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.

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.