Nykaa leverages Apparel Group’s Middle-Eastern network to expand beauty offerings
10 Oct 2022 --- Nykaa, an omnichannel consumer-tech company and India’s most popular beauty and lifestyle retailer, signed an agreement with the Middle East’s Apparel Group to create a Gulf Cooperation Council (GCC) focused on beauty offerings in the UAE, the Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.
The GCC aims to create a seamless beauty shopping experience that is curated and discovery-led as these two retailers collaborate to leverage one another’s strengths.
The Apparel Group is a multinational fashion and lifestyle retail conglomerate with headquarters in the United Arab Emirates (UAE). As part of this alliance, Nykaa will use the Apparel Group’s retail infrastructure network and established market ties to the Middle-East.
Additionally, the GCC offers a significant opportunity for Nykaa to expand its targeted value offering and lead the region’s offline and online retail growth story with the Apparel Group. The council is prepared for fast growth, at least notably so in the beauty and personal care category.
Expansion journey
According to a Red Seer report, KSA and the UAE, two of the region’s largest markets for personal care and beauty products, had respective market sizes of US$17.1 billion and US$6.6 billion in 2021. Over the following three years, these markets are expected to grow at a CAGR of 7% and 9%.
Apparel Group’s Sima Ganwani Ved says the omnichannel approach includes the first-ever Phygital store in the GCC region.“The omnichannel approach, which includes the first ever Phygital store in the GCC region, has made us the partner of choice for a large plethora of brands,” says Sima Ganwani Ved, founder and chairperson at Apparel Group.
“This alliance is going to be a new chapter in our expansion journey as we leverage each other’s strengths and offer value propositions to our consumers in the GCC region.”
Business news
Asserting its prominence in beauty developments, Nykaa recently spearheaded Beauty & You India with Estée Lauder. This is a competitive program that supports Indian beauty and personal care start-ups. The competition offered the awardees masterclasses, financial support, mentorship, press coverage and distribution support in much the same way as Prisma Ventures.
In further developments in the Middle-East, a subsidiary of Aster DM Healthcare group, Medcare, acquired a 60% share in Skin111 Clinics to expand into the premium wellness and beauty care space in the UAE.
Israel-based Turpaz Industries achieved 81% control in Klabin for a total of US$24.3 million to maximize fragrance capacity and potential at its New Jersey facility. The company plans to use a combination of bank financing and funding from independent sources to pay for the transaction.
As news travels to northern Africa, the Egyptian Company for Cosmetics (ECC) recently acquired a majority stake in Egypt-based Source Beauty for US$5 million.
“The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team,” Lydia Schoonderbeek, founder and CEO at Source Beauty, commented.
Edited by Mieke Meintjes
