Bruna Garcia Fonseca
São Paulo – The Brazilian cosmetics company O Boticário has licensed its brand for Millennial Capital Ltd, which will now manage the retail section in the United Arab Emirates. The brand’s first store will be opened in September, in Dubai, in the Mirdif area. Until the end of the year, the brand plans to open a second store in the emirate.
The companies’ development plan for the UAE is to open five brick-and-mortar stores throughout the next five years, plus online partnerships with local cosmetics portals, and the implementation of the store-in-store strategy in pharmacies and department stores. Until the end of 2019, O Boticário is planning to expand its business to Saudi Arabia.
“The O Boticário brand has an enormous potential in the region [Arab Gulf], given that its portfolio includes fragrances, cosmetics and high-quality products with affordable prices,” said in a statement the founder and managing director of Millennial Capital Ltd, Andreea Danila. “We’re confident that the launch in the United Arab Emirates will be a success case to be reproduced soon in other places in the Gulf,” she concluded.
The cosmetics sector is estimated to be worth USD 444 billion, according to data from the Euromonitor, and the sector in Brazil and the Middle East presents an expected compound annual growth rate (CAGR) of 9%. In the Middle East beauty market, the fragrance sector is worth an estimated USD 6 billion, the largest and fastest growing category of the sector.
Boticário is the world’s largest franchising network of the cosmetics sector, and Brazil’s largest franchising network of any sector, according to the Brazilian Franchise Association (ABF). It’s also the second largest Brazilian cosmetics company (the leading company is Natura), with a market share of 10.8% in Brazil and 20% in Latin America.
Currently, the brand has over 4,000 stores throughout Brazil, Portugal, Bolivia, Colombia, Costa Rica, Paraguay, Venezuela and Japan, plus an e-commerce business in the US. Boticário’s product portfolio includes fragrances, cosmetics, make up, body and hair care.
Millennial Capital Ltd was founded in 2016 by Andreea Danila and is among the fastest-growing consulting and investment management companies in the Middle East, becoming one of the first specialized investors in retail, consumer and wellness, with an integrated investment, management and operations staff.
Translated by Sérgio Kakitani