Body Shop set to extend franchise into Middle East
struck an agreement to extend its franchise in the region with
leading retailer MH Alshaya Co.
The move targets increasingly strong growth rates in the Middle Eastern cosmetic and toiletry sector, and forms part of a steady stream of Western companies, both manufacturers and retailers, that are trying to muscle in on the growth.
The agreement with Alshaya will see the Body Shop extend its reach throughout the Middle East, with Jordan and Kuwait proving to be a particular focus. New stores are expected to be added, while existing stores will be updated.
The Body Shop already has a strong partnership with Alshaya which has seen it establish the brand in the Middile East and Russia.
Most recently the partnership has seen a big move on Cyprus, where the partnership saw the re-launch of the first Body Shop store in Limassol last year. There are now plans to open three further stores on the island by the end of 2006.
Earlier this month Germany-based Mercatura Cosmetics announced that it had struck up a joint venture with Amrit Medical to construct a cosmetics manufacturing facility in Syria that will supply the fast-growing Middle Eastern market.
Mercatum says it will invest €11 million into the project, which will see a brand new, ultra-modern production facility constructed in Aleppo, Syria's second largest city situated in the North of the country. Work is due to begin on the project in the next few months.
The facility will employ 120 staff who will be involved in the production of three lines, namely Lipogen, Dr. Heuberger and Stagecolor. The company specialises in colour cosmetics and skin care ranges, mainly for professional use.
According to Euromonitor the cosmetic and toiletry market in the Middle East is currently growing at an unprecedented rate of 12 per cent a year, to give it a total market value of $1.7 billion. That figure is projected to reach $2.1 billion by the end of 2006.
Consumption of cosmetics is said to be strongest in the Gulf States, where avarege per capita expenditure is currently estimated to be $334 per person - one the highest rates in the world.
