Premium Brands Company Profile 1 THE COUNTRY

Premium Brands Company Profile 1

THE COUNTRY The signing of the Oslo agreement between the Palestinians and the Israelis in September 1993 created a new autonomous area in the West Bank and the Gaza Strip. The Palestinian National Authority (PNA) controls the area. It is in this area that an independent Palestinian State will be created. In the meantime the Palestinian National Authority, through various signed agreements with the Israeli authorities, has sole and total control of many aspects of life in the Palestinian areas. Such areas of jurisdiction are economy (trade and industry), health, post, telecommunication, police and security, education, tourism, power and local government. 2

The Palestinian area is divided into two major areas: n The West Bank with a population of 1. 66 million inhabitants. n The Gaza Strip with a population of 1. 30 million inhabitants. The overall population growth rate is 5. 8% per annum. (One of the highest in the world). In 2000 the per capita income was $ 1800 per annum. 3

THE MARKET The creation of the autonomous state has resulted in the emergence of a new market for trade. This market remained totally undeveloped during the 30 years of Israeli occupation. For years this market was simply used as a dumping ground for Israeli companies interested in disposing of various products. This area was never serviced although the Palestinian people have always been known to be both highly educated and cultured. 4

Specifically, the cosmetic and fragrance market has been totally neglected by the principals and by their Israeli distributors. The Palestinian consumers especially women, have always followed fashion and are always seen to wear the most expensive cosmetics and fragrances. They are exposed to such products through their frequent visits to the rest of the Arab world or when the thousands of expatriate Palestinians return for their annual summer vacations. Palestinian women pride themselves with the way they dress and are made up. Despite the low-income levels and the rare availability of products in the market, they tend to always find the means to spend on make-up and clothing. 5

On the other hand, the lack of proper distribution channels has made it very difficult for the continuous presence of products in the market place. The presence of the products is dependent on many factors such as the availability of the product with Israeli wholesalers, the availability of cash with the Palestinian wholesaler to purchase product from the Israeli wholesaler, and sufficient profit margin for both wholesalers and retailers to carry the products. All such factors resulted in the emergence of a totally fragmented cosmetics and fragrances market, which is suffering form lack of proper marketing, sales distribution. 6

THE COMPANY A group of experienced Palestinian entrepreneurs who lived most of their lives between the Gulf and Europe realized the potential that exists in the Palestinian market. They got together and established a company called PREMIUM BRANDS whose sole mission is to market, distribute and sell products utilizing the most advanced and modern international techniques. The first stage of the operation of PREMIUM BRANDS was the creation of the Cosmetics and Fragrances Division. The market situation dictated that this division is operational in two areas : A distribution operation and a retail operation. PREMIUM BRANDS is part of Almasri group. 7

THE COMPANY THE DISTRIBUTION DIVISION This division deals with the marketing, distribution and sales of cosmetics and fragrances. The emphasis is on marketing as PREMIUM BRANDS belongs to the school that promulgates the importance of marketing in creating and servicing sustainable and growing market for its brands. The relationship between PREMIUM BRANDS and its principals is that of a partnership for the mutual benefit and prosperity of both. 8

To maintain best marketing results, PREMIUM BRANDS depends heavily on merchandising. Where all modern techniques are employed to achieve the best results in all stores covered. PREMIUM BRANDS does not depend on the wholesale trade to distribute their products. The sales team visits at least 35 – 40 main stores in the area. All the present class “A” and “B” stores in the area are covered. With the development of the retail and the wholesale trade. The number of outlets serviced will accordingly grow. Delivery is prompt and efficient. PREMIUM BRANDS believes in 24 hours turnaround. This ensures that products are always available. 9

THE COMPANY RETAIL DIVISION PREMIUM BERANDS is a pioneering Company. The lack of professional stores to carry well-known cosmetics and fragrance led the company to develop the retail division. The first PREMINM BRANDS boutique called Oasis opened its doors to the public in early September. It occupies an area of 130 square meters with a lower ground floor of the same size. The boutique is located in the main shopping district in the heart of Ramallah which is the largest and most affluent city in the West Bank. 10

PREMIUM BRANDS contracted the services of internationally acclaimed interior designers to design and execute the decoration of the boutique. While the main floor houses the cosmetics and fragrances, the lower floor houses the treatment rooms of the world renowned Clarins- Paris Institute. It is the first and only specialized treatment institute in Palestine. PREMIUM BRANDS plans to have more OASIS boutiques in the same caliber. 11

The Group The Masri Group is a 40 year-old, family enterprise which owns and manages a diverse network of companies in the Middle East and Africa, most of which are leaders in their respective sectors. Trading, Distribution & Representation Management Consulting • Commercial and Passenger Vehicles (Daewoo) • Heavy Construction Equipment and Material (Iveco, Jaso) • Engineered Equipment • Fast Moving Consumer Good (Unilever, Eveready) • Electronics (Daewoo, Funai) • Perfumes and Cosmetics • Independent Power and Energy Planning and Policy • Environmental and Natural Resources Management • Restructuring and Privatization Engineering & Construction • Architecture and Engineering • Construction • Real Estate Development Project Development & Finance • Partnerships with Engineering/Construction Multinationals • Power Plants and Oil &Gas Facilities • Financing of Power, Water and Telecom Projects Notable Affiliations • Coca-Cola Bottlers • Mineral Water and Beverages Plant • Lube Oil Blend Plant • Canned Foods • Oil & Gas Repair Facilities • Founding Partner, Palestine Development and Investment Co. , the flagship private sector company – and its sister companies, including the National Telephone Company, and the premier Real Estate Investment Company. • Member, World Bank, MENA Regional Council of Advisors • Board Member, Arab Bank Group • Board Member, Jordan Petroleum Refinery Co. Media, Telecommunications & High Tech • Founding Partner, various Hospitals, Pharmaceutical Companies and Medical Appliance Manufacturers. Industry & Manufacturing • Film Production • Television and Radio Broadcasting • Telecom Service Provider • Internet Service Provider Social Development Foundation 12

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