Reliance Industries Ltd.'s new company Tira is using artificial intelligence tools that can suggest perfumes and cosmetics to captivate customers and beat rivals in India's booming beauty industry.
Thira, launched by billionaire Mukesh Ambani's conglomerate in April last year, also has electronic in-store automated systems, said Tejas Kapadia, head of marketing for the one-year-old startup with 12 stores across the country. The company uses vending machines to offer free samples of skin care products. India and website.
“Customers love it, and they keep coming back for it,” Kapadia said in his first interview since Tira launched. The idea, he added, is to use “some form of AI” to deliver a “rich experience.”
One such interactive in-store experience is the “Fragrance Finder,” which allows consumers to smell “cubes” of different scents and then offers perfume options.
Its “skin analyzer” predicts a customer's features by clicking a photo and recommends the best products for them. Its stores offer a free engraving service that allows shoppers to personalize their purchases by etching their name onto perfume bottles or cosmetic boxes. Its website also offers makeup and skincare lessons.
competition for entry
Tira is a key player for Reliance in the race for the world's fastest growing major beauty market. The conglomerate's retail operations, led by Mr Ambani's daughter Isha, have also taken over the local operations of skincare brand Kiko Milano and LVMH Group's luxury beauty retailer Sephora in the past year. Tira competes with brands such as Tata Group's Palette and current market leader Nika.
The domestic beauty sector is expected to grow 10% between 2022 and 2027, according to a September report from RedSeer Strategy Consultants and Peak Exceed the growth rate.
That's why international brands are also flocking to India: In 2023, NARS Cosmetic, owned by Japan's Shiseido, inked a distribution partnership with Shoppers Stop Ltd., while Selena Gomez launched her brand Rare Beauty at Sephora India. This year, Rihanna brought her cosmetics line Fenty Beauty to India for the first time with Nykaa.
Abhishek Malhotra, Mumbai-based partner at McKinsey & Company, said: “It's a great time to be in the beauty and personal care space. People have more disposable income, are more conscious and have higher aspirations. “There is,” he said.
Led by Asia's richest man, Reliance has over the years diversified beyond its oil-refining roots and entered consumer and technology-driven businesses. The roughly $32 billion Indian beauty and personal care unit is the latest addition to a growing portfolio that also includes giant oil refineries, a wireless service provider, an online streaming service and Hamleys toy stores.
Reliance Playbook
Tira, which offers brands ranging from America's Smashbox and Estee Lauder to South Korea's Sulwhasoo and homegrown newcomer Les Quils, is being pitched as “slightly premium,” Kapadia said, declining to say whether Tira would offer steep discounts to gain market share.– Low prices to drive out rivals have been Reliance's strategy across several sectors.
In its December-quarter earnings announcement, Reliance said Tira delivered “strong performance across a range of operating metrics, including sales productivity and average billings”, but did not disclose revenue or growth figures.
Kapadia said Thira's performance has been “tremendously strong” but believes that if Thira needs to build significant market share, it needs to continue to innovate to stay ahead of rivals. .
“What we've done so far is bring in these good technical aspects, and of course other players are starting to do that as well,” Kapadia said. “So we need to keep pushing the boundaries.”
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