Booming KSA beauty market attracts investors

Updated 07 November 2014
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Booming KSA beauty market attracts investors

Saudi Arabia’s many affluent and beauty conscious women are spending on average SR14,256 a year on cosmetics, which has seen many leading international companies setting up shop in the country.
This is according to data released by Euromonitor, which publishes reports on industries, consumers and demographics in Saudi Arabia.
With a population of 28.8 million and a growth rate of 1.9 percent, Saudi Arabia has the highest percentage, at 42 percent, of women in the Gulf Cooperation Council, Euromonitor has found.
With over 50,000 registered providers, the Kingdom’s beauty industry is booming, driven by high disposable income, a young population, a high presence of international cosmetics brands and an ever-expanding retail landscape.
The Kingdom’s large and buoyant economy has been a key growth market and investment focus for brands and retailers. Over the past four years, Boots, the United Kingdom’s leading pharmacy-led health and beauty retailer, and Bath & Body Works, America’s retailer and fragrance provider, have entered the market, increasing their store portfolio to six and 15 locations respectively.
In 2012, L’Oreal solidified its presence by further expanding its product offering and introducing supplements for cosmetics purposes. One of its aims was to boost Saudization and employ more women, who are the key drivers of cosmetics growth in the Kingdom. More recently, in 2014, Marks & Spencer, UK’s retail chain, unveiled two of its world-first lingerie and beauty stores, with plans to open a further eight in the Kingdom over the next two years.
The Saudi cosmetics market is the largest in the Middle East, estimated at over SR60 billion annually, with a forecast of 11 percent annual growth rate, according to Euromonitor.
“Over the next five years, the average annual gross domestic product (GDP) growth rate is expected to be 4.4 percent. By 2020, GDP per capita is forecast to reach SR112,500, up from SR71,250 in 2010,” it stated.
The International Monetary Fund has said that the Kingdom currently ranks as the 26th economy out of 189 in the “ease of doing business” category and an increasing number of beauty and cosmetics businesses are recognizing the potential for growth in the market.
Euromonitor has identified a marked shift in the attitudes of consumers, who have become increasingly sophisticated and demanding. An increase in the number of people having access to the Internet — 60.5 people out of 100 in 2013, up from 41 in 2010 — has led to an enhanced awareness of products and services. With cosmetic surgery on the rise, the sector has grown tenfold over the past five years.
Since going under the knife for aesthetic reasons has become more socially acceptable, cosmetic procedures such as liposuction, rhinoplasty, Botox injections and fillers, and laser hair removal have become common. Furthermore, the Kingdom is being increasingly viewed as an attractive shopping destination by religious tourists, with the country expecting to receive 88 million visitors by 2020.
According to statistics, only 1 percent of operators in the Saudi beauty market travel outside the Kingdom to participate in international beauty shows and exhibitions in the region, so a local presence is necessary to gain exposure to this sector.
Recognizing this opportunity, Reed Sunaidi Exhibitions is organizing the first international and in-country exhibition, the Saudi Health and Beauty Show 2014, which will take place at the Jeddah Center for Forums and Events from Nov. 24 to 27.
John Hooke-Tappin, show director at Reed Sunaidi Exhibitions, said: “With over 120 international exhibitors set to showcase at the event, it is evident that the global health and beauty industry is keen to tap into the substantial Saudi market potential.”
“We aim to play a leading role in the development of this important sector and believe that investment from international brands will foster innovation and attract new talent, promote healthy competition and create jobs.”
Shaa’ Al-Duhailan, chairperson of the salons committee at the Jeddah Chamber of Commerce and Industry, said that salons and beauty services have come to a virtual standstill because of the lack of staff, with many businesses now seeking skilled and unskilled employees.
“Businesspeople now want Saudis to fill these positions. The Eastern Province itself needs at least 7,000 Saudi workers for the region’s 4,000 salons and beauty shops.”
“With the government focusing heavily on infrastructure and reform to enhance its value proposition to businesses, the Kingdom remains a lucrative market for strategic investment,” she said.


Saline Water corporation receives Guinness World Records

Updated 5 min 10 sec ago
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Saline Water corporation receives Guinness World Records

  • The SWCC broke its 2018 world record of five million cubic meters of water a day and now holds a new record of 5.6 million cubic meters of water a day
  • The Jubail desalination plant produces 1.401 million cubic meters of water a day, the biggest desalinated water production plant in the world

JEDDAH: Abdulrahman Al-Fadhli, Saudi minister of environment, water and agriculture, and chairman of the Saline Water Conversion Corp. (SWCC), has been presented with two certificates from Guinness World Records.
The certificates show that the SWCC holds the world record for the biggest desalinated water plant with a production of 5.6 million cubic meters of water a day. The Jubail desalination plant holds the record for being the biggest desalinated water production plant in the world with a production of 1.401 million cubic meters of water a day.
The certificates were received in the presence of Ali bin Abdul Rahman Al-Hazmi, the company’s governor.
The SWCC broke its 2018 world record of five million cubic meters of water a day and now holds a new record of 5.6 million cubic meters of water a day.
The Jubail desalination plant has also increased its production from 1.340 million cubic meters of water a day to 1.401, and has now become the biggest desalinated water producer in the world.
The corporation dedicated the achievement to King Salman and Crown Prince Mohammed bin Salman for the leadership’s support of the corporation; the current achievement is an important step to achieve water security, one of the main goals of Saudi Vision 2030.
This is an unprecedented achievement in the history of desalination plants on the local and global level, and contributes to strengthening the international position of the Kingdom, which has been at the forefront in this area for two consecutive years. This achievement is also the culmination of the efforts, plans and strategies to meet the growing water demands due to urbanization and population growth in the Kingdom.
Al-Hazmi said: “This achievement relied on existing resources and technical and human personnel. We appreciate the planning and coordination behind this achievement, and at the forefront the national competencies working in the plants, the research institute and other sectors, which had a great impact on setting up transportation systems and readying the plants, thus increasing the efficiency and improving the performance levels until the realization of this productivity breakthrough.”
All the corporation’s plants worked with the research center to achieve increased productivity and reduce operational costs, he said. They also worked in accordance with scientific methods that guaranteed the safety of personnel and equipment and kept pace with digital and technical transformation.