Case Study: Jarir - The Library that Couldn't Contain the Dreams of its Owners

Jarir Marketing Company, also known as "Jarir Bookstore" or simply "Jarir," was founded in Riyadh in 1974 as a small bookstore. In the 1980s, Jarir opened its second branch in Riyadh, followed by the third branch in the 1990s.

Today, Jarir is considered a leading company in the Middle East in the field of consumer information technology products, electronics, office supplies, and books, with nearly 70 retail branches affiliated with Jarir Bookstore and 4 external sales offices also linked to Jarir Bookstore, in addition to its online platform through which it conducts sales services.

It also has 5 outlets affiliated with Jarir Marketing (wholesale) and 5 wholesale sales offices.

Source: https://www.jarir.com/about-jarir/company-profile

After more than a decade since the opening of Jarir's first store, the company's market value today stands at 17.695 billion Saudi Riyals. The company has gone through several stages in its history to become a leader in its field. In the year 2000, it transformed from a family-owned company to a closed joint-stock company with a capital of 240 million Riyals. By the end of 2003, it was listed on the Saudi stock market, achieving significant success in expansion, generating substantial returns, and consistently distributing dividends to its investors. Jarir is a major player in the market today.

What was behind this success?

Jarir began its business as a specialized bookstore, selling books and school supplies like pens, notebooks, and stationery. It continued in this business for a period, which led to a decline in its market share in the Kingdom. Afterward, to improve its situation and tap into new markets, Jarir ventured into selling devices and electronics in the 1990s. However, this experiment was not successful because it lacked a maintenance center at that time.

To overcome these challenges, Jarir decided to list its name on the Saudi financial market and decided to sell 30% of the company's ownership, transforming it into a joint-stock company to address its financial issues. This move also aimed to address concerns about future generations in terms of leadership and management of the business by committing to the highest standards of corporate governance as mandated by the financial market regulations.

 What were the ambitions and goals of the founders?

As the company expanded, its goals evolved to target different segments of society. It began by offering its services as a bookstore specializing in the sale of books and school supplies. However, over time, it expanded to offer a variety of products such as electronic games, mobile devices, and some office supplies.

The famous phrase "Jarir is not just a bookstore" reflects this evolution and prosperity. Through this phrase, Jarir seeks to:

• Increase its market share: Jarir diversified its products and started targeting different segments of society, such as students, by providing products that suit them, like games, books, and stationery. It also catered to talented individuals seeking tools for activities like painting, offering. 

watercolor brushes and colors. Additionally, Jarir extended its reach to cater to businesses and employees, providing products like desktop computers and laptops, among others.

• Meet customer needs and desires: Jarir continued to develop its products and services to meet customer needs and desires. It didn't just provide these products but also ensured a unique customer experience. As founder Mohammed Al-Aqeel mentioned, their late father was keen on making the customer experience exceptional, drawing inspiration from experiences in American offices.

• Maintain current customers: Building relationships with customers has always been one of Jarir's top priorities. The relationship with the customer is not just a transaction but a long-term investment. Mohammed Al-Aqeel stated that they don't just aim to acquire customers but also to retain them and encourage repeat visits and increased purchases.

In 2003, with Jarir's listing on the Saudi financial market as a joint-stock company, sales increased significantly, enabling its expansion and the opening of branches in different cities in the Kingdom. Today, Jarir has nearly 70 branches, with a total employee count exceeding 5,500. The listing helped resolve most of the problems that Jarir faced in its early days, and it created investment capital to serve the company's objectives. A board of directors was also appointed to lead and manage the organization towards specific and clear goals.

According to Jarir's annual targets, the company aims to reach 80 branches by 2025 and increase its average annual growth rate by 10%. The company's spokesperson, Mr. Mohammed Al-Aqeel, mentioned that the company has ambitions to expand in the Gulf region and has already started opening branches in Kuwait, the UAE, Qatar, and Bahrain.

According to the 2022 annual report, the company achieved total sales exceeding 300 million Saudi Riyals, with wholesale sales increasing by 54.8% compared to the previous year. The increase in sales is attributed to the higher sales of most departments, especially school and office supplies and smartphones. These sales boosts were not the result of random efforts but rather a result of an organized and clear approach that reflects the company's vision and objectives.

Jarir's Approach and Sustainability Strategy:

Jarir's sustainability strategy is built on strong principles of corporate social responsibility, stakeholder engagement, and creating a positive impact on society. Moreover, it takes into consideration the rapid developments and changes that can bring about new opportunities and risks related to environmental, social, and corporate governance issues. Jarir's efforts aim not only to reduce negative environmental impacts but also to enhance and create short-term and long-term value for both customers and key stakeholders.

To achieve the organization's vision, this framework has been designed, consisting of six pillars as outlined below:

 1- Commitment to Sustainable Practices:

   Jarir is known for its corporate transparency and is committed to consistently doing the right things. Sustainability is a vital matter for Jarir.

 2- Responsible Operations Rooted in Established Traditions:

   Jarir focuses on owning and implementing organizational structures, policies, and procedures to ensure that it practices strong and established governance.

 3- Collaborative Efforts to Generate Knowledge and Innovations:

   Jarir embraces the latest digital capabilities, which enable it to excel in knowledge production through innovative ways of delivering products and services in the digital world.

 4- Customer-Centric Approach:

   Jarir prioritizes customer interests, helping them thrive and grow while making its products and services continuously available and accessible.

 5- Valuing and Encouraging Talent:

   Jarir values its employees' efforts and inspires them to provide their best capabilities to achieve the organization's objectives.

 6- Managing Environmental Impacts:

 Jarir is committed to reducing the environmental impact of its operational processes.

Marketing and Advertising:

Jarir has focused its promotional messages and operational efforts on satisfying the evolving needs and desires of its customers. It didn't just stop at providing products and diversifying them but also kept pace with the continuous changes in consumer behavior and their needs.

For example, in a campaign executed by Jarir in 2022:

Through it, Jarir tried to deliver several messages to the community, which were an extension of its previous efforts:

• Instead of promoting the purchase of pens and notebooks, Jarir shifted its focus to electronic devices such as iPads and laptops, which have become part of students' educational needs. This reinforced the idea that Jarir offers not only school supplies but also a wide range of options for consumers.
• Jarir facilitated the purchasing process by utilizing technology and financial companies to benefit its sales. This highlights the company's efforts to strengthen its strategic relationships with partners in various sectors to achieve its marketing objectives.
• Jarir communicates with the audience in a simple and straightforward language, avoiding complexity. The company always strives to present itself in an artistic and creative way that resonates with the community. It actively participates in events and occasions to remain present in the minds of the people and establish its brand."

Provided lessons:

 1- Customer-Centric Approach:

This means that all plans and strategies should focus on meeting the needs of customers, retaining them, and staying in tune with their needs and aspirations.

 2- Creative Thinking:

   Instead of solely promoting books and school supplies, Jarir focused on other products that students require, such as games and electronic devices. This approach demonstrates the value of creative thinking in marketing.

 3- Persistent Presence:

   Jarir didn't stop at building its name and brand but continued to promote itself and maintain a presence in all events and occasions where the community engages.