O Boticário enters UAE beauty market, opens first international store in Dubai

The Brazilian cosmetic brand enters the UAE market with its first Amphora concept store outside Brazil


Staff Report

O Boticário, the largest fragrance player in Brazil, has opened its first international Amphora concept store at City Centre Mirdif, Dubai. Known for its iconic products for more than 40 years, O Boticário 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 US$4 billion in revenue, according to Euromonitor International report 2017.

Commenting on the City Centre Mirdif store launch, André Farber, Vice President of Business and Franchises at O Boticário, said, “After the great success of the iconic Amphora stores in Brazil, we chose Dubai for our first Amphora concept store outside the country. The amphora is the icon of O Boticário, and represents Brazilian perfumery, standing out in a grid created exclusively for the new project.”

Farber added, “We are bringing the Amphora store in Dubai in a new format that defines the evolution of physical retail by offering consumers unique experiences. It will provide interactive content coupled with a visual aesthetics created to attract visitors to the brand’s stories. The new store will offer some of the most innovative retail technologies; helping us connect better with our customers through services that set us apart. The amphora store model also offers significant gains in terms of sustainability, featuring modular furniture requiring less intervention in construction work, less acrylic in design that optimises the need for steel, aluminium and MDF sheets; FSC certified wood used and 100% LED used to create a cosier environment with more economy.”

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.

Talking about the partnership with Millennial Capital, he said, “We decided to partner with Millennial Capital based on their past successes in the region and due to the innovative approach in terms of developing a fully integrated team of professionals covering branding, marketing, distribution, logistics, operations and finance. When we evaluate the key success factors in international markets we asses our partner’s ability to invest in the development of the brand regionally but also their understanding of local market dynamics and structure.

“Millennial Capital Ltd. as a consumer-focused emerging venture capital firm is well positioned to partner with Grupo Boticario and gradually expand O Boticario brand in the GCC markets. The group has a history of being supported by reputable investors in the region and is managed by a multinational team of investment professionals creating a solid value proposition for our franchise.”

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.”

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.
Responding to a question about the exclusivity of the brand, André Farber replied, “Our main focus has always been to create new experiences for the people. Nowadays consumers are very demanding and very discerning when choosing a brand or product to buy. When they buy our products, they know exactly what our brand stands for. We want our stores to reveal the soul of O Boticário, thus our team is continuously researching different combinations that make our products stand out in the market. Our leading fragrance brands Malbec, Lily and Floratta retain international market-leading positions in men and women categories.”

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; which 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.