Vogacloset, a popular fashion e-tail platform based in London, has recently agreed to sell a majority stake of 51% to Fawaz Abdulaziz Alhokair Co and Arabian Centres Company (ACC). This strategic partnership aims to capitalize on Vogacloset’s expertise in the Middle Eastern market and create a strong omnichannel offering for consumers and merchants.

Founded in 2013, Vogacloset has gained a strong foothold in the Middle East by offering trendy European fashion products to regional customers. The platform caters to women, men, and children, and boasts an impressive sales growth since 2015. With a roster of popular labels including Calvin Klein, Diesel, Guess, Adidas, and Tommy Hilfiger, Vogacloset has successfully attracted 12 million active users in the Middle East.

The partnership between Vogacloset, Alhokair, and ACC will involve an upfront payment of approximately $60 million, along with an additional $12 million investment to bolster the company’s presence in the Saudi market. This infusion of capital will be used to expand the customer base, integrate Alhokair and ACC brands onto the e-commerce platform, and fuel further growth.

The primary objective of this investment is to expedite digital transformation and establish a modern retail business in Saudi Arabia. By leveraging Vogacloset’s well-established business model, efficient logistics chain, and extensive knowledge of regional and global fashion trends, this partnership seeks to become an industry leader in the country.

For Alhokair, this collaboration presents an opportunity to solidify its position in the Saudi market by transitioning from offline to online retail, while also maintaining its competitive edge. By offering a wide range of brands online, Alhokair aims to enhance the omnichannel experience for customers and extend its reach.

In addition to strengthening Alhokair’s market presence, the partnership with Vogacloset will also benefit ACC. The integration of Vogacloset’s platform will offer convenience and engagement for tenants and customers of ACC’s lifestyle shopping centers in Saudi Arabia. Mall tenants will have the option to list their products on the platform, creating an additional sales channel. Moreover, ACC plans to introduce an advanced loyalty program and simplified consumer financing solution, further adding value for mall tenants and visitors.

To solidify its position as an online/offline player, Vogacloset’s platform will undergo enhancements and expansions. Features such as click & collect and in-store returns will set Vogacloset apart from its regional competitors. The company will continue to be led by its current leadership team and operate independently, with the commitment of the executive team to steer the business for the next five years. However, a new board comprising members from the acquiring companies will be established to oversee the brand’s operations.

Overall, this strategic partnership between Vogacloset, Alhokair, and ACC holds great promise for the future of fashion e-commerce in Saudi Arabia. By combining their respective strengths, the aim is to revolutionize the retail landscape and offer an unparalleled shopping experience to consumers while driving growth in the Middle Eastern market.

Relevant Links:
1. Vogacloset Official Website
2. Fawaz Abdulaziz Alhokair Co Official Website