Alshiaka is a Saudi Arabian outfitter for men that specializes in designing and crafting luxury thobes. The brand has cemented a presence in the Saudi market over three decades of operation and in 2015 received an equity investment from SEDCO Holding.
In 2018, Alshiaka responded to economic and regulatory changes and market competition by expanding its physical presence and softlaunching an e-commerce platform.
The company grew its physical retail footprint in a challenging market by opening 7 new showrooms in new localities that gave it first-mover advantage. The brand also soft-launched its store.alshiaka.com e-commerce platform. The e-commerce sales channel will serve cities across Saudi Arabia, and propel the brand to global growth by 2020. A factory outlet was also introduced to liquidate stock older than three years and turn inventory into revenue.
The brand optimized its logistics by turning to a second party logistics (2PL) model where fleet management and goods distribution were outsourced to a partner. The brand aims to evolve its 2PL approach into a full-fledged third party logistics (3PL) model, with Alshiaka focusing on its core business model.
Internally, the brand assessed its legacy IT systems to identify a roadmap for optimization. A third-party auditor was also tasked with risk-assessing all internal departments.
The year also witnessed Alshiaka icnrease Saudization levels for sales staff. The brand achieved 100% compliance with the new regulations in its 50+ showrooms across Saudi Arabia within six months. Staff training initiatives saw the development of a new Learning and Performance team to systematically boost soft and sales skills. The initiative improved employee engagement and customer service.
Looking to the future
2019 will be a year of expansion to new markets and innovative product launches. The brand has identified five critical areas of improvement for the future: product development, market development, business process optimization, profitability and increased customer value.