KIKO Milano looking to open stores in Israel

By Lucy Whitehouse

- Last updated on GMT

KIKO Milano looking to open stores in Israel
Italian cosmetics player KIKO Milano is reportedly in advanced talks to expand into Israel, with a local fashion chain said to be negotiating to operate its cosmetics stores in the country.

The fashion chain, Mania Jeans, boasts 40 fashion retail outlets around Israel, and according to Globes,​ is said to be keen to enter a partnership with KIKO Cosmetics to augment its offering to include beauty.

Fast fashion, fast beauty

KIKO Cosmetics was recently picked out by Euromonitor International, market research firm, as one beauty player successfully tapping into rising consumer demand for differentiated product offerings and instant gratification.

Another success story in this area has been fast fashion outlets, the firm observes, including H&M, Topshop and Primark. All of which suggests that a partnership between a fashion brand and KIKO Cosmetics may prove an ideal way to build on these trends.

In an era of upheaval in colour cosmetics, new genres of brands are disrupting the marketplace with their nimble networking and ability to instantly gratify,​” the firm’s analyst, Hannah Symons, recently wrote.

“Shaping this sphere is a combination of apparel players such as H&M and Topshop, whose make-up division grew at a 32% CAGR over the previous five years, along with high volume, trend-driven pure beauty brands like Kiko Milano, which achieved an even more impressive 39% CAGR.”

Agility is key

Symons notes that the ability to be responsive and meet consumer needs for value and speed is what’s putting these fast fashion brands, and beauty players like KIKO Milano, ahead of the curve.

“Such agile brands also play a pivotal role as established industry names squirm in the grip of a “duping” revolution, whereby today’s unscrupulous consumer is seeking immediate and cheaper alternatives of cult products because either the consumer is priced out or the product is sold out,​” she observes.

According to the firm’s recent analysis, mass products are not reserved solely for low earners, and Symons advices beauty brands to be aware of this.

“The middle class are just as likely to buy Mac as they are Maybelline which cements the need for brands to consider the threat of competition from beyond their price positioning,​” she says.

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