The Chalhoub Group is present in more than 14 countries in the Middle East. Here, co-CEO Patrick Chalhoub shares his insight into the lucrative region.
How does the Middle East differ from other prestige beauty markets?
Previously, the prestige market here was driven by fragrance, but now it is moving towards make-up products, particularly in the UAE. Fragrance still represented 55% of the overall Gulf prestige beauty market in 2015 but this is down 3% on the previous year. Make-up represents 37%, while skin care remains relatively small at 7%.
Do you see any differences within markets in the region?
Each country or even city has its own specificities and we are always sure to understand and adapt to them.
For example, Qatar is witnessing a transformation of its retail market amid ongoing construction for the 2022 World Cup. The retail sector is set to see further expansion in terms of market size, depth and breadth of offering.
In UAE, the prestige beauty market is structured by the presence of international brands and chains.
Elsewhere, in Saudi Arabia there is a growing discrepancy between structured, concept driven retail and modern retailers. There is also multiplication of standalone beauty boutiques with existing players expanding. The Kuwait market is considered to be mature, with a wide range of brands available.