Brazil's fragrance brand eyes Saudi market
By Staff Report
Published: Mon 28 Jan 2019, 1:45 PM
Last updated: Tue 29 Jan 2019, 7:46 AM
The internationally renowned Brazilian fragrance brand O Boticário is set to foray into the Gulf region's largest beauty market Saudi Arabia along with its Dubai-based partner Millennial Capital.
In this regard, a Memorandum of Understanding (MoU) has been signed with Saudi Arabia's Al Malki Group (AMG). Established in 1952, Al Malki Group is one of the preferred retail and distribution partners for beauty brands having established successful partnerships with some of the world's leading luxury brands including L'Oreal Luxe, Richemont Group and Dior Beauty among others in Saudi Arabia.
The agreement aims at key commercial objectives towards the implementation of a national development plan for introducing O Boticário brand in the Kingdom of Saudi Arabia. The stakeholders will work together for the development plan that includes a feasibility study for the year 2019 followed by roll-out phase which is expected to position O Boticário brand among the top beauty brands in the Kingdom in terms of market share, brand equity and a number of branded retail locations.
The MoU also proposes an operating model that suggests an exclusive omnichannel approach including sales in branded outlets in key locations, online sales, and departmental stores.
Saudi Arabia will be O Boticario's second market in the Gulf region after UAE within a short span of time. O Boticário operates two stores in the UAE at Dubai Mall and City Centre Mirdif and along with trade marketing channels including Boots (Alshaya), Souq (Amazon).
O Boticário is the largest fragrance player in Brazil and has more than 4,000 stores across the globe. It is also the largest cosmetic franchise in the world with a six per cent market share in Latin America and an estimated USD 4 billion in revenue, according to Euromonitor International.
Last year, the Brazil-based cosmetics, fragrances and skin care company agreed to license its exclusive brand rights and partner with Millennial Capital - a Dubai-based emerging retail, consumer, wellness and investment management firm - to facilitate expansion in the Gulf region.