In Search of Luxurious Slippers: The Attempted Launches of Edmini in the UAE (B)

The 2010 and 2011 Attempted Launches of Edmini

Since Eid 2010 was approaching fast, Abdulnasser and Rashid began monitoring closely the progress of the suppliers in an attempt to secure a timely launch of local manufacturing of Edmini products. They checked with the leather-cutting machine factory in the developing country X to only discover that it was unable to comply with the initial commitment and requested for extra time. Although the payment for different types of leathers had already been made, their shipment to the UAE still needed to be finalized. They also realized that they needed to import more machinery for sewing to be able to start local mass production of slippers.

These were the main reasons why the Edmini partners had to soon return to the developing country X in search of additional cost-effective suppliers of machinery. Bouncing from one factory to the next, they finally found a supplier who agreed to sell the machines at a reasonable price, taking a 50 per cent advance payment, with the remaining 50 per cent to be paid upon receipt of the original shipment documents by FedEx. Further arrangements were made to make sure that all leather supplies could be shipped together with the machines in the same container. Yet, despite the initial agreement, the shipping company started changing the delivery conditions and shipping dates which further delayed the arrival of the supplies to the UAE. Evaluating the current circumstances around them, Abdulnasser and Rashid understood that they had no choice but to postpone the Edmini launch to the next Eid of September 2011.

If they wanted to be successful in meeting this new launch date, they needed to put things quickly back on track. The main issues that needed an urgent check were the slipper moulds and workers’ situations, tasks that were both handled by the same factory in the developing country Y. The factory had actually sent one sample mould for approval, but failed to deliver on moulds of different sizes. Although ideas concerning the initial manufacturing of slippers of a single size were discussed and considered feasible, the Edmini partners still needed to secure steady progress on other moulds. After many discussions, they agreed to accept the three extra months that the moulds manufacturer was demanding to finalize the project. These deadlines suited them well, especially because, in the meantime, Abdulnasser had accepted a new position in the corporate division of the Abu Dhabi National Bank and required more time for commuting from his home in Ajman to Abu Dhabi. Moreover, the arrival of workers who would be handling the local manufacturing of slippers had also been delayed since the processing of their employment visas was taking more time than expected. Yet, at the expiration of this extended deadline, the moulds were still not delivered and the factory came up with another unexpected demand for 30 per cent extra payment due to presumably increased raw material costs. For Abdulnasser and Rashid, paying this additional amount was simply out of the question.

It was already February of 2011, but the preparation for the manufacturing of the first batch of Edmini slippers was still not progressing effectively. Abdulnasser now decided to take matters into his own hands. He moved back closer to Edmini headquarters by accepting a very promising position in the Revenue Optimization Department of the Emirates Airlines and simultaneously pursuing a Master’s degree in International Business from the University of Murdoch in Dubai. Juggling between his work and studies, he started the search for another moulds maker and soon located a factory which agreed to supply the needed amount of soles and moulds of different sizes. Soon a contract was signed which allocated a four-month period for project completion, 75 per cent advance payment and settlement of the remaining 25 per cent upon delivery of the final batch of supplies.

In July 2011, Abdulnasser made a surprise visit to the moulds manufacturer in the developing country Y only to be tremendously disappointed. The factory had barely completed 20 per cent of the order but promised to finalize by the end of August. Abdulnasser was not willing to let it go anymore. He renegotiated the terms of the previously signed deal by adding a specific amount of monthly penalties to be paid by the supplier in case he failed to deliver in full. Yet, Abdulnasser had his doubts about the usefulness of this clause in preventing further delays, given that Edmini had already paid for two-thirds of the still undelivered supplies. He believed that a more decisive, if not radical, step had to be taken. After some deliberation with Rashid, they both went to the Sharjah Chamber of Commerce and Industry to file a formal complaint against the moulds manufacturer. ‘The Sharjah Chamber in collaboration with the Investment Development Authority in the developing country Y could definitively find more persuasive means to make the factory comply with the contractual agreement,’ believed Abdulnasser. ‘Although the foreign supplier had made us miss the first Eid season of 2011, the second Eid of November 2011 could still be caught. This solution would certainly be a winner!’

The Future of the Edmini Brand

On this early morning of October 2011, Abdulnasser caught himself envisioning the brilliant future of Edmini. He came across an array of new ideas to make Edmini the number one store in UAE. ‘The skyrocketing sales would be the buzz of the country and Edmini would be one of the most sought after brands in every single shopping mall,’ he thought. Initially, the company could consider catering to a larger customer base by offering less expensive male slippers that would be mass manufactured abroad and sold locally at affordable prices ranging between AED 400 and AED 600. Not to erode the luxury connotation of Edmini, he could develop this affordable male footwear as a separate business that would run under a different name. With some experience of servicing the local market, Edmini could gradually expand its operations across the Gulf Cooperation Council (GCC) by changing the slipper designs to suit the tastes of people from different nationalities. Considering that certain Muslims preferred wearing slippers not only with their traditional dress but also with their casual clothes, Edmini would have to provide funkier slipper options if it wanted to succeed in many regional markets.

More creative thinking induced Abdulnasser to imagine the opening of a specialty product line for children and female customers. This could be possible since the Edmini brand would speak to all genders and all age groups. He thought that women, who were typically more shopping oriented than men, would be tempted to browse the web store more often if they could make purchases for themselves and their children as well. Some rebranding work would have to be done by opting for different colour patterns related to the main brand colour of dark red to promote the wide range of product lines offered by Edmini. For instance, the children’s line could carry some lighter blue shades, while women’s footwear could be associated with more delicate and feminine patterns of red colour.

Apart from just making slippers, the company could soon diverge into manufacturing other fashionable leather products such as cell phone covers, wallets, purses, handbags and travel bags. With the additional reserves of leather, Edmini could provide customized covers that could be used to decorate the sticks that Emiratis carry in their traditional dances. The sticks would be made from either wood or fiberglass and would follow the branded Edmini culture of luxury and customization. Customers would be able to have their initials engraved onto the sticks which would be sold in different colours, lengths and thicknesses to satiate a broad variety of individual tastes and preferences. All these adaptation options and additional features, such as the opportunity to select silver, gold or ivory accessories to accompany the sticks or order branded watches and custom-made dresses to match specific slipper designs, would be displayed on the company website. Abdulnasser was convinced that ‘with such promising prospects, Edmini could certainly become a major online retail store for all traditional Emirati products.’

Thinking long term, he also pondered over the possibility of starting an animal farm in the UAE, where he could raise different species of animals and benefit from their leather. Although this plan could be executed only in the next 15–20 years, it would allow Edmini to considerably reduce its dependence on foreign suppliers. Moving beyond slippers, could potentially lead to a dilution of the Edmini brand name, but Abdulnasser still felt that such development in an organization’s activities could be looked upon as multi-branding where different products could come under different brands under the broader Edmini umbrella. These initiatives, if implemented successfully, could allow Edmini to reach out to customers all over the globe. This could be facilitated by an online store that would enable people from different countries to customize their footwear and other accessories and then receive them through doorstep delivery services. With the whole system in place, Abdulnasser would spend less time monitoring the company and make more investment into sharpening his business acumen and advancing his career. As he had always wanted to become a Doctor of Economics to be able to apply for a teaching position at a local university, he planned to obtain a DBA (Doctor of Business Administration) or PhD in the field, while keeping some time aside for completing a Chartered Financial Analyst (CFA) programme.

Abdulnasser was convinced that it was only a matter of time until customers would get to know the Edmini brand and make it the number one purchase on their shopping lists. While processing all these future plans in his mind, his cell phone suddenly began to ring, interrupting his flow of thought.

‘I have just received some important news from Sharjah Chamber of Commerce and Industry. Are you ready to hear it?’ he heard Rashid’s accelerated voice on the other end of the phone line. Abdulnasser’s heart started pounding very fast and he held his breath. ‘Oh, Allah, let this news be great!’ he thought inwardly and said impatiently to his business partner, ‘Yes, Rashid, I am all ears!’…