Tata Cliq To Come Up With Offline Stores; To Compete With Rivals Nykaa, SUGAR

Tata Group’s lifestyle ecommerce platform Tata Cliq is looking to open physical stores to take on the rivals including Nykaa, SUGAR Cosmetics and Purplle; as the company plans to sell beauty and cosmetic products through these stores to come up on high-end streets and malls.

An ET report quoted sources saying that the Tata Cliq board finds the beauty segment a scalable business. Add to that the returning-to-office trend and footfalls in stores have increased as consumers prefer store visits over online shopping. 

The above-quoted persons remarked that Nykaa and the likes have already built an offline presence, and Cliq plans to bank on their success strategies to build small format stores.

The company is initially going to focus on metro cities followed by expansion in Tier-2 cities.

It is noteworthy that Tata Cliq is not just a beauty ecommerce brand but caters to the entire lifestyle segment including apparel, accessories, electronics, home furnishing and more. Users can choose from the Tata brands such as Westside, Tanishq, Titan, Zudio, etc., besides its domestic and international brands Forever 21, Label by Ritu Kumar, boAt, Allen Solly and more.

The cosmetics and beauty part of the business is limited to the dedicated Tata Cliq Pallete – the business, Cliq reportedly plans to take it offline. “While there is a dedicated app for the segment, Tata Cliq will also come up with stores,” the report said.

Putting A Dent In India’s $27 Bn Beauty & Personal Care Market

India’s beauty and personal care market is currently valued at $26.8 Bn and is poised to reach $37.2 Bn by 2025. The market was once dominated by legacy brands such as Lakme, Revlon, VLCC, Elle18, Estee Lauder and more. 

With changing perceptions, the segment grew within the ecommerce space and today brands such as SUGAR, Purplle, Mamaearth, Fae, etc are increasingly dominating the segment, Even the traditional brands are increasingly going online.

At such a time, many legacy brands have invested in new-age companies, and the Tata Group has taken the solo route. 

The ecommerce marketplace Tata Cliq has now been looking to pivot to luxury or beauty, challenging rivals Myntra (fashion) and Nykaa (beauty). While the group is still evaluating how to position Tata Cliq, it will ultimately be integrated with the group’s super app identity Neu. 

The company may also shift hands from parent company Tata Unistore to Tata Digital, but the larger goal remains – consolidating its position in niche segments, here, in the beauty and personal care segment.