{"id":56776,"date":"2024-05-23T03:51:23","date_gmt":"2024-05-23T03:51:23","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/23\/reliances-new-venture-tira-bets-on-ai-tools-to-push-into-sizzling-indian-beauty-market-times-of-india\/"},"modified":"2024-05-23T03:51:23","modified_gmt":"2024-05-23T03:51:23","slug":"reliances-new-venture-tira-bets-on-ai-tools-to-push-into-sizzling-indian-beauty-market-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/23\/reliances-new-venture-tira-bets-on-ai-tools-to-push-into-sizzling-indian-beauty-market-times-of-india\/","title":{"rendered":"Reliance\u2019s new venture Tira bets on AI tools to push into sizzling Indian beauty market – Times of India"},"content":{"rendered":"
\"Reliance\u2019s<\/div>\n
Reliance Industries Ltd.\u2019s 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 Ambani\u2019s 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 startup that has 12 stores across India and a website.
\u201cCustomers love that and they keep coming back for that,\u201d Kapadia said in Tira\u2019s first interview since its launch. The idea is to give a \u201cplethora of experiences\u201d using \u201csome form of AI,\u201d he added.
One such interactive in-store experience is a \u201cfragrance finder,\u201d which gives perfume options after letting consumers smell a set of \u201ccubes\u201d with different notes of fragrances.
Its \u201cskin analyzer\u201d 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<\/span>
Tira is Reliance\u2019s lead horse in the race for the world\u2019s fastest growing major beauty market. The conglomerate\u2019s retail business, helmed by Ambani\u2019s daughter Isha, has also taken over the local operations of skincare brand Kiko Milano and LVMH Group\u2019s luxury beauty retailer Sephora in the past one year. Tira is competing with brands like Tata Group\u2019s Palette and current market leader, Nykaa.
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 China\u2019s 7% and the US\u2019 5% forecast growth rates.
That\u2019s why international brands are also rushing into India. In 2023, Japan\u2019s 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.
Customer browses beauty products at Tira beauty store in Mumbai. Photographer: Dhiraj Singh\/Bloomberg
\u201cIt is a great time to be in the beauty and personal care sector,\u201d said Abhishek Malhotra, a Mumbai-based partner at McKinsey & Company. \u201cPeople have more disposable income, increased awareness and higher aspirations.\u201d
Reliance, led by Asia\u2019s 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.
Reliance\u2019s Playbook<\/span>
Tira, which offers brands from American Smashbox and Estee Lauder to Korea\u2019s Sulwhasoo and homegrown newbie Re\u2019equil, is marketed as \u201cslightly premium,\u201d according to Kapadia, who didn\u2019t clarify if Tira will offer heavy discounts to gain market share. Cut-throat pricing that drives out rivals has been Reliance\u2019s playbook across multiple sectors in the past.
Reliance, in its December-quarter earnings release, said that Tira delivered a \u201cstrong performance across various operating metrics including sales productivity, average bill value,\u201d without sharing revenue or growth numbers.
Kapadia says Tire will need to keep innovating to build a significant market share.
\u201cWhat we\u2019ve done so far is bring in these great tech aspects. Obviously some other players are also now picking up on them,\u201d Kapadia said. \u201cSo we need to continue pushing the boundary.\u201d<\/div>\n