In the past five years, many e-commerce companies have poured into the Middle East market. Before the epidemic, the continuous investment of local and international e-commerce giants cultivated consumers' online shopping habits, and the epidemic accelerated the development of e-commerce businesses in the Middle East.
Peng Zhen (彭真), the former head of Huawei's (华为) Middle East supply chain, started his business in Hongmena (弘米纳), and set his sights on the Middle East beauty market.
Mordor Intelligence predicts that the beauty and personal care products market in the Middle East and Africa is expected to grow at a CAGR of 3.1% between 2022 and 2027. The company's self-developed Hayataal cross-border e-commerce full-link channel was established in October 2022. It sells through the B2C Internet channel, and the self-built logistics line realizes transportation and settlement. Currently focusing on beauty and smart electronic products, it plans to expand to pets, outdoor and automobile, and motorcycle accessories in the future. The main sales price is between USD 30-250 and the service targets are 25-50-year-old consumer groups with high purchasing power.
Hongmena mainly obtains goods from China, including Chinese brand owners, factory stores, and Alibaba platforms. The company is currently planning to establish its own beauty brand. According to the data of the test product stage, due to the stocking in the local warehouse in Saudi Arabia at the initial stage, the sign-off rate has reached 50%. The company adjusts the pace of delivery and conducts a small amount of multi-frequency replenishment to ensure that the logistics timeliness reaches customers within 3 days.
At present, Hongmena is seeking a new round of financing, and also looking for more cooperation between beauty brands and manufacturers, and plans to expand its business to the Middle East market.