Dubai: OBoticario, the Brazilian based cosmetics, fragrances and skin care company has agreed to license its exclusive brand rights to Millennial Capital Ltd, an emerging retail, consumer, and wellness investment and management firm for a period of 5 years. The first OBoticario branded store in the UAE is expected to be open in September 2018 in Mirdif City Center, followed by a second location by the end of the year (2018). OBoticario and Millennial Capital Ltd have agreed on the UAE development plan which will include a minimum of 5 locations for branded stores, online partnerships with leading e-Commerce portals, and stores in stores targeting the departmental stores and pharmacies. It is expected that no later than Q4 2019, Millennial Capital will aim to expand OBoticario operations in Saudi Arabia.
The global beauty and personal care sector is estimated at USD 444 bn as per Euromonitor data, with both Brazil and Middle East expected to grow at a CAGR of 9%. In the Middle East, beauty and personal care market, fragrances are estimated at USD 6 billion, the largest and fastest growing category. OBoticario’s leading fragrance brands Malbec, Lily and Floratta retain international market leading positions in men and woman categories.
OBoticario is the second largest Brazilian cosmetic company with a 20% market share in Latin America. Globally, it has 4,070 stores in Brazil, Portugal, Colombia, Bolivia, Paraguay, Costa Rica, Venezuela, Japan. OBoticario is the largest cosmetic franchise in the world. As of 2016, the company generated USD 4 billion in revenue, employed 30,000 people and produced c. 300 million units. Due to its strong marketing, product innovation, social media activation the group has been able to report a double-digit growth in revenue for the last 5 years.Commenting on the UAE launch for OBoticario, Andrea Gutierrez, Grupo Boticario said: ”We are very excited with the partnership with Millennial Capital Ltd. and with the idea of bringing our products and new store concept to the region, we see a big potential in the UAE and other GCC markets and we believe our brand will add with a differentiated value proposition for our customers in this part of the world.”
OBoticario brand DNA relies on the story of its funder (a pharmacist) who 40 years ago started to mix natural ingredients to produce beauty products in a small pharmacy in Curitiba-Brazil, since then, the brand´s products are the result of an alchemy of unique and exotic ingredients such as quinoa grains or lily extracts obtained through an ancient perfume extract process (enfleurage) today used by very few perfume producers around the world. The brand does no animal testing and invests 1% of revenues in forests conservation.Andreea Danila, Founder and Managing Director of Millennial Capital Ltd. stated: “We are delighted to partner with the world largest cosmetics franchise and introduce them in the UAE. We are confident that OBoticario’s international expertise coupled with Millennial Capital’s deep local knowledge and omni-channel operational excellence, will enable the launch in UAE to become a success story to be replicated shortly across other GCC geographies”
About Millennial Capital Ltd.:
Millennial Capital Ltd, established in 2016 by Andreea Danila, is one of the fastest growing investment management and advisory firms in the GCC. The group was set up by a group of reputable shareholders in the GCC and has established itself as one of the first specialist retail, consumer and wellness investor, with a fully integrated investment, management and operations team. Millennial Capital Ltd. portfolio includes Millennial Capital Advisors, Millennial Urban Footwear Trading, Millennial Star Cosmetics Trading LLC and a recently launched initiative Millennial Wellness Ltd.