07 October 2022, Mumbai:
Nykaa has entered into a strategic alliance with the Dubai-based fashion and lifestyle retail conglomerate, Apparel Group.
The cosmetics and fashion retailer wants to expand in the GCC countries. This strategic alliance will help Nykaa in leveraging Apparel Group’s robust offline retail network and deep market relationships to build distinctive GCC-focused beauty offerings in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. An entity will be incorporated in Abu Dhabi in which FSN, a wholly owned subsidiary of Nykaa, will hold 55 per cent stake and the balance 45 per cent will be held by Apparel.
Over the last decade, Nykaa has 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. So the strategy is about bringing the right product to the Indian consumer and this is true especially of beauty and fashion products. Nykaa has eleven private labels. The strategy is not to treat them like private labels, but as brands in their own right. A lot of these private labels don’t have the word Nykaa and have their own life. So they sell on other platforms, in stores, and often have their own stores.
