The Beauty Business
The
availability of vast range of products at competitive prices attracts African
buyers to Dubai's booming cosmetics market
Africa presents one of the fastest developing
markets in the world and the demand for cosmetics is growing at a frantic pace.
Not only is there a huge pent-up demand for upmarket products from Europe and
North America but also for the entire range of beauty and personal care
products from major manufacturers around the world.
When it comes to looking their best at all times,
Africans are second to none. As such, there is a huge demand for products such as
beauty soaps, face washes, shampoos, conditioners, body and 
skin lotions, toners, astringents, cold creams
and other moiturising formulations, perfumes, hair colours, dyes, powders, eye
and face packs, to mention just a few. While there is now a
considerable level of manufacturing activity taking place within Africa itself,
there is an ever assertive and growing segment of consumers who are demanding
the best products available in the world. Enterprising traders are keen to
source such goods from all the reputed manufacturers but are often hamstrung by
the volumes of purchases required. Most manufacturers are not interested in
supplying quantities that do not run into several container loads at least. Often
it is not viable for buyers to go in for such large volumes.
skin lotions, toners, astringents, cold creams
and other moiturising formulations, perfumes, hair colours, dyes, powders, eye
and face packs, to mention just a few. While there is now a
considerable level of manufacturing activity taking place within Africa itself,
there is an ever assertive and growing segment of consumers who are demanding
the best products available in the world. Enterprising traders are keen to
source such goods from all the reputed manufacturers but are often hamstrung by
the volumes of purchases required. Most manufacturers are not interested in
supplying quantities that do not run into several container loads at least. Often
it is not viable for buyers to go in for such large volumes.
Secondly, there is also the question of sourcing
products from different countries and even continents. For instance, an African
importer may be interested in facial products from Europe, toiletry from the
Far East and herbal cosmetics from the USA. But this would place immense
logistics constraints and would involve travelling around the world and opening
of letters of Credit with a host of banks. Often, all these obstacles would
prove insurmountabe and many exporters would be put off by the sheer magnitude
and complications of the whole exercise.
In such a scenario, Dubai offers African
importers the ideal market place. "African buyers can source all their
requirements from just one location," says Mohd Al Khatib, Managing
Director, Siblin Cosmetics (LLC), a leading supplier of salon equipment.
"Buyers can select from a vast range of merchandise and buy just the
quantities they require and then transport the goods back to their home
countries at very competitive freight costs," he says.
The profit margins in this business are high and
plenty of African buyers are flocking to the United Arab Emirates to meet
growing requirements for cosmetics and salon equipment in their own countries. "We are
in a position to meet any specifiic requirements African buyers may have and
are able to source all that they need. Even if we do not carry adequate stocks,
we are able to get fresh supplies from our principals at very short
notice," says Kamal Khatib, Managing Director of Maram Cosmetics. "We
specialise in salon products and are very
happy with the interest shown by African buyers in our products," he adds.
Dubai's strength in the cosmetics business is
based on low-priced goods and low import duties. "We have excellent
connections and contacts with Far Eastern and European suppliers and are able
to offer their products to African buyers at very competitive prices due to the
fact that we operate on low profit margins and a very low-cost environment in
terms of import related tariffs," says Ziad Sabbagh of Al Nasaem Company.
"As such, African buyers are very happy to deal with us and we have a
large number of repeat orders from them," he says.
Pankaj Menon, General Manager of Al Hathboor International (agents for AVON) says that his company is very
happy with its dealings with African buyers. "We are keen to expand our
presence in Africa and are looking forward to much greater business volumes in
the coming months and years," he says.
