Indian cosmetics and apparel retailer Nykaa has partnered with UAE-based retail conglomerate Apparel Group to expand its business into the Gulf region.
The two companies will build an omnichannel multi-brand beauty retail business offering products and services across six markets – the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. Nykaa will hold a 55 per cent stake in the new venture, with Apparel Group owning the balance.
Further financial details of the deal have not been disclosed.
“This alliance is going to be a new chapter in our expansion journey as we look forward to leveraging each other’s strength and offering a unique value proposition to our consumers in the GCC region,” said Sima Ganwani Ved, founder and chairwoman of Apparel Group.
In August, Nykaa predicted that the impending festival season, which lasts through until the end of the year, would increase consumer demand for wellness, personal care, and beauty items, which Nykaa claimed was already exhibiting early signs of recovery.
According to recent research from Prescient & Strategic Intelligence, the GCC colour cosmetics market size, estimated at US$1.2 billion last year, is expected to increase to $2.3 billion by 2030, at a 6.8 per cent CAGR.
Nykaa operates 120 retail stores, and online, with more than 4500 brands.