OBoticario (Brazil) Announces GCC Market Entry
09 Apr 2018 - OBoticario, the world's largest cosmetics franchise, is set for GCC market entry by partnering with Millennial Capital Ltd
The first OBoticario branded store in the UAE is expected to be open in September 2018 in Mirdif City Center.
OBoticario, the Brazilian based cosmetics, fragrances and skin care company has agreed to license its exclusive brand rights to Millennial Capital Ltd, an emerging retail, consumer, and wellness investment and management firm for a period of 5 years. The first OBoticario branded store in the UAE is expected to be open in September 2018 in Mirdif City Center, followed by a second location by the end of the year (2018). OBoticario and Millennial Capital Ltd have agreed on the UAE development plan which will include a minimum of 5 locations for branded stores, online partnerships with leading e-Commerce portals, and stores in stores targeting the departmental stores and pharmacies. It is expected that no later than Q4 2019, Millennial Capital will aim to expand OBoticario operations in Saudi Arabia.
The global beauty and personal care sector is estimated at USD 444 bn as per Euromonitor data, with both Brazil and Middle East expected to grow at a CAGR of 9%. In the Middle East, beauty and personal care market, fragrances are estimated at USD 6 billion, the largest and fastest growing category. OBoticario's leading fragrance brands Malbec, Lily and Floratta retain international market leading positions in men and woman categories.
OBoticario is the second largest Brazilian cosmetic company with a 20% market share in Latin America. Globally, it has 4,070 stores in Brazil, Portugal, Colombia, Bolivia, Paraguay, Costa Rica, Venezuela, Japan. OBoticario is the largest cosmetic franchise in the world. As of 2016, the company generated USD 4 billion in revenue, employed 30,000 people and produced c. 300 million units. Due to its strong marketing, product innovation, social media activation the group has been able to report a double-digit growth in revenue for the last 5 years.
Commenting on the UAE launch for OBoticario, Andrea Gutierrez, Grupo Boticario said: ”We are very excited with the partnership with Millennial Capital Ltd. and with the idea of bringing our products and new store concept to the region, we see a big potential in the UAE and other GCC markets and we believe our brand will add with a differentiated value proposition for our customers in this part of the world.”