Reliance Industries Ltd.âs new venture, Tira, is leaning on artificial intelligence tools that can suggest perfumes or cosmetics to woo customers in the burgeoning but competitive Indian beauty sector.
Tira, which was launched by billionaire Mukesh Ambaniâs conglomerate in April last year, also uses electronic vending machines in its stores to dispense free samples of skincare products, according to Tejas Kapadia, head of marketing of the year-old start-up that has 12 stores across India and a website.
The idea is to give a plethora of experiences using âsome form of AI,â Kapadia said in Tiraâs first interview since its launch. âCustomers love that and they keep coming back,â he added.
One such interactive in-store experience is a âfragrance finder,â which gives perfume options after letting consumers smell a set of âcubesâ with different notes of fragrances.
Its âskin analyserâ infers the features of a customer by clicking a photo and recommends products that would suit them best. Its stores offer a free engraving service for buyers to personalize their purchases by etching names on perfumes bottles or make-up boxes. The website also provides makeup and skincare lessons.
Race to Enter
Tira is Relianceâs lead horse in the race for the worldâs fastest growing major beauty market. The conglomerateâs retail business, helmed by Ambaniâs daughter Isha, has also taken over the local operations of skincare brand Kiko Milano and LVMH Groupâs luxury beauty retailer Sephora in the past one year.
Tira is competing with brands like Tata Groupâs Palette, which also started last year, and Nykaa â the current market leader with 187 stores across India. The store count for Palette is not available publicly.
The local beauty segment is expected to grow at 10% between 2022 and 2027, according to a September report by RedSeer Strategy Consultants and PeakXV, beating Chinaâs 7 percent and the USâ 5 percent forecast growth rates.
Thatâs why international brands are also rushing into India. In 2023, Japanâs Shiseido-owned NARS Cosmetic signed a distribution partnership with Shoppers Stop Ltd. and Selena Gomez launched her brand Rare Beauty on Sephora India. This year, Rihanna brought her cosmetics line Fenty Beauty to India for the first time on Nykaa.
âIt is a great time to be in the beauty and personal care sector,â said Abhishek Malhotra, a Mumbai-based partner at McKinsey & Company. âPeople have more disposable income, increased awareness and higher aspirations.â
Reliance, led by Asiaâs richest person, has been diversifying beyond its oil refining roots for years and entering consumer-facing and technology-led businesses. The almost $32 billion Indian beauty and personal care segment is the latest addition to its expanding portfolio that includes mega refineries, a wireless services provider, a streaming platform and Hamleys toy stores.
Relianceâs Playbook
Tira, which offers brands from American Smashbox and Estee Lauder to Koreaâs Sulwhasoo and homegrown newbie Reâequil, is marketed as âslightly premium,â according to Kapadia, who didnât clarify if Tira will offer heavy discounts to gain market share. Cut-throat pricing that drives out rivals has been Relianceâs playbook across multiple sectors in the past.
Reliance, in its December-quarter earnings release, said that Tira delivered a âstrong performance across various operating metrics including sales productivity, average bill value,â without sharing revenue or growth numbers.
Its largest competitor Nykaa, whose latest quarterly profit missed estimates, is also experimenting with technology-led customer services. At its new flagship luxury format store in Mumbai, Nykaa has brought âexperiential zonesâ where it provides services including the âskin analyser toolâ and hairstyling stations.
Kapadia says Tira will need to keep innovating to build a significant market share.
âWhat weâve done so far is bring in these great tech aspects. Obviously some other players are also now picking up on them,â Kapadia said. âSo we need to continue pushing the boundary.â
By Satviki Sanjay
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