Harman Middle East will invest between Dh550 million and Dh730m in the region in the next five years, according to a senior executive of the company.
Despite the current global financial crisis, the firm has not seen any decline in its business since October and is confidently pursuing its expansion plans in the region, according to Amit Malani, Sales and Marketing Director, Harman Middle East.
The Middle East is known for a large number of high-net worth individuals, but the high-end electronics market remains relatively small.
Harman Middle East, the local arm of the global high-end electronics retailer, plans to boost sales in the region and grow its business by opening 100 high-end retail outlets in the next five years and educate people about luxury electronics products.
"We plan to grow 25 per cent in 2009," Malani told Emirates Business.
"We will invest between Dh550m and Dh730m here in the next five years. Our focus has always been on investing in emerging markets and we will continue to expand in the Middle East."
He highlighted the fact that the market for mid-end electronics has seen tremendous growth in the past few years but the market for high-end electronics [a pair of speakers priced more than Dh50,000] is not too large in the Middle East. It is growing in Dubai and the GCC, but outside the market is not too large. I can safely say it is not more than Dh44m to Dh55m per year because in this region there are only a small number of players in this market segment and very few select outlets.
Commenting on the future of the business, he said that business has been affected globally due to the downturn, particularly in the West. The big players in the automobile industry such as Rolls-Royce, Audi, Lexus, BMW, etc, use Harman infotainment systems. "So when the automobile market is hit, we get affected," he said. However, in emerging markets such as India, China, Russia and the Middle East the sector is growing. In the Middle East the company grew by 46 per cent in 2008. The company saw revenues of Dh367m in 2008.
Defining the future plans of Harman Middle East, Malani said the company plans to open new outlets in Bahrain and a few units in Saudi Arabia immediately. The company plans to grow its business in the region not just by opening more retail outlets but also by educating people about the luxury electronics market.
"With the new outlet at Dubai Mall, we hope to add 10 per cent to our growth. This slowdown is not permanent. The new outlets are long-term investments,"he said.
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