O Boticário forays into UAE beauty market with exclusive products, retail technology

The Brazilian cosmetic brand chooses Dubai as a destination for the premier launch of its first Amphora store outside Brazil

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O Boticário store in City Centre Mirdif, Dubai. - Supplied photo

Staff Report

Known for its iconic products for more than 40 years, O Boticário continues to redefine the beauty experience with its foray into the UAE market by opening the first international Amphora concept store at City Centre Mirdif, Dubai, on September 22nd.
O Boticário is the largest fragrance player in Brazil and has more than 4,000 stores across the globe. It is also the largest cosmetic franchise in the world with a 6% market share in Latin America and an estimated USD 4 billion in revenue, according to Euromonitor International report 2017.
By having alchemy and innovations in its DNA, O Boticário brings to Dubai an unprecedented emphasis on quality and retail innovation, offering customers an experience complete with interactive shopping content, visual aesthetics combined with the latest retail technologies; and products that narrate stories. For example, LED screens inside the store will enable customers to get to know the stories behind the products when they lift the product from its display. Customers will also be able to learn about the exclusive artisan process of ‘Enfleurage’, an ancient perfume extraction process used by very few perfume producers today for the extraction of essential oil from lilies, the main ingredient in the Lily line. The Amphora epitomises the brand identity of O Boticário and Brazilian perfumery, representing the soul of the brand, and gains a well-deserved prominence in its visual depiction.
Created in 1977, the cosmetic company’s individuality relies on the story of its founder, a pharmacist who fashioned a unique blend of natural ingredients to produce one of its kind beauty products in a small pharmacy in Brazil. To this day, O Boticário’s product lines consist of approximately 1,200 items, but the Dubai store will have the 480 best sellers; body care, facial care, makeup, fragrances, deodorants, soaps and shampoos; are a result of an alchemy of unique and exotic ingredients; such as quinoa grains and lily extracts. The brand does no animal testing and invests 1% of revenues in forest conservation.
O Boticário Group is a pioneer in the development of research on alternative methods of product testing. The company has implemented cold manufacturing in different product lines; which resulted in reducing electricity consumption by 70% and manufacturing time by 71%. Thanks to new technology, about 3,000 tonnes of CO2 are avoided in the atmosphere every year. The brand also has a Research and Development Center with 8,000 m² and a technical team of 230 researchers; investing 2.5% of its turnover in innovation and developing up to 2,000 products at the same time. It’s important to mention here that the company was the first manufacturer of the sector to develop 3D skin in Brazil.
Commenting on the City Centre Mirdif store launch, André Farber, Vice President of Business and Franchises at O Boticário, said, “In today’s retail environment, clients’ expectations are ever evolving, and to meet those expectations we have always believed in doing things differently by constantly innovating our products and processes. We ensure that innovation is present in all our practices, and our initiatives incline heavily towards combining technology and sustainability. This is why Dubai, considered the technology hub of the Middle East, was a primary choice to launch the brand.”
“With a strong emphasis on modernism combined with traditional alchemy, we want our stores to reveal the soul of O Boticário, characterised by building unique meaningful connections with clients through personalised experiences and a customised approach to beauty.” Farber joined the Boticário Group in 2005 and he will be present at the store launch in Dubai.
Earlier this year, the Brazil-based cosmetics, fragrances and skin care company agreed to license its exclusive brand rights and partner with Millennial Capital Ltd – a Dubai-based emerging retail, consumer, wellness and investment management firm – to facilitate expansion in the Gulf region.
Andreea Danila, Founder and Managing Director of Millennial Capital said, “We are pleased to partner with the world’s largest cosmetics franchise, combining their heritage, innovation and expertise with Millennial Capital’s in-depth knowledge and world-class ability to ensure a successful launch of an entirely original concept store in the UAE and it will be the first Amphora store outside Brazil.”
The Amphora store model features sustainability at its core, designed to generate less waste and to efficiently minimise operational work on campaign renewal. Additionally, the soon to be opened retail store will launch “Ecobags” created from recycled material and modular furniture requiring less construction work. All the wood used is FSC certified and the lighting is 100% LED. Moreover, the store is designed with less acrylic and optimises the need for steel, aluminium and MDF sheets.
According to a 2016 Euromonitor International report, the global beauty and personal care sector is estimated at USD 444 billion, with both Brazil and Middle East expected to grow at a CAGR of 9%. In the Middle East, the beauty market is fast growing, and is estimated at USD 6 billion. In light of the burgeoning industry, O Boticário and Millennial Capital have agreed to open more stores in the UAE, establishing online partnerships with leading e-Commerce portals, stores in stores targeting the departmental stores and pharmacies, and expansion to Saudi Arabia in Q4 2019.