EGYPT

Country Notebook

International Marketing
Prof. Rajesh Prasad
TABLE OF
CONTENTS
EMPHASIS HEADING 1...............................................

Heading 2..................................................................................
Heading 2..................................................................................
DMRK SHOES
AN
INTRODUCTION

DMRK Shoes is a shoe company with a wide range of shoes of

basically all types including sneakers, dress up shoes, sandals,
loafers, slip-ons, etc.

The company offers its range depending on demand of SKUs owing

to its vast and flexible manufacturing process allowing it to grow
rapidly with the ever-changing consumer preferences.
Cultural Analysis
HISTORY

The country saw some of the earliest development in architecture,

agriculture, literature & urbanization.

Footwear has been absent for more than half of Egypt’s recorded
history as can be observed and noted from hieroglyphs showing
even kings travelling barefoot. Though this might not mean that
footwear was not used at all but it says that it was of little to no
importance.

Sandals first appeared in about 1500 BCE with advanced for their
time artisan skill making sandals woven of reeds or leather that
were quite similar to the modern sandals.

Though simple the wealthy found ways of adorning them with

buckles made of precious metals & sewn jewels into the soles.

Some designs had turned up toes to probably prevent or reduce

sand from entering the shoe was the wearer walked.

GEOGRAPHICAL SETTING

Egypt is a transcontinental country with a spanning from the

northeastern corner of Africa to the southwestern corner of Asia.

Due to the extreme climatic aridity, the majority population is

concentrated along the Nile Valley & Delta.

99% of the population uses only 5.5% of the country’s land.

Apart from the Nile valley a majority of Egypts landscape is desert

with a few scattered oases. The infamous Suez Canal makes it one
of the most important trade routes in the modern world.

Egypt has an extremely hot, dry, sunny & arid climate with
temperatures hovering around 40 degrees Celsius sometimes even
50 with humidity being lower than 5%.

2
SOCIAL INSTITUTIONS

FAMILY
Egyptians consider their families very important not just their
immediate family but also their extended families. Several
generations may also live together in one family unit.

The Children live with their families even after marriage to take care
of their aging parents, typically boys.

Daughters generally moves in with her in-laws, with frequent family

gatherings.

Men are typically the providers of the family & greatly influence the
the decision making of the family too.

Women are more often seen in traditional roles such as housewives

but that is surely changing slowly with western culture being
adopted and access to education women can slowly be seen in
workplaces too.

POLITICS
The current Egyptian political system is based on republicanism with
a semi presidential which was established in 2011.

Egypt has been in emergency & political distress until the 2011 civil
revolution.

The tax regime followed is VAT (14%), excise, custom, real-estate

taxes and stamp duty & income tax similar to the tax regime
followed in India previously. There are no special taxes as such.

LEGAL SYSTEM

The Egyptian legal system we see today is a combination of Shariah

Islamic Law and Napoleon Civil Law, this system closely resembles
that of France, however Islamic Law is emphasized. The constitution
primarily governs the Legal System.

Trademark & Patent law are prominent with design, utility & other
patents granted on basis of their availability from the respective
government office.

3
Certain patents cannot be protected in accordance to Egypts IPR
Law No. 82, none of these majorly affect Footwear or its
design/utility.

BUSINESS CUSTOMS

Egyptian business people appreciate through information &

presentation, dates should include both western & Arabic dates.

Having an Egyptian Agent or Intermediary would speed up business

processes.

Business generally proceeds only after the counterparty decides

that they like you. Social expectations go hand in hand with work-
related ones.

Though tough negotiators Egyptians do not respond well to high

pressure tactics, with a slow pace of business as compared to
European Culture.

Typical work days are 8am-2pm in the summer & 9am-1pm + 5pm-
7pm in the winter

No business is conducted on Friday, most people do not work on

Thursdays either. Saturday & Sunday are working days.

Arabic communication is preferred. Business cards must the printed

on both sides (English on one & Arabic on the other).

Thumbs up is offensive in Egypt & the Arab world.

RELIGION & AESTHETICS

Being an Arab Country approximately 90% of the population is

Muslim & the Remaining 10% is Christian.

HOUSING, CLOTHING & LIFESTYLE

Egypt has for the longest time faced a housing crisis since almost
world war 2 furthermore government policy poses restrictions on
construction material, height etc.

4
Men in rural Egypt typically wear ankle length gown called Galabiya
with a skull cap or scarf, the footwear to match is either a
traditional seeming leather sandal or slip-ons.

Urban Men wear more western clothes and therefore prefer more
modern & western styles of footwear.

Usually Egyptian sandals are Unisex.

LANGUAGE

The language spoken is predominantly Modern Standard Arabic.

5
ECONOMIC ANALYSIS

POPULATION

As of 2020 Egypt’s population stood at 10.23 crores.

With an annual growth rate 1.9%,

The current birth rate in 2022 is 24.216 births per 1000 people,

6
ECONOMIC STASTICS

7
In 2020, the average family income was reported at 69,000 EGP.

According to the WID in 2019 the richest 1% of Egyptians received

19% of the total income while the lowest 50% received only 17.2%,

Another interesting fact is that the top 10% spend 70 times more
money than the bottom 10%.

TRANSPORTATION

Egypt has a well connected railway system that connects the Nile
Valley, Delta & Canal Zone.

The infamous Suez Canal is the most important canal in modern day
shipping, the evergreen vessel incident which halted and slowed
down shipments all across the world shows its importance.

There are 5 major commercial ports in Egypt with 10 other

commercial ports & 29 specialized ports.

8
INTERNATIONAL TRADE STATISTICS
Exports

- Refined Petroleum ($3.4B)

- Gold ($3.29B)
- Crude Petroleum ($2.7B)
- Nitrogenous Fertilizers ($1.17B)
- Citrus ($946M)

In 2020 Egypt was the world’s biggest exporter of Aluminum

Powder ($99.2M).

Countries to which exports are sent

- UAE ($3.21B)
- USA ($2.38B)
- Saudi Arabia ($2.08B)
- Turkey ($1.96B)
- Italy ($1.95B)

Imports

- Wheat ($5.2B)
- Crude Petroleum ($3.42B)
- Cars ($2.91B)
- Broadcasting Equipment ($2B)
- Refined Petroleum ($1.87B)

Countries from which imports are received

- China ($13.3B)
- Russia ($5.14B)
- USA ($4.82B)
- Germany ($3.75B)
- UAE ($3.69B)

In 2020 Egypt was the world’s biggest importer of Wheat & other
locomotives.

9
Egypt’s balance of payments flipped to a surplus of $1.9B in the
state fiscal year, compared with a deficit of $8.6B in the previous
fiscal year.

TRADE RESTRICTIONS & AID

Egypt is not subject to special sanctions, embargoes, etc.

Egypt is one the top recipients of US foreign assistance, receiving

more than $81B in foreign aid between 1946 and 2020.

LABOUR FORCE

As of 2020 Egypt had a total labour force of 27.8 million.

10
INFLATION RATES

CHANNELS OF DISTRIBUTION

Foreign firms can sell directly within Egypt if they are registered to
make direct sales. Many do so as part of a manufacturing or
assembly operation in Egypt.  A few foreign firms use economic free
zones or bonded warehouses to store goods and hire their own
employees to sell door-to-door consumer goods. Most foreign firms,
however, rely on Egyptian companies for wholesale and retail
distribution.  They ensure their effectiveness through staff training
programs in Egypt and abroad.  Foreign companies also train and
support Egyptian staff via short-term, including through periodic
visits by marketing specialists and technical support staff from
company headquarters.

Many retailers of consumer goods tend to import their own supplies

directly rather than pay high markups to wholesalers.  A corollary is
that many Egyptians prefer getting quotes directly from the
overseas supplier rather than from the local agent on the theory
that the price will be better. This habit suggests that U.S. principals
be sensitive to the role and presumed cost of their Egyptian
agents.  One way to strengthen that role is to refer customer

11
inquiries back to the Egyptian agent or to a regional representative
outside Egypt.

The following stipulations relate to agents and importers:

In the structure of sole proprietorship, the agent/importer must

have Egyptian nationality.  Fifty-one percent of the shares or quotas
in partnerships, limited liability companies and joint stock
companies should be owned by Egyptians. Additionally, import
managers must be Egyptian.  

The agent must not be a civil servant or an employee of a public

sector company (i.e., not moonlighting), nor a member of the
House of Representatives; 

The agent must not be a "first grade relative" (i.e. a member of the
immediate family, or uncle, aunt, niece, or nephew) of a civil
servant of the rank of Director General or higher, or of a member of
the House of Representatives with direct responsibility to the trade
sector.  However, this prohibition against agents with family
members in government is rarely enforced.  

Public sector firms can be agents, as can private firms and

individuals. 

Distributor-type companies with partial foreign ownership can

market goods, including imported goods, in the following
circumstances. 

General Partnership Companies or Limited Partnership Companies:

In these types of companies, there may be a foreign partner,
provided that the Egyptian partner(s) have at least 51% of the
capital and the General Manager or head of the company is an
Egyptian national.  

Limited Liability Company:  A foreign partner in this type of

distributorship company faces no limit on the percentage of
ownership, provided that at least one manager of the company is an
Egyptian national (there can be one or more managers depending
upon the articles of incorporation), there are at least two

12
shareholders or partners, and the capital of the company is not less
than LE 2,000,000 (approximately USD 116,279).  

Joint Stock Company:  Provided that at least 51 percent of the

shares are offered to Egyptians upon formation, foreign
shareholders ultimately can own up to 100 percent of the company,
provided that a majority of the Board of Directors is Egyptian, the
capital of the company is not less than LE 5,000,000 (approximately
USD 290,697) and there are at least three shareholders. A
distributorship company of this type may not import or act as a
commercial agent unless it is 51 percent Egyptian owned and
managed.

Foreign firms that form a distributorship as mentioned above often

permit the Egyptian partners to form a separate company to act as
"importer" or agent. The latter delivers the goods to the
distributorship company for marketing within Egypt.

MEDIA

Mass Media in Egypt is highly influential as is in Arab world

attributed to its large audience of the somewhat shared TV & Film-
Industry.

The Egyptian government wholly support & encourage the use of

Internet and therefore social media, etc. are widely accepted and
used with minimal government interference or censorship.

The Egyptian press comprises of over 600 newspapers, journals &

magazines however they are mostly owned, co-owned or influenced
by either the government or the opposition.

13
 COMPETITION TO ENTER SHOE MARKET IN EGYPT

1.PALMA
Palma is home-grown Egyptian Ecommerce brand with variety of
fashion products with footwear as one of their major segment. They
have strong presence on social media sites like Instagram,
Whatsapp, and Facebook and deliver it to all the major cities in
Egypt and also deliver to few foreign countries. This brand can
stand as competition to us as they have varied range of footwear
products like slip-ons, formal shoes, boots etc.

As they are home grown brand they don’t have any entry barriers
which will aid them selling their products at more competitive prices
than us.

PRODUCT RANGE

SLIP ONS (450-500 EGP) FORMAL SHOES (399-

499 EGP) BOOTS (499-550 EGP)

14
 2.ELIA
Elia is Egyptian footwear brand which comes under premium market
segment as they use highest quality of leather while producing
footwear of their brand. ELIA revives and preserves the traditional
handicrafts, which are of substantial importance to Egyptian culture
and local heritage by providing job opportunities for those
craftsmen, enabling peasants and women to find employment in
their rural and remote communities and empowering them to
enhance their social status.

They are widely present on social media like Instagram and

Facebook and also have their own website. This brand has
emotional connection with their customers through their heritage
rich products so this can be a competition for us to enter premium
market segment in Egypt.

PRODUCT RANGE

BOOTS (1000-1200 EGP) MULES (700-1500 EGP)

15
 3.PAVO

PAVO is a footwear brand that aims to unite practicality, beauty,

high quality and affordability. It is widely present on social media
and also have stores in few cities of Egypt.
They have good range of footwear products like sneakers and boots
and as they have high quality products at affordable prices they
stand as one of the major rivals when we enter Egyptian shoe
market.

PRODUCT RANGE

BOOTS (700-1300 EGP) SNEAKERS (700-800 EGP)

4.SHOEZED

Shoezed aims to empower our precious Egyptian artisans and

reposition them as true artists derived from passion and aim to

16
deliver the best quality. Shoezed is also a home-grown brand and
has wide presence on social media and also have various stores in
different cities of Egypt.
They target most of middle class people of Egypt and good market
hold in Egyptian shoe market

PRODUCT RANGE

LOAFERS (300-380 EGP) BOOTS (360-440 EGP)

FLATS & MULES (249-480 EGP)

5.RAMLA

RAMLA is a life style online store, featuring a collection of

handmade Egyptian footwear and many more. They are present
only through online medium and are into production of mules and
flats.

17
They are also listed in renowned fashion magazines like Vouge,
Bazzar, Elle etc. which gives them an upper hand in flat and mule
segment of shoe market.

PRODUCT RANGE

FLATS & MULES (840-1800 EGP)

6.EMELI

Emeli is an established Egyptian brand that provides customer with

premium quality leather products. Their product range is varied but
coming to the shoe segment of the company they have Boots, Flats
and Mules in their collection.
As this brand is established 60 years ago and have strong customer
base in major cities of Egypt can stand as a strong rival to enter
Egyptian shoe market.

PRODUCT RANGE

BOOTS (746-1312 EGP) FLATS (495-695 EGP)

18
Legal System

Egypt’s legal system is based on Islamic law (Shar’ah) and Napoleanic codes,
including the French Code Civil, upon which the Egyptian civil code is largely based.
Under President Mubarak’s successive governments, the courts have demonstrated
increasing independence, and the principals of due process and judicial review have
gained greater respect. Marriage and family law are primarily based on the religious
law of the individual concerned, which for most Egyptians is Islamic law. Islamic law
is not forced upon non-Muslims, and non-Muslims have their own courts to settle
marriage and family matters. While there have been moves to consolidate the
influence of the Shari’ah, commercial law remains based on modern commercial
practice.

Egypt’s Arbitration Law 27 of 1994, as amended, serves as a framework for

arbitration of domestic and international commercial disputes, as well as disputes
between public enterprises and the private sector. Egypt acceded to the International
Convention for the Settlement of Investment disputes in 1971, and is a member of the
International Center for the Settlement of Investment Disputes. Egypt adheres to the
1958 New York Convention of Enforcement of Arbitration Awards; the 1965
Washington Convention on the settlement of Investment Disputes between States and
the nationals of other states; and the 1974 Convention on the Settlement of Investment
Disputes between Arab States and nationals of other states.

Political System

In July 1952, Egypt was declared an official republic when a group of army officers,
known as the “free officers” led by Colonel Gamal Abdel Nasser, toppled the
monarchy in a coup. Prior to the 1952 revolution, Egypt was a constitutional
monarchy. The 1923 constitution, which followed the declaration of the end of the
British protectorate, stated that Egypt was an independent sovereign Islamic state with
Arabic as its language and provided for a representative parliament. This constitution
was abolished and political parties were dissolved in 1953, and a new constitution was
proclaimed in 1956. The 1956 constitution granted the president large executive and
legislative powers. In 1958, the constitution of the United Arab Republic was enacted,
following the union between Egypt and Syria. In many respects, it was similar to the
1956 constitution and provided for the formation of two executive councils, one in
Egypt and the other one in Syria.

In 1964, a new constitution was enacted. It emphasized the socialist nature of the
government, proclaiming Egypt an Arab Democratic State with a socialist economy.

In September 1971, the current constitution was approved by referendum (the “1971
Constitution”) under the rule of President Anwar El Sadat, proclaiming Egypt a
“democratic socialist state”. It recognized three types of ownership: public,
cooperative and private. The 1971 Constitution guaranteed the equality of all citizens

19
before the law, affirmed the rights to peaceful assembly, education, health and social
security, and the right to organize into associations or unions. It also made suffrage
universal and compulsory at the age of 18. Further, the 1971 Constitution provides for
three branches of government: the legislative, executive and the judicial branch. it is
worthy to mention that the 1971 Constitution granted vast powers to the president,
who is the head of the state. Although the president and the Council of Ministers
comprise the executive branch, in practice the power rested almost solely with the
president.

In 1981, Egypt came under the rule of President Mohamed Hosni Mobarak. After a
long history of one-party rule, Egypt’s political system under Mobarak was based on a
multi-party system, however, the ruling National Democratic Party, led by Mobarak,
dominated the political scene. Since 1981, the country has been brought under
emergency rule, extending the power of the police and suspending constitutional
rights. In 2005, the 1971 Constitution was amended, paving the way for multi-
candidate presidential elections, and in 2007, 34 articles of the 1971 Constitution were
amended, increasing the powers of the elected parliament, expunging much of the
socialist language and paving the way for a antiterrorism law to replace the
emergency rule in the future, expanding the limitations of personal and human rights.

On January 25, 2011, widespread demonstrations and civil unrests began against
Mobarak’s regime, leading to the resignation of Mobarak on February 11, 2011. The
country was then governed by a military junta for an interim period of six months
until the presidential elections scheduled in September 2011. A committee was
formed to draft amendments to the 1971 Constitution that would allow for a peaceful
transition of power and fair and transparent presidential elections in September.

The first Presidential elections were held in March–June 2012, with a final run-off
between former Prime Minister Ahmed Shafik and Muslim Brotherhood
parliamentarian Mohamed Morsi. On 24 June 2012, Egypt’s election commission
announced Mohamad Morsi as the first freely elected President for Egypt.Shortly
after, an Islamist-based constitution was prepared and took effect in December 2012
after being approved by 63,8% of people’s votes.

Only one year later, on 30 June 2013, millions of Egyptians took to the streets
protesting against Morsi’s regime. Protesters surrounded the Presidential Palace in the
Heliopolis suburb, as well as in 18 other locations across Egypt, The protests were
calling for anticipated Presidential elections - a request that was disregarded by Morsi.
On 3 July 2013 the Military intervened and ousted Morsi. Formerly Army Chief,
Abdel-Fatah Al-Sisi formed a new interim government and appointed Adly Mansour
(President of the Constitutional Court) as interim President of Egypt, suspending
thereby the

Islamist-based constitution. On 18 January 2014, a new constitution took effect after

being approved by 98% of people’s votes. New Presidential elections were held in
May 2014, with a final run-off between politician Hamdeen Sabahi and Field Marshal
Abdel-Fatah Al-Sisi, in June 2014, Egypt’s election commission announced that Field
Marshal Al-Sisi had won the run-off with 96,91% of the votes. In December 2015,
Egyptians elected their first Parliament since the ouster of the Islamist President

20
Mohamed Morsi, accomplishing thereby the third and last step of the political road
map and completing the establishment of the State formal institutions.

Local Government and Administration

Until 1960, the government administration was highly centralized. However, in 1979,
a local government administration system was established to promote decentralization
and greater citizen participation in the local government.

The Local Administration Law 124 of 1960, which was repealed and is currently
replaced with the Local Administration Law 43 of 1979, provides for three levels of
local administration: governorates (muhafazat), districts or counties (marakaz) and the
villages (qariya). There are two councils at each administrative level: a mostly elected
council and an appointed executive council. These councils exercise board legislative
powers but are controlled by the central government.

Egypt is divided into 27 governorates. Local councils perform a wide variety of

functions in education, health, public utilities, housing, agriculture and
communication. These local councils obtain their funds from national revenue, taxes
on buildings and lands within the governorates, miscellaneous local taxes and fees,
profits from public utilities and commercial enterprises, and national subsidies, grants
and loans.

Import Regulations

Import regulations stipulate that goods may be freely imported and exported. Several
amendments have been made to the import regulations over recent years, especially
with respect to regulatory issues, like the modification of the rate of some imported
items and services provided by the General Authority of Import and Export
Supervision and the labeling of imported goods. Significantly, in an effort to reduce
imports by $20 billion during 2016 and to boost local production, Presidential Decree
No. 25 of 2016 raised tariffs, by up to forty percent (40%), on hundreds of imported
goods.

The Import Registration Law 121 of 1982 requires that an importer must be registered
in the Register of Importers and hold Egyptian nationality, in addition to a number of
other conditions such as the requirement of a minimum capital and past commercial
experience. However, it should be noted that companies with foreign participation
may only conduct export activities and not importation

On the whole, the past few years have witnessed a period of rapid economic growth in
Egypt, and the Egyptian government continues its efforts to build up a legal
framework inductive to achieving sustained economic reform. Newly introduced
Egyptian legislations serve to enhance the investment environment, and reflect the

21
intention of the Egyptian government to tighten regulatory oversight of financial
markets and to adopt a modernized approach that aims to cope with the current global
financial and economic changes and challenges.

Relationships with Neighboring Countries and FTAs

Egypt maintains diplomatic relations with substantially all of the countries which are
members of the United Nations, and its international participations include: the
African Development Bank; the Arab League; the Arab Monetary Fund; the Council
of Arab Economic Unity; the European Bank for Reconstruction and Development;
the International Monetary Fund (“IMF”) and related organization of African Unity;
the United Nations and related organizations; the Non-Aligned Movement; the
Organization of Arab Petroleum Exporting Countries; the Organization of African
Unity; the United Nations and related organizations; and the WTO.

In June 1998, Egypt joined the Common Market for Eastern and Southern Africa
(“COMESA”) and reduced tariffs with other COMESA countries by 90%, and
established a customs union in 2004, with a view to establishing a monetary union by
2025.

In July 1999, Egypt and the United States signed a trade and investment framework
agreement (“TIFA”). TIFA’s objective is to enhance the trade co-operation between
the two countries, by facilitating greater reciprocal access to the respective markets of both
countries through the removal of non-tariff barriers and other impediments to trade and
investment flows.

In 2011, Egypt negotiated and initialed a partnership agreement with the European Union and
anticipates formally entering into the agreement prior to year end. The agreement will permit
Egypt to join the proposed European-Mediterranean free-trade zone, which was established in
2010. The agreement provides for a 12-year transitional period during which tariffs and non-
tariff barriers will be phased out.

Egypt plays a prominent diplomatic role in the Middle East. Egypt was readmitted to the Arab
League headquarters were returned to Cairo from Tunis. Egypt is concerned with enhancing
regional stability, and continues to work to strengthen the Arab League’s relationship with
Turkey and Iran, and to lift United Nations sanctions on Iraq as a prerequisite for Iraq’s
regional reintegration. In January 1998,

Egypt began implementing an agreement reached with the Arab League members in
connection with the Arab Common Market Treaty, which calls for phasing out existing tariffs
over a 10-year period. Egypt is also a member of the Islamic Group of Eight, which
encourages trade and economic cooperation among the following members: Egypt, Turkey,
Iran, Indonesia, Nigeria, Bangladesh, Malaysia and Pakistan. Egypt, Tunisia and Jordan have
agreed to gradually abolish customs duties to encourage the development of a free-trade zone
among Arab counties.

Egypt also has various investment agreements with the following countries: Germany, the
United Kingdom, Sweden, Switzerland, Japan, the Netherlands, Belgium, Luxembourg,

22
France, Thailand, Malaysia, Singapore, China, Indonesia, Italy, Greece, Finland, Romania,
Sudan and Morocco.

MARKET DECISIONS

A shoe brand has the advantage of a simple business model, which makes launching
and building the business more seamless. It's unlikely to have one-off customers as a
shoe brand. Typically, we need to have a solid foundation of clients that use DMRK
products and services regularly.

The main objective of our brand lies in setting up a revolutionary product,

establishing connection with the potential customers and sustain in the market within
our own space against the big brands.

a. Target Segment

DMRK brand represents a lifestyle image for elegance having a tricky mix of
innovative fashion and comfort. Happy customers, who are active and likes to walk
around the city accompanied by comfortable shoes, exploring new things. Anyone
who needs a pair of footwear can visit a DMRK store, and he/she will definitely find
their favorite one. This is because of voluminous product portfolio we offer. The
target segment also values the significant style variants which includes

b. Product range

Sneakers - targeting young athletes (men, women and kids) to casual runner
classification. Besides providing quality shoes, DMRK offers various colors for its
products since the company believes that physical appearance can give satisfaction
and enjoyment to customers.

Loafers - Loafers are considered to be convenient and comfortable footwear among

different age-groups with features including not overly fitted in the heel and easier to

23
get on and off. Millennial population and Generation X prefer to purchase trendy,
comfortable, and fancy shoes. Synthetic leather loafers are extensively taken into
consideration as a premium product for male business customers.

Mules and flats – Specially designed for women which she will not only wear to
work but also on special occasions. Offering customizability and sustainability to
shape and explore the urban fashion.

Boots – Designed with cushion footbed for added comfort with detailed stitching
segmented differently for men and women suited to any style. With iconic hi-cut
boots that has been crafted from premium, polished leather and is built upon our
trademark lugged outsole. To give a unique identity to the collection, the upper has
added height and elegant design.

c. Pricing

Pricing can be used strategically to adjust performance to meet revenue or profit

objectives. DMRK utilizes its pricing strategies successfully both to maximize its
profits and emphasize high value in promoting its products. From the pricing
strategies, we can uphold the brand position by competing with the other brands using
penetration pricing strategy for the initial years to establish and show that this

24
company is a true force to be reckoned with. The goal is to get as much of the market
as possible to try the product.

Footwear in Egypt is expected to witness growth during the forecast period due to the
stabilisation of economic conditions and prices, and the expanding variety of
products, both local and imported, available on the market. Future demand will also
be supported by companies offering promotions and discounts, as well as the growing
population in the country. The price of the DMRK Shoes will be economical so that a
person with medium salary can easily buy the shoes. In line with our ambition to
become the leading everyday global footwear brand, will be having innovative and
constantly changing approach to marketing and distribution across the globe.

For men, the collection line plays on the brand’s traditional classics, with prices
starting at 199 EGP. The intermediary line, 300 EGP. Sports shoes and boots range
varies from 500 EGP to 1800 EGP 

For women, the collection has been segmented into three lines. The most affordable
models are those included in collection, below the 200 EGP mark. Handicrafts, the
classic line, which is also more complete, is around 250-400 EGP and premium line
above 700 EGP.

The global women’s non-athletic footwear market is highly fragmented, with the
presence of both regional and global players. Companies are competing on different
factors, including product offerings, quality, design, and marketing activities, to gain a
competitive advantage in the market. Additionally, the key players are focusing on e-
commerce platforms and online distribution channels for the online marketing and
branding of their products to attract more customers. Major players focus on
leveraging the opportunities posed by innovation in the market to expand their
product portfolios so that they can cater to the requirements in various product
segments, especially within the category of eco-friendly footwear. Some major
players in the market studied include Prada SpA, Bata, Kering, The ALDO Group
Inc., Ecco Sko AS, LVMH, and Capri Holdings, among others.

25
 d. Market Communication

Any fashion eCommerce agency marketing program revolves around the target
audience. Building brand awareness begins with knowing who the customers are and
their buying pattern. With that perfect customer in mind, here are some of the KPIs
(key performance indicators) an agency can use to build a marketing campaign. The
main focus is on packaging design, that should add value to the sale and strengthen
brand awareness. Packaging is especially crucial for taping on online stores where
there is first physical interaction between DMRK shoes and the customer, the box
they come in. The box should accomplish four goals:
 Protect the Shoes
 Attract Customers
 Provide Information
 Reinforce the Brand and Logo

Video marketing: can be a powerful tool for acquiring leads, increasing

engagement and raising awareness around the brand. It's also a cost-effective way to
expand our reach and create added value for customers. About-three quarters adults
watch videos on YouTube.

Product Personalization campaign: Entering the shoe industry means competition.

From Nike to Prada, brand names are status symbols, and many customers prefer the
brands they know over those they don't. However, if you have creativity, style and a
little business sense, you can develop a marketing plan for your own shoe line that
rivals your competitors. We use customer data to personalize the offers and
marketing experience. DMRK will be giving the customers the option to customize

26
their shoes by adding a number or personalized name of their choice along with
their favorite color for the sport shoes variant. The key to an effective
personalization strategy is to laser-target the audience. Firstly, we gather as much
customer data as possible, use website analytics tools, polls, surveys and social
media insights to better understand our prospective clients.

The promotional and advertising strategy marketing strategy for DMRK is as follows:
DMRK will utilize its high turnover to invest in a good sales force in
terms of quality and quantity. It can enhance its in store displays to
offer a better customer experience having few outlets around the
country. DMRK will have a decent online presence, with engaging content on social
media platforms, specially Facebook. It will need to reinforce its brand image. E-
commerce will also play a significant role as a sales channel. In terms of distribution,
DMRK will be investing significantly in its logistics operations and IT infrastructure.
There are now four, large local distribution centres in Asia Pacific located in India,
Indonesia, Malaysia and Singapore improving efficiency, ensuring shorter lead times
for retail outlets and e-commerce and allowing to cater for the specific demands of
local markets. DMRK has been primarily product-driven, growing organically
through a product and distribution-led strategy.

27
Market-entry can broadly be further divided into two categories, namely
in-direct and direct exporting.

Indirect exporting

In-direct exporting is when you sell your products to local companies in

South Africa as though they were local sales, yet your products are then
sold onwards by the buyer to foreign customers. For your firm, the sale is
nothing more than a local sale; you are paid in rands and the sale is like
any other domestic sale. Nevertheless, your products still end up crossing
the border and being sold in other countries. In fact, you may not even be
aware that your products are ending up overseas. On the other hand, you
may well be aware that the local buyer is selling your products into
foreign markets and this fact may have spurred you on to begin with your
exporting endeavours. Alternatively, you may be quite happy to continue
along this route as it requires very little effort on your part and represents
a low risk route into exports. To learn more about the different types of
in-direct exporting, click here.

Direct exporting

Direct exporting is when you as the exporter are more involved and have
some control over the exporting process. With direct exporting you will
normally receive payment directly from abroad; that is, it is no longer a
domestic sale as in the case of in-direct exporting. There are essentially
three different types of direct market-entry channels available to you.
These are:

1. Those that involve selling directly to an overseas customer who

may be the end-user, or through an intermediary such as an

28
 import agent, distributor, through your own sales subsidiary
based in the foreign marketplace. Click here to learn more.
2. Those that involve licensing, franchising and contracting, i.e.
involving the sale of knowledge or skills to overseas buyers.
Click here to learn more.
3. Those that involve manufacturing abroad, e.g. a joint venture
arrangement or the establishment of a wholly-owned off-shore
manufacturing operation. Click here to learn more.

Indirect mode of market entry best suits a small and medium scale exporter. Indirect
exporting is the cheapest entry strategy available to an organization. It is flexible, and
exporting activities can cease immediately if required.

The intermediary organizations handle all the exporting activities. No exporting

experience or skills are required; and the intermediary organization takes on all the
risks associated with shipping and organizing payment from the international market.

Companies should find a reputable and reliable Egyptian

partner to represent them in the local market. When
considering entering the market, it is advisable to take a
long-term view of the Egyptian market rather than seeking
immediate returns.

Trade missions and regional tradeshows provide

opportunities to meet Egyptian buyers and potential
partners for companies considering entering into the
Egyptian market.

Export Documents

Advanced Cargo Information (ACI) and “Nafeza”

Single Window System

29
The Egyptian importer of an inbound shipment must sign
into the online e-portal (https://www.nafeza.gov.eg/ar) and
submit the required shipping documents. Upon successful
submission of the required documentation, the Egyptian
importer will be issued a unique Advanced Cargo
Information identification number (ACID). Either the
Egyptian importer, or a customs broker acting on behalf of
the importer, may access the online e-portal to request
issuance of the ACID number for a particular shipment.
According to officials, the proposed customs process will be
as follows: 

1. Importer inputs the shipment data in the new ACI

customs system. 
2. Customs authority issues shipment identification
number (ACID) within 48 hours. 
3. Customs authority notifies importer and exporter of the
ACID. 
4. Exporter electronically transmits shipment
documentation and data, ensuring ACID is referred to
on all documentation. 
5. Importer certifies and acknowledges the correctness of
the data sent by the exporter.
6. Vessel is loaded with the shipment and departs the
exporting country.
7. Importer pays import taxes and fees. 
8. Vessel arrives at Egyptian port and shipment is
offloaded.
9. Joint committee at Egyptian port inspects shipment. 
10. Egyptian customs clear the shipment. 

Exporters, suppliers, and shipping companies can obtain

information about the new ACI customs system
at https://www.nafeza.gov.eg/en/site/aci-info.
Exporters should work closely with their clients in Egypt to
ensure their consignments comply with import
requirements.

30
Documentation Requirements

For an imported shipment to be accepted by the Egyptian

Customs, the shipment must have the following documents:

 Commercial Invoice: Two copies plus the original

document are required. Legalization by the Egyptian
consulate in the country of origin is required in most
cases.
 Certificate of Origin: Two copies plus the original
document are required. The Certificate of Origin must
be authenticated by the Egyptian Consulate in the
country of origin. Natural products are considered to
originate in the country where the goods are extracted.
The Certificate of Origin must bear a statement that
the information given is true and correct to the best of
the shipper’s knowledge.
 Packing List: A packing list may be required by the
consignee and is recommended in most cases.
 Bill of Lading: A bill of lading must show the name of
the shipper, the address, and the number of bills of
lading issued. There are no regulations specifying the
form or number of bills of lading required for shipment.
The number of bills of lading required depends upon
the carrier.
 Pro Forma Invoice: This is an invoice required by the
importer for submission along with the import license.
It must show the country where the goods were
manufactured.
 Letter of Credit: The Central Bank of Egypt advises all
banks operating in Egypt that L/Cs must be covered
100 percent in cash by the importer, except for some
food items. This replaces the previous procedure
whereby banks and their clients reached their own
agreements and usually covered 10-20 percent of an
L/C’s value. In general, the exporter may not ship the
goods before the Egyptian bank has provided
notification of the opening of a L/C. If the goods are
shipped before the L/C is opened, the importer runs

31
 the risk of being fined up to a maximum value of the
goods. If the importer does not bear the cost, then the
exporter will have lost the value of such a shipment,
and in the case of products with a limited shelf-life, the
delay at Customs can mean that even if the exporter
(e.g. a U.S. company) wanted to take back the
shipment, it’s no longer of any use.  According to new
regulations, the U.S. exporter must submit the invoice
as well as export documentation to his bank and the
U.S. bank should inform the Egyptian bank about a
request to open the L/C. Import transactions are based
on document collections.

Content Analysis of the Commodity: Required for those

products that may be subject to standards testing.

Inspection and quality control certificates from other

authorities as required.

All certificates issued concerning the shipment of product,

and the product description, must be countersigned by the
Chamber of Commerce and notarized by the Egyptian
Embassy or Consulate in the country of origin.

INCOTEMS

Incoterms is a predefined contract between the importer and the exporter defining the
terms regarding the responsibility and liability of the liability for the shipment of the
goods. Contract clears states from which point in the supply chain the importer takes
the responsibility of the goods. 

 EXW (Ex-works)
The Importer takes the responsibility of the goods from the exporters
warehouse. 

32
  CIP (Carriage and insurance)
The Cost of carriage and insurance is on the Exporter.

 CPT (Carriage Paid To)

The exporter will cover the delivery and the costs associated till the delivery to
the named destination.  

 DDP (Delivered Duty Paid)

This term puts the exporter in most obligations. From insurance, transportation
to custom clearance will be in the hands of the exporter. 

 DAP-Delivered At Place
Under these terms the exporter is responsible for the carriage but not for the
custom clearance. 

33