NYX Cosmetics, a subsidiary of L'Oréal, is on its way to Israel, sources inform "Globes". At least initially the low-cost US brand will not operate its own stores, but will be sold through existing drugstore chains. L'Oreal is currently in talks with retailers on strategic cooperation.
The brand was founded in 1999 in Los Angeles, and was acquired by L'Oréal in 2014. It is known for attractive pricing, and is a favorite among opinion leaders on social networks. It will probably be a few months before brand goes on sale in Israel, as its products are still in the process of obtaining licenses from the Ministry of Health.
Because of its low prices, NYX is expected to be competition for the KIKO Milano brand that Castro Model Ltd. (TASE: CAST) is bringing to Israel. Unlike NYX, KIKO Milano will operate its own brand stores, which will start to be opened in Israel next month.
L'Oréal has some 34 brands worldwide, only 18 of which are officially marketed in Israel. The current move represents additional expansion by the group here; "Globes" reported that a first Armani beauty boutique in Israel will be opened in the coming months in the Ramat Aviv Mall.
L'Oréal Israel stated in response to the report: "L'Oréal is aware of the great demand on the part of Israeli consumers for the cosmetics products of NYX Professional. The global L'Oréal group has many brands, and the strategy of L'Oréal Israel is constantly to examine the expansion of the portfolio of brands marketed in Israel."
The L'Oréal group is the largest beauty corporation in the world, operating in 150 countries and employing some 83,000 people worldwide. It has annual sales turnover of some $26 billion, with an operating profit of $4.68 billion.
Published by Globes, Israel business news - en.globes.co.il - on March 5, 2019
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