Nykaa Joins Hands With Apparel Group To Expand In GCC Region As per market studies, the market value of cosmetics products in the GCC was estimated at $6.9 billion in 2016 and it is expected to reach $13 billion in 2022
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Indian cosmetics and fashion retailer Nykaa has entered into an agreement with Dubai-based lifestyle and fashion conglomerate Apparel Group to leverage the Nykaa's retail infrastructure network to expand in the UAE, Kingdom of Saudi Arabi, Qatar, Oman, Kuwait and Bahrain.
According to a regulatory filing, an entity will be incorporated in the Abu Dhabi global market in which FSN International, a wholly-owned subsidiary of the company will hold the 55 per cent stake and balance 45 per cent will be held by Apparels as on the closing date, in accordance with the terms of the agreement.
"Emboldened and encouraged by the love and trust of consumers in India, we now look forward to recreate our distinct beauty retail value proposition internationally, beginning with the GCC, with the Apparel Group. Much like our own story, the Apparel Group has written their success in the GCC owing to an acute sense of consumer needs and a solid foundation of offline retail that includes robust local partnerships, fulfillment centers and supply chain models. Through this alliance, we are confident of growing the GCC beauty market and bringing the best of both brands to a new world of consumers," said Falguni Nayar, founder and CEO, Nykaa, in a statement.
As per a report, in August Nykaa also said that in the upcoming festival season that extends to the end of the year would further push the consumer demand for beauty, personal care and wellness products.
"Our 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. This alliance is going to be a new chapter in our expansion journey as we look forward to leverage each other's' strength and offers unique value proposition to our consumers in the GCC region," said Sima Ved, founder and chairperson, Apparel Group, in a statement.
As per market studies, the market value of cosmetics products in the GCC was estimated at $6.9 billion in 2016 and it is expected to reach $13 billion in 2022.