SUMMARY
The launch event saw Reliance Retail unveil the app and website for Tira as well as a 4,300 sq. ft. flagship store in Mumbai
Tira hosts products across eight categories, including makeup, skincare, haircare, fragrance, men’s beauty products, and baby care offerings
The omnichannel beauty platform will directly lock horns with listed giant Nykaa, and other players such as Tata Cliq Palette, Sephora
Taking on listed giant Nykaa, oil-to-telecom conglomerate Reliance on Wednesday (April 5) announced the launch of its omnichannel beauty retail platform Tira.
The launch event saw the company unveil the app and website for Tira as well as a 4,300 sq. ft. flagship store in Mumbai’s Bandra Kurla Complex. Reliance Retail, the retail arm of the conglomerate, said that the platform will offer beauty and personal care products to Indian consumers through multiple retail formats.
“We are excited to bring the Tira experience to our Indian customers… Our vision for Tira is to be the leading beauty destination for accessible yet aspirational beauty, one that is inclusive and one that harbours the mission of becoming the most loved beauty retailer in India,” said Reliance Retail’s Executive Director Isha Ambani.
In a statement, the company said that the platform will offer a curated assortment of the best global and home-grown beauty brands. Tira’s online platform also showcases shoppable videos, tutorials, and a virtual try-on feature to woo customers.
The full-scale public launch comes two months after Reliance began piloting the platform for its employees in February. The development also comes nearly a month after a senior Reliance Retail executive said that the company was all set to go for a full-fledged launch of the platform soon.
Tira’s website has a specialised section called Tira Red under which it appears to be retailing luxury beauty products. The platform is also decked with non-luxury products.
The Tira platform hosts products across eight categories, including makeup, skincare, haircare, fragrance, men’s beauty products, and baby care.
The omnichannel beauty platform will directly lock horns with listed giant Nykaa, and other players such as Tata Cliq Palette, Sephora, among others.
Threat For Nykaa?
Reliance’s entry into the beauty ecommerce space could spell trouble for Nykaa, which is already reeling under macroeconomic pressures. As reports emerged last month of Tira’s debut, Nykaa’s shares fell with a thud as brokerages raised alarm over the new competition.
Last month, brokerage Macquarie cut Nykaa’s target price, saying the entry of big players such as Tata and Reliance Retail in the beauty space could ‘exacerbate’ problems for the listed startup.
Tira could leverage its deep partnerships with local and international brands to undercut competition and also deploy its deep pockets to attract and woo customers.
While Nykaa has been slowing in scaling up its offline expansion owing to the heavy capital expenditure requirement, the well-endowed Tira could quickly scale its offline presence to better expand its reach in the market.
A discount war by Tira, as Reliance did with its telecom arm Jio, could also make matters worse for Nykaa.
Reliance Retail is also directly targeting the high-end luxury beauty market which has higher margins and could eat into the margins of Nykaa. Although Nykaa’s Luxe is still in its early stages, Tira aims to bring other international brands on its platform to cater to the burgeoning demand for international beauty care products in the Indian market.
As per Inc42, the beauty and personal care segment is expected to continue its reign as the fastest-growing D2C segment till at least 2030, growing at a CAGR of 27%.
With rising disposable income and increasing adoption of beauty ecommerce platforms, India is estimated to account for more than 122 Mn beauty shoppers by financial year 2024-25 (FY25). Not just this, the space is expected to offer a $5.6 Bn market opportunity by FY25.
