Karim Ghoneim, CEO, KMG recently spoke to DISTREE Middle East Media Partner, Channel EMEA, and offered up some great insights into what's happening in the Egyptian market as well as news of KMG's latest signing. KMG was established in 2003 and began to focus on mobility products in 2011 when it signed Infinix, quickly establishing the brand as a leading player in the Egyptian market. KMG is a confirmed delegate for DISTREE Middle East 2017.
The Egyptian market has seen significant changes in recent years, driven by economic and political changes impacting channel structures and strategies. The growth of e-commerce as a viable route-to-market has also played a role in redefining the market.
Ghoneim explained: “Two years ago, online sales started to become a real channel in Egypt because of the likes of Souq.com and Jumia. We’re a preferred supplier for both sites and they continue to product good sellout.”
Despite the growth of e-commerce, the mobile device market remains dominated by the independent retailer channel.
“The independent retailer channel accounts for up to 75% of smartphones sold in Egypt,” said Ghoneim. “Online accounts for just 3% or 4% of smartphones with the remainder sold through organised retail and operators.”
In the IT products space, the scenario is reversed with organised retail the main route-t0-market, followed by independent retailers. While the share for e-commerce remains relatively small, it is clear that this situation will change rapidly in the years ahead.
“E-commerce can give better market penetration,” said Ghoneim. “In Egypt, most of the population is under 40 and we have high internet penetration and high levels of smart phone usage. The challenge for online is the development of logistics companies in Egypt.”
KMG acquired an e-commerce platform called www.e3050.com in 2015. The website is currently under reconstruction in preparation for a relaunch, highlighting how important KMG expects e-commerce to become within Egypt.
KMG Signs Deal with Meizu
Egypt-based distributor KMG has added distribution rights for fast-growing China-based smartphone brand Meizu. Karim Ghoneim, CEO at KMG, said: “We are delighted to have started working with Meizu in Egypt. We are running a Meizu roadshow in shopping malls and at major sporting events. We want as many people as possible to see and touch the Meizu devices.”
“We are very selective in terms of the brands we take on,” added Ghoneim. “They must have real business potential, a long-term vision and marketing investment. We’re doing a soft launch for Meizu through Souq.com, which will be followed by a huge marketing push.”
The full interview is available on ChannelEMEA - click here