While retailers in Europe are bracing for a difficult winter, recent signs point to a resilient commercial environment in the Mena region.
Consumer sentiment is strong. Data from checkout.com found that 88 per cent of Mena consumers intend to maintain or increase their e-commerce spending next year, while half of respondents expect to spend more money online within the next 12 months.
Last week, Indian e-commerce company Nykaa strategically allied itself with Middle Eastern retailer Apparel Group to expand in the GCC region.
Nykaa’s parent company, FSN eCommerce Ventures, will hold 55 per cent of the new business, while Apparel Group will take a 45 per cent share ownership.
Acting as Nykaa’s first international business alliance and major investment in the GCC region for FSN, the new commercial entity will boost multi-brand omnichannel beauty retail operations for Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
At a press conference announcing the partnership, Nykaa co-founder and CEO Falguni Nayar said they decided to open up to the GCC following its high-per-capita consumption of beauty products and robust economic growth.
“We see this as a multi-year growth opportunity; I think GCC countries will grow over 10-20 years and Nykaa wants to be part of that,” said Nayar, pynmnts.com reports.
Luxury brand specialist Chalhoub Group has also been expanding its omnichannel tech stack.
Last month, the UAE-based group bought a majority stake in UK digital luxury retail platform Threads Styling. Chief Investment Officer Sharmila Murat told pynmnts.com: “Chalhoub was eying up further acquisitions in the luxury retail space as it looked to take advantage of strong demand for high-end brands in the GCC”.
With a secure presence in both in-store and online retail, Chalhoub Group is utilising technology to deliver an optimised customer experience across channels.
This extends to e-commerce investments like the Thread Styling deal and a recent partnership with Red Ant to deploy Chalhoub’s RetailOS platform across its omnichannel operations.
