Mr. Bin-Handy, first of all, congratulations on the opening of Jacob & Co, the first Middle Eastern monoboutique, as well as the largest watch and jewelry brand store Bin Hendi Watch & Jewelery in Dubai Mall. It seems that only you alone know how to hold the crown of the “king of the fashionable empire” in Dubai, when there is only talk around, what about the crisis?
I don’t know about the crown .... I believe that we need a strong team in order for everything to work as it should. Our company has an excellent team of professionals, and we know how to conduct a business so that it is successful, how to choose the best brands and how to make them at the top of the fashion industry. The secret, in general, is simple. No need to try to cover everything. We are very selective when working with designer brands, for this both our suppliers and buyers respect our group.
Many market experts believe that the number of fashion brands will decrease markedly in the coming years. What do you think about that?
Of course, the golden time for those people who collected products of famous brands is running out. But we are not collectors, and we are well aware that people today are striving to reduce their costs. Many will carefully review their attitude to their branded items. We, as suppliers, will do the same - in our stores there will remain those brands that are profitable, and those that are unpopular or unprofitable will have to leave. Why should I, as a businessman, pay out of my pocket for a brand that does not bring me money? This makes no sense.
Of course, in good times, I would say: "Okay, let's try to work with this brand, maybe some of this will work out." And I would have expected a profit for a year and two, because none of us wants to reduce our business or close it. But now, not the time. And the point here is not in my feelings, but in a clear economic calculation. If this brand does not work, then it does not work. And I can’t do anything about it.
You know about the situation in the Dubai market from the inside. How do you think he will behave, and what mechanisms will keep him afloat in the current financial situation?
Our market, and especially the retail and hospitality industries, is highly dependent on tourism and on whether tourists from abroad will continue to go to Dubai, including from your country, from Asia and GCC countries, and other regions of the world. If, for example, your country has problems, and Russian tourists postpone their visits to Dubai, then we, as retailers, will feel this immediately.
Oddly enough, but Russian-speaking tourists from all over the CIS continue to go to the UAE, maybe they are attracted to reduced hotel prices, maybe an annual shopping festival ....
Yes, the "Russian" tourists continue to travel, but they are also more attentive at what they should buy and what not. They began to count more, and try not to succumb to immediate desires, going shopping. And if earlier, for example, you bought everything you wanted and what caught your eye, today either your husband or your business will tell you: "Oops, stop!". And now you are becoming more attentive, as you need to reduce your costs. This, by the way, is sobering. You begin to clearly understand what you really need and what not. Thus, we choose things of prime necessity, and not what we want right now. These desires can wait until better times.
That's right, but it is hard to believe that people who are accustomed to fashionable designer things in order to reduce their costs will start to dress in Mango or Zara. After all, they bought, first of all, not the name of the designer, but the quality that is inherent in expensive luxury brands ...
That's right, this will not happen. People wearing Brioni suits will continue to wear them. People dressing in Hugo Boss will continue to do so. And we are not saying that things are so bad that a person cannot afford to buy a suit or watch. Not at all. We say that it will be much more difficult to acquire a house in France or America, a yacht or a piece of land. People will never stop to choose clothes and food and buy. But with respect to watches or jewelry, many will think twice, or maybe three times. If I have a good watch, why do I need one more, if I have a set of jewelry, I probably don’t need a second or fifth one yet.
Even as an investment?
Even so. Of course, there are those who decide, having a certain amount of cash, to buy some kind of diamond by investing money in it. But on the other hand, I am convinced that people, despite some financial difficulties, will continue to give each other presents for birthdays, weddings, births of children, some anniversaries and family holidays. The world will continue to live, as it has lived so far. Just because of a lack of cash, the number of people wishing to buy a mansion in the south of France, plus a villa in Jumeirah, and another house in Colorado, and in addition their own yacht, will decrease. This scope will come to naught, because, as I already said, economics is, first of all, mathematics, and everything can be very easily calculated in order to be able to manage your finances. But I do not deny that there are still many people in the world who do not even know that today is a financial crisis.
In your opinion, will the crisis improve the global economy?
I think that today's slowdown in economic development around the world was due to the fact that people did something wrong in the past. I believe that the time has come to correct errors, both for individuals and large companies, both for the banking system and for the governments of all countries. This is the time when humanity finally thinks about many things for which it had no time before. And, of course, this will lead to a recovery and stabilization of the economic situation.
It is known that even in the current conditions, the BinHendi Group continues its expansion in the countries of the Middle East region. Which countries are dropped out of the list, and who is left on the map?
Our team in 2007-2008 decided to expand the activities of the BinHendi group of companies in all countries of the region. We planned to enter all GCC countries, as well as to such markets as India, China, Russia. Some of our plans are currently frozen until better times, but those countries and areas of our activity that we consider to be priority have remained. Everyone knows that the BinHendi Group is not only designer collections of clothes, shoes, watches, jewelry and accessories, it is also its own restaurants and cafes, furniture stores and other activities. Therefore, today, entering foreign markets, we, for example, will create a franchise network of Japengo cafes in Moscow, Uzbekistan, the United States, the Middle East and other regions. These plans are already under development, and we are not abandoning them, considering the possibility of working with such countries that have all the opportunities for a quick way out of the crisis.
Do you think Russia is one of these countries?
Russia is one of the richest countries in the world. You have everything - oil, gas, minerals, forest and other resources. And, despite the fact that today's oil prices at the level of 25-35 dollars per barrel are completely unprofitable for exporting countries, I believe that Russia will be able to adequately and fairly quickly cope with the crisis situation, as there are other powerful levers in your country .
It turns out that the Middle Eastern monarchies, whose economies depend on oil and natural gas production, are also not in the best position?
It seems to me that the cost of a barrel of oil should fluctuate at the level of 60-65 dollars, then all oil-producing states will feel relatively good. We in the Middle East are also aware that the economy can recover very quickly, but we look at the activities of the banking system and large companies that create the financial climate in the world. What do we see today? Wall Street practically does not exist, our stock market also collapsed ...
What is left to hope for? For government support?
Yes. Our government supports all sectors of the economy, because all types of business in the UAE, both small and large companies, are aimed at the prosperity of the entire state as a whole. I think that you just need to wait a while until the situation itself comes to a balance. One way or another, everything in the world is interconnected, and it cannot be constantly in a state of chaos.
So, we will wait?
Yes, let's wait. Moreover, without unnecessary nerves. Yes, of course, there are many reasons for unrest, and they come to us from reality, such as the lack of cash in banks. Many blame the media for escalating the situation. And it's true, bad news flies faster than good news. People tend to dramatize the situation. But still, while the largest economies in the world want to attract more money and create more jobs, due to liquidity problems, even giants like Ford and General Motors are forced to cut production, as they monitor the market and calculate where they will get the money from. , and who will buy their products. In the UAE, everything is much calmer, but investors have taken a stand-by position, so the market is a bit quiet.
Let's return from the world of finance, to the fashion empire of BinHendi. In the Middle East, it is customary to run a family business and transfer it from father to son. In your case, your daughter Amna bin Handy became the main management company of BinHendi, which is very unusual. Do you think she will cope with her responsibilities?
The first thing I should note: my eldest daughter Amna became the head of the company not because she is my daughter, but because she possesses the qualities that a modern leader should possess, no matter whether it is a man or a woman. Amna has a brilliant education, which she received in London. In fact, she is a lawyer, and began her career at the Dubai International Financial Center. Later, she asked for a job at the BinHendi Group. I believe that no matter what your education is, the way you think now and how you can project your vision of the concept of business development based on the current situation is important. Amna has obvious leadership skills and has been with the company for seven years. She started in the fashion department, then went through the services of personnel, finance, strategic development. At first, she was not particularly interested in business, and then, apparently, some feeling woke up. And, having gained work experience and knowing the principle of the company from the inside, she became a suitable candidate for the role of leader.
And even the fact that this is a daughter and not a son didn’t bother you?
Not. I will give you a small example. In Dubai, there is a huge company of Issa Al Gurg, and so it is managed by his eldest daughter - Raja Al Gurg. She is such a strong and educated business woman that she can give odds to any man. I think that with today's level of knowledge and access to information, there is no difference between women and men in business. Moreover, many women, at times, achieve greater success than men. Earlier, women were assigned only the role of mother and housewife. Times, fortunately, are changing.
Can we expect some new BinHendi Group presentations in the near future, or has the group postponed them indefinitely?
Yes of course! In the coming months we will be opening several new restaurants and boutiques in different parts of Dubai. Life, oddly enough, continues. And we at BinHendi Group have always been and remain optimistic. At all times.
Thank you Mr. Bin Handy. We wish you continued success.
