Editor of the program ‘Where’s the Money’, Yael Ayalon, Talked tonight (Wednesday) with Anat Davidov on 103FM about the launch of the new brand RED, the collaboration between the Fox Group owned by Harel and Hot Mobile, which includes the establishment and operation of a dedicated concept store chain.
“The news is really optimistic and quite unique to the recent period in the economy,” Ayalon explained. “An initial collaboration for the Fox Group. This is a very important strategic move. After fashion, food and home furniture, it is now entering an innovative move in the field of cellular and communications and has collaborated with HOT, under the RED brand. The two companies are going to invest tens of millions of shekels in opening 30 new stores. “Around the country. Today they held a joint press conference and the owner of the Fox group, Harel Wiesel, explained what sets the new network apart.”
She went on to explain that technically, these stores will open in the third quarter of this year with both groups estimating that 75% of sales will be made in physical stores: “It should also be said that this field of cellular and electronics products has undergone a very big change in recent years. Many more products are abroad and the competition is much higher.”
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Ayalon also mentioned that the timing of the announcement is interesting, as last night, a number of businessmen, including Harel Wiesel and his friends from the Fashion and Marketing Manufacturers Forum, quite surprisingly published a letter of support for Bnei Gantz and Blue and White. “They have announced that they want to strengthen it and express the importance of it continuing to operate in politics and ensuring a proper, democratic and functioning government. Definitely a very unusual step.”
As stated, as part of the joint activity, products will be launched that will be branded in the chain’s private label, and maintenance and warranty services will be provided to customers. HOT and Fox will be limited partnerships while control of the general partner will also be maintained by HOT.
Moreover, in accordance with the agreement after two years, the parties will examine the possibility of expanding the partnership’s activities to other countries. Network products will be provided by HOT on a cost basis. The partnership will be entitled to commissions for the marketing of HOT’s cellular communication services in accordance with the mechanism agreed between the parties.
The agreement also includes agreement on the structure of the board of directors appointed by five directors: three of whom will be appointed by HOT and two by Wiesel. The decisions will be made by a majority of votes, except for special decisions in respect of which the consent of the parties will be required. As stated, according to Fox’s assessment and based on the business plan, the company’s share in investments in the partnership will amount to NIS 22 million in its first 3 years of operation.