Amorepacific and Alshaya Group partner to enter Middle East cosmetics market

South Korean cosmetics company Amorepacific has partnered with Middle East retailer Alshaya Group to enter the Middle Eastern cosmetics market.

The company plans to open its first Etude House store in Dubai in the second half of 2017.

Amorepacific's chairman and chief executive officer (CEO) Suh Kyungbae said: “Amorepacific will actively commit to promoting the company’s innovative beauty culture to meet growing interest of Asian Beauty among customers in the Middle East.

“By doing so, Asian Beauty is set to move beyond Korea and chart a new Eurasian path that connects across China, Southeast Asia, India, Europe and the Middle East.”

The company plans to extend its presence across Gulf Cooperation Council member countries such as Kuwait, Saudi Arabia, the UAE, Qatar, Bahrain, and Oman.

To build its regional expertise in the Middle East, the company has deployed regional experts Hyecho across the major cities of Dubai, Abu Dhabi, Teheran, and Istanbul. Amorepacific also floated its fully-owned subsidiary Amorepacific ME FZ in May last year in Dubai Design District (D3).

The Middle Eastern cosmetics market is forecasted to grow at a high compound annual growth rate (CAGR) of 15% from $18bn in 2015 to $36bn in 2020.

According to the Euromonitor, the highest global cosmetics market growth outlook by region based on 2015-2020E CAGR is the Middle East (15%), followed by South America (14%), Asia (7%), North America (4%) and Western Europe (3%).

---

Image: An Etude House store. Photo: courtesy of Amorepacific.