Gulf markets offer a huge opportunity for online beauty sales due to rising demand from young consumers, claims the firm behind Nykaa.
In October this year, the firm announced a strategic alliance between its subsidiary FSN International and Middle Eastern company Apparel Group.
The plan was to tap into the Gulf markets to undertake an omnichannel, multi branded beauty retail business.
Johnson & Johnson skin care brand Dr.Ci:Labo has deployed a raft of digital innovations at its latest China store as it seeks to bridge the offline and online worlds as part of a three-year strategy to build brand awareness in the country.
It recently unveiled a new Online to Offline (O2O) Concept Store in Haikou, at Haikou International Duty Free Shopping Complex, with what it claimes is an ‘immersive, digital-powered shopper experience.’
At the heart of the concept lies Dr.Ci:Labo’s ethos of Omotenashi – the Japanese philosophy of hospitality – in order to deliver personalised skincare insight and guidance for every skin type.~
Coty-owned skin care brand Lancaster saw sales on Hainan Island multiply by five year-on-year, boosting the beauty major’s confidence in building its skin care presence in China.
Lancaster sales grew over 20% in the first quarter of FY2023, a result of the brand’s performance in Hainan, even with strict COVID-19 restrictions.
The Monegasque brand has also been performing well outside of Hainan and topped Sephora’s rankings as the number one niche skin care brand.
Japanese cosmetics company Pola Orbis said China’s strict COVID-19 policies would have no impact on its plans to continue expanding POLA in China.
Despite the troubles, the company reaffirmed its commitment to expanding POLA’s business in China.
It noted that its luxury brand has a lot of potential with younger consumers and second- and third-tier cities.
Estée Lauder Companies is expecting a slow recovery in China’s crucial travel retail hotspot of Hainan and does not anticipate things to be “fully back to normal” by the next fiscal year, said its CFO.
Speaking during the firm’s Q1 earnings conference, Tracey Thomas Travis said the firm was not expecting a full recovery by the fourth quarter (Q4) of its fiscal year.
She added that Hainan’s recovery has been more sluggish than expected so far but reaffirmed the firm’s commitment to the travel retail mecca.