# Info please! - Product supply (non-food) to UAE supermarket sector.



## Lamplighter (Jul 20, 2010)

Hi

I'm looking for some assistance from people either with experience supplying into the supermarket/hypermarket multiples in UAE, or directly involved with the buying chain for the same.

We are planning to launch a niche range of products (non-food), and looking at our sales and marketing strategy. One possible supply stream is retail via the chain supermarkets (Carrefour, Lulu, Spinneys, Coop etc), but we don't have experience with the habits and nuances of this sector locally. Initial reseach has (as is typical in UAE) been frustrating and full of mixed messages!

My questions include:
- what selling-price mark-up do these multiples typically expect to achieve?
- what are their typical payment terms, and are they usually prompt?
- I've heard about rental charges for shelf space, is this typical and universally applied here?
- what is the level of intricacy of the warehousing and distribution networks - do the multiples supply out from warehouse hubs, or anticipate suppliers deliver to stores?
- what about stock management - as a consumer, my view is that it is poor at best, but as a retailer, what experiences are typical - sales and stock reporting, forward planning, IT-enabled?
- buyers - do the major players have central buying managers and departments, and are they accessible?
- offers and marketing, aisle stands? - what strategies are typical, what expectations, and is it all at supplier's cost?
- demographics - I note that some chains seem to place multiple blueprints of the same store in different locations, whereas others pay more attention to the local demographic - our product is demographically sensitive and tailored, will this give us issues?
- trial runs - what is the typical expectation? Are the multiples amenable to trying initial stocks in a handful of outlets, and similarly for new product types?
- KPIs. Again, what is the expectation? Are there any targets for earnings per unit shelf area, stock turns, etc?
- Exclusivity - is it likely that chains will demand exclusivity of supply in return for running our brand, in which case is there an obvious order in which to approach the different retailers?

My experience in the UK supplying to the major multiples is that the control and logisitics systems are very advanced, and they are certainly aware of the strength of their buying power. I'm not sure how applicable this experience is to the local supply chain.

I'm interested to hear anyone's views or advice, on board or through PM.

Many thanks in advance.
BR, Lamp


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