International Consumer Brand Names Find Success in Pakistan's Retail Sector

Consumer spending in Pakistan has increased at a 26 percent average pace the past three years, compared with 7.7 percent for Asia, according to data compiled by Euromonitor International, a consumer research firm. Pakistan's rising middle class consumers  in major cities like Karachi, Lahore and Islamabad are driving sales of international brand name products and services.  Real estate developers and retailers are responding to it by opening new mega shopping malls such as Dolmen in Karachi and Centaurus in Islamabad.

Dolmen City, Clifton, Karachi


Here's a recent video of a CNN report on "British Brand Invasion" from Dolmen Mall in Clifton district of Karachi:



 http://edition.cnn.com/video/#/video/world/2013/04/01/mohsin-bristish-brands-in-pakistan.cnn

Pakistan has continued to offer much greater upward economic and social mobility to its citizens than neighboring India over the last two decades. Since 1990, Pakistan's middle class had expanded by 36.5% and India's by only 12.8%, according to an ADB report titled "Asia's Emerging Middle Class: Past, Present And Future.


A string of strong earnings announcements by Karachi Stock Exchange listed companies and the Central Bank's 1.5% rate cut have already helped Karachi's KSE-100 index surge nearly 50% (37% in US $ terms) in 2012 to top all Asian market indices. It was followed by Bangkok's SET index which advanced 36%. It also easily beat India's Sensex index which was the top performer among BRICs with 25.19% annual gain.


Dolmen Mall Clifton Featured on CNN from DHAToday on Vimeo.



Related Links:

Haq's Musings

Pakistan's Construction Boom

Educational Attainment in Pakistan

Pakistan Among Top Outsourcing Countries

Foreign Visitors to Pakistan Pleasantly Surprised

Pakistan's Infrastructure and M2 Motorway

India Pakistan Comparison 2011

Resilient Pakistan Defies Doomsayers


FMCG Consumption Boom in Rural Pakistan

Pakistan Visits Open  Indian Eyes

Comments

Riaz Haq said…
Here's an excerpt of a Reuters' report on Karachi shares market:

The market's benchmark index continues to soar to record highs -- up 10.34 percent year to date -- fueled in part by expectations May elections will mark Pakistan's first transfer of power from one democratic government to another. Previous civilian governments were all dismissed by Pakistan's ultimate power: the military.

"Pakistan has a lot to offer investors and this is our chance to show it," said Nadeem Naqvi, the KSE chairman. He plans to embark on a series of roadshows for potential foreign partners that will take him to London, Frankfurt and Hong Kong in the coming months.

Many of the companies listed on the KSE offer double-digit returns, low stock prices and resilient business models in this frontier market with a population of 180 million. The index still has an attractive price/earnings ratio of $8.50 despite the soaring returns of the past few years.

Pakistan now has a 4 percent weighting in the MSCI Frontiers Market Index and has become somewhat of a discovery for foreign investors chasing new markets and yields.

THE SEAMIER SIDE

But the KSE's spectacular rise last year can at least be partly attributed to another factor entirely - the cleansing of "black money".

The market took off last year just as a government decree was finalized allowing people to buy stocks with no questions asked about the source of the cash. Average daily volume more than doubled last year to 173 million shares from 79 million in 2011.

Authorities say the measure will bring undocumented funds into the tax net in a country where few pay taxes. But some critics decried it as a gift to corrupt officials and criminals seeking to launder dirty cash.

"Politics and dirty money go hand in hand in Pakistan," said Dr. Ikramul Haq, a Supreme Court lawyer and a professor on tax law.

"People want to be outside the regulatory framework and outside the tax net."

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The Securities and Exchange Commission of Pakistan (SECP) said it found 23 violations of securities laws that merited fines in fiscal year 2011-12 (April/March). The market regulator sent warning letters in another 19 cases, it said in its annual report. (www.secp.gov.pk/)

That's a drop in the bucket, says Ashraf Tiwana, dismissed as head of SECP's legal department after years of clashes with his bosses over fraud in the market. He has petitioned the Supreme Court to replace the SECP chairman and commissioners.

"There's a lot of fraud, a lot of market manipulation ... but not enough action has been taken, especially not enough criminal action has been taken," Tiwana told Reuters. "They're just passing small fines and giving out warning letters."

Regulators are too close to the market, Tiwana said. The head of the stock exchange is a former broker and the two top members of the SECP are former employees of Aqeel Karim Dhedhi, founder of one of the country's biggest brokerage houses.

BIG DHEDHI

Nicknamed "Big Dhedhi" for his ability to move markets, Aqeel Karim Dhedhi heads one of Pakistan's largest domestic conglomerates, the AKD Group.

Lately, the well-known philanthropist and leading member of Pakistan's business establishment has been trying to fend off arrest over allegations of insider trading.

An SECP investigator accused traders, including Dhedhi's brokerage, of buying shares in a state-run Sui Southern Gas Co before an official announcement allowing the company to raise its prices. In the weeks before Sui Southern's announcement, the stock price jumped from 13.5 rupees to 20 rupees, its biggest hike in five years.


http://www.reuters.com/article/2013/04/09/us-pakistan-stockmarket-insight-idUSBRE93813Z20130409
Riaz Haq said…
Here's Toronto Globe & Mail on Karachi's stock market:

The seaside metropolis of Karachi is Pakistan’s largest city, its commercial hub and a city plagued by violence. Adding to the already volatile mix is the Pakistan Taliban, which is now firmly embedded in Karachi. But amidst the mayhem, businesses are thriving and capital markets are soaring.

In old Karachi, behind metal gates, barriers and security checks is a low-rise office block from which Canadian Nadeem Naqvi steers the country’s largest stock market: the Karachi Stock Exchange, with a market capitalization of $41.5-billion.

Mr. Naqvi moved to Pakistan in 2005 and took on the managing director job in 2011 with a mandate to modernize the exchange.

The KSE has a market capitalization of $41.5-billion – a tenth of the size of the Bombay stock market. Last year, it ranked among the top emerging markets in Asia.

With historic democratic elections scheduled for May 11, Mr. Naqvi spoke to The Globe and Mail about his optimism about Karachi and Pakistan.

What has it been like steering the exchange – it must be a roller coaster?

In one word: exhilarating. Not without sleepless nights, I can assure you. … On the political front there have been ups and downs, although I was lucky enough to be in an era when we had uninterrupted democratic set-up – the quality of that democratic set-up as a point aside. But that was a first for Pakistan. And now we are in the process of the first democratic transfer of power from one democratic set-up to the next … We have faced direct backlash as a result of Pakistan’s role in terms of war on terror and the backlash Pakistanis have to face every day. But within that dire dynamics you have seen a stock market that has performed incredibly well last year. It was up 50 per cent in local currency terms – the KSE100 Index – and it was up 36 per cent in U.S. dollar terms making it one of the top three best performing emerging markets in Asia last year.....


http://www.theglobeandmail.com/news/world/canadian-director-of-karachi-exchange-bullish-on-growth/article11487626/
Riaz Haq said…
Here's a Daily Times report on PUMA shoe store in Karachi:

KARACHI: PUMA, a leading International sports brand on Friday launched a new outlet in Dolmen Mall, Karachi. This outlet is so far the biggest one in Pakistan out of a total of four in the major cities of the country, Karachi, Lahore and Islamabad. PUMA Pakistan’s inception was in 2010 and the brand is incorporated under the leadership of Atif Husain and Shahid Choudhary with a vision to develop international retail landscape in Pakistan. PUMA designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting creativity, sustainability and peace, and by staying true to the principles of being fair, honest, positive and creative in decisions made and actions taken.

http://www.dailytimes.com.pk/default.asp?page=2013%5C06%5C15%5Cstory_15-6-2013_pg10_2
Riaz Haq said…
Here's an ET report on global consumer products' giant P&G's expansion plans in Pakistan:

KARACHI: Procter and Gamble (P&G) has identified Pakistan as one of its top 10 emerging markets – that include emerging economies like Brazil and India – and the country will be the focus of it attention for further investments, P&G Pakistan Communications Manager Omeir Dawoodji told a group of journalists during a visit to the company’s state-of-the-art manufacturing facility at Port Qasim on Thursday.
Dawoodji was tight-lipped regarding the amount P&G plans to invest. He, however, confirmed that the Cincinnati, Ohio-based consumer goods giant wants to expand its manufacturing footprint in the country.

Dawoodji did not disclose the cost of setting up the Port Qasim plant, currently manufacturing the Ariel brand, but emphasised that P&G intends to make it a mega-manufacturing facility and utilise it for manufacturing other brands as well. The company markets over 300 brands globally, but its Pakistani subsidiary only deals in eight brands.
P&G Pakistan had acquired a huge piece of land for the manufacturing facility, which was inaugurated in 2010, but it utilised about 20% of the acquired land only, leaving enough space for further expansion.
It has been 185 years of growth for the now $85-billion company and further growth has to come through emerging markets, Dawoodji said, explaining why Pakistan is important for the company’s global parent.
The manufacturer of some of the leading brands like Pampers, Always and Safeguard has had tremendous growth during the past three years. P&G’s revenue for the year ended June 2012 was Rs22 billion, about 50% increase over the previous year.
The fiscal year 2012-13, too, will be a high growth year for P&G Pakistan, the company’s country head Faisal Sabzwari told The Express Tribune in a recent interview.
In a sign of its long-term commitment to the country, the Pakistani arm of the consumer goods giant has replicated its global strategy of incorporating the use of renewable energy sources for energy conservation, reducing water consumption and recycling the waste as demonstrated during the plant’s tour.
The facility at Port Qasim has been designed to use skylight during the day with a lot of windows built both in the office and the factory areas. They have been able to reduce their energy consumption by 12% during the last two years, the officials at the site told the media.
The reduction in water usage was about 46% as they have planted palm trees and used gravel instead of grass for the landscape to conserve water. “We put less than 2% of our waste to landfill,” an official said. About 97% of the waste generated is put to beneficial reuse, he said.
“The Port Qasim plant is our pride among the 75-plus plants P&G operates all over the world,” Dawoodji said while highlighting state-of-the-art features of the plant. “Goods manufactured at this facility can be exported to countries with rigorous quality standards.”


http://tribune.com.pk/story/566034/procter-and-gamble-lists-pakistan-among-top-10-emerging-markets/
Riaz Haq said…
Here's an ET story on middle class powering FMCG growth in Pakistan:

Procter & Gamble (P&G), one of the world’s largest consumer goods company, has recognised Pakistan as one of the top 10 emerging markets to focus investment in. This sounds like good news for our cash-strapped economy, and it is equally good news for those who have invested in P&G.
It makes sense for any fast moving consumer goods (FMCG) to invest in a country where the world’s biggest consumer goods names – Unilever, P&G, Nestle and Mondel-z (formerly Kraft Foods) – are not only operating, but also growing significantly.
According to the State Bank of Pakistan, the net profits of FMCG companies listed on the Karachi Stock Exchange grew in excess of 20% in fiscal year (FY) 2011-12. P&G, which is not listed on the KSE, has witnessed tremendous growth in revenues during the past three years – including 50% revenue growth in FY2012. Besides the consumer goods sector, its supporting industries like packaging and distribution companies have also seen their toplines grow significantly.
So what are the factors contributing to this growth?
If the fact that these companies are selling essential food items and consumer goods in the world’s sixth-largest market by consumer size is not satisfying enough for you, here’s a more detailed and nuanced explanation.
“Economics and demographics are together at play in Pakistan,” P&G Pakistan Country Manager Faisal Sabzwari told this correspondent in a recent interview. The boom in the rural economy has also been a major contributor to their growth – thanks to a series of bumper crops of agricultural produce and wheat support prices, which were raised by the government in recent years.
Besides this, according to Sabzwari, Pakistan is one of the top countries adding 20-somethings to its workforce; these are the people establishing families, getting new jobs and helping market sizes grow.
“We have millions of consumers entering independent disposable income space in their lives every year,” Sabzwari said, while referring to the growing middle class.
The market size in Pakistan has also grown in terms of volumes, without taking pricing into account. “Increasing urbanisation and the growing middle class are key drivers of the FMCG business,” Sabzwari said.
Pakistan’s is urbanising faster than other developing countries, according to Sabzwari. “The country’s population is growing at under 3%, while the rate of migration to urban centres is even higher,” according to Muzammil Aslam, managing director at Emerging Markets Rsearch.
“A population base of 180 million talented and hard-working people hungry for prosperity ensures that nothing can hold this country back from growing,” P&G Pakistan’s chief said. While looking at the growing middle class, he said, it is important to look at their consumption habits. “We are exposing more consumers to value brands like Pampers and Always,” he explained.
It may be added here that consumer spending in Pakistan has increased by an average of 26% in three years, according to a Bloomberg report published on November 21, 2012 – a strong sign that people are consuming more goods than ever before.
This rise in consumer demand has spurred the growth of supermarkets across major urban centres, which include, but are no longer limited to Karachi, Hyderabad, Multan, Lahore, Faisalabad and Islamabad.
Such superstores are getting larger and asking manufacturers for broader brand portfolios in order to serve their customers better. They have larger shelves, enabling them to have more sophisticated and developed categories in which they can stock more products than ever before....


http://tribune.com.pk/story/567315/in-resilient-pakistan-emerging-middle-class-powers-fmcg-sector/
Riaz Haq said…
With the rise of Pakistan's middle class and growing brand recognition among consumers, Pakistani companies are establishing their own brands.

Some of the Pakistani brands include Engro Foods, Haleeb Foods, Shezan juices, Rooh Afza, Tapal tea, Shan spices, JJ (Junaid Jamshed clothing), Gul Ahmad (textiles), K&N chicken, Tibet Snow cream, Kala Kola hair color, Dawlance, Shahi supri,

http://www.ijbssnet.com/journals/Vol._2_No._13_Special_Issue_July_2011/31.pdf

http://www.campaignasia.com/Article/256186,pakistan-focus-top-10-brands-by-nielsen.aspx
Riaz Haq said…
Here's Express Tribune report on rising consumption of branded packaged products in Pakistan:

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Stocks of major consumer goods and food companies listed on the Karachi Stock Exchange have appreciated 73.1% to date in 2013, outperforming the benchmark KSE-100 index, which has gained 50.8%.
The numbers were taken from a sample of MNCs listed on the Karachi bourse including Unilever Pakistan, Unilever Foods, Nestle Pakistan, Colgate-Palmolive and Gillette Pakistan. The current year’s market performance of these stocks, according to statistics compiled by Topline Securities, is 10.2 percentage points higher than 62.9% they gained last year.
The Express Tribune, in this report, tries to analyse what factors have been contributing to this growth and keeping these giants interested in a market confronted by deteriorating law and order and crippling power outages.
“Pakistan, with its nearly 200 million population, is simply a too large and attractive market to ignore,” Unilever Pakistan CEO Ehsan Malik said, explaining why the Anglo-Dutch food and consumer goods giant is interested in this market.

If being the world’s sixth largest consumer base is not enough, it is the country’s population growth rate that will create a high demand for food and consumer goods in the years to come.
Pakistan will soon become the fourth most populous country in the world, Nestle Pakistan’s Head of Corporate Affairs Waqar Ahmed said.
Pakistan’s population is growing at four million people a year and in four years, he says, the increase in food consumers will be larger than the population of Switzerland (15 million).
“The growth of consumption within the Pakistani market dictates that we spend more in order to be able to supply the consumers with the value they deserve. Hence for us, the investment climate within Pakistan is as good as it ever was.”
Nestle is a very good example of the country’s growth potential, Topline Securities Manager Research Zeeshan Afzal said. The Swiss giant almost doubled its sales from Rs41 billion in 2009 to Rs79 billion in 2012.
The data highlights the performance of listed MNCs but unlisted foods and consumer goods companies have also grown manifold.
Mondelez International – a subsidiary of Kraft Group based in Chicago – says Pakistan has been one of their top-five growth markets in the world.

The confectionary giant saw a significant growth in their snack brands in Pakistan, which is among the highest in the world. Their Cadbury Dairy Milk and Tang brands alone earn Rs1 billion a year in sales.
In food and consumer goods business, says Afzal, law and order is not that big a problem. The goods are produced by MNCs but the rest is done by distributors who are local people. What matters in this business, he says, is the growth and in Pakistan the growth is driven by volumes and not the price.
Beverages giant Coca-Cola, for example, didn’t need investment from its parent company, it rather invested in its new plants from profits generated by its local operations, the analyst said.
The energy shortage, he said, is also not an issue for most MNCs because of their high profitability.
Explaining the population demographics that have driven this growth, Afzal said more women are entering the workforce contributing to a rise in their family’s incomes.
Rising urbanisation, growing middle class and sophisticated consumption habits, he said, have all contributed to this growth. A big chunk of its population is young while it is one of the top countries adding 20-year-olds to the world.
These people get jobs and establish families, thus contribute to the growth of the consumer goods business.
The country’s food consumption is very high but there is still a lot of room for further growth, believe analysts as well as industry officials...


http://tribune.com.pk/story/642820/consumer-goods-multinationals-bask-in-high-growth-market-business/
Riaz Haq said…
Here's a WSJ story on a high-priced designer Peshawari chappal knock-off:

Imitation, it is often said, is the sincerest form of flattery, but many in Pakistan failed to take the compliment when British designer Paul Smith released a new sandal bearing close resemblance to the country’s Peshawari chappal (slipper), called it Robert, and sold it for $595.

The company received a torrent of abuse on social media for the design on Monday.

While the Pakistani sandal sells in markets across the country for around $6, Paul Smith’s version of the shoe is on sale for a 9,816% mark up.

Most of the criticism on Twitter focused on the sandal’s price, while others called for Paul Smith to give credit to the shoe’s Pakistani origin.
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The Peshawari chappal is originally from the northwestern town of Peshawar, but is today manufactured across the country. You can find the shoe from Karachi to Gilgit and on the feet of markets traders, government officials and young bridegrooms.

“It is as much of a part of our national identity as is the chicken tikka in our traditional cuisine,” said journalist Madeeha Syed of the shoe in an article for local English-language newspaper, Dawn.

Paul Smith’s version of the sandal is not the first time that the quintessentially Pakistani shoe has ventured overseas. A number of Pakistan-based online outlets already sell the sandal to customers around the world. They mostly target the widespread Pakistani diaspora, but the sandal has also proved very popular in France, says Sidra Qasim, co-founder of Hometown, a Pakistan-based online shop that sells Peshawari chappals.

“They like it because it has quality and good design and it is having a good impact,” she told The Wall Street Journal.

Hometown was started in 2010 by Ms. Qasim and Waqas Ali with the goal of providing a bigger market to local shoemakers in Pakistan. All the shoes sold by Hometown are made by a small group of craftsman in a small village in Punjab province, and are sold via the company’s site in 17 different countries. The biggest markets are India, the U.K. and France, said Ms. Qasim.

Despite the outrage from Pakistan’s vocal Twitter population, Ms. Qasim said that she thought it was mostly positive that Paul Smith had decided to use the Pakistani design in his summer collection.

“One thing we are very concerned about is that Hometown is about promoting Pakistani artisans to the global level, so at least they [Paul Smith] should give the right credit,” she said, “We are really happy, on the other side, that someone on the global level has recognized this design”

Hometown’s version of the Peshawari chappal starts at $90 – still a steep markup from the average market price. Another Peshawar-based online chappal shop, Zalmay, sells the sandals for around £27 ($45.)


http://blogs.wsj.com/indiarealtime/2014/03/11/how-paul-smith-sandals-peeved-pakistan/
Riaz Haq said…
Pakistan’s first real estate investment trust will offer an initial 9 percent dividend and stakes in one of Karachi’s most prominent malls and office towers when it sells shares within three months.

A 25 percent stake in the Dolmen City Real Estate Investment Trust will be offered to foreign and domestic investors, said Nasim Beg, chairman of Arif Habib Dolmen REIT Management Ltd. The trust’s assets will be the Dolmen Mall, which hosts stores including Mango and Debenhams, and the adjacent office building that houses Engro Corp. Both are near the Karachi seafront, one of Pakistan’s wealthiest areas.

“The outlook of the real estate market is not too relevant,” Beg said yesterday in an interview in Karachi. “Investors will be paid dividends from rental income that will continue to grow as per agreements.”

The trust is likely to pay a dividend of 9 percent in first year and increase to 14 percent in the fifth year, said Muhammad Ejaz, chief executive of Arif Habib Dolmen REIT Management. The dividend yield of the benchmark KSE100 stock index is currently 4.4 percent, according to data compiled by Bloomberg.

Prime Minister Nawaz Sharif’s government is broadening investment options in Pakistan as it seeks to spur economic growth in the midst of an escalating conflict with domestic Islamist militants. The Pakistani Taliban killed 134 students on Dec. 16 in one of the country’s worst terrorist attacks.

Beg said he expects four or five other REITs to be listed on the Karachi Stock Exchange within two years.

“Improved regulation surrounding the creation of real estate investment trusts could pave the way for increased investment via this format and lead to more Pakistani investment being directed in the home market rather than overseas,” London-based Business Monitor International said in its latest report on Pakistani real estate, released this month.

The property that will go into the Dolmen City REIT is owned 80 percent by Dolmen Group and 20 percent by Arif Habib Group. After the IPO of the trust, those stakes will drop to 60 percent and 15 percent respectively.

http://www.bloomberg.com/news/2015-01-15/first-pakistan-reit-to-offer-9-dividend-stakes-in-leading-mall.html
Riaz Haq said…
International shoe manufacturer and retailer, Clarks, entered Pakistan by launching its first ever store in Karachi on April, 11. The expertly crafted footwear is now available at The Forum mall. The stores are also being opened up in Lahore and Islamabad.

The brand has a unique heritage of almost 200 years in remarkable shoe design. Shoeaholics, both men and women, will get finest retail experience with the brand’s signature collections and styles. Nancy Huang, C&J Clark International President of Asia Pacific, said, “It’s always great to see a new store open, especially when it’s in such a good position within a premium shopping mall. The Pakistan team and our partners have done a magnificent job in setting up the store. We are in great company here; this mall is an impressive shopping destination with a fantastic mix of brand names and customers. We are delighted to be a part of it.”

The brand is also well-known for its celebrity clientele and collaborations with high-fashion designers. It has been successful in becoming the leading shoe company in the UK and a global business in over 100 markets worldwide. With their latest franchise in Pakistan, the brand intends to penetrate the markets and set impeccable shoe-trends.

One of the leading groups in the textile industry, Umer Group of Companies is behind the successful launch of the franchise. The store was inaugurated by the acting Deputy High Commissioner of the British High Commission Gillian Atkinson. The event was followed by a fashion showcase. Sleekly styled, renowned models adorned the latest in-store collection.

Published in The Express Tribune, April 15th, 2015.

http://tribune.com.pk/story/869796/british-footwear-steps-into-pakistan/
Riaz Haq said…
#Dubai's Abraaj invests in #Pakistan #cinema operator; Plans to build 80 new screens in next 4 years. #FDI #Theaters

http://www.arabianbusiness.com/industries/banking-finance/380400-dubais-abraaj-invests-in-pakistan-cinema-operator

Dubai-based Abraaj Group has announced it has invested in Cinepax Limited, Pakistan’s leading cinema operator.

With Abraaj’s investment, the value of which has not been disclosed, Cinepax plans to develop 80 new screens across multiple locations over the next four years and also grow other entertainment related ventures, Abraaj said in a statement.

Arif Baigmohamed and Pir Saad Ahsanuddin established Cinepax in 2006 and launched their first multiplex in 2007. Since then, the company has established itself in the market and today has 29 screens in 12 locations.

Pakistan’s entertainment industry has significant growth potential, with a low ratio of cinema screens (0.5 per million population).

Abraaj said it will support the company in establishing international standard multiplex cinemas in new and upcoming areas.

Omar Lodhi, partner for Asia at The Abraaj Group, said: “Our investment into Cinepax demonstrates our faith in the opportunity that Pakistan’s young growing population and expanding middle class represents.

"As one of the most active investors in Pakistan, with a strong on-the-ground presence, we see a long-term market opportunity in the cinema operator and video streaming business.”

Arif Baigmohamed, chairman of Cinepax, added: “We are delighted to welcome Abraaj as an investor into our business and look forward to partnering together to reach more people across the country, providing much needed entertainment options.”

The Abraaj Group has been present in Pakistan since 2004. This transaction marks Abraaj’s ninth investment into Pakistan across a number of sectors including healthcare, power distribution, renewable energy and industrials.
Riaz Haq said…
#Pakistan Develops a Taste for Fast Food - #Pizza Hut to double no of restaurants. Bloomberg

https://www.bloomberg.com/news/articles/2017-10-10/buying-into-pakistan-s-fast-food-boom-without-a-taste-test

Pizza Hut to double outlets to 150 over five years in Pakistan
Two-thirds of the world’s sixth-largest nation is under 30

Food franchises are booming across Pakistan’s big cities as incomes swell and more women enter the workforce, leaving them with less time and inclination to fulfill the traditional role of cooking for the family. Almost two-thirds of the 200 million population are younger than 30 and cultural attitudes are changing in the Islamic Republic, helping make it the fastest-growing retail market.

Eating out will soon become a "necessity over the weekdays,” said Anwar, whose Crescent Star Foods Pvt. plans to increase its number of franchised restaurants, including California-based Fatburger, to 100 in a decade from less than a dozen. "Home-cooked food will become a luxury over the weekend.”

Yum! Brands Inc.’s Pizza Hut also plans to double its Pakistan stores to as many as 150 over the next five years and will list locally in that period. Foodpanda, backed by Germany’s Rocket Internet SE, expects to deliver meals to 2 million hungry Pakistanis each month by 2021 from about 400,000 now.

The country’s food delivery industry will more than double to $2 billion by that time, said Nauman Sikandar Mirza, Foodpanda’s chief executive officer.

More Money

Disposable incomes have doubled since 2010 and about 40 percent of household expenditure is on food. That’s more than Indonesia and Turkey, according to data from the U.S. Department of Agriculture. Spending in Pakistan is bolstered by the lowest interest rates in 44 years as the pace of inflation has halved since 2014.

“Pakistan has one of the youngest populations in the world and the increase in fast food retail along with other retail segments partly reflects the stabilizing economic backdrop,” said Rahul Bajoria, a senior economist at Barclays Plc in Singapore. “Similar trends are being observed in the rest of South Asia as wel

However, there are economic headwinds which may dent the food boom. A deteriorating external position puts at risk the government’s targeted 6 percent expansion for the year through June 30, which would be the fastest pace in more than a decade, said Bajoria. Pakistan’s imports hit a record in May and the current account gap more than doubled to $2.6 billion in July and August from a year earlier.

Even so, not many are deterred.

“The market is growing, people have more money to spend on fast food -- we plan to open more outlets,” said Omar Qadri, chief operating officer at One Potato Two Potato, which has about 50 restaurants with most in Pakistan’s main cities of Islamabad, Lahore and Karachi. “We are still not in a lot of places like Peshawar, Multan. These are big markets we haven’t even entered yet.”
Riaz Haq said…
THE EXPRESS TRIBUNE > PAKISTAN > PUNJAB
First Baskin-Robbins store opens in Lahore

By Our CorrespondentPublished: October 12, 2017

https://tribune.com.pk/story/1529378/first-baskin-robbins-store-opens-lahore/

One of the world’s largest chain of ice cream stores, Baskin-Robbins has opened its doors in Lahore.

“We’re delighted to open our first ever Baskin-Robbins store in Pakistan, and share our range of delicious ice cream flavors with the people of Pakistan,” the Vice President of Dunkin’ Brands International, John Varughese said in a statement.

“Our store will become the place to be where our visitors will make many happy moments with their friends and family, while enjoying our delicious ice creams and other tempting frozen treats.”

The ice cream store will feature flavours available internationally, including classics like Pralines ‘n Cream, Jamoca® Almond Fudge, Mint Chocolate Chip and Very Berry Strawberry and regional favorites like Mango Tango and Tiramisu.

AHG Flavours, which had announced obtaining licence for and opening of 35 Baskin-Robbins stores across Pakistan, expressed excitement at the launch.

“We’re excited to officially bring the world famous Baskin-Robbins brand to Pakistan, along with its range of premium ice creams and innovative ice cream treats,” the company said. “We look forward to this shop becoming an integral part of the local community, and to opening many more locations across Pakistan in the months and years ahead.”
Riaz Haq said…
Baskin Robbins appoints creative agency in Pakistan Shortly after signing a master licensing agreement with Baskin Robbins, AHG Flavours has hired Ogilvy & Mather to help develop the brand in Pakistan.

Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creative-agency-in-pakistan/440192

http://www.campaignasia.com/article/baskin-robbins-appoints-creative-agency-in-pakistan/440192

Baskin Robbins has named Ogilvy & Mather as its creative agency in Pakistan, charged with its go to market strategy and launch campaign. AHG Flavours Limited has a master licensing agreement with Baskin Robbins to develop the brand in Pakistan and launch 35 shops across the country, with the primary focus on the city of Lahore. Ogilvy & Mather was tasked to aid in the brand awareness across the portfolio of classic ice cream flavours as well as the range of custom ice cream cakes, frozen beverages, ice cream sundaes, and takehome ice cream treats. According to Asim Naqvi, the CEO of Ogilvy & Mather in Pakistan, his agency was tasked with creating the digital strategy and create a campaign deployed with outdoor media, social media, and the upcoming launch event. "We are pleased to be collaborating with Irfan, Harris and their team to begin developing the Baskin-Robbins brand in Pakistan by bringing our wide range of delicious ice cream flavours, cakes and other treats to Pakistani customers," said John Varughese, Vice President, Dunkin' Brands International. According to a study by Euromonitor in 2016, the ice cream and frozen desserts market in Pakistan was valued at US$152 million, with Unilever and Engro Foods categorized as market leaders from a volume perspective, due in large part to their low price point. Brand marketers distinguish ice cream brands into three distinct categories based on consumption behaviour: in-home, impulse, and out of home. The in-home ice cream category refers to the large tubs of ice cream that are purchased for family consumption in a home or large gathering. The impulse ice cream category refers to those sold in sticks, cups, and cones. The out of home ice cream category refers to what is consumed in HoReCa, recreational areas, and cinemas. Baskin Robbins effectively operates in all three categories with its own retail presence with a dine-in option, a distribution presence in major retail outlets, and as an option on the dessert menu. In Pakistan, the impulse category makes up roughly 70 percent of the category according to Falak Jalil, the former brand manager for Walls at Unilever. She says that in Pakistan half of ice cream consumption consists of kulfi (a local delicacy) with the majority being flavoured. The impulse category in Pakistan is dominated by Unilever's Walls and Engro Foods' Omore. On the international modern trade retail side, Baskin Robbins will be competing with London Dairy, Ben & Jerry's, Haagen Dazs, and Movenpick. On the dine-in side within its price points, Baskin Robbins will compete for the share of the throat with Johny Rockets, Movenpick, and Cold Stone. The first store of Baskin Robbins will open tomorrow in Lahore.

Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creative-agency-in-pakistan/440192
Riaz Haq said…
135 Million Millennials Drive World's Fastest Retail MarketMiddle class expected to surpass U.K., Italy over 2016-21

By
Faseeh Mangi
September 28, 2017, 1:00 PM PDT

https://www.bloomberg.com/news/articles/2017-09-28/135-million-millennials-drive-world-s-fastest-retail-market


Nearly two-thirds of Pakistan population under 30 years old
Pakistan’s retail stores forecast to grow by 50% in 5 years
Pakistan’s burgeoning youth and their freewheeling attitude toward rising incomes have turned the nation into the world's fastest growing retail market.

The market is predicted to expand 8.2 percent per annum through 2016-2021 as disposable income has doubled since 2010, according to research group Euromonitor International. The size of the middle class is estimated to surpass that of the U.K. and Italy in the forecast period, it said.

Pakistan's improving security environment, economic expansion at near 5 percent and cheap consumer prices are driving shoppers to spend up big. Almost two-thirds of the nation's 207.8 million people are aged under 30, according to the Jinnah Institute, an Islamabad-based think tank.

“We have a new millennial shopper at hand. They don’t mind spending to have the kind of lifestyle they would like,” said Shabori Das, senior research analyst at Euromonitor. “It’s not like the Baby Boomer generation where savings for the future generation was important.”

Pakistan is bucking the trend in the U.S. -- where stores are closing at a record pace as e-commerce undermines bricks-and-mortar. It's also attracting foreign operators: Turkish home appliance maker Arcelik AS and Dutch dairy giant Royal FrieslandCampina NV entered the market last year via acquisitions. Meanwhile, Hyundai Motor Co., Kia Motors Corp. and Renault SA are all building plants in the South Asian nation.
Pakistan’s retail stores are expected to increase by 50 percent to 1 million outlets in the five years through 2021, Euromonitor said. Its three biggest malls, Lucky One in Karachi and Packages Mall and Emporium Mall in Lahore, opened in the past two years.

Pakistan is mirroring what India went through about four years ago. Both countries have young populations with more income and less inclination toward saving which is a distinct difference to what retailers elsewhere are dealing with, said Das.

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