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Nykaa forms a joint venture with Dubai-based fashion retailer Apparel Group

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  • The joint venture will create an omni-channel, multi-retail brand for the Middle East, with Nykaa holding a 55% stake in the new entity and Clothing group 45% interest.
  • The Apparel Group is active in the countries of the Gulf Cooperation Council (GCC) – the UAE, the Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.
  • Falguni Nayar, founder and CEO of Nykaa, said beauty product consumption is high in the Gulf.

Beauty e-commerce player Nykaa today announced a joint venture with Dubai-based Apparel Group, a global conglomerate of fashion and lifestyle retail.

The alliance will create an omnichannel multi-retail brand in the Middle East, with Nykaa holding a 55% stake in the new entity and a 45% stake in Apparel Group. The company has not disclosed the entity name, investment amount or other financial details related to the joint venture.

“For us, the investment is not the most important thing, the market, the potential and what we can do in those markets and the income potential is what we need to get excited about,” said Falguni Nayarifounder and CEO of Nykaa during the announcement.

The Apparel Group is active in the countries of the Gulf Cooperation Council (GCC) – the UAE, the Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.

Nayar said they believe that affinity for beauty is very high in the Gulf countries along with consumption.

Nykaa said it will bring its proven expertise to the alliance and leverage the Apparel Group’s robust retail infrastructure network and deep market relationships.

“Like our own story, the Apparel Group has written their success in the GCC thanks to an acute sense of consumer needs and a solid foundation of offline retail with robust local partnerships, fulfillment centers and supply chain models. Through this alliance, we are confident that we can grow the GCC beauty market and bring the best of both brands to a new world of consumers,” said Nayar.

The alliance also brings together two companies run by female entrepreneurs. Apparel Group, founded by Sima Ved in 1996, is a Middle Eastern omnichannel retailer based in the UAE. It is home to more than 75 lifestyle and beauty brands with more than 2,000 stores in 14 countries.

According to a Redseer report, the Kingdom of Saudi Arabia and the UAE — two of the largest beauty and personal care markets in the region — were worth $17.1 billion and $6.6 billion in 2021, respectively. In addition, they are expected 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 meeting the evolving needs of its diverse customers in our presence in GCC, India, South East Asia and Africa. This alliance marks a new chapter in our expansion journey as we look forward to leveraging each other’s strengths and delivering 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 chairman of Apparel Group.

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