Coty Inc Signs JV with Two UAE-Based Companies to Expand Footprint in the Region
Published By : 24 Dec 2013 | Published By : QYRESEARCH
Coty Inc., a U.S.-based cosmetics and personal care brand has decided to expand its foot print in the Middle East. Toward this end, the company has formed a joint venture called Coty Distribution Emirates in partnership with two UAE-based distributors of luxury goods. The partnership will see Coty forming a strategic alliance with Chalhoub Group and Jashanmal. However, none of the companies disclosed the financial terms and details of this deal. Coty was in the news in June 2013 for its successful IPO.
After the deal was finalized, the company issued a press release that officially stated this new strategic move. The new partnership is expected to bolster Coty’s go-to market abilities in the Middle East, which is a hub for luxury goods and high-end cosmetic and body care product market. On the other hand, consumers in this region will be able to access the impressive portfolio of products that Coty is known in the market for.
The fact that Coty’s portfolio already comprises mega brands such as Calvin Klein, adidas, Marc Jacobs and more, will work to its advantage in the UAE market.
Coty had reported net revenue of around $2.2 billion from the EMEA (Europe, the Middle East, and Africa) as of the year ending June 30, 2013. The EMEA revenue formed 47% of its total revenue, which explains why the brand is looking at aggressive expanding in the Middle East.
Coty’s CEO has stated on record that the company regards the UAE as a region that enjoys steady growth and hence holds a key position in the company’s overall expansion plans. The beauty industry has been witnessing strong growth in the Middle East and Coty hopes to cash in on this lucrative market growth.