O Boticario (Brazil) to Expand into Saudi Arabia
28 Jan 2019 - The partnership is expected to position O Boticario among the top beauty brands in the Kingdom
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 Ltd.
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 6% 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 Ltd - a Dubai-based emerging retail, consumer, wellness and investment management firm – to facilitate expansion in the Gulf region.
About O Boticário:
O Boticário, founded in 1977, is the largest fragrance player in Brazil. Globally, it has more than 4,000 stores and besides Brazil, it operates in various countries such as Colombia, Portugal, Paraguay, Venezuela, Suriname, Guiana, Japan, Panama, Bolivia, Angola, Mozambique, Costa Rica, United States and United Arab Emirates. It is also the largest cosmetic franchise in the world with a 6% market share in Latin America and an estimated USD 4 billion in revenue. It currently employs more than 30,000 people, producing c. 300 million units. O Boticário’s product lines boast of 1,200 items to-date , of which 480 bestsellers will be launched in Dubai.
About Millennial Capital Ltd.:
Millennial Capital Ltd. is an emerging venture capital firm specializing in developing partnerships with global brands in the consumer, retail and wellness sector which target to enter or operate in the GCC. The group was established in April 2016, by Andreea Danila supported by a group of reputable investors from the region with an authorized capital of USD 50 million. The firm’s strength is access to capital, screening, evaluation and selection of partnerships and a proven experience in launching and managing successful new ventures.
Al Malki Group:
Al Malki Group was established in 1952 in Saudi Arabia by the late Ziad AlMalki. For the past 65 years, the Group has achieved refined expertise in better serving the commercial development of its partners who wish for sustainable growth for their brands within the Middle East. The group has created a unique and high growth portfolio of partnerships including L’Oréal Luxe, Richemont, Dior Beauty, Armani Beauty, Lancôme Beauty, among many others.