- The JV will create an omni-channel, multi-retail brand for the middle east with Nykaa holding 55% stake in the new entity and
Apparel Group 45% stake. - The Apparel Group has operations across Gulf Cooperation Council (GCC) countries – UAE, Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.
Falguni Nayar , founder and CEO of Nykaa said that consumption of beauty products is high in the Gulf.
The alliance will create an omni-channel multi retail brand in the middle east with Nykaa holding 55% stake in the new entity and Apparel Group 45% stake. The company did not disclose the name of the entity, investment amount or any other financial details related to the joint venture.
“To us the investment is not the main thing, the market, its potential and what we can do in those markets and the revenue potential is what we should get excited about,” said Falguni Nayar, founder and CEO of Nykaa during the announcement.
The Apparel Group has operations across Gulf Cooperation Council (GCC) countries — the UAE, Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.
Nayar said that they believe affinity for beauty is very high in Gulf countries along with consumption.
Nykaa said it will bring its proven expertise to the alliance and will leverage the Apparel Group’s robust retail infrastructure network and deep market relationships.
“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 Nayar.
The alliance also brings together two companies run by women entrepreneurs. Apparel Group, founded by Sima Ved in 1996 is an omnichannel retailer in the Middle East based out of the UAE. It is home to more than 75 lifestyle and beauty brands with over 2,000 stores in 14 countries.
As per a Redseer report, the Kingdom of Saudi Arabia and the UAE - two of the region’s biggest beauty and personal care markets - had a size of $17.1 billion and $6.6 billion respectively, in 2021. Moreover, they are projected to grow at a CAGR of 7% and 9% respectively over the next 3 years.
“Since its inception in 1996, the Apparel Group has been focused on addressing the changing needs of its diverse customers across our presence in GCC, India, Southeast Asia and Africa. This alliance is going to be a new chapter in our expansion journey as we look forward to leveraging each other’s strengths and offer a unique value proposition to our consumers in the GCC region. So, we are ready to embark on what will be history in the making,” Sima Ved, founder and chairperson at Apparel Group.
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