FSN E-Commerce, parent of online fashion retailer, Nykaa, has signed an agreement with Middle East’s Apparel Group to foray into the Gulf market. Nykaa will leverage the Apparel Group’s retail infrastructure network and deep market relationships to build distinctive Gulf Cooperation Council (GCC) focused beauty offerings in the UAE, Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait and Bahrain.

Founded by Falguni Nayar in 2012, Nykaa disrupted the Indian beauty market with its content to commerce expertise, to create an omnichannel shopping experience for Indian consumers. 

Nykaa has 112 retail stores as of June 30, 2022, which cater to nearly 28,000 pincodes and offer over 4,500 brands across platforms. The technology-led company is now set to bring its understanding of the beauty category and strong partnerships with domestic and international brands to the GCC’s beauty-forward consumers, the company said in a press release.

Founded by Sima Ved in 1996, the Apparel Group is one of the largest omnichannel retailers in the Middle East based out of the UAE. It is home to more than 75 lifestyle and beauty brands with over 2,000 stores in 14 countries. The Group brings over two decades of understanding of retailing in the GCC, with a finger firmly on the pulse of evolving consumer trends.

Poised for accelerated growth, especially in the beauty and personal care category, the GCC presents a large opportunity for Nykaa to extend its focused value offering and drive the region’s offline and online retail growth story with the Apparel Group. As per a Red Seer report, KSA and the UAE, two of the region’s biggest beauty and personal care markets, were estimated to be $17.1 billion and $6.6 billion respectively in 2021. The markets are projected to grow at a CAGR of 7 per cent and 9 per cent respectively over the next three years.

Falguni Nayar, founder and CEO, Nykaa said, “Over the last decade, we have focused on building a formidable assortment of beauty offerings for the Indian consumer, bringing them the most coveted brands, trends and experiences from across the globe. Emboldened and encouraged by the love and trust of consumers in India, we now look forward to recreating our distinct beauty retail value proposition internationally, beginning with the GCC, with the Apparel Group. Much like our own story, the Apparel Group has written their success in the GCC owing to an acute sense of consumer needs and a solid foundation of offline retail that includes robust local partnerships, fulfillment centers and supply chain models.”

 “Since its inception in 1996, the Apparel Group has been focused on addressing the changing needs of its diverse customers across our presence in GCC, India, Southeast Asia and Africa. Our omnichannel approach, which includes the first ever Phygital store in the GCC region, has made us the partner of choice for a large plethora of brands. This alliance is going to be a new chapter in our expansion journey as we look forward to leveraging each other’s strengths and offer unique value proposition to our consumers in the GCC region. So, we are ready to embark on what will be history in the making,” said Sima Ved, founder and chairperson, Apparel Group.