OF NEEDS AND WANTS PORING OVER THE DEMAND FOR LUXURY GOODS
THE LEBANESE FRANCHISE ASSOCIATION MAGAZINE ISSUE NO 10 | JUNE 2019
@lfalebanon
www.lfalebanon.com
CONTENTS
04 06 18 24
FOREWORD BETTER DAYS AHEAD
LFA ACTIVITIES
OF NEEDS AND WANTS Poring over the demand for luxury goods
LFA MEMBERS NEWS AND UPDATES CLOSER ISSUE No10 | PAGE 3
BET TER DAYS AHEAD Because ‘Franchising’ is a modern business, it is the responsibility of the LFA Board to endeavor towards creating a dynamic, forward-looking association, in tune with the Next-Generation Customer. That is the only avenue for meeting the needs of young, educated, and highly-experienced professionals looking to take charge of their brand in today’s Experience-Driven Economy. Conventional thinking and modest goals will simply not do when contemplating the evolution of Franchising. Current, as well as prospective, LFA members, require concrete achievements built around a dynamic vision for the future. Since its election in June 2018, the LFA Board successfully implemented an intensive, yet balanced action plan that addressed members’ needs and enhanced the association’s stature locally and abroad, despite a challenging regulatory environment induced by complicated elections as well as an extended transition between caretaker and newly formed governments. With a functioning government now in place, and a new draft budget that will be enacted after a parliamentary debate, reviving the economy is everybody’s main challenge in the months ahead. Economic conditions are far from ideal, but we are moving in the right direction, and the LFA’s responsibility during that time will be to intensify work on its ‘core’ functions: lobbying, training, networking, building synergies, and publications. Concurrently, the LFA will boost its export-related activities, to promote Lebanese creativity and know-how, and widen economic opportunities for our members in new markets. The LFA’s first Lebanese Franchise Pavilion at the Paris Expo, in March 2019, was a resounding success. The planned LFA Pavilion at Expo Paris 2020 will have an even bigger impact.
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Exporting our franchise concepts accrues many benefits: 1) it is a definite catalyst for economic growth; and, 2) as people in different countries enjoy tastes and experiences from Lebanon, they will become ‘friends of Lebanon’, increasing the likelihood of visiting our country. Additionally, the ‘collaborative’ approach is essential for the LFA. We seek common ground with chambers, syndicates and associations to multiply benefits for our members. In 2020, the LFA will organize two major international events, giving us the opportunity to showcase Lebanon as a vibrant country… a country which is open for business, FDI and tourism. In that regard, the LFA will host the World Franchise Council (WFC), in June 2020. The Presidents and CEOs of 47 franchise associations representing the continents of North America, MENA, Asia-Pacific Confederation, Ibero-America and Europe, will attend the Beirut meetings. Furthermore, the LFA will organize a very special edition of BIFEX, also in June 2020. The regional business event will revolve around “retail, marketing, and innovation”, topics which are relevant to Lebanese companies and to the long-term growth of the Lebanese economy. Global speakers and corporate leaders will join us in Beirut. Finally, I firmly believe that the LFA’s work strives to honor ‘Brand Lebanon’, a repository of Lebanon’s heritage, as well as its cherished values and traditions.
By Yahya Kassaa President of the Lebanese Franchise Association
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LFA ACTIVITIES WORLD FRANCHISE COUNCIL MADRID An LFA delegation took part in the World Franchise Council (WFC) meetings, 4 -7 April 2019, in Madrid, Spain. The meetings were hosted by the Spanish Franchise Association (AEF), and included visits to the franchise exhibition, Expofranquicia, which was inaugurated by H.E. Minister of Industry, Trade and Tourism, Ms. Reyes Maroto. The meeting discussions revolve around issues facing franchising in each member country, as well as discussion of reports submitted by the WFC’s 4 Vice Secretariats: Financial Affairs; Legal Affairs; Communication; and Franchise Information. Additional discussions were held on Innovation, Development and Training. Because the issue of Ethics is important to all WFC members, a decision was made to upgrade the WFC Ethics Committee into a Vice Secretariat for Ethics.
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The LFA delegation to Madrid made a presentation regarding the LFA’s hosting of the WFC Beirut meetings, in June 2020. As expected, the reactions of WFC delegates, representing 47 global franchise associations, were very positive and highly encouraging. They appreciated the authenticity and hospitality of the Lebanese. The LFA presentation described Lebanon as vibrant country that is open for business, FDI and tourism. Furthermore, delegates were informed about Lebanon’s extensive cultural heritage. Without exception, delegates confirmed their attendance.
FRANCHISE EXPO PARIS The LFA’s “Lebanese Franchise Pavilion”, at Franchise Expo Paris (17-20 March 2019), proved beyond doubt that ‘Brand Lebanon’ is not only a valuable and powerful asset, it is, in fact, the Gold Standard. President Yahya Kassaa went to Paris for the opening of the LFA Pavilion. He was greeted at the Expo official opening by Ms. Chantal Zimmer, Secretary General of the French Franchise Federation Visitors to the LFA Pavilion, from all over the world, were highly impressed by the unique Lebanese brands that were showcased. When describing what Lebanon meant to them, Expo participants used superlatives (courageous, resilient, hospitable, exotic, imaginative, warm, cultured, etc.) to describe a country that has captured the world’s imagination. The LFA planted a seed in Paris, and will make sure it grows into a field of opportunities for ‘Brand Lebanon’ and the Lebanese franchise community.
WFC BEIRUT MEETINGS It is expected that the Presidents or Executive Directors of 47 franchise associations representing the continents of North America, MENA, Asia-Pacific Confederation, Ibero-America and Europe, will attend the Beirut meetings. In addition to the formal agenda, the LFA will organize a Social Program for WFC guests, which will include, Vines & Wines Route, Cedars Footpath, the Phoenician Trail, and world-famous Lebanese cuisine.
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VISITING H.E. THE PRESIDENT OF THE REPUBLIC The LFA President and Board, visited H.E. President Michel Aoun, in Baabda, to inform him about developments concerning the Franchise sector, as well as report to him about upcoming LFA events and activities (BIFEX 20202 & WFC Beirut).
As a gesture of admiration and respect, President Kassaa presented the President Aoun, a statuette engraved with the statement “Preserving the Essence of a Great Nation”, containing granules of Tyrian Purple produced according to past artisanal methods, thereby helping to safeguard our rich patrimony.
MEETINGS WITH MINISTERS The LFA President and Board visited several ministers to keep them informed about LFA developments and activities. They are: n
H.E. Gebran Bassil, Minister of Foreign and Emigrant Affairs
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H.E. Mohammad Choucair, Minister of Telecommunications
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H.E. Mansour Bteish, Minister of Economy and Trade
Main Points of Discussion: n
Increasing exports through participation in major exhibitions, such as Franchise Expo Paris;
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Preparations for BIFEX 2020 (11-12 June 2020)
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World Franchise Council – Beirut Meetings (9-10 June 2020)
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THE MINISTER OF ENVIRONMENT’S VISIT TO LFA Meanwhile, H.E. Fadi Jreissati, the Minister of Environment, visited LFA Offices, to discuss the environment agenda he is implementing. The LFA Board was fully engaged in, and supportive of, the Minister’s plans because they firmly believe that a sound environment is good in and of itself, as well as good for business.
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THE LFA AT “DIASPORA IN ACTION” LDE CONFERENCE President Yahya Kassaa participated in the launch of the 6th Lebanese Diaspora Energy Conference − “Diaspora in Action”, 7-8 June 2019, held Under the High Patronage of The President of the Republic, General Michel Aoun. LDE is a platform for Lebanese decision makers, entrepreneurs and investors, to meet their counterparts from the Diaspora and explore business opportunities. The LFA’s Stand and “Tastes from Lebanon” Pavilion, at the “Diaspora in Action” conference, was a buzzing hub of activity over the 2-day event. The generosity of the LFA’s F&B members and caterer was much appreciated by all visitors, as they enjoyed tastefully displayed innovative cuisine. Visitors to the LFA Stand were exposed to the wide range of brands, and product and service categories, belonging to LFA members. President Kassaa presenting the Minister of Tourism of Gabon, H.E. Ms. Marie Rosine Itsana, with the LFA’s “Friendship Medal”.
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HORECA 2019 President Yahya Kassaa and board members participated in the inauguration of the Middle East’s premiere Hospitality exhibition. The event brought together H.E. Minister Mohamed Choucair, H.E. Minister Avedis Guidanian, VIPs and icons of the hospitality and F&B sectors.
After participating in the opening ceremony, LFA President, Yahya Kassaa, was among eminent speakers on a panel dealing with “Hospitality Vision in Lebanon”, including Minister Guidanian, Mr. Pierre Achkar, Mr. Jean Beyrouthy, Mr. Tony Ramy, and Ms. Nada Alameddine. The panel discussed the strengths of the hospitality sector in Lebanon, and the challenges facing it as it solidifies its preeminent position in Lebanon and beyond.
THE GARDEN SHOW The Garden Show is a much-anticipated breath of fresh air. It is the event that tells us that the Lebanese are still hopeful that beauty will prevail over ugliness and a green environment over a parched landscape. President Yahya Kassaa had the pleasure of participating in the Garden Show’s official opening, along with Lebanese First Lady, Nadia Aoun, the Ministers of Energy, Environment, and Tourism, MPs, officials, and heads of private sector organizations, and last but not least, the organizers of the Garden Show, the esteemed Dammous family. The LFA hopes that the Garden Show will be a catalyst for the Lebanese to celebrate greenery and cherish the environment throughout the year.
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LFA AND SRCNP MEMORANDUM OF UNDERSTANDING The Lebanese Franchise Association (LFA) and the Syndicate of Restaurants, Cafes, Night-Clubs and Pastries in Lebanon (SRCNP) have held several meetings and roundtable discussions over the past few months, which started a process of collaboration aiming to benefit their respective members. The MoU was signed on 17 April 2019, during a visit to the LFA by President Tony El-Ramy and SRCNP Board members. Participants reaffirmed their commitment to cement cooperation, enhance synergies and exchange information and expertise. They also agreed to organize joint activities, such as Joint Lobbying; Awareness Seminars; Networking Events; Conferences; Exhibitions; and Joint Business Delegations. The LFA also promised to support, to the best of its ability, the SRCNP’s legislative agenda, particularly legislation seeking to update existing laws and regulations.
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LFA VISIT TO TRIPOLI CHAMBER President Kassaa and a delegation from the LFA Board, visited the Chamber of Commerce, Industry & Agriculture of Tripoli & North Lebanon, upon the invitation of Mr. Toufic Dabboussi, Chairman of the Chamber of Commerce Industry and Agriculture of Tripoli & North Lebanon. The program included meetings with Chairman Dabbousi, as well as visits to the Port of Tripoli, and Tripoli Special Economic Zone, both potent symbols of the North’s economic potential. President Yahya and the delegation started their day at the new ultra modern McDonald’s restaurant, in Dora, to see the latest payment and customer service technologies, and ended their day with a visit to the Hallab 1881 – “Kasr El Helou” factory, to witness the evolution of this unique brand over the generations.
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LFA PUBLICATIONS THE LFA: MISSION AND VISION HONORING ‘BRAND LEBANON’, The LFA produced a corporate profile, Mission and Vision – Honoring ‘Brand Lebanon’, which describes the LFA’s goals, aspirations and range of activities. Despite the challenges, the LFA strongly believes that its development work needs to continue with the same level of dedication and commitment. As such, the corporate profile will help to present the LFA and its work to a large community of stakeholders.
LFA MEMBERSHIP KIT: EXPAND YOUR REACH Because a growing membership is essential, the LFA produced The LFA Membership Kit: Expand Your Reach, for distribution among prospective LFA members. The Kit describes the benefits of membership, and sends a clear message, that the LFA is devoted to high standards of professionalism and business practices.
RETAIL ACTIVITY INDICATORS – SECOND HALF OF 2018 The LFA published the 8th Edition of the LFA-CCIABML “Retail Activity Indicators – Second Half of 2018”, which shows that the overall retail sales performance indicator for the nine categories of goods and services covered by the report edged 0.57 percent lower than its 2017 level. The indicator, however, remained 9.52 percent below its 2012 base year level. The LFA hopes that the 9th Edition (Sept. 2019) will carry better news for retailers and for the Lebanese economy.
THE LFA’S RETAIL ‘QUICK READ’ The LFA has published the RAI − ‘Quick Read’, an easy-to-read summary of the full Retail Activity Indicators report (see above). Graphs and visuals make it an interesting read.
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SURVEY OF LFA MEMBERS The LFA conducted a survey of its members, to better understand their priorities and needs. Members indicated their top concerns regarding the Business Environment (e.g. Competition; Government Regulations; Labor Issues; Taxes; etc.). They also decided on the top LFA activities that they find most valuable (Franchise Development/Marketing Opportunities; Professional Development; and, Franchise Expos). Members were specified Artificial Intelligence as most.
WORKSHOP & TRAINING ACTIVITIES “MAINTAINING HEALTHY DEBT-TOEQUITY RATIOS” The goal of the workshop is to define the criteria followed by companies to determine their optimal capital structure in order to reach a strong and sustainable growth. The workshop tackled issues related to: Sales and profitability; Cash management; Inventory and receivables management; Debt restructuring and interest rate management; and, Corporate Governance. The workshop was given by Dr. Salim Chahine, Professor of Finance, Olayan School of Business (OSB) − American University of Beirut, and the Chairman of BankMed’s Compliance and AML/CFT Committee and member of the bank’s Corporate Governance and Nomination Committee.
LFA - ECONOMIC ATTACHES WORKSHOP The LFA organized a workshop on ‘Franchising’ for Economic Attaches at the Ministry of Foreign and Emigrant Affairs. After a general introduction about franchising by an LFA senior expert, Mr. Yasser Kouatly, short presentations were made by 20 LFA brands. A Q&A session and discussion followed. Economic Attaches, who will be posted at Lebanese Embassies around the globe, will carry the flag of Lebanese brands and national economic interests. The LFA wishes them a successful tenure abroad.
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LFA – MALIATEC WORKSHOP After establishing a fruitful collaboration with MaliaTec (Member of Malia Group), the LFA and MaliaTec organized a workshop on “Digital Transformation & Artificial Intelligence for Retail”. Over 100 LFA members attended to learn how technology is transforming the shopping experience. Feedback on the workshop was very positive. Dr. Nabil Fahed, Vice President of the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon, said: “A very interesting and enlightening workshop- thank you LFA and Malia.” The LFA is proud of its relationship with MaliaTec, a leading brand, which has been supporting Lebanese and Arab companies to improve their supply chain efficiencies and digital communication for many years.
FRANCHISE AWARENESS WORKSHOP The LFA, in collaboration with the Federation of Chambers of Commerce, Industry & Agriculture in Lebanon, and the USAID Lebanon Enterprise Development (LED) Project, organized a training workshop titled Introduction to Franchising, at the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon. Over 60 business owners participated. The training was imparted by Mr. Yasser Kouatly, of Franchise Engineers, a leading consulting firm, and a member of the LFA College of Experts. Participants received a ‘Certificate of Attendance’.
ORGANIZATIONAL TRANSFORMATION TRAINING The LFA organized a workshop on “An Approach to Manage Organizational Transformation”, 27 March 2019, imparted by Mr. Nagib E. Choueiri, an Organization Design &Transformation expert. Participants learned about how to harness change forces, from validated concepts of organizational design science, to effect required organizational change.
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ARAB COOPERATION UAE – LEBANON INVESTMENT FORUM President Yahya Kassaa and delegation of Lebanese business people, headed by the Chairman of the Lebanese Economic Organizations, Mr. Mohamed Choucair, participated in the “UAE – Lebanon Investment Forum”, 4-6 November 2019, in Abu Dhabi. The event was held under the patronage of H.E. Eng. Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, in cooperation with the Abu Dhabi Chamber of Commerce and Industry. Lebanon – UAE cooperation and investment opportunities were discussed during expert panels dealing with: UAE Investment Climate; Public-Private Sector Partnership; CEDRE Conference Projects; Privatization; Agriculture and Food Security; Real Estate Development; and, Special Economic Zones.
PIPELINE PROJECTS In the coming days and weeks, the LFA plans on unveiling new services to its members, emphasizing franchise brands promotion, export support, benchmarking, and skills enhancement. 1. The LFA’s National Initiative to Revive Tyrian Purple The Lebanese Franchise Association (LFA) launched a national initiative to revive Tyrian Purple, which has symbolized, since ancient times, the uniqueness, creativity and success of the Lebanese people, and has united them behind their illustrious heritage. The initiative paves the way for the economic utilization of our ancestral color, to showcase Lebanon as a unique brand among nations. 2. Launching the “Lebanese Franchise Negotiation and Export Center”: A dedicated unit at the LFA office supporting franchisors’ expansion to new markets and providing advisory services: n
Mapping of franchise export opportunities in the nearby markets and updating LFA members on franchise developments;
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Creating a “Franchise sales unit” that may be outsourced by franchisors for help in closing franchise deals;
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Provide franchise advisory services;
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Organizing franchise seminars and events to promote Lebanese franchise brands, both locally and internationally.
3. Organizing the ‘Franchise Street Festival’ (Summer 2019): The Street Festival is an ideal setting to showcase Lebanese franchise concepts. It pro-
vides an informal and joyful gathering place where franchisors would promote their franchise brands, meet new prospects and communicate with their end consumers. 4. Organizing the Franchise B2B Event (June 2020): The LFA plans to organize a Franchise B2B event, as a platform for Lebanese franchisors and potential investors from Lebanon and beyond. Participants in this event would also benefit from the presence of World Franchise Council delegates representing 50 member countries to promote their brands. 5. Franchise Awareness and Training: The LFA plans to proceed with spreading franchise awareness in Lebanese regions through its franchise awareness session where one is planned for the Jounieh region. More importantly, LFA plans to focus on building the skills of franchisors and their workforce through providing them with in depth training on franchising and other skills enhancement training. At least 4 training courses are planned for the year May 2019 to 2020 with the hope of training up to 80 individuals.
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OF NEEDS AND WANTS
PORING OVER THE DEMAND FOR LUXURY GOODS Myriam Sadaka Economist - Economic and Social Council of Lebanon
As the origin of their name indicates, luxury goods refer to the indulgence of the senses irrespective of the cost of doing so. These goods are defined in economics as upscale goods for which demand increases faster than the increase in income at the household level. These upscale goods are bought not to meet a need, but to satisfy a desire to acquire them. In that sense, the defining line between needs and wants sheds light on an essential attribute of luxury goods. By doing away with the classical theory’s central premise of the rationality of economic agents, behavioral economics has brought forth a clearer understanding of the causal factors determining demand for luxury goods and its unremitting growth worldwide. What factors make luxury products so coveted despite their excessive cost?
.. BEHAVIORAL ECONOMICS HAS BROUGHT FORTH A CLEARER UNDERSTANDING OF THE CAUSAL FACTORS DETERMINING DEMAND FOR LUXURY GOODS AND ITS UNREMITTING GROWTH WORLDWIDE. FACTORS BEHIND THE DESIRE TO ACQUIRE The association of higher-priced luxury goods with better product quality is a factor underlying demand. Certainly, luxury goods are manufactured with quality materials that make the final product durable and of superior value. Yet, quality materials used in manufacturing luxury goods does not fully account for the excessively high prices of these goods. Another factor is exclusiveness. Many consider luxury and exclusivity to be directly linked. So shoppers desire luxury items because they expect to be among the privileged few who own them. This ex-
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plains how items of limited editions draw strong demand no matter how high their prices are. However, the exclusivity of luxury goods is a factor that is being threatened as markets for these goods have grown rapidly in recent years.
.. BRANDS ARE MAINTAINING THE PERCEPTION OF EXCLUSIVITY THAT CONSUMERS REQUIRE THROUGH PERSONALIZATION OF ITEMS AND THE POSSIBILITY OF CUSTOMIZATION. More people are having access to luxury products on online platforms and in stores all over the world. Yet, brands are maintaining the perception of exclusivity that consumers require through personalization of items and the possibility of customization. A third factor would be psychological. In effect, consumers are induced to purchase luxury goods for two psychological reasons: how they feel about themselves and how others would identify them. Self perception is in constant evolution and the acquisition of certain luxury items has the capacity to alter the way one feels and sees him/herself. Therefore, splurging in the acquirement of luxury goods boosts one’s self esteem and conveys a feeling of satisfaction and power. Also, since luxury items are considered as status symbols, consumers tend to seek the conspicuousness imparted by their purchases of these items. Individuals unconsciously desire to show off their ability to acquire expensive items. In that sense, luxury products are a means of displaying wealth. Peer pressure, peer contagion, and the aspiration to fit into the wealthy class, are also strong determinants of demand for luxury goods. Consumers who seek upward mobility more often than not acquire luxury items.
A MARKET THAT KEEPS ON GROWING Based on an analysis conducted by Bain & Company, the luxury market worldwide is expected to have
PEER PRESSURE, PEER CONTAGION, AND THE ASPIRATION TO FIT INTO THE WEALTHY CLASS, ARE ALSO STRONG DETERMINANTS OF DEMAND FOR LUXURY GOODS. grown at a rate of approximately six percent at constant exchange rates, reaching €260 billion by the end of 2018. This increase would be the result of an observed positive trend in all the regions. Europe’s luxury market grew at the slowest pace of one percent at current exchange rates. That was due to an increase in the Euro’s exchange value, which had a negative impact on tourist demand for luxury goods.
cal demand. Consequently, the luxury goods market grew by about five percent.
In Lebanon, sales of luxury goods have been suffering a decline for the past six years, reaching 53.55 percent below base year level at the end of 2018. This decline reflects perfectly the dire state of the economy and weakened purchasing power of households. A close examination of the luxury goods market reveals the following main drivers of growth.
In the same period, China’s luxury market recorded a 20 percent growth at constant exchange rates. The high expansion rate is attributable to modifications in customer experience strategies and a revision of the alignment of local prices of luxury goods with international prices.
IN LEBANON, SALES OF LUXURY GOODS HAVE BEEN SUFFERING A DECLINE FOR THE PAST SIX YEARS, REACHING 53.55 PERCENT BELOW BASE YEAR LEVEL AT THE END OF 2018. THIS DECLINE REFLECTS PERFECTLY THE DIRE STATE OF THE ECONOMY AND WEAKENED PURCHASING POWER OF HOUSEHOLDS.
The luxury goods market in Japan, which was expected to witness sturdy growth in 2018, in fact grew at a moderate three percent rate, whereas the rest of Asia – excluding China –saw luxury goods markets expand by seven percent mainly due to the economic growth in South Korea.
First, Chinese consumers play a crucial role in boosting the purchase of luxury goods whether in their homeland or abroad while travelling. This nationality is considered the accelerator of the growth of the luxury market.
On the American continent, sales were boosted owing to a strong economic growth. With the U.S. dollar’s exchange value on the rise against a basket of major currencies, the decline in tourist spending on luxury goods was more than compensated for by lo-
Second, millennials and generation Z are taking over and becoming the main luxury purchasers. This shift in the age group of consumers towards a younger generation means that all luxury brands should remodel and reshape their products and
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their marketing strategies in order to appeal to this rising class of customers. A third factor affecting the growth of the luxury goods market would be a shift in tastes and trends towards a more casual style. In fact, in a world where social media is playing a key role in influencing the lives of its users and shifting their tastes, even older generations are being inclined into adopting the style of millennials which is a more casual style. Indeed, the category of streetwear has experienced a massive growth since 2017, leading all luxury brands to include in their collections a variety of items such as t-shirts, sneakers, hoodies, and the like.
RESPONDING TO MARKET GROWTH The worldwide expansion of luxury markets warrants a change in brand strategy and designer response. From the perspective of suppliers of luxury goods, a delicate balance needs to be maintained between, on the one side, preserving the attributes of exclusivity and uniqueness that attract customers to luxury goods, and on the other, rendering the luxury brand readily recognizable to the largest number of people, including those who cannot afford it, and this in order to retain a basic purpose of luxury goods, namely that of displaying wealth. In the digital age, it has become easier than ever to reach people and make a design or logo rapidly identifiable. All what luxury brands have to do (and that’s what they are currently doing) is to be active on different social media platforms to reach the highest number of users. However, brands should definitely steer away from abundantly supplying their products. In fact, the more limited the access to a certain luxury item, the more it would be desirable. Owners of luxury brands are first and foremost business enterprises that need to expand their customer base in order to maximize profits. Yet they would also have to maintain the exclusivity attribute of their branded products. This intricate balance is rendered more problematic given the fact that the largest portion of buyers of luxury goods are millennials who care more about experience than the acquisition of tangibles. Luxury brands, therefore,
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OWNERS OF LUXURY BRANDS ARE FIRST AND FOREMOST BUSINESS ENTERPRISES THAT NEED TO EXPAND THEIR CUSTOMER BASE IN ORDER TO MAXIMIZE PROFITS. YET THEY WOULD ALSO HAVE TO MAINTAIN THE EXCLUSIVITY ATTRIBUTE OF THEIR BRANDED PRODUCTS. should adopt certain marketing strategies to insure the continuity of their success. Here are some of them: First, creating a story behind every product that delivers in hidden messages the values and ethics of the brand, rather than producing unrelated items. These stories would involve emotionally the customer and would create a connection between him and the item he would choose, and later on between him and the brand. Second, adopting sensory branding, a method in marketing that engages different senses of the customer. This strategy appeals to the customer on the emotional level and ensures the creation of a more memorable experience. Third, supporting a cause, because doing so would give an additional incentive for millennials and customers in general to purchase the products of your brand. Global demand for luxury goods seems to be on a robust ascending momentum, with the global luxury goods market expected to reach €320 billion to €365 billion in 2025 according to Bain & Company. This growing demand is complemented with a growing variety of brands. Luxury brands should work on their marketing strategies to continue to appeal to customers whose choices have become broader than ever. Luxury goods markets are in constant change whether it is through seasonal trends or through changes in the segment of the population that make up the customers so brands should keep monitoring the market. myriamsdk@gmail.com
LFA STRATEGIC PARTNER INTERVIEW WITH MR. IHAB GHORAYEB 1. What does your brand represent in your view? In 1971, Mr. Awsaf Khalil Ghorayeb took the decision to start building his own customs clearing and freight forwarding company in the heart of his home country Beirut, Lebanon. At GIFCO, our vision is to be recognized as one of the most professional companies in the industry due to our commitments to clients, employees and business partners and to maintain our lead position in the logistics management industry by utilizing new technologies, developing our strategic goals and realizing maximum efficiency through superior management. 2. How was your brand’s reputation built over the years? For over 43 years, our mission remains to deliver superior global logistics solutions supported by advanced information technology systems and implementation services to the customers, in order to provide economic solutions that deliver increased value to the stakeholders. Day after day, Ghorayeb International Freight Forwarding Co. (GIFCO) became an industry leader, offering a variety of services and through its multiple branches across the world. Today, GIFCO has over 250 highly skilled employees in 4 branches, fully dedicated to ensure customer satisfaction and superior quality performance 3. How do you keep your employees motivated behind the brand? Most of our employees at Gifco are long-time employees from more than 10 years and they know all the ins and outs of things and are considered like a family for that the communication between the management and the employees is transparent with a lot of support and understanding. 4. How do you encourage creative thinking within your organization? We at Gifco are supportive and encourage the employees to keep looking for new approach of their business and train them for new technologies. We tolerate mistakes and communicate clearly with them to come up with new ideas to improve the business and our services. 5. What does CSR mean to your organization? We are a family business and our aim is to be a corporate business in the near future because we believe
that the CSR will be very healthy to our organization especially the marketing, the branding and the social factors that will result in a positive outcome. 6. What are the challenges facing your sector today? Our challenge is to give good services to our customers with the most sophisticated approach and a very healthy environment at the workplace and a good branding of our services. 7. What are your company’s medium- and long-term goals? Our medium goals: n
Increase the total value of each sale by 10 percent by the end of the each year
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in 30 days of their first contact Long term goals: n
Become the Freight Forward leader in your field with a well branding reputation and a good employee retention strategy
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Increase the company investment
8. What are your expectations from your company’s relationship with the LFA? Because we are dealing with the day-to-day operations of a company, we often neglect to importance of the right marketing strategies that will help the growth of our business and we believe that LFA will promote our services worldwide and help us to achieve our organizational goals.
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MIDDLE EAST AIRLINES Middle East Airlines, member of the global SkyTeam alliance with a consolidated route network covering 1074 destinations in 177 countries, is the national airline of Lebanon and one of the leading Middle Eastern carriers. From its home base in Rafik Hariri International Airport in Beirut, Middle East Airlines flies to 32 international
destinations in Europe, Middle East and West Africa. MEA’s fleet consist of 18 Airbus Aircraft. MEA offers its customers luxurious services both on ground and on board, reflecting Lebanese culture and hospitality. For more information about MEA, visit www.mea.com.lb
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LFA MEMBERS NEWS AND UPDATES
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MON MAKI A MOI As the old Japanese wisdom says: “when u can’t find what you are looking for, create it”. As a result, Mon Maki A Moi was born, a unique Green and first ecofriendly sushi boutique. The decor is that of a foodconscious arena with a modern flair characterized by a white marble station, live chefs, natural green walls & soothing music. It is the home of Sushi lovers that seek a unique experience and high quality sushi. It all started in Byblos Souk back in 2010 with a team of seven, a big dream, and bursting with passion. Today, our dream has become a reality. With hard work, commitment and dedication, our concept is now a brand with media appreciation, an award win, a second outlet in Dbayeh and two sub-brands ‘Mon Maki Dans L’eau’ and ‘Mon Maki En Haut’. Summer destinations where you can enjoy your sushi at the beach and in the mountains.
EARLY LEARNING CENTRE SECOND BRANCH IN JORDAN In addition to its branches in Lebanon, ELC inaugurates a second store in Taj Lifestyle Center, the newest mall in Jordan. ELC, the perfect educational destination where little ones play to learn!
NEWS FROM HODEMA CONSULTING SERVICES In 2019, Hodema co-organized the Horeca Hospitality Forum in collaboration with Leaders Group for consulting & development-Kuwait and Hospitality News ME. The event took place during Horeca Kuwait from January 14 to 16, at the Kuwait International Fair. Hodema moderated two panels on the homegrown and healthy Food and Beverage trends in the country. From April 2 to 5, 2019, Hodema co-organized the Annual Hospitality Forum held during Horeca Lebanon at Seaside Arena, in collaboration with Hospitality News ME. Hodema partners invited key players of the hospitality industry to join panels they moderated tackling various topics among which hospitality, catering, tourism, guesthouses, Levantine cuisine, human resources, Food & Beverage and hospitality funds, and sustainability. This year, Hodema celebrates 15 years of existence. Taking pride in its track record, Hodema team look forward to new exciting endeavors that will widen their horizons and further enrich their knowledge of the industry.
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HORECA LEBANON (2-5 APRIL) HORECA Lebanon rounded off its 26th in style after four days at Beirut’s Seaside Arena. Spotlighting the latest innovations and trends in the hospitality and foodservice industries, the event was hailed a resounding success, bringing together more than 350 exhibitors from Lebanon and countries including Bulgaria, Cyprus, France, Greece, Indonesia, Italy, KSA, Kuwait, Poland, Spain, Sri Lanka, Syria, Tunisia, Turkey, UAE and USA. Besides the regular features, HORECA welcomed countless new events, such as the Latte Art Competition, the Mocktail Competition, the national selection for the Coupe du Monde de la Pâtisserie, the Arak Lab and Al Matbakh.
HORECA KUWAIT (14-16 JANUARY) HORECA Kuwait, the country’s largest dedicated foodservice and hospitality trade event, celebrated its eighth edition by gathering more than 120 local and international exhibitors from Kuwait, Jordan, UAE, Egypt and Lebanon. Over 8,000 visitors attended the show to network with professionals and explore the latest products and innovations. The Hospitality Salon Culinaire welcomed more than 250 chefs who participated in a number of live cooking and display challenges to impress an international jury. Debuting for its first edition, the Art of Service Competition tested the service skills of participants, while the Bed Making Competition returned for its second edition.
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JOUÉCLUB NEW BRANCH IN MANSOURIEH JouéClub expands with another great store opening in Mansourieh! This isn’t the last we will be hearing of JouéClub & its continuous success story!
JOUÉCLUB MOBILE APPLICATION & E-COMMERCE JouéClub remains the leader in innovation & launches its mobile app JouéClub Liban for their customers to enjoy toys shopping anytime, anywhere!
LEILA RESTAURANTS Food Trends Corporation SAL, the parent company of Leila Restaurants, is adding 2 branches to its existing network across the region: One in Jeddah, Serafi Mall and another in Faqra Lebanon (Seasonal Outlet). Food trends Corporation currently operates 17 branches in Lebanon and the GCC. n
Lebanon: 4 branches
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KSA Riyadh 2 branches
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KSA Jeddah 1 branch
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Kuwait 5 branches
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Dubai 3 branches
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Bahrain 1 branch
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Qatar 1 branch
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BIM POS BIM POS is the leading provider of point-of-sale, ERP (Enterprise Resource Planning) and technology solutions for the hospitality and retail management (e.g. restaurants, bakeries, catering, food production plants, and more) having over 3000 installations and 23 Software applications. After 10 years of automating and optimizing businesses in more than 18 countries today, BIM POS has successfully franchised their business to the UAE market to have an on-ground support and develop new markets in the region. BIM POS is currently franchising the smart point-of-sale business bringing a very promising opportunity to the franchisees in the Business Optimization field.
OSAKA SUSHI LOUNGE “14 years of success, we serve you with passion. Osaka Sushi Lounge is a Japanese concept created in 2006 to put Into business a life-long hobby and transform it into one of the luxury Japanese gastronomic proficiencies in town and to offer the growing number of Asian food lovers in Lebanon as well as an ever-increasing market of urban professionals who enjoy eating ethnic food�
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ZOUGHAIB & CO. As part of its expansion strategy and getting infinitely close to its valued customers, Zoughaib & Co. Jewelry have on May 1st opened its new lavish branch at Centro Mall – Jnah, joined by select group of invitees to wish Mr. Doumit Zoughaib and the Zoughaib & Co. team a prosperous launch. The invitees admired the décor, the ambiance and were full heartedly taken by the new Mystical Collection; which is found exclusively at Zoughaib & Co. stores
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MCDONALD’S AMCHIT JOINS THE EXPERIENCE OF THE FUTURE Beirut, June 2019: Following a series of advances and developments recently achieved by McDonald’s Lebanon, the company completed the full renovation of its location in Amchit. Present were McDonald’s Lebanon’s Developmental Licensee Mr. Akram Miknas, Managing Partner Mr. Karim Miknas, Dr. Tony Isa of IPT and his team, the McDonald’s Lebanon leadership team, managers, employees and guests. Karim Miknas welcomed the attendees and presented the improvements of the Amchit branch, proudly announcing that the restaurant has stepped into the future along with the Dora, Sami El Solh, Ain El Mreisseh, Jounieh and Mansouriyeh branches. He also expressed his delight at the team’s achievements, stressing that the company is committed to delivering outstanding experiences to all its guests through the highest quality meals prepared with world famous quality standards in an environment that is fresh, fun and relevant to a modern generation of burger lovers. Akram Miknas added that he believes in Lebanon’s future and McDonald’s place in local hospitality and F&B, and will continue to invest through the renewal of existing branches and the introduction of the brand to new areas of the country. He also thanked everyone who contributed to the completion of the work in Amchit and promised the attendees more achievements, surprises, and successes. Dr. Tony Isa thanked him for the commitment to the partnership between IPT and McDonald’s, the first oil alliance of its kind in Lebanon and reaffirmed his commitment to further projects between the two companies in the near future.
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LFA NEW MEMBERS AUTO SHINE SPA Historically, the Abillama family founded CAROSSERIE ABILLAMA, a truck manufacturing company in Beirut founded in 1933. Having grown in this industrial and automotive environment, Maher Abillama developed his love for cars at a very young age. After having acquired his intensive car detailing knowledge and care care skills in California, he returned to his hometown and implemented a combination of his passion for cars & his professional & technical back round that embraces this entire spectrum of automobiles. Maher founded auto shine spa in Beirut. Lebanon. Being the first of its kind in Lebanon, auto shine spa, is revolutionizing the concept of car care by offering a family of services: “Detailing”, “Protection”, “Quick fix”, “Customization”, & “accessories & care.” This is our assurance to our customers, to have their car back in show room conditions. We pamper, restore, protect & customize every car, it is in our DNA.
BIM POS BIM POS is a provider of a full spectrum of POS, ERP and IT solutions for hospitality and retail management. Our holistic solutions are much more than a POS. They range from front-end point of sale and customer service tools to back-office operation management systems including inventory control, accounting, production, CRM, multi-branch management, analytics, and more. With thousands of software implementations in more than 18 countries, BIM POS is always focused on innovating world-class features and options that are vital for day to day business operations, especially with regards to overall performance, marketing, and efficiency. We offer industry tailored business solutions to optimize your business’ performance to the fullest potential across branches and departments guaranteeing higher profits. To ensure you are always ahead, we embrace a culture of service where our ambition becomes to support you 24/7/365 With a 96% customer retention rate, and professional service, BIM POS’ aim is to revolutionize how businesses are managed both easily and perfectly.
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MALIATEC MaliaTec is a Leading Enterprise Solution provider, chosen by global companies and government agencies across the MENA region, bringing to your organization the latest technological trends in Automation, Digital, GIS and Connected Commerce solutions. Our comprehensive software solutions offerings and cutting-edge partner technologies facilitate a world of connected workers with real-time visibility. Our conceptto-completion approach ensures that we provide allinclusive answers to supply chain information needs. With more than a decade of experience, MaliaTec contributes to the digitalization of your environment, helping you achieve gains on your investments. Our offering extends beyond products and services. We act as your advisors, support your strategic decisions and plan for the long-term future that will increase value to your organization.
THE LEBANESE BAKERY The Lebanese Bakery (TLB) is a neighbourhood bakery serving a delicious variety of Lebanese flatbreads (Manousheh), bite sized bakes (Mouajjanet) and a lot more. All our baking is done fresh in our ovens with the majority ingredients and toppings carefully handpicked by selected Lebanese farmers. Our hope is to create an authentic farm to table experience in the heart of the city by offering our consumers high quality and natural products prepared by our talented and creative team in the most authentic and traditional way. TLB’s vision is to revive the Lebanese pride by developing the Manousheh while remaining strongly rooted in our food heritage and traditions
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THE LEBANESE FRANCHISE ASSOCIATION MAGAZINE ISSUE NO 10 | JUNE 2019