Branson keen on Dubai's beauty spot

Dubai: Never shy of entering virgin territory, Britain's most famous businessman Sir Richard Branson is targeting Dubai's cosmetics and jewellery market using a novel retail scheme.

After the Virgin Group's Virgin Vie range nose-dived in international stores and was axed from the market two years ago, company heads are launching the direct selling concept Virgin Vie At Home in Dubai.

The system of trained consultants selling cosmetics, skin care products and jewellery directly to consumers has proved a hit in the UK since it was launched in 1999, reaching annual sales of £80 million. Virgin took the scheme to South Africa where first year sales reached 17 million rand.

John Jackson, chairman of Virgin Retail, is hoping to have between 500 and 700 consultants on the books within a year of the Dubai launch and says sales of Dh5 million are within reach. "Virgin Vie didn't really gel as a retail concept but we knew we had a powerful product which could lend itself to direct selling. It has been a huge success in the UK and we are very optimistic about its chances in Dubai," he told Gulf News.

"We know that it will take a year to establish itself here, but after brand recognition increases and we learn what works and what doesn't work, we can take that successful formula to other countries in the area." Jackson said the company aims to capture three per cent of Dubai's lucrative cosmetics and skin care market within three to four years of operations.

Right conditions

He said the infrastructure has been put in place before sales start and features a commission structure, an internet site, a call centre and a warehouse with attached delivery system.

The company will also set up two retail outlets in Dubai and one in Abu Dhabi to boost product recognition, but says 95 per cent of sales will be through direct selling -mainly of Virgin Vie cosmetics.

Jackson admitted that Virgin Vie's UK success does not guarantee similar sales in Dubai, but said the emirate was chosen ahead of Scandinavian and East European countries.

He also said the city's large expatriate community and the changing role of female UAE nationals in society has created the right conditions for the concept to work.

"Women are becoming a much more powerful force in the economy and we are giving them the opportunity to earn money and recognition and gain confidence through flexible work that is linked to an established brand," he said.