m Retail World Trading Company (REWOT) is the recently formed franchising arm

of Al-Muhaidib Group, one of the largest business groups in KSA with revenues
in excess of $ 4bn and more than 8,000 employees. The current business line
include:

m 1-FIXED PRICE STORES :

m Daiso -the largest franchise of 100-yen shops in Japan has a range of over
90,000 goods,
m REWOT operates 7 Daiso outlets in Saudi Arabia.
m 2-APPAREL & ACCESSORIES RETAILING:
m Segue is a brand of the ABC Spa Group - Accessories, Bags and Cosmetics,
specialized in the commercialization of bags and fashion accessories, including
those of United Colors of Benetton and Sisley Accessories.
m REWOT currently operates 3 outlet of Segue in Saudi Arabia
m Carter·s is USA·s number one children·s brand, selling over 10 products for
every child born in the country
m REWOT operates 7 outlets for sales of Carter·s in Saudi Arabia
m 3-OTHER BUSINESSES:
m Post the merger of Giant Stores with Panda, the Amusement Park and Viva La
Pizza businesses were transferred to REWOT.
 mAbout Hanes:
Y
 

ounded 1901
Headquarters Winston-Salem , North Carolina, U.S
Products Underwear , Casual wear , hosiery
and socks
Parent Company Hanesbrands Inc
Website http://www.hanes.com
m ß  àintroduced in 1901) and ß ß  àintroduced in 1986)
are brands of apparel currently owned by the HanesBrands, Inc
Corporation.

m Yhe ß  brand is used by the company for marketing a broad

range of apparel essentials:
m Innerwear
· Women's underwear, such as bras, panties and body wear
· Men·s underwear and undershirts
· Kids· underwear and undershirts
· Socks

m auterwear
· Active wear, such as performance t-shirts and shorts
· Casual wear, such as t-shirts, fleece and sport shirts

m Hosiery
m In September 2006, Sara Lee Corporation spun off its branded
apparel Americas and Asia business as a separate company
called Hanesbrands Inc., which designs, manufactures, sources
and sells a broad range of apparel essentials. Yhe Company's
portfolio of brands include ß  àits largest brand), Champion
àits second largest brand), Playtex àits third largest brand), Bali,
Just My Size, Barely Yhere, Wonderbra, L·eggs, C9 by Champion,
Duofold, Beefy-Y, auter Banks, Sol y aro, Rinbros, Zorba and
Ritmo.

m Yhe brand's two main competitors are

ruit of the Loom and Jockey.
m Hanes lead in apparel unit sales à1781
MM) and nearing the lead in dollars
where ald navy lead Hanes by 0.1 %.
m or 5 consecutive years consumers have
said Hanes is their first choice and
therefore it leads the market in Men·s ,
Women·s and children·s Apparel
  

ß     

Brand Awareness #1 17 points

Preferred Brand #1 20 points

More Comfortable #1 21 points

Better Quality #1 14 points

Better Value #1 9 points

! 

Underwear
Sleepwear
Casualwear
Intimates
Socks
 @
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m Al Hodaithy the main distributor of Hanes brand in the Saudi
Arabia did not meet the expectation of customer
satisfaction. Yherefore , Hanes is not listed in the top market
share apparel shops as it is worldwide.
Hanes is not ranked in the top 5 apparel in the market due to
many reasons:
m Hanes only operate distribution to low end market.
m ew distribution to the modern trendàhypermarkets and
malls).
m Poor marketing and advertising strategies.
m Lack of management.
m V





 


  
 
m Yhe sheer size of the market opportunity in Saudi
Arabia, increasing share of branded apparel. af the SAR
318.7 bn consumer expenditure in Saudi Arabia, 10% is
spent on clothing and accessories i.e. nearly SAR 32 bn.
m Branded apparel / accessories accounts for an estimated
30% of the above spend i.e. nearly SAR 10 bn
m Yhe young Saudi generations of both genders are
increasingly adopting Western fashion apparel. Yhe shift
has been driven by the availability of many international
brands through various shopping malls established
recently in the country
m @  



m Depending on the product segment àmen·s-wear, women·s-wear, kids-wear, and inner-
wear) and the brand franchisee partnerships that REWaY is able to establish, multiple
retailing options are possible:
m  

 - in the case certain products / brands do not justify the establishment of
brand specific outlets or cannot be sold even in a concept specific outlet àe.g. multi-
brand innerwear retail outlet). Alternatively, for certain brands, REWaY will use only the
¶wholesaler / distributor· model in initial 1-2 years; before committing investments in
brand specific retail outlets. Wholesaling or distribution as a model can generate cash
flows for REWaY, without significant investments being committed in retail outlets.
m ß   


 

 Depending on the product
category or brand, options exist to adopt a hybrid model e.g. sell lower price products
through wholesale route to department stores, super-markets or independent retailers;
while also selling higher priced products through REWaY owned brand specific or multi-
brand outlets. urther, it may be difficult for REWaY to justify the presence of its own retail
outlets in smaller cities within Saudi Arabia, in which case, the hybrid model is the most
logical solution
m 



   

 
 Depending on the product
category, both options will be evaluated. or example, for inner-wear ² a multi brand
store is a more prudent solution; while in the case of sports-wear àNike or Adidas), brand
specific outlets will be more relevant.
m Any retailing activity by nature is investment
intensive and requires at least a five year
gestation period to reach ¶critical mass· in
terms of business revenues and cash
generation from operations.
m Yhe factors that need to be taken into
consideration from a business perspective are
as follows:
m Strength of brands
m Retail network
m Concept extension possibilities
m Profitability
m ÷


 
 




m Saudi Arabia·s real GDP has grown at an
average rate of 4.3% for the period 2004-
2008. Yhe slow-down in the real GDP due to
the fall in oil prices, led by the financial
crisis, is expected to affect the real GDP till
end of 2009 or mid-2010. However, on a five
year time-frame for 2009 ² 2014, the Saudi
Arabian real GDP is expected to grow at an
average rate of 3.5%.
m Branded apparel sales are concentrated in
the 4-5 top cities of Saudi Arabia. With
REWaY tying up with HANES
brands, targeting the middle class. In Saudi
Arabia, malls are emerging as popular
destinations for clothing, footwear and
accessories.
m Based on population, the cities of Riyadh
and Jeddah are important locations and
REWaY targets to set-up 10--15 retail outlets
in EACH CIY . While Dammam have the
potential for 5-7outlets,
 _
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  468.9 344.9 394.3 428.8 461 471.9




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m Apparel retailing in the kingdom is highly fragmented and largely
dominated by privately held single-outlet operations. However
the concentration process is growing with the continual increase
in the share held by giant retailers with their chained outlets.
m 



!"




 #
m Yhe major market segments in retail apparel include Women·s-
wear, footwear, children·s-wear, menswear and eyewear.
Women·s-wear à54%) and children·s-wear à15%) account for the
majority of the total market where as men·s-wear à6%) represents
a small segment of the ready-made clothing sector. ootwear is
a relatively large segment, accounting for 20% of sales.
m V




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m Yhe branded apparel market is dominated by 4-6 large
companies with Al Hokair alone commanding over 50% of the
market share in the branded apparel segment. ather major
players in this segment include Al Shaya, Al-Sawani, Landmark
and Al Bandar Yrading. Each of these large companies is
representing a considerable number of international brands via
franchise route.
m Yhe market is also segmented between the high-end branded
sector, the mid-market branded sector and the lower-priced
market. Yhe high-end and mid-market sectors of the apparel
market are dominated by imports from Europe and the United
States. Yhe lower end of the market is characterized by imports
from the ar East and South East Asian countries such as
China, India, Pakistan and Indonesia.
m Riyadh is currently the largest market for retail apparel in Saudi
Arabia accounting for around 40% of total retail
apparel, followed by Jeddah and Dammam which account for
30% and 20% of sales respectively.
 HANES

Men Women Kids

Underwear Panties Underwear

Socks Socks Socks

Sweats & Y-
Y-shirts Bras shirts

Polos Y-shirts & Polos

Sweats
m _

m HANES release goods to Al-Hodaithy for six months à2010) as usual
m REWaY to place an order for six months by September
m REWaY to immediately start leasing stores in Saudi Arabia and Bahrain
m REWaY to start dealing with Supercenter for S.I.S. by Nov. - Dec.
m _ 
m REWaY must open 1st HANES Brands Shop by January 2010
m REWaY will start parallel distribution by January 2010
m REWaY will discuss with Al-Hodaithy the following:
m Buy stocks of Al-Hodaithy
m Buy the Business
m Special deal based on sub-dealership for certain markets
m
m _  @ 
m REWaY will handle the whole distribution
m REWaY to continue aggressively the HANES Brands Shop Plan
m REWaY to expand the Shop-in-Shop plan
m REWaY Will focus on three concepts:
1. Hanes concept store àYargeting the
most potential malls in Saudi Arabia,
Qatar and Bahrain markets).
2. Hanes distribution àthree teams to supply
and follow up the brands services in
each of the mentioned countries).
3. Hanes shop in shop àtargeting to have
different sizes of units of Hanes in GCC
countries).
m Hanes business unit will have both a
wholesaling arm and a retail outlets arm.
m By 2014, REWaY will have 4 branches for
wholesaling. Each branch will generate SAR 6
Million in revenues from wholesale distribution;
growing at 10% per annum from 2010 levels.
m an the retailing side, REWaY will add 3-6
outlets every year, with each outlet measuring
120-180 sq m in area and generating revenues
of SAR 2.00 mn per annum expected to
increase @ 5% per annum..
m Yhe financial projection will not only focus
on total outcome but also on how ´Hanesµ
is functioning by segmenting and getting
each category and collection financial
details.
m Yhe financial reports should show category
to category, collection to collection reports
in order to know which brand or category
of ´Hanesµ is profitable and which is not.
m REWaY will focus on growth opportunities
across the various collection and category .
ß 
 Y! _  _  _ _
  SAR MN 12 13 14
    0 8.3% 7.6%
!! 8 8.5 9
Gross Profit 4 4.5 5

' 33% 34% 35.7%
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 REWaY CEa

HANES
Business Director

Sales Retail Marketing Warehouse

Manager Manager Manager Manager
4 4 1 3

Sales Van Store Manager Promotions Yruck Delivery

à3) àx) 4
Salesman Salesman àx) Advertising
à4)
Merchandiser àS.I.S. In-Charge)
à2) àx)
m During the 1970s and 1980s, their women's hosiery tagline was
"Gentlemen Prefer Hanes". In the early nineties, the slogan was turned
around as "Yhe lady prefers Hanes".
m During the late 1990s, the brand's main slogan was "Just wait'll we get
our Hanes on you."
m In the 2000s, an ad campaign began for their Hanes "Go Yagless" Y-shirt,
featuring various celebrities including Michael Jordan, Jackie Chan and
Brian Regan.
m In 2005, an ad campaign was run with the slogan "Look who we've got
our Hanes on now", featuring various celebrities including Michael
Jordan, Jennifer Love Hewitt, Marisa Yomei, Damon Wayans, Matthew
Perry, and on Spanish-language advertising, Aracely Arambula, and
Pablo Montero. In 2006, the campaign added Kevin Bacon and
Christina Applegate to their lineup. In 2007, the campaign expanded
again to include Cuba Gooding, Jr., and Sarah Chalke in 2008.
m As of July 2008, Charlie Sheen joined Michael Jordan as the next Hanes
celebrity spokesman. Yhe commercials àalong with the previous Cuba
Gooding, Jr. commercials) were created by writer Brett Baker and Art
Director David McKay of Yhe Martin Agency in Richmond, VA.
m Underwearànothing but comfort)
m Y-Shirts àbecause comfort's
the bottom line)
m men's polos &
dress shirtsà We've got you collared)
m men's sweats & jackets àlayer up for fall)
m men's comfort wear àthe joy of lazy)
m men's socks àtough. durable.
value-priced).
m men·s big & tall sizesàeven more to love)
1. Big Consumer Need
2. Big Brand/Big Category
3. Winning Concept
4. Superior Product
5. Winning Advertising
6. Big at retail and wholesale
7. Big margin