South African retailer Woolworths Holdings has launched beauty products in the Kenyan market, marking an expansion from its traditional business of selling clothes as it looks to capitalise on the growing middle class.
The retailer has stocked a range of global beauty brands including Fenty Beauty, Chanel fragrances, Estée Lauder creams and W Beauty in Nairobi’s Sarit Centre store and plans to replicate a similar model in other outlets in the country.
Group CEO and executive director at Woolworths Roy Bagattini said the entry into beauty products is motivated by the growing middle class in the country and the trend in South Africa, where revenue from the beauty division has more than doubled in the past two years.
“We think beauty, cosmetics, skin, fragrance and colour is a big opportunity in the market. A lot of customers are investing and spending more on their family, themselves and that way they shore up [demand] for such products,” said Mr Bagattini.
Branching into beauty products positions Woolworths alongside other outlets like Linton’s Beauty World, Health & Glow and Goodlife Pharmacy. Other firms such as LC Waikiki, Miniso and Carrefour have been expanding their beauty shelves to capture the cosmetics market.
Woolworths beauty line features items such as lipsticks, foundations, toners, serums and body care essentials that targets the rising demand for premium beauty products among urban consumers.
Kenya becomes the third market outside South Africa for Woolworths to launch beauty products. It has taken a similar move in Namibia and Botswana, motivated by the doubling of beauty sales in South Africa over the past two years.
“We've seen our business double in size in the last few years... we think it will double again. But we feel that the markets in Africa are underserved and under-supported, particularly from some of the bigger brands,” said Mr Bagattini.
Woolworths currently operates 11 stores in Kenya, most of them in Nairobi, and is considering further expansion based on their commercial viability and catchment potential. Mr Bagattini said he sees room to diversify further into the food business.
“There’s more opportunity for us to put more stores, which we will look at doing. There are possibilities and we are looking at further store openings in Nairobi specifically,” said Mr Bagattini.
Kenya’s beauty industry has attracted an increased interest from international and regional brands, driven by the rising disposable incomes and shifting consumer lifestyles.
The skincare, fragrance and make-ups business is now one of the fastest-expanding areas in retail that has been largely supported by mall development, digital influence and the growing demand for skincare, fragrance and cosmetic products.
Pharmacy chains like Goodlife have widened access to mid-range skincare and dermo cosmetic labels as part of their wellness strategy.
The lifestyle retailers such as Healthy U continue to push for natural and clean-beauty alternatives.
