On 11th January, AmorePacific announced its plans to open its first Etude House in Dubai in 2017.
To cement its efforts this year, it has also collaborated with Aishaya Group, a sizeable retailer in the Middle East, to help ensure its plans are successful.
A brand first
Etude House is a highly popular and contemporary brand in Korea, as its make up range has successfully captured the interest and appeal of a young demographic.
Its entry into the Middle Eastern market represents AmorePacific's first global brand to emerge in the region.
Its 2017 plans include opening the first Etude House store in Dubai in the second half of 2017, before broadening its presence across Gulf Cooperation Council member countries such as Kuwait, Saudi Arabia, UAE, Qatar, Bahrain and Oman.
AmorePacific has recognised the potential in the market, especially the United Arab Emirates (UAE), which it considers “a trend-setting point in the Middle Eastern beauty market, with a rich and diverse demographic including local Emiratis, transit travellers, tourists and expatriate workers”.
The market to watch
Market research company Euromonitor International announced that the Middle East is set to have the highest cosmetics market growth between 2015-2020, with a CAGR of 15% — striding ahead of South America (14%), Asia (7%), North America (4%) and Western Europe (3%).
This growth will see the Middle East cosmetics market increase its worth from $18 bn (€16.99 bn) in 2015 to $36 billion (€33.97 bn) in 2020, encouraging companies from around the world to now expand its presence in the region.
The colour cosmetics and fragrance sectors are expected to be particularly significant in the UAE market, and will likely see interest from brands promoting new or existing product lines in these sectors.
Preparing for expansion
In its recent history, AmorePacific has invested resources in gaining knowledge and understanding of the regional marketplace.
It has appointed its regional experts, named Hyecho, in key cities including Dubai, Abu Dhabi, Tehran and Istanbul to gather information and develop insight.
In choosing Dubai as its first Middle Eastern beauty hotspot, AmorePacific established a fully-owned subsidiary, entitled Amorepacific Me Fz LLC in May 2016, situated in the Dubai Design District (D3).
This area is deemed an ideal location for beauty, fashion and design industries to grow as the UAE government has tipped it as a free economic trade zone.
“AmorePacific will actively commit to promoting the company’s innovative beauty culture to meet growing interest of Asian Beauty among customers in the Middle East,” said Suh Kyungbae, Chairman & CEO of AmorePacific.
The popular beauty brand anticipates that this move will have a big impact on cosmetics throughout the APAC region: “By doing so, Asian Beauty is set to move beyond Korea and chart a new Eurasian path that connects across China, Southeast Asia, India, Europe and the Middle East,” Kyungbae added.