this market.
CE: What other key messages do you want to get across to vendors and distributors attending DISTREE Middle East about your company?
AK: AJM Kooheji Group brings vast experience, not only limited to the Bahrain market, but the region as a whole. The fact we have been in existence for over a century says a lot about the company. It is up to the vendors and distributors who are on the same page as us to let us walk through the challenges of market trends hand in hand. It is important that they are not limiting themselves to short-term approaches, but rather bringing optimism to the industry and setting long-term goals.
Media Partnership
We are pleased to confirm that Channel EMEA is an official Media Partner for all DISTREE events in 2015, including DISTREE Middle East.
DISTREE Middle East 2015, which takes place from May 12-14th in Abu Dhabi, gathers together hundreds of senior executives from the region’s leading ICT CE e-tailers, retailers and distributors. Readers requiring more information about DISTREE events in 2015 should contact events@channelemea.com.
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