Reliance Industries' Tira Leverages AI to Transform India's Beauty Market
Thursday, 23 May 2024, 10:58 IST
Reliance Industries Ltd., under the leadership of billionaire Mukesh Ambani, has ventured into the Indian beauty sector with its innovative startup, Tira. Launched in April last year, Tira is harnessing the power of artificial intelligence to enhance customer experiences and carve out a niche in the competitive market.
Tira, which marks Reliance’s foray into the beauty industry, currently operates 12 stores across India and has an active online presence. The startup is led by Tejas Kapadia, head of marketing, who shared insights in Tira’s first interview since its inception. Kapadia revealed that the brand is using AI tools to recommend perfumes and cosmetics, aiming to captivate consumers in the rapidly expanding beauty sector.
One of Tira’s standout features is its use of electronic vending machines in stores, which dispense free samples of skincare products. This strategy has been a hit with customers, fostering repeat visits. “Customers love that and they keep coming back for that”, Kapadia noted. The approach is part of Tira’s broader strategy to offer a 'plethora of experiences' using AI.
In-store, Tira offers an interactive 'fragrance finder', which suggests perfume options by allowing consumers to smell a series of fragrance notes through specially designed 'cubes'. Additionally, the 'skin analyzer' tool captures a customer’s photo to assess their skin features and recommend suitable products. This personalized approach is complemented by a free engraving service, allowing buyers to personalize their purchases with names etched on perfume bottles or makeup boxes. The website further enhances the customer experience by offering makeup and skincare tutorials.
Tira is Reliance’s spearhead in the race to dominate India’s beauty market, the world’s fastest-growing major beauty sector. The conglomerate’s retail arm, headed by Ambani’s daughter Isha, has also acquired the local operations of skincare brand Kiko Milano and LVMH Group’s Sephora. Tira faces competition from Tata Group’s Palette and the current market leader, Nykaa.
The Indian beauty market is projected to grow at an impressive 10% annual rate from 2022 to 2027, outpacing China’s 7% and the US’ 5% forecast growth rates, according to a report by RedSeer Strategy Consultants and PeakXV. This growth has attracted international brands to India. In 2023, NARS Cosmetics, owned by Japan’s Shiseido, partnered with Shoppers Stop Ltd., while Selena Gomez launched her brand Rare Beauty on Sephora India. This year, Rihanna introduced her cosmetics line Fenty Beauty to the Indian market via Nykaa.
“It is a great time to be in the beauty and personal care sector”, said Abhishek Malhotra, a partner at McKinsey & Company in Mumbai. “People have more disposable income, increased awareness, and higher aspirations”.
Reliance Industries, led by Asia’s richest person, has been diversifying beyond its traditional oil refining business for years, entering various consumer-facing and technology-driven sectors. The Indian beauty and personal care segment, valued at nearly $32 billion, is the latest addition to its extensive portfolio, which includes mega refineries, a wireless services provider, a streaming platform, and Hamleys toy stores.
Tira, marketed as a 'slightly premium' brand, offers a diverse range of products from international names like Smashbox and Estee Lauder to Korean brand Sulwhasoo and Indian newcomer Re’equil. Kapadia did not specify whether Tira would adopt aggressive discounting strategies, a common tactic for Reliance in other sectors to eliminate competition.
In its December-quarter earnings report, Reliance highlighted Tira’s 'strong performance across various operating metrics including sales productivity and average bill value', though specific revenue or growth figures were not disclosed.
To maintain its competitive edge, Tira must continue to innovate, Kapadia emphasized. “What we’ve done so far is bring in these great tech aspects. Obviously, some other players are also now picking up on them”, he said. 'So we need to continue pushing the boundary'.
Tira, which marks Reliance’s foray into the beauty industry, currently operates 12 stores across India and has an active online presence. The startup is led by Tejas Kapadia, head of marketing, who shared insights in Tira’s first interview since its inception. Kapadia revealed that the brand is using AI tools to recommend perfumes and cosmetics, aiming to captivate consumers in the rapidly expanding beauty sector.
One of Tira’s standout features is its use of electronic vending machines in stores, which dispense free samples of skincare products. This strategy has been a hit with customers, fostering repeat visits. “Customers love that and they keep coming back for that”, Kapadia noted. The approach is part of Tira’s broader strategy to offer a 'plethora of experiences' using AI.
In-store, Tira offers an interactive 'fragrance finder', which suggests perfume options by allowing consumers to smell a series of fragrance notes through specially designed 'cubes'. Additionally, the 'skin analyzer' tool captures a customer’s photo to assess their skin features and recommend suitable products. This personalized approach is complemented by a free engraving service, allowing buyers to personalize their purchases with names etched on perfume bottles or makeup boxes. The website further enhances the customer experience by offering makeup and skincare tutorials.
Tira is Reliance’s spearhead in the race to dominate India’s beauty market, the world’s fastest-growing major beauty sector. The conglomerate’s retail arm, headed by Ambani’s daughter Isha, has also acquired the local operations of skincare brand Kiko Milano and LVMH Group’s Sephora. Tira faces competition from Tata Group’s Palette and the current market leader, Nykaa.
The Indian beauty market is projected to grow at an impressive 10% annual rate from 2022 to 2027, outpacing China’s 7% and the US’ 5% forecast growth rates, according to a report by RedSeer Strategy Consultants and PeakXV. This growth has attracted international brands to India. In 2023, NARS Cosmetics, owned by Japan’s Shiseido, partnered with Shoppers Stop Ltd., while Selena Gomez launched her brand Rare Beauty on Sephora India. This year, Rihanna introduced her cosmetics line Fenty Beauty to the Indian market via Nykaa.
“It is a great time to be in the beauty and personal care sector”, said Abhishek Malhotra, a partner at McKinsey & Company in Mumbai. “People have more disposable income, increased awareness, and higher aspirations”.
Reliance Industries, led by Asia’s richest person, has been diversifying beyond its traditional oil refining business for years, entering various consumer-facing and technology-driven sectors. The Indian beauty and personal care segment, valued at nearly $32 billion, is the latest addition to its extensive portfolio, which includes mega refineries, a wireless services provider, a streaming platform, and Hamleys toy stores.
Tira, marketed as a 'slightly premium' brand, offers a diverse range of products from international names like Smashbox and Estee Lauder to Korean brand Sulwhasoo and Indian newcomer Re’equil. Kapadia did not specify whether Tira would adopt aggressive discounting strategies, a common tactic for Reliance in other sectors to eliminate competition.
In its December-quarter earnings report, Reliance highlighted Tira’s 'strong performance across various operating metrics including sales productivity and average bill value', though specific revenue or growth figures were not disclosed.
To maintain its competitive edge, Tira must continue to innovate, Kapadia emphasized. “What we’ve done so far is bring in these great tech aspects. Obviously, some other players are also now picking up on them”, he said. 'So we need to continue pushing the boundary'.
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