Australian Largest Beauty Retailer Mecca to Debut in the UK
- Chaileedo Press
- Jun 19, 2023
- 2 min read
Mecca, a beauty retailer from Australia, is planning to expand its business globally and has taken its first step by launching its Mecca Cosmetica sunscreen in the UK.
Mecca, the biggest high-end beauty retailer in Australia, is expanding into the European and Western markets for the first time. The retailer is starting with the launch of its most popular product, a multipurpose SPF cream from its own brand, Mecca Cosmetica in the UK. Although it is a small move, it sets the foundation for the company, which stated that the company currently holds 25% of the beauty retail market in Australasia, to enter the global market.
The Mecca Cosmetica sunscreen, which is manufactured in Australia, will be available for purchase directly from Mecca's new UK website and will be priced at 35 pounds.
This marks the first time that Mecca, which is based in Melbourne and serves the Australasian markets, has expanded into Europe. The company was established in 1997 by Jo Horgan, who opened the first store in the South Yarra suburb. Mecca now has 109 stores across Australasia and is entirely owned and financed by Horgan and her husband.
While the company does not disclose its sales figures, local estimates suggest that it generated around AUD 572 million (approximately $393 million) in sales in 2020. While in 2021, According to recent filings with the regulator, Mecca's revenue was $688.9 million.
Mecca has been testing the Chinese market since 2020 through its small e-commerce presence on the Tmall online marketplace. However, the UK launch represents the company's first expansion outside of the Asia Pacific region. Mecca chose the UK for several reasons, including high consumer awareness of SPF and the country's significant beauty market size and demand for luxury products, according to Mecca.
According to market research firm the NPD Group, the UK's high-end beauty market was valued at £1.2 billion between January and August 2022, representing a 21% increase from the same period in 2021.
Mecca operates over 100 stores throughout Australia and New Zealand, as well as having a retail presence on China's TMall and a flagship store in Sydney's CBD that opened in 2020. Additionally, the company is currently developing a two-story outlet in Melbourne's CBD that is expected to become the largest beauty store in the Southern Hemisphere upon its opening.
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