With geographical proximity, cultural affinity, and relations dating back to the 1970s, India and the United Arab Emirates (UAE) have historically had close ties, but relations have significantly deepened in recent years.
India and UAE bilateral trade represented $84.84 billion during 2022-2023. After the US and China, UAE became India’s third largest trading partner and India’s second-largest export destination.
Affluent Indians have a new address—a shiny, urban, concrete jungle called Dubai. Geographically positioned perfectly to act as a bridge between their original homes and the rest of the world, Dubai is quickly becoming a haven for Indians seeking aspirations for a luxurious life. A community of 3.3 million Indians represents the largest expat community in the UAE, and the Indian diaspora is growing at a rate of 10.7% annually.
It’s no surprise that India’s favorite homegrown beauty brands are also look- ing to spread their wings and establish a foothold in this vibrant market. Omnichannel beauty platform, Nykaa, is the most recent beauty business jumping on the UAE expansion bandwagon.
NYSAA, NYKAA’S NEW UAE ARM
Already a market leader in India, the retailer has its eyes firmly set on the UAE for its next phase of expansion. The brand entered a joint venture with the GCC-based Apparel Group last year, with Nykaa holding a majority stake of 55%, while Apparel Group owns the remaining 45%. The entity secured $2.5 million from its UAE partner, Nessa International (Nysaa Beauty LLC), to expedite expansion in the UAE.
Together, they’ve launched a novel omnichannel retail concept named Nysaa for the market. The innovative beauty concept seamlessly blends in-store engagement with digital gratification, resonating with the needs and preferences of the modern beauty consumer in a way that feels authentic and accessible. A rollout plan of 100 stores across the GCC over the next five years while developing a strong online presence has the potential to redefine the beauty landscape across the GCC.
Commenting on this significant moment, founder and CEO Falguni Nayar said, “Nysaa’s first store in Dubai marks a significant milestone in our international foray. Our partnership with Apparel Group is a powerful collaboration of Nykaa’s beauty leadership in India and their retail expertise in the GCC region. Having garnered tremendous love and trust among Indian consumers for more than a decade, we are looking forward to recreating an exceptional beauty shopping experience, online and offline, for the discerning consumers of the GCC.”
The first Nysaa store, which opened this year in Dubai’s Mirdif City Centre Shopping Mall, boasts a premium selection of international, Indian-born, and local brands. Spanning 2,436 square feet, the retail concept focuses on an immersive, personalized in-store experience with knowledgeable beauty advisors on hand and available to assist customers. Additionally, the store invites content creators and customers to create engaging content for social media using Nysaa’s products in the eponymous Nysaa Content Creation booth, further enhancing the interactive in-store shop- ping experience.
With an estimated 24.1% of the total revenue in the UAE beauty and personal care market expected to come from online sales, Nysaa’s e-commerce first model aligns well with the market trends. Expansion to the UAE allows it to not only further accelerate the presence of other Indian brands in the GCC region but also allows Nykaa to tap into the growing online consumer market in the UAE to strengthen its overall position as a beauty leader globally.
INDIA’S EVOLVING RELATIONSHIP WITH THE UAE
With a significant Indian expatriate community, exponentially growing purchasing power, and access to new opportunities that far surpass those available in India, Nykaa’s expansion to the UAE signifies a deeper connection between the two regions. Historically, Indian brands have leveraged their entry into the Middle East to gain access to new customers with familiar ethnicities, wide international networks, and access to new collaboration opportunities.
However, in recent years, the market has not only emerged as an important pillar in India’s outreach to the Gulf region as a whole but has also become a region that provides seamless transition and expansion opportunities for Indian brands across various industries.
By capitalizing on cultural sensitivities and the consumer demand for trusted brands, expansion to the UAE—especially Dubai—appears almost organic and natural for Indian brands. With ease of access and an existing customer base of clients already familiar with the brands, expansion to the UAE provides the perfect segue for Indian brands in their overarching “going global” strategy.
As the allure of obtaining a Golden Visa in Dubai increasingly attracts more Indian consumers to establish businesses in the UAE, Dubai is becoming a magnet for affluent Indians seeking respite from the inefficiencies of financial restrictions in India. By offering an attractive tax-free personal income scheme, Dubai provides a lucrative opportunity for individuals to diversify their financial portfolios and reap the benefits of economic freedom.
WHAT MAKES THE UAE AN ATTRACTIVE MARKET FOR INDIAN BRANDS?
Nykaa’s ambitious UAE expansion underscores the vibrant prospects that the market offers to Indian and global brands at large. Serving as a bridge between cultures, countries, and beauty ideals, Nykaa’s strategic decision reflects the evolving landscape of beauty without borders.
Acting as a conduit between East and West, the UAE and Dubai, in particular, will retain its status as a prime hub for international trade and commerce, providing beauty brands from all over the world access to thrive in this flourishing market. Furthermore, the UAE’s strategic location makes it the perfect springboard for brands looking to enter new emerging markets such as Africa.
