From Gulf News--
Many a box to tick before selling direct
Many MNCs have systems geared towards working in bulk or wholesale and not necessarily piece by piece sales which the consumer market dictates
- By Manoj Nair, Associate Editor
- Published: 12:50 June 9, 2014
Dubai: Several pieces have to slot perfectly into place before multinational brands can sell directly via online into these markets.
“They need to ensure they’ve got several bases covered, whether that be localized logistics, customer care, warranty support and the ability to accept local payments,” said Ashish Panjabi, chief operating officer at Jacky’s Electronics. “For example, can a Jebel Ali Free Zone based multinational [where they have 100 per cent foreign ownership] sell in Dubai [where a 5 per cent customs duty has to be added and the product has to have a limited liability company import it]? Many MNCs have systems geared towards working in bulk or wholesale and not necessarily piece by piece sales which the consumer market dictates.
“It is not impossible for an MNC to make this investment, but what I’ve seen happen is generally they outsource the sales exercise to an agent who fulfils the needs of local logistics, after-sales service and payment collection. To the consumer it may appear that they’ve bought direct but in actual fact, there could be a local partner who takes care of the fulfilment.”
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