Monday, June 27, 2011

Letters from Egypt: Corporate Takeovers

It’s interesting to see how Egypt is transforming post-revolution, and one thing I’ve noticed are the Egyptian stores closing up shop and international corporations moving in.

Two examples of corporations that have moved into Maadi:

Aussie company and internationally recognized as a world-leading swimwear provider Speedo has opened its doors on Road 216 in Degla, Maadi taking the place of Sxy’s. The textile and garment shareholding company that was launched in 1998 by Hisham Al Dika. Well, farewell Sxy’s or ma3 el salama – wishing you better luck in your other locations.

And next up is Converse, the American shoe company that took the 80s by storm – and shockingly enough, my 15-year old niece and her friends are still sporting the “Cons.” This location also on Rd 216 takes the location from a local shoe store that I can’t give you the name because the display shoes were hideous and I never bothered to go in.

However, what I wonder is how people are remotely able to afford the items that these imported brands cost since everyone in Egypt is facing rising prices and are scaling back on unnecessary items. This is a good time for strong, stable apparel and other similar companies to get entrenched in the Egyptian market, but how long will these companies be able to weather the storm of the revolution’s economic pitfalls without producing a marginal profit?

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