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Draft:Alfarag Trading PLC

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Alfarag Trading PLC
Company typePLC
IndustryTravel Retail and Duty-Free, Import and Distribution, Retail, Wholesale
Founded1932
Headquarters
Addis Ababa
,
Ethiopia

Alfarag Trading PLC (Amharic: አልፋራጅ ንግድ ኃ/የተ/የግ/ማ; Arabic: شركة الفرج للتجارة) is an Ethiopian company specializing in the import and distribution of fast-moving consumer goods (FMCG) and luxury products[1]. Founded in 1932 in Dire Dawa and later relocating to Addis Ababa[2], the company now operates in Ethiopia's retail[3] and import sectors[4].


Alfarag Trading PLC is the first ever private duty-free store operator[5] in Ethiopia, managing the first private duty-free shop at Addis Ababa Bole International Airport[6]. It distributes products from several international brands that offer products such as perfumes, cosmetics, confectionery, watches, and jewelry[7]. As of today, The company employs over 500 people in Ethiopia.[8]

History

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Alfarag Trading PLC is an Ethiopian company with roots tracing back to 1932, when the Alfarag family opened a small shop in Dire Dawa, Ethiopia. The shop initially sold various goods, including clothing, sunglasses, watches, and shoes. In 1965, the family relocated to Addis Ababa, establishing a shop that later expanded to Mercato, one of the largest open-air markets in Africa.

Over the years, the company established a broader retail presence with outlets in Mercato, at the Hilton Hotel, and on Bole Road, offering a range of products, including luxury items such as perfumes, eyewear, and watches. Alfarag also ventured into the sportswear market, serving as a distributor for Adidas products in Ethiopia and later opening an Adidas franchise store. Additionally, the company collaborated with Clarks to open a Clarks franchise store in the country, contributing to the diversification of its retail portfolio.

In 2003, Alfarag entered the duty-free retail sector at Addis Ababa Bole International Airport, becoming Ethiopia's first private duty-free operator.

Alfarag has also been active in import and distribution since the 1970s, initially working with Unilever to distribute products such as Omo, Lifebuoy, Vaseline, and Dove in Ethiopia. This partnership concluded in 2015 when Unilever established its factories in the country. The company has also distributed products for Moulinex (later Groupe SEB) and Mars Inc. and has collaborated with brands such as Dabur, Deemah, and Supermax.

Today, Alfarag operates approximately 10 retail shops across Ethiopia and continues to work with international brands in retail, duty-free, and distribution sectors.

Alfarag Duty Free

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Alfarag Duty Free offers a wide array of products selling products to international travelers. Its extensive range includes perfumes and cosmetics, watches, confectionery, luggage, eyewear, tobacco products and cigars, smoking alternatives, and personal care products. Established in 2003, Alfarag Duty Free was the first private duty-free retailer in Ethiopia.[9]

Since its inception, Alfarag Duty Free has grown its operations and built a notable presence in the African duty-free market. It has established partnerships with some of the world’s biggest names in the perfumes and cosmetics industry, including LVMH, Chanel, L'Oréal, The Estée Lauder Companies, Puig, Coty and others, providing travelers with a range of luxury fragrances and skincare products.[10]

In addition to perfumes and cosmetics, Alfarag Duty Free features a wide selection of timepieces from renowned watch brands such as Tissot[11], Longines[12], Casio[13], Timex watches, Rado, GC, Frederique Constant[14], Festina, and others. These brands are tailored to meet the needs of travelers looking for quality and precision.[15]

Alfarag Duty Free also collaborates with leading tobacco companies[16] [17]such as Japan Tobacco International, Philip Morris International, and others to offer a range of premium tobacco products, including cigarettes, cigars, and smoking alternatives.[18] These partnerships ensure that international travelers can access some of the most recognized tobacco brands worldwide.

In the luggage segment, Alfarag Duty Free represents globally renowned brands such as Samsonite and American Tourister, providing travelers with durable and practical luggage options. These products expand Alfarag's portfolio, meeting the needs of both business and leisure travelers.

Alfarag Duty Free has also benefited significantly from the growth of Ethiopian Airlines, Africa’s largest carrier, and the emergence of Addis Ababa Bole International Airport as the gateway to Africa. These developments have positioned Alfarag Duty Free as a central player in the region’s travel retail industry, serving an ever-increasing number of international passengers.[19]

As part of its ongoing investment, Alfarag Duty Free will inaugurate two newly renovated duty-free shops and a new Adidas store at Addis Ababa Bole International Airport by the end of 2024. These stores, renovated at a cost of over 6 million USD.

[20]

Local Market Retail Stores

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Alongside its duty-free operations, Alfarag manages a network of retail stores across Ethiopia.

Adidas Store

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Alfarag Trading PLC's journey with Adidas began decades ago as a distributor of high-quality Adidas products, offering top-notch sportswear and equipment through its retail stores. Over the years, the company’s collaboration with Adidas reinforced its reputation as a key retailer in the Ethiopian market. Building on this successful partnership, Alfarag later opened the first dedicated Adidas store in Ethiopia, representing an investment of over 1 million USD.

Clarks Footwear Store

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In addition to its partnership with Adidas, Alfarag Trading PLC also owns and operates a Clarks (shoe retailer) store in Addis Ababa. This store offers a range of stylish and high-quality footwear, catering to customers who value comfort, elegance, and craftsmanship.

Alfarag Retail Stores

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Beyond its franchise operations, Alfarag owns and operates multiple retail stores under its own name, offering a diverse array of global brands:

•Hilton Hotel Store: Located within the prestigious Hilton Hotel in Addis Ababa, this store focuses on luxury eyewear, watches, and personal accessories, providing a curated selection for the hotel’s international guests.

•Bole Road Store: Situated near the Adidas store, this Alfarag outlet specializes in perfumes and cosmetics, eyewear, footwear, watches, and jewelry, offering a diverse range of products in a modern and accessible location.

Alfarag also represents and sells Reebok and Wilson products in its retail stores, ensuring Ethiopian consumers have access to some of the most recognized brands in sportswear and equipment.

•Mercato Store: At the heart of Addis Ababa’s bustling Mercato, Africa’s largest open-air market, Alfarag operates a store that sells a wide variety of products, including those it distributes locally. This store caters to a broader audience, offering a variety of products, including personal care items, clothing, and household goods.

Alfarag has participated in Ethiopia's retail sector by introducing and representing international brands such Adidas, Clarks, Reebok, and Wilson through its local market retail stores.

Import and Distribution

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Alfarag Trading PLC operates in Ethiopia's import and distribution sector, partnering with international brands to supply products to Ethiopian consumers.[21]

Unilever Partnership

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In the 1970s, Alfarag began distributing Unilever products in Ethiopia, including Lifebuoy, Signal, Vaseline, Dove, and Knorr. The partnership played a role in making these products widely available in Ethiopian households. A notable collaboration was the promotion of Omo detergent, which became a household name. In 2014, a repacking facility for Omo was inaugurated in Addis Ababa, concluding in 2015 when Unilever established its own factories in Ethiopia.

Groupe Seb, Kellogg’s, and Mars Inc.

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Alfarag is the distributor of Groupe Seb products in Ethiopia, including brands like Tefal, Rowenta, and Krups. Since 2013, it has also been distributing Mars Inc. products such as Mars, Snickers, and M&M’s, which are available locally and in duty-free shops. In 2018, Alfarag added Kellogg’s cereals to its portfolio, further contributing to the availability of international food brands in Ethiopia.

Shaving Blades and Personal Care

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Alfarag is the unrivaled leader in Ethiopia’s shaving blade market. The company is the sole distributor of Zorik and Supermax blades, which dominate the market due to their affordability and quality. In addition to these partnerships, Alfarag has introduced its own line of Alfarag-branded blades, further strengthening its market leadership and providing consumers with reliable and high-quality shaving products.

Other Partnerships

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Alfarag works with Indevco Group (Sanita hygiene products), AB Mauri (Mauripan yeast), Deemah (biscuits and snacks), and Arc Holdings (Luminarc and Arcopal glassware), providing a range of products for household and commercial use.

References

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  1. ^ Moodie, Martin (2022-02-26). "Alfarag Addis Ababa Duty-Free prepares to launch new concept". Moodie Davitt Report. Retrieved 2024-12-10.
  2. ^ Milton, Tina (2006-12-12). "Alfarag outlines plans for growth". DFNI. Retrieved 2024-12-10.
  3. ^ retail, Trbusiness The travel retail Trbusiness The magazine for global; Professionals, Duty Free (2006-11-08). "Second dfs to open at Bole". www.trbusiness.com. Retrieved 2024-12-10. {{cite web}}: |first= has generic name (help)
  4. ^ "You are being redirected..." www.eximpedia.app. Retrieved 2024-12-10.
  5. ^ Moodie, Martin (2022-02-26). "Alfarag Addis Ababa Duty-Free prepares to launch new concept". Moodie Davitt Report. Retrieved 2024-12-10.
  6. ^ "Alfarag Duty Free | Effebi Spa". Retrieved 2024-12-09.
  7. ^ "GULF AFRICA Duty-Free & Travel by Paramount Publishing Ltd. - Issuu". issuu.com. 2011-09-27. Retrieved 2024-12-10.
  8. ^ "Start Free Trial". www.signalhire.com. Retrieved 2024-12-10.
  9. ^ Moodie, Martin (2022-02-26). "Alfarag Addis Ababa Duty-Free prepares to launch new concept". Moodie Davitt Report. Retrieved 2024-12-10.
  10. ^ "GULF AFRICA Duty-Free & Travel by Paramount Publishing Ltd. - Issuu". issuu.com. 2011-09-27. Retrieved 2024-12-10.
  11. ^ "Alfarag Trading P. L. C. Local Market Shop Hilton Hotel Shop - Tissot store in addis Ababa". store.tissotwatches.com. Retrieved 2024-12-09.
  12. ^ "AL FARAG à ADDIS ABABA, International Bole Airport, Éthiopie | Longines FR". Longines (in French). Retrieved 2024-12-09.
  13. ^ "Timepieces - Products Availability - CASIO". CASIO Official Website. Retrieved 2024-12-09.
  14. ^ "Addis Ababa Duty Free shop". Frederique Constant. Retrieved 2024-12-09.
  15. ^ "GULF AFRICA Duty-Free & Travel by Paramount Publishing Ltd. - Issuu". issuu.com. 2011-09-27. Retrieved 2024-12-10.
  16. ^ "GULF AFRICA Duty-Free & Travel by Paramount Publishing Ltd. - Issuu". issuu.com. 2011-09-27. Retrieved 2024-12-09.
  17. ^ "Alfarag Duty Free Shop - Cuban Cigar Group". Retrieved 2024-12-09.
  18. ^ "GULF AFRICA Duty-Free & Travel by Paramount Publishing Ltd. - Issuu". issuu.com. 2011-09-27. Retrieved 2024-12-09.
  19. ^ Moodie, Martin (2022-02-26). "Alfarag Addis Ababa Duty-Free prepares to launch new concept". Moodie Davitt Report. Retrieved 2024-12-09.
  20. ^ Moodie, Martin (2022-02-26). "Alfarag Addis Ababa Duty-Free prepares to launch new concept". Moodie Davitt Report. Retrieved 2024-12-09.
  21. ^ "ALFARAG TRADING PLC". AddisBiz.com (አዲስ ቢዝ). Retrieved 2024-12-09.
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