Coty moves to strengthen its Middle Eastern presence

By Michelle Yeomans

- Last updated on GMT

Related tags United arab emirates

Coty moves to strengthen its Middle Eastern presence
The global cosmetic giant has joined forces with UAE luxury goods distributors to strengthen its presence in the Emirates.

This venture with the distributors, Chalhoub Group and Jashanmal will enable Coty to expand its go-to market capabilities in the UAE and offer even greater access to its portfolio with ‘Coty Distribution Emirates'. 

The new entity stems from cosmetic brand's long standing partnership with Chalhoub, and will also allow it to consolidate the distribution of its products and ensure a cohesive marketing strategy throughout this key market.

Lucrative market

According to Coty CEO Michele Scannavini, the move to invest in the United Arab Emirates stems from a steady growth over the past decade and is a key emerging market for the cosmetic giant and the industry overall.

"Both Chalhoub and Jashanmal have proven to be exceptional partners to Coty in the Middle East and through our new joint venture, we look forward to further growing our business in this important market,"​ says Scannavini.

For luxury distributor Chalhoub, the venture, according to its CEO will answer to the market and consumer needs in the region as well as strengthening its relationship with Coty.

UAE cosmetics spending on the rise

UAE’s beauty industry is booming and Euromonitor predicts the country’s cosmetics market to reach USD$140 (€107) million by 2014.

The most recent research from DMG events Middle East also reveals that one in every ten consumers in UAE are spending AED 60,000 (€12,500) a year on cosmetics, the equivalent of a one-bedroom apartment in Dubai Marina or a small car.

The survey carried out on 496 male and female consumers in March  2013 found drivers of the segment to be high a strong shopping culture, increased personal incomes, a strong social pressure to look good and an influx of tourists.

According to DMG, the high demand can also be attributed to the rising trend of men beginning to use a widening range of cosmetics. “Consumers want to stay on trend, 23 per cent of the respondents admitted to buying a new product every month​.”

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