JAB, World's Largest Wholesaler Expands into Middle East
April 21, 2008
BIELEFELD, Germany –JAB is executing plans to open one of the Emirates' first full-fledged luxury showrooms in Dubai's famed Burj in the next few years.
According to Christopher Jacob Schminnes, president of JAB and all its subsidiaries, the Middle East and Dubai is one of the largest growth areas for the company. For the first time in 12 years, Fabrics & Furnishings International sat down with Schminnes, whose company topped F&FI's top 50 wholesalers list in 2006 with sales exceeding $400 million, to discuss JAB's recent business developments, strategies and growing market sectors.
"The JAB Middle East, 100 percent JAB Anstoetz entity, with its head office in Dubai [aims] to service with corporate sales and marketing managers the high-end residential, as well as hospitality design community, with at least one satellite office in Abu Dhabi," said Schminnes. "In the international markets, like the Middle East, JAB especially sells the very exciting, absolute highest class parts of its entire line of fabrics. The more high-end [the fabrics], the better we sell and market [them]."
Schminnes runs the company along with Ralph, Stephan and Claus Ansotetz, all of whom report to an international board of directors that, according to Schminnes, exists mainly for guidance. "There's no formal relationship, it's purely a family-run business," said Schminnes of JAB. "We are very down to earth people."
Until Jan. 1, 2008, JAB had been working with Nader Oubari, an agent and fabric veteran in Dubai, but due to some differences in business strategies, JAB has decided to part ways with Oubari and establish its own showroom while Oubari pursues his own textile ventures.
"The operation can best be handled if it is not partially owned by a partner, but solely by the parent company, in this case JAB Anstoetz," said Schminnes. JAB has set up an interim showroom in the Al Attar Tower as plans for a permanent space in the 'Business Bay' around the Burj Dubai are being cemented. Until that space is finalized, the company will go through a "transitional period," as Schminnes noted.
"We want to be successful in that area," he said. "We need to function smoothly and have a smooth transition." Though Schminnes acknowledged a long-held friendship between him and Oubari, from a business standpoint, he said it was better for the two to "split avenues."
Currently, JAB is doing agent jobs in Syria and Lebanon, moving closer to the Middle Eastern market. However, the company is expanding into many market sectors across the globe in addition to its Middle East efforts.
"Our biggest growth markets are Japan, Southeast Asia, the Middle East and Eastern Europe," said Schminnes. "We sat down and asked [ourselves] where we could establish a marketing strategy." Schminnes noted that the company also targets growth in the saturated markets such as the United States.
JAB's subsidiaries include JAB Anstoetz Teppiche, its carpet company founded in 1974; BW Beilefelder Werkstatten, an upholstered furniture factory; Stroheim & Romann, a New York-based fabric editor; Chivasso, a Holland-based manufacturer of wallcoverings and furnishing fabric; Carpet Concept, a contract and residential carpet company conceived in 1993; and the recently purchased Gardisette; among other brands.
"Chivasso is totally different from where it was in 2000." He said that a young management team there has helped contribute to the 450 percent growth Chivasso has seen over the last eight years.
Stroheim & Romann, JAB's 142-year-old, U.S.-based fabric distributor, was purchased by the company in 1982 and is renowned as one of the oldest and most reputable companies in the industry. According to Schminnes, Stroheim's business the last few years had been flat, but that is changing due to new marketing strategies and personnel changes. "We had not positioned the brand as it should be and we have to change that," he said. "We have to focus the sales efforts to reflect the regional differences in the country. The top end line of Stroheim is what's being exported." Schminnes took over the operations at Stroheim in August of 2007, when Julian Grauer left the company. Bill Peters, formerly of Osborne & Little, also joined Stroheim last year as president. Schminnes said, "For Stroheim, Peters can influence the brand from A to Z. It's a much bigger and challenging job for him."
Schminnes also spoke about how he has seen the international textile market change in recent years. "Lots of specialist mills had to close their doors," said Schminnes. "For the very top-end suppliers, there are specialized mills that do not conduct like a business; they have no continuity. In the supplier world, the mill is supplying to the editeur, but now there are these in-between converters. From the customer side; worldwide the middle end of the market has had major problems. Consumers are floating away and are buying with the Crate & Barrel type stores. The lower end of the market has taken a major market share."
Although Schminnes acknowledged that technology and the Internet have also affected the textile industry, he said that JAB has not seen much of an impact. "The Internet hasn't changed our market at all," he said. "Our beauty is that we are not selling ready-mades. We need an intermediate, like a designer. Someone who wants a custom job is not going on the Internet. You're not buying 30 yards of a $300 fabric on the Internet."
According to Christopher Jacob Schminnes, president of JAB and all its subsidiaries, the Middle East and Dubai is one of the largest growth areas for the company. For the first time in 12 years, Fabrics & Furnishings International sat down with Schminnes, whose company topped F&FI's top 50 wholesalers list in 2006 with sales exceeding $400 million, to discuss JAB's recent business developments, strategies and growing market sectors.
"The JAB Middle East, 100 percent JAB Anstoetz entity, with its head office in Dubai [aims] to service with corporate sales and marketing managers the high-end residential, as well as hospitality design community, with at least one satellite office in Abu Dhabi," said Schminnes. "In the international markets, like the Middle East, JAB especially sells the very exciting, absolute highest class parts of its entire line of fabrics. The more high-end [the fabrics], the better we sell and market [them]."
Schminnes runs the company along with Ralph, Stephan and Claus Ansotetz, all of whom report to an international board of directors that, according to Schminnes, exists mainly for guidance. "There's no formal relationship, it's purely a family-run business," said Schminnes of JAB. "We are very down to earth people."
Until Jan. 1, 2008, JAB had been working with Nader Oubari, an agent and fabric veteran in Dubai, but due to some differences in business strategies, JAB has decided to part ways with Oubari and establish its own showroom while Oubari pursues his own textile ventures.
"The operation can best be handled if it is not partially owned by a partner, but solely by the parent company, in this case JAB Anstoetz," said Schminnes. JAB has set up an interim showroom in the Al Attar Tower as plans for a permanent space in the 'Business Bay' around the Burj Dubai are being cemented. Until that space is finalized, the company will go through a "transitional period," as Schminnes noted.
"We want to be successful in that area," he said. "We need to function smoothly and have a smooth transition." Though Schminnes acknowledged a long-held friendship between him and Oubari, from a business standpoint, he said it was better for the two to "split avenues."
Currently, JAB is doing agent jobs in Syria and Lebanon, moving closer to the Middle Eastern market. However, the company is expanding into many market sectors across the globe in addition to its Middle East efforts.
"Our biggest growth markets are Japan, Southeast Asia, the Middle East and Eastern Europe," said Schminnes. "We sat down and asked [ourselves] where we could establish a marketing strategy." Schminnes noted that the company also targets growth in the saturated markets such as the United States.
JAB's subsidiaries include JAB Anstoetz Teppiche, its carpet company founded in 1974; BW Beilefelder Werkstatten, an upholstered furniture factory; Stroheim & Romann, a New York-based fabric editor; Chivasso, a Holland-based manufacturer of wallcoverings and furnishing fabric; Carpet Concept, a contract and residential carpet company conceived in 1993; and the recently purchased Gardisette; among other brands.
"Chivasso is totally different from where it was in 2000." He said that a young management team there has helped contribute to the 450 percent growth Chivasso has seen over the last eight years.
Stroheim & Romann, JAB's 142-year-old, U.S.-based fabric distributor, was purchased by the company in 1982 and is renowned as one of the oldest and most reputable companies in the industry. According to Schminnes, Stroheim's business the last few years had been flat, but that is changing due to new marketing strategies and personnel changes. "We had not positioned the brand as it should be and we have to change that," he said. "We have to focus the sales efforts to reflect the regional differences in the country. The top end line of Stroheim is what's being exported." Schminnes took over the operations at Stroheim in August of 2007, when Julian Grauer left the company. Bill Peters, formerly of Osborne & Little, also joined Stroheim last year as president. Schminnes said, "For Stroheim, Peters can influence the brand from A to Z. It's a much bigger and challenging job for him."
Schminnes also spoke about how he has seen the international textile market change in recent years. "Lots of specialist mills had to close their doors," said Schminnes. "For the very top-end suppliers, there are specialized mills that do not conduct like a business; they have no continuity. In the supplier world, the mill is supplying to the editeur, but now there are these in-between converters. From the customer side; worldwide the middle end of the market has had major problems. Consumers are floating away and are buying with the Crate & Barrel type stores. The lower end of the market has taken a major market share."
Although Schminnes acknowledged that technology and the Internet have also affected the textile industry, he said that JAB has not seen much of an impact. "The Internet hasn't changed our market at all," he said. "Our beauty is that we are not selling ready-mades. We need an intermediate, like a designer. Someone who wants a custom job is not going on the Internet. You're not buying 30 yards of a $300 fabric on the Internet."
