Saudi Arabia’s economic roadmap prioritises private sector growth, with a range of initiatives to the tune of $61bn, and packages to support SMEs and local content and production.
Government support during the pandemic has been instrumental in helping the private sector mitigate the negative impact of a global crisis, creating headroom for greater economic diversity and a wider set of opportunities for trade, collaboration and investment.
This environment is accommodating to our ambitions, and we are pleased to be contributing to the kingdom’s growing competitiveness, having developed and concluded a breakthrough programme that has restored our business’ profitability and strengthened our market leadership in ACs and home appliances.
Our breakthrough programme
The word ‘transformation’ is routinely misused. Few companies have delivered a sustainable, at-scale business transformation, one that involves an intense, company-wide programme with the aim of long-term organisational health and performance enhancement.
I have been fortunate to participate in a transformation of this kind, and I can comfortably say that as we roll-out our post-turnaround strategy, the programme in which we engaged has genuinely changed the company’s human capital, corporate culture, business model and financial performance.
Embarking on Shaker’s transformation has been one of the most important milestones of my career. The transformation is personal, and it has required immense effort and energy from all who have been involved. The breakthrough programme’s impact isn’t owed to short-term results; it is dependent on the ability of myself and my colleagues to ensure long-term and sustainable profitability.
Having launched the programme in 2018, and latterly supported by an agile response to the Covid-19 pandemic, the group returned to profitability for the first time since 2016. Driven by four pillars for improving performance – core business turnaround, a talent upgrade plan, performance infrastructure and strategic moves, we placed heavy emphasis on cost optimisation and operational efficiency, as well as on enhancing management capabilities, rethinking our organisational model and diversifying revenue streams.Â
Saudi Arabia’s Shaker underwent a true transformation, says its CEO
A key pillar of the programme was our strategic moves, which strengthened our relationships with principals and business partners, and explored opportunities beyond core operations. This was, in essence, about creating greater diversity in our revenue model as we sought fresh opportunities in the market, and new segments to enter.
With that journey well underway, we are already realising the rewards, bringing on-board blue-chip brands such as Panasonic – our first foray into the TV category. We have secured a strong share of the government’s energy efficiency and retrofit projects, participated in mega projects such as NEOM and Red Sea and boosted our exposure to Saudi housing projects.
We are very pleased with the impact this growth has had on both the top- and bottom- line and will continue to grow our participation in strategic projects and partnerships to ensure we build on this momentum.
Sustainability
In an effort to deliver more competitive future returns, we have integrated sustainability into our transformation, with a particular focus on market leadership for manufacturing and distributing energy-efficient products. We intend to continue building our sustainability credentials, particularly as improving environmental practices are firmly part of the national agenda.
Data shows that companies with sound ESG principles deliver superior long-term results, and this will remain an area of focus for the company. It is our opinion that sustainability brings differentiation combined with deeper emotional bonds with stakeholders as businesses build stronger loyalty and resonate more powerfully with customers.
At Shaker, we have long been committed to developing sustainable products and are proud to be fully accredited by SEEC. I am personally committed to supporting the environmental goals of Vision 2030 and I am proud to highlight that our most energy-efficient products in the AC market are those that are contributing most powerfully to top-line growth and market share. Demand exists, and our mission is to meet it.
Shaker’s goal is to focus on sustainable growth for the company in the years to come
Digital transformationÂ
Penetration of online retail is on a steep growth trajectory in the kingdom and a key component of our future transformation is to capitalise on Saudi Arabia’s digital revolution. We understand the role that digitisation plays in the kingdom’s changing economic landscape and have put in place a number of initiatives to boost e-commerce sales and raise the profile of the group across the kingdom.
This includes improving our sales infrastructure by strengthening our position in the e-commerce and distribution space. In 2019, we launched the Shaker online retail platform to increase product exposure for our B2C customers as part of our strategy to grow sales and profitability. While in the short-term I expect Shaker’s main growth drivers will be our strategic B2B customers, projects and retrofitting initiatives, I also believe that e-commerce sales will accelerate our growth, and in the long-term, become a critical part of our business.
Future growthÂ
With the breakthrough programme having proved instrumental in achieving profitability, my goal is to focus on sustainable growth for Shaker in the years to come. We want to strengthen our portfolio of international brands for household appliances, while building on our market leadership in ACs.
It is my personal priority to sustain the momentum of the breakthrough programme. With an improved operating structure now in place, a pool of talented and driven staff, and a lean business model, our transformation has cemented Shaker’s position as a market leader in ACs and home appliances.
We will continue to focus on growing market share, expanding to new segments to meet consumer needs and defending our position in segments where we are the supplier of choice. These goals will be supported by a roadmap for continuing to improve our product mix, increasing efficiencies and digitalising our business. The future holds a great deal for us to aim for.