Nykaa ties up with apparel group to enter Gulf region

As part of the alliance, the two partners will form a new entity that will sell these products in six countries including the Gulf Cooperation Council (GCC) region to tap the market opportunity and growth potential in the region.

The new company will be 55% owned by the Nykaa entity FSN International Pvt. Ltd., remaining with Apparel Group, Nykaa said in a regulatory filing. Financial details of the partnership were not disclosed. Nykaa hopes to be able to build a multi-brand beauty retailing business in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).

According to the statement, “Poised for accelerated growth, particularly in the beauty and personal care category, GCC is an opportunity for Nykaa to expand its highly focused value offering and drive the region’s offline and online retail growth story with the apparel group.” presents a huge opportunity.” ,

This will mark Nykaa’s debut in the international market, a move that will help the Falguni Nair-led company partially demerge its operations from its domestic market in India. The company currently sells some of its products in the UAE through Noon.com.

Founded by Sima Veda in 1996, the Apparel Group sells over 75 brands, including Charles & Keith, Skechers, Aldo, Nine West, Aeropostale, Jamies Italian, Tim Hortons, Cold Stone Creamery, Inglot and Ritual through more networks in 14 countries. included from. More than 2,000 retail stores.

“The alliance will help Nykaa leverage the Apparel Group’s strong offline retail network and deep market ties to create distinctive GCC-focused beauty offerings,” Nykaa said. The new digital platform is expected to go live in the next six months, Nykaa Chief Executive Falguni Nair said in a press briefing.

Ved, Founder and President, Apparel Group, said in the statement, “This alliance marks a new chapter in our expansion journey as we look to leverage each other’s strengths and create unique value propositions for our consumers in the GCC region. Looking forward to.” ,

Nykaa cited a Red Seer report that said Saudi Arabia and the United Arab Emirates, the region’s two largest beauty and personal care markets, were worth $17.1 billion and $6.6bn respectively in 2021, and a compound annual growth rate. The growth rate is projected to expand. 7% and 9% respectively in the next 3 years.

Nykaa is bringing global brands to the Indian consumers through its Global Stores. It partnered with Canadian skincare brand The Ordinary earlier this year. The company also offers brands like Canada’s Murad, UK’s Charlotte Tilbury and Priyanka Chopra Jonas’ Anomaly. Founded in 2012 by investment banker-turned-entrepreneur Nair, its online marketplace sells products including skincare, haircare, fragrance, bath and body, and luxury products for both women and men. Nykaa also has in-house brands like Nykaa Naturals, Nykaa Cosmetics and K Beauty. Nykaa, operated by FSN E-commerce Ventures Ltd., is an omnichannel retailer with over 4,500 brands, and a network of 112 retail stores.