UAE Distributor ZAFCO Announces Retail Plans
One of the Middle East’s leading tyre distribution companies has announced its plan to open 65 automotive service outlets by 2012 at a dinner for its United Arab Emirates partners. ZAFCO is a supplier to the UAE domestic market, and a global supplier to customers in the USA, Europe, Africa, Asia Pacific and Australia, has revealed details of its ambitious expansion plans. The Dubai-based company is set to launch its own chain of premium quality retail outlets across the GCC.
ZAFCO intends to open 65 such outlets across the region by 2012, including 10 in the UAE. The plans follow consumer research conducted by the company that it says revealed a gap in the market for a high quality tyre fitting and automotive services experience. ZAFCO has established its reputation representing 12 major names in automotive accessories, including Nitto and Pirelli, but until now the company has traditionally dealt in a business-to-business capacity.
ZAFCO’s CEO, Gopiraj KV, made the announcement on Tuesday evening at a special dinner in Dubai to honour the company’s key partners, including Dubai Customs, DP World, Dubai Chamber of Commerce and Industry, Dubai Trade, Jebel Ali Free Zone Authority, JAFZA Immigration, Barclays Bank, HSBC Bank Middle East Limited, National Bank of Fujairah and Standard Chartered Bank. He explained how the company would establish standalone units and shop-in-shop outlets with partners and brand networks.
“We will craft these locations to offer the highest-quality products and services, with customers expecting nothing less,” Gopiraj KV said. “We will not be limited by location: we will offer even more convenience to customers by establishing mobile units to take our services to their doorsteps.”
He added that stock would come from the inventory of over 1 million tyres at the company’s state-of-the-art, 43,100 sqm storage facilities across the UAE, which make ZAFCO the biggest importer and exporter in its field.
ZAFCO currently employs over 275 staff and boasts an annual turnover of over Dh1 billion. With a growth rate consistently over 30 per cent each year, ZAFCO is planning to transform this dirham figure into 1 billion US dollars by 2012, the year that its retail outlets will come into service.
Gopiraj KV explained how three key elements give ZAFCO a competitive edge in a difficult market. “First, we only deal with proven brands of international standing,” he said. “Secondly, we pass on the benefits of volume transactions to the customer. And finally, we have an intrinsic understanding of the markets we operate in, meaning that we can match international brands with local requirements.”
Until 2012, ZAFCO plans new acquisitions and joint ventures across Asia and the Far East with operations that have a proven track record of quality and efficiency.
ZAFCO was established in Dubai in 1993 and immediately enjoyed success, exporting to 14 countries in its first year alone and signing distribution contracts for some of the world’s leading names in tyres. Over the years, ZAFCO has added batteries and lubricants to its portfolio, and also manufactures tyres in its own right under the Zeetex brand. Today, it works closely with a network of over 800 global distributors across 85 countries.