Nykaa ties up with Apparel to grow in Gulf

MUMBAI: Omnichannel consumer-tech company, Nykaa has entered into an agreement with Apparel Group of the Middle East, to leverage the latter’s retail infrastructure network to foray with its product offerings in the UAE, Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.
The board of FSN E-commerce Ventures, which runs Nykaa, on Thursday approved a share purchase cum shareholders’ agreement by FSN International, a wholly owned subsidiary of the company, with Apparel Group, for undertaking an omni-channel, multi branded beauty retail operation business in the countries that are part of the Gulf Cooperation Council (GCC). This will be through an entity to be incorporated in the Abu Dhabi Global Market in which FSN International will hold 55% stake and the balance 45% will be held by Apparel Group.
Founded by Sima Ved in 1996, the Apparel Group is one of the largest omnichannel retailers 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 Red Seer report, KSA & the UAE, two of the region’s biggest beauty and personal care markets, were sized at US $17.1 bn and us $ 6.6 bn respectively in 2021 and are projected to grow at a CAGR of 7% and 9% respectively over the next 3 years.
Falguni Nayar, founder and CEO, Nykaa, said, “Emboldened and encouraged by the love and trust of consumers in India, we now look forward to recreating 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.”
Sima Ved, founder and chairperson, Apparel Group said, “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 leveraging each other’s strengths and offer unique value proposition to our consumers in the GCC region.”
In India, Nykaa has 112 retail stores (as of June 30, 2022), catering to nearly 28,000 pincodes and offering 4500+ brands across platforms.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: