GMG, a global well-being company operating leading brands across sports, everyday goods, health and beauty, properties, and logistics sectors, has marked a significant milestone in its Southeast Asia’s (SEA) expansion strategy with its first office in Malaysia in January 2023, as well as in Singapore in the same year.
GMG has opened 31 stores across Singapore, Malaysia, and Indonesia since entering the SEA market in 2020. Currently, GMG has 16 stores in Singapore and aims to open more stores by next year, especially two more of its homegrown brands, Sun & Sand Sports (SSS).
BusinessToday met with GMG’s Deputy Chairman & CEO Mohammad A. Baker to understand the global company’s ambitious growth plans in Southeast Asia, where GMG aims to open 100 new stores by 2025. Additionally, the company plans to grow its workforce by over 40% by the end of this fiscal year, which will be achieved through proactive recruitment of local talent to support strategic growth markets.
With investments across five key verticals, GMG delivers a portfolio of leading international and home-grown brands to customers worldwide. The business was born in 1977, when its founder, Abdul Aziz Baker, opened a small butchery in Dubai. Over the past four and a half decades, GMG has grown from a single shop to emerge as an international corporation with more than 10,000 employees.
“We firmly believe that the pursuit of enhancing people’s lives through active living, nutritious food, and optimal health knows no boundaries. Consequently, as we venture into each market, we acknowledge the paramount significance of these principles. This recognition is fuelled by the growing consumer focus on personal well-being and fitness, reinforcing our dedication to fostering a healthier and more active lifestyle globally.”
GMG operates through five main divisions – GMG Sports, GMG Everyday Goods, GMG Health and Beauty, GMG Properties, and GMG Logistics. With over 500 stores, GMG Sports provides customers with authentic, high-quality sports gear from the world’s leading brands including Nike, Columbia, Jordan, The North Face, Timberland, and Vans, together with products from home-grown concepts, such as Sun and Sand Sports (SSS) and Royal Sporting House (RSH).
Important thrust on sports and well-being
Mohammad believes sports and well-being have always been an integral part of the Middle East’s cultural fabric, for instance, the region’s love for soccer.
It was one such occasion; in the 1970s the Chairman of GMG observed a business opportunity while watching a football game outside his Jumeirah shop. Witnessing a player’s shoe fly-off during a free kick sparked his entrepreneurial spirit.
Recognizing the lack of affordable local sportswear options in the region, he opened the first Sun and Sand Sports store, providing Dubai residents access to international sporting brands and filling a gap in the market. “For GMG, sports and well-being was always at the heart of what we did – in 1978, GMG opened Al Khayam Pharmacy to improve access to medicine in Dubai, thereby entering the health sector. A decade later, it was rebranded to what we know now as Supercare Pharmacy,” Mohammad added.
GMG’s core values
Whether they acquire new international brands, develop home-grown concepts, or continue to enter new markets, GMG will always be guided by its core principles: to keep evolving, pushing the boundaries for change and putting its people and consumers first. As a family-owned business, GMG is driven by one purpose where open communication is the crux of engaging and inspiring talent.
A strong value that also forms part of its DNA is ‘to dare to challenge the status quo’. They believe ‘we must be the change we wish to see’. They are fundamentally a global growth company with long-term global ambitions, and operates like a startup as this mentality keeps pushing them to evolve.
GMG is always at the forefront of change, bringing innovations and new concepts to the market, and are never complacent about them. For instance, its SSS store in Singapore combines the latest digital retail technology and the widest selection of fitness and lifestyle products.
Chartered growth
“We are a unique company in all sense. We are not just a retailer but so much more. We aim to create a value proposition that is based on constantly pushing the boundaries to deliver better products and experiences to our consumers,” said Mohammad.
“We strongly believe that investing in our partners’ success has paved the way for our success. We have continually innovated new ways to bring superior customer experiences to our partners and customers. Over forty years of achievement have enabled us to become customer experience pioneers and customer satisfaction specialists. At the same time, we are an organisation always on the move, and always looking to do what is next. That is a culture that aligns well with the ethos of many of our brand partners.”
GMG’s branding acumen
GMG have consistently believed in collaborating with businesses that share our values and principles. A good example of this synergy is its franchise agreement with UK-based global sports retailer JD Sports to bring them to the Middle East. Under the agreement, GMG will open around 50 stores under the JD fascia by 2028, focusing on locations in the UAE, the Kingdom of Saudi Arabia, Kuwait, and Egypt.
“The biggest advantage, that sets GMG apart, is how intrinsically passionate we are about growing our business by helping our partners grow. We are obsessed with growth and pushing ourselves beyond what is possible. This philosophy applies across all our regions – we are on always on the lookout to form new partnerships with local entities and brands,” said Mohammad.
GMG also believe in delivering unparalleled experiences and services to customers in whichever region we operate in. They are continuously striving to make their shopping experiences fun and engaging, and this is evident in its new SSS stores in Malaysia and Singapore, where we invite shoppers to put their products to the test in several exciting ‘phygital’ zones spread throughout the store.
Digital LED plinths, levitating shoes, pickup sensors, and more provide a dramatic backdrop to a modern, immersive consumer experience. A customization zone allows shoppers to personalize products to their taste, while an in-store digital foot scanner turns shoe shopping into a breeze. For those looking for new style inspiration, the ever-changing ‘Trend ‘Edit’ zone curates some of the store’s best and most stylish products of the moment.
GMG aim is always to elevate the experience. Still, it may vary according to consumer behaviour in each region, which they do after extensive market research and of course through local talent in each region.
Keen Competition
With its innovative practices, GMG stays ahead of the competition in this constantly evolving business landscape. They take pride in positioning as a UAE-born global success story, setting the benchmark for customer experience.
GMG believes in inspiring people to win in all they do and live in ways that improve the world. That involves staying ahead of the curve while delivering strong investment returns for its international partners. They strongly believe that investing in their partners’ success has been pivotal for their success, and GMG has grown with them.
These values have acted as a North Star, helped GMG overcome many challenges in the last few years, and helped forge new growth and expansion pathways across MENA and SE Asia. Besides experiences, GMG also understands that building and rewarding customer loyalty must be an intrinsic part of being a retailer. For GMG, loyalty goes beyond products and services; it is about creating a solid emotional connection with customers — one in which they feel seen and heard. This hyper-personalization approach differentiates GMG from its competitors and continues to invariably help them contribute to customer loyalty and retention.
Work Culture
GMG represents a successful home-grown model of how an organization can leverage an effective corporate culture to drive innovation, creativity, and growth. Starting with a single butcher shop over 46 years ago, GMG’s global expansion has contributed in shaping the organisation’s culture that is based on a set of values and behaviours that foster a born to win attitude with a goal to create a proud to partner sentiment.
To succeed and sustain growth, GMG had to engineer a shared vision that connects the entire organization, including the growing influx of new entrants. They have learned that communication is vital to seamlessly integrating different cultures throughout a diversified organization. This can help new employees understand the company’s direction and feel part of a shared mission. Additionally, encouraging teamwork between new and existing employees helps forge stronger relationships and break down silos.
At GMG, the employees work with ‘One Purpose’. The company continually invests in its workforce to empower employees to become a better version of themselves every day.
Asked on GMG’s impact towards sporting enthusiasts and communities in which it operates, Mohammad said GMG is a pioneer in fostering vibrant, healthy communities in the markets they operate in. Every year and as a testament to their unwavering commitment, GMG has partnered with the Dubai Festivals and Retail Establishment (DFRE) for the esteemed Dubai Fitness Challenge, a premier fixture on the UAE’s sports calendar. Again, this philosophy goes for every region we operate in – promoting active lifestyles within our communities is equally important in Asia too.
Such community events enable us to translate our vision into reality. Encouraging well-being and vitality is woven into the very fabric of GMG, and through initiatives like these, we are dedicated to encouraging active lifestyles in Malaysia.” said Mohammad.
To tackle the perceptions attributed to sports and act as a catalyst that inspires the sporting community to try everything, GMG also recently rolled out a campaign for Sun and Sand Sports called ‘Commit to Nothing’ that featured world-renowned American DJ, record producer, and rapper DJ Khaled. The film surprised viewers and inspired them to defy judgment and unapologetically express themselves while trying something new. The idea was also to shift the narrative of committing to just one sport and redefine having fun without the pressure of commitment through the campaign tagline.
GMG’s sustainability initiative, driving change
GMG is dedicated to positively impacting individual well-being and communities, fostering a sustainable and harmonious future. In August 2022, GMG introduced the ‘Make a Difference’ sustainability framework, developed with EY, centred on Environmental, Social, and Governance (ESG) principles. The framework is structured around ‘Planet Forward’, ‘Inspire People’, and ‘Own Change’, aligning with UN’s Sustainable Development Goals and the UAE’s sustainability objectives.
In its commitment to reduce carbon footprint, GMG’s Trilogi arm aims to transition its entire fleet to B20 biofuel in the coming years, with a significant portion already operating on this eco-friendly diesel.
As part of GMG’s sustainability vision, the upcoming “GMG Cares” initiative will focus on an extensive CSR programme revolving around three key pillars, targeting the planet, community, and its employees. It is targeted to focus on driving more well-being initiatives in the communities, sponsoring young athletes, fostering healthy habits amongst youngsters, and educating and nourishing the young generation on how collectively they can lead a better life.
