Media /Press wpi Branchenreport Konsumgüter - Part 2
Heidi Klum also delivers advertising on Iraqi Television. However, neither sales nor marketing are comparable with those in Germany. Those knowing the secrets of the Iraqi market will be rewarded.
The attraction is clear with a growth rate up to 5o percent.
Schauma, Taft, Fa , Glatt, Brilliance, Bonawell, Diadem, Men Perfect and Theramed, all of these brands are available for sale on the Iraqi market. “Schwarzkopf & Henkel used to have unused spots in the world, Iraq was one of them, and therefore they were searching for a company that would open the way into the country and could deliver a market analyses, “says Nasyr Birkholz, entrepreneur in Berlin, about the beginning of cooperation with the German enterprise. “During that time we realized, that this is a chance for us to get established in the country. “So Birkholz went to Iraq and began to organize a nationwide distribution structure.
The result is the Company Somerland for trading Agencies and distribution that was founded in 2002, that is headquartered in Sulaymania and has a branch office in Bagdad. Another one in Basra is planned. 30 employees are taking care of, what a European Exporter couldn’t handle.
Somerland delivers a market analysis, when a new product is being launched in Iraq and is calculating the costs to bring it into the market. One is developing the marketing strategy, obtains the necessary import documents and test certificates, handles the contract negotiations with distribution partners and observes the monetary transactions. In addition the employees of Somerland translate the entire documentation. Languages spoken are Arabic, German, English, French and Italian. The marketing also is taken care from there.
The Freight forwarding Company Birkholz International Transports is complementing this offer and is taking care of the distribution.
Since 2003 the Nasyr Birkholz Companies sell Schwarzkopf & Henkel Products to Iraq. They are distributed in Supermarkets, Drugstores, Pharmacies, Perfumeries, hairdressing salons and wholesale. The participation in exhibitions in Bagdad, Erbil, Dohuk and Sulaymania is also very important. Somerland translates a color, high quality catalogue with all Schwarzkopf & Henkel Products in the program, which is given to the store owner.
Specified Presentations are being held in Showrooms, Outlets and Warehouses as well as for Iraqi Ministers and industrial associations.
“Radio and Television advertisements is playing a major role with the marketing measures of Somerland “, says Birkholz. “ We create Advertising ads on TV with well known Faces like Heidi Klum’s “The German Spots for the cosmetic Products are being translated into Arabic. “ Our success lies within the fact that I know both the German and the Arabic markets and cultures, the languages and the people,” he says. The consumption of the products increases from year to year, Birkholz indicates about a growth rate of 30 to 50 percent. Especially products like Brilliance, Palette, Diadem and Men Perfect are going well; both women and men can dye and tint their hair. “One wouldn’t think, that one can sell hair dyeing products in Iraq, that are more expensive than products from Bulgaria or China, but we do sell about 1 million units every year and are the market leader, says Birkholz. Also with this the good reputation of German products is decisive, says the entrepreneur, who was born in Bagdad in 1959.
Nasyr Birkholz appraises, that the clientele for cosmetic products makes five to ten percent of the population. But this is effectual to make good business. Even Henkel household and cleaning supplies were already advertised and distributed in Iraq. For the very German brand Persil there are buyers. “But the competition never sleeps “, says Birkholz, competing companies like Proctor & Gamble and Unilever have arranged productions in the region and give us a hard time.”
Especially Proctor & Gamble, the biggest consumer goods producer worldwide, has stepped into the Iraq business. Since 1986 the enterprise is operating a factory in the Egyptian city of the 6th of October. In this huge industry park near Kairo numerous technical academies and international automotive manufactures like BMW have got settled. There P& G is producing for the entire Middle East the soap brand Camay, toothpaste Crest and the biggest cash cow of the concern, the laundry detergent Ariel (that has been boycotted by the way during the 3rd Iraq War, because of Ariel Sharon). Since especially the transport costs compared to the merchandise value preponderate, Ariel was much more reasonable priced compared to Persil.
Most of the P& G products come from Saudi Arabia. The Abudawood Group in Jeddah is distributing the American product line-up since 1935 in the Kingdom.
1960 a Production was established in Jeddah, which Abudawood is distributor for. This factory provides products for Saudi Arabia, Pakistan, Bahrain, Jemen and Iraq. For most of these countries Abudawood has founded their own distribution companies. The import and the distribution for Iraq is being taking care of by Modern Iraq Company for General Trading. This is a daughter company of the Iraqi conglomerate H. Mahmood J. Al bunnia & sons, which s distributing Coca Cola in the country and owns the chewing gum company in Jordan. HMBS is also producing dairy products, Ice cream, chocolate and chicken meat in Iraq.
The Proctor & Gamble products, that are coming from Saudi Arabia to Iraq include: Mr. Clean (the German Meister Proper), always sanitary napkins, Wella, Pantene and herbal Essences (Hair care), Covergirl (Make-up) , Sk-II und Olay ( Hautpflege) , razors from Gilette and Braun as well as Vick cough drops and Pringles potato snacks. Only the mass products like Laundry Detergents, Soap, washing up liquid Fairy, the shampoo Pert and the Pampers diapers come from the Egyptian production.
In addition Modern Iraq Company for General Trading is distributing licensed perfumery and Shower gels of the brand Boss. Mr. Birkholz is also present on the Iraqi market with a perfume of a less known manufacturer. He is planning though to launch an in Germany produced brand on the Arabic market. Birkholz is also thinking about how to beat the cost advantages that Procter & Gamble have achieved regarding their factories in Egypt and Saudi Arabia. “We think about to produce on the ground or to buy Henkel Products from closer locations, “says the engineer who studied at the University of Bagdad.
That Nasyr Birkholz would land in Germany with his business, wasn`t planned like that. 1988 he planned to go to the USA, to go about master studies and doctorate. But he would have had to wait for his Green Card for 18 months. So he stayed in Germany, started a family and gained the German citizenship.
“I never had regrets, “says Nasyr Birkholz. Currently he is controlling the Birkholz International and Somerland activities and has his offices located in a prestigious building in Berlin Mitte. In addition to that there is Birkholz Transport und Logistik, which is working for DHL, Mercedes Benz, Siemens and Sony.