German home shopping network HSE24 Group and the Middle East Broadcasting Center (MBC) have signed a joint venture agreement to establish a home shopping company in the Gulf Cooperation Council (GCC).
HSE24 will hold a 65% stake in the Dubai-based company while MBC will own 35%. The new home shopping venture will focus on the sale of fashion, beauty and jewellery items in the Arab market.
HSE24’s home shopping concept and its lifestyle product range will be made available as tailored offers in Arabic language on interactive platforms (TV, online shop and m-commerce) for markets in the Middle East and North Africa (MENA) region. The main target group are Arab women between 25 and 45 years of age.
The joint venture will initially focus on the establishment of a head office, logistics, and TV production in Dubai. Its launch is expected to take place in 2017, starting in Saudi Arabia and the United Arab Emirates, followed by a gradual roll-out in other GCC countries including Kuwait, Bahrain, Qatar and Oman.
“The Middle East is an extremely attractive growth region with great market potential and consumption-oriented clients. MBC Group is a strong partner that perfectly complements our home shopping expertise in order to establish a multimedia retail company in the area”, Sonja Piller, CEO of HSE24, said in Munich. “As the leading media group in the Arab world, MBC Group has extensive knowledge of local markets, an excellent partner network and contributes many years of experience to the launch and distribution of media goods in the GCC and MENA region.”
