Puket thrives and plans expansion in the Middle East
The company of sleepwear and underwear for women and kids has seven stores in the region and plans to reach a total of 50. The goal is to operate in nine Arab countries.
São Paulo – Puket, the Brazilian brand of women’s and kid’s underwear and sleepwear, is thriving in the Middle East and, under solid planning, wants to expand in the region. The brand already has seven stores over there and wishes to open a total of 50 outlets in Arab and non-Arab countries until 2020.
Currently, the brand has six stores in the United Arab Emirates and one in Qatar. In the UAE, five are located in Dubai and one in Abu Dhabi. Two new stores should open in the country until the end of the year.
“The plan is to open a total of 50 stores, in the UAE, Qatar, Kuwait, Bahrain, Oman, Saudi Arabia, Egypt, Jordan, Morocco, Azerbaijan and Kazakhstan”, reveals Claudio Bobrow, Puket’s founding partner, on the brand’s expansion plans. From the countries mentioned by the business owner, only the last two are not Arab nations.
According to Bobrow, the Arab market drew the brand’s attention because “it has a very advanced retail sector and a very sophisticated stores network”. “We found a partner that operates in these countries. It’s a master franchisee that will work throughout the region. It’s a company from Dubai that works with several brands”, he explains.
According to the business owner, all the investment required to open stores is done by the franchisee. Opening an outlet costs around USD 100,000 to USD 150,000. From Brazil, the franchisee receives training, products support and logistics directions. “I’m always over there supervising”, says Bobrow. The expectation is for each store to reach revenues of USD 350,000 per year.
Bobrow says that the opportunity to enter the Arab market came in 2014, when he was invited to speak about Puket in an important retail sector fair in New York, United States. “Over there, we received several proposals to take the brand to the Middle East. We visited several players to present the brand”, he says.
The entrepreneur says that he didn’t advertise the brand’s arrival in those markets on the media, but that Puket is “being very well-received”. “The reception is great, so much so that we already have nine stores [seven already operating and two about to open]. We can sense that repercussion is good”, he assess.
One of the main positive aspects that Bobrow sees in the Arab market concerns the sales potential for children products. “Puket sells well to kids. In Brazil, the average is two children per family. The [Arab world] is a market that averages three to four kids per family, which is a great opportunity for us”, he says.
*Translated by Sérgio Kakitani