Delta drives into Kuwait
Growing profile of the Kuwaiti IT retail channel inspires PC products and audio visual distributor to open office.
Retail distributor Delta Business Products is preparing to expand its footprint in the Gulf region by opening a subsidiary in Kuwait later this year.
The move will mean UAE-based Delta, a distributor for brands such as Microsoft, Samsung and Sony, has a direct presence in all of the GCC countries except for Bahrain.
"We have somebody on the ground in Kuwait already, but in September we are planning to open a fully fledged sales office," said Govinda Siddartha, managing director at Delta. "One of the main reasons for this is the expansion of the retail market. It is now beginning to take off in Kuwait, especially as Carrefour is in the process of opening its first store. The main reason for the office is to put people and stock locally."
Delta is supplying Carrefour with a number of consumer brands and had begun making shipments to the French retail giant ahead of its Kuwaiti launch.
Siddartha expects Carrefour's arrival in Kuwait to ignite the interest of other retailers in the GCC's third largest market, which IDC values at more than US$600m a year. At present, the retail sector is currently dominated by only a handful of retailers, including names such as Alghanim Electronics and Eureka. "There are not many foreign retailers in Kuwait but I think possibly Plug-Ins and Sharaf DG are looking at this market. Every major retailer will have to consider having a presence in the Kuwait market as part of their strategy now."
Delta's aspirations have been given a further boost by recent distribution agreements with office products vendor 3M and Belgian mobile scanning devices manufacturer Iris.
The 100-strong company has also upgraded its Microsoft SQL back-office system to smooth out a number of processes. "It will give us a better grip of information to control inventory and allow us to report to vendors in a systematic way," explained Siddartha.