World Franchise Associates - Building Franchise Business Worldwide

« BACK TO NEWS

E-Mart (South Korea) Targets Middle East Market

29 Jun 2017 - Growing Middle East beauty market draws supermarket operator

South Korea's E-Mart will join with a Saudi Arabian retailer for a foray into the surging Middle Eastern cosmetics market.

The Seoul-based supermarket operator will open a Sugar Cup makeup store in the Saudi capital of Riyadh through a franchise with Fawaz Alhokair. The cosmetics market in the Middle East is projected to double in size from 2015 to $36 billion in 2020.

This is the South Korean company's second overseas franchise business after its namesake supermarket chain entered Mongolia last summer. The retailer will supply products and provide know-how on store operations to Fawaz, while receiving royalty income from the business.

Fawaz plans to open Sugar Cup locations in other Saudi cities such as Jeddah and Dammam. Company executives will decide on dates during an upcoming trip to South Korea, but E-Mart said that both sides have agreed to open the stores "as early as possible." Saudi Arabia spends the most on cosmetics in the Middle East, according to E-Mart.

Other South Korean cosmetics companies are also moving into the region. AmorePacific Group will launch its first store this year in Dubai through a partnership with major Kuwaiti retailer Alshaya Group. LG Household & Health Care is also in the process of opening up multiple shops in the United Arab Emirates.

Meanwhile, E-mart has lagged competitors in expanding its international business, which consists only of supermarkets in China, Mongolia and Vietnam. And those operations are set to shrink as the company plans to exit the Chinese market amid deepening losses.


Nikkei Asian Review

« BACK TO NEWS

FranSpeak

Subscribe to FranSpeak and receive free, monthly news and features about international franchising.

f

International Franchise News.International Franchise News.

© World Franchise Associates Ltd 2016. All rights reserved. info@worldfranchiseassociates.com
UK Company No. 6203737. 26 York Street, London, W1U 6PZ. +44 (0) 8446 698 980

Disclaimer: World Franchise Associates Ltd. is a privately owned limited liability company specializing in international franchise development and advisory services.
World Franchise Associates is not an NGO or franchise association and is not affiliated in any way with the World Franchise Council.
World Franchise Associates is a member of the International Franchise Association. Member of the IFA International Committee and
Member of the Advisory Council for the Global Restaurant Leadership Conference.