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Business News/ Companies / News/  Reliance’s new venture Tira bets on AI tools to push into sizzling Indian beauty market
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Reliance’s new venture Tira bets on AI tools to push into sizzling Indian beauty market

RIL's Tira uses AI tools to suggest perfumes and cosmetics, offering in-store experiences like a fragrance finder and skin analyzer. It competes in India's growing beauty segment against Tata Group's Palette and Nykaa, with international brands also entering the market.

The Indian beauty market is expected to grow at 10% between 2022 and 2027, according to a September report by RedSeer Strategy Consultants and PeakXV, beating China’s 7% and the US’ 5% forecast growth rates. (Mint)Premium
The Indian beauty market is expected to grow at 10% between 2022 and 2027, according to a September report by RedSeer Strategy Consultants and PeakXV, beating China’s 7% and the US’ 5% forecast growth rates. (Mint)

Reliance Industries Ltd.’s new venture, Tira, is leaning on artificial intelligence tools that can suggest perfumes or cosmetics to woo customers and score over rivals in the burgeoning Indian beauty sector.

Tira, which was launched by billionaire Mukesh Ambani’s 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.

“Customers love that and they keep coming back for that," Kapadia said in Tira’s first interview since its launch. The idea is to give a “plethora of experiences" using “some form of AI," he added.   

One such interactive in-store experience is a “fragrance finder," which gives perfume options after letting consumers smell a set of ‘cubes’ with different notes of fragrances. 

Its “skin analyzer" 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 Reliance’s lead horse in the race for the world’s fastest growing major beauty market. The conglomerate’s retail business, helmed by Ambani’s daughter Isha, has also taken over the local operations of skincare brand Kiko Milano and LVMH Group’s luxury beauty retailer Sephora in the past one year. Tira is competing with brands like Tata Group’s 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’s 7% and the US’ 5% forecast growth rates.

That’s why international brands are also rushing into India. In 2023, Japan’s 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. 

“It is a great time to be in the beauty and personal care sector," said Abhishek Malhotra, a Mumbai-based partner at McKinsey & Company. “People have more disposable income, increased awareness and higher aspirations."

Reliance, led by Asia’s 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, an online streaming service and Hamleys toy stores.

Reliance’s Playbook

Tira, which offers brands from American Smashbox and Estee Lauder to Korea’s Sulwhasoo and homegrown newbie Re’equil, is marketed as “slightly premium," according to Kapadia, who didn’t clarify if Tira will offer heavy discounts to gain market share. Cut-throat pricing that drives out rivals has been Reliance’s playbook across multiple sectors in the past.

Reliance, in its December-quarter earnings release, said that Tira delivered a “strong performance across various operating metrics including sales productivity, average bill value," without sharing revenue or growth numbers.

While Kapadia says that Tira has done “phenomenally well," he sees the need to keep innovating to stay ahead of rivals if Tira has to build a significant market share. 

“What we’ve done so far is bring in these great tech aspects. Obviously some other players are also now picking up on them," Kapadia said. “So we need to continue pushing the boundary."

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Published: 23 May 2024, 08:06 AM IST
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