India’s Tata to open 20 ‘magnificence tech’ retailers, in talks with overseas manufacturers

  • Tata plans magnificence sector enlargement in newest retail guess
  • Eyes tech-led push with pores and skin analysers, digital try-on at kiosks
  • Tata targets no less than 20 shops subsequent 12 months
  • Firm to face competitors from Sephora, Nykaa

NEW DELHI, Nov 16 (Reuters) – India’s Tata Group is planning to open no less than 20 “magnificence tech” shops the place it should use digital make-up kiosks and digital pores and skin exams to get younger, prosperous buyers to purchase premium beauty merchandise, in accordance with an organization doc and an individual aware of its technique.

The transfer pits Tata, whose pursuits vary from vehicles to jewelry, in opposition to LVMH’s (LVMH.PA) Sephora and home rival Nykaa (FSNE.NS) for a share of the fast-growing $16 billion magnificence and private care market on the earth’s second-most populous nation.

Tata is eyeing what it calls a “magnificence fanatic” in India aged between 18 and 45 years who likes to purchase overseas manufacturers equivalent to Estee Lauder’s (EL.N) M.A.C and Bobbi Brown, in accordance with the doc, which lists The Trustworthy Firm (HNST.O), Ellis Brooklyn and Gallinee as potential companions. Tata is in talks with greater than two dozen corporations to produce unique merchandise to the brand new shops, in accordance with the individual aware of the technique, who didn’t identify particular manufacturers.

Tata declined to touch upon its deliberate magnificence shops and the contents of the doc seen by Reuters. Representatives of The Trustworthy Firm, Ellis Brooklyn and Gallinee didn’t reply to Reuters requests for remark.

The shop opening plans, nonetheless beneath wraps, observe the current launch of Tata’s magnificence procuring app, known as Tata CLiQ Palette. The corporate is already within the brick-and-mortar retail enterprise in India, the place it has joint-venture partnerships with world manufacturers equivalent to Zara and Starbucks.

The shops may have a shiny crimson facade displaying Tata CLiQ Palette branding, with 70% of the merchandise inside being skincare and make up, in accordance with the Tata doc. Contained in the shops, Tata is planning to put in expertise permitting prospects to attempt on dozens of lipstick shades nearly on screens and to get digital pores and skin exams to seek out out what merchandise may work greatest for them, in accordance with the doc.

The expertise is just not new and is in use by different magnificence retailers world wide, however this enterprise into what trade consultants name “experiential retail” continues to be a comparatively new idea in Indian malls and excessive road outlets.

“Experiential retail goes to be a giant factor in India as extra prospects will spend their leisure time at such shops,” mentioned Pankaj Renjhen, joint managing director at India’s Anarock Retail consultancy. “Within the premium section – the place a buyer is searching for issues past value – experiential retail helps set off impulse procuring and may entice them.”

Renjhen added, nevertheless, that “the product and the manufacturers must be unique and good – if they don’t seem to be that, she (the client) is just not going to come back again.”


As India’s financial system grows, and folks return to outlets after coronavirus lockdowns, Tata is trying to goal comparatively younger and prosperous prospects who like to buy in comfy environment and are keen to pay the sticker value for premium worldwide manufacturers. Tata calls such prospects “non-bargainers” within the doc seen by Reuters, in distinction to most Indians who purchase low-priced native manufacturers of lipsticks or pores and skin lotions from small mom-and-pop magnificence shops the place haggling for reductions is widespread.

The corporate is concentrating on buyers with an annual revenue of no less than 600,000 rupees ($7,358), which is greater than thrice the common earnings of $2,000 per 12 months amongst India’s 1.4 billion inhabitants. The brand new shops ought to drive “gross sales throughout channels as a number one Magnificence Tech vacation spot for Gen Z & Millennials,” the Tata doc says.

India’s $16 billion magnificence and private care market is far smaller than China’s $92 billion, however market analysis agency Euromonitor estimates India’s will develop a mean 7% a 12 months over the following few years.

“The Indian magnificence market is just not saturated – removed from it,” mentioned Devangshu Dutta, head of New Delhi-based retail consultancy agency Third Eyesight. “If you’re investing for the long run, with greater revenue profiles and altering life in thoughts, there is a lengthy runway of development forward.”

Tata faces sturdy competitors to reap the benefits of the projected development. Sephora, which has been in India for round a decade, has 26 retailers promoting magnificence and perfume manufacturers. Reliance, led by billionaire Mukesh Ambani, has a long-term plan to open 400 magnificence shops, the primary of which can open inside a Mumbai mall subsequent month, in accordance with an individual aware of its plans. Reliance didn’t reply to a request for remark.

Indian magnificence retailer Nykaa, backed by personal fairness agency TPG, asset supervisor Constancy and endorsed by a Bollywood superstar, has mentioned it plans to open as many as 300 stores, from 124 now. The ten-year outdated firm, which began as an online-only retailer, attracted consideration to the sector final 12 months when its inventory almost doubled after itemizing on the Mumbai inventory change, valuing the corporate on the time at $14 billion.


Tata’s first “magnificence tech” retailer will probably open by March, with additional enlargement stretching into subsequent fiscal 12 months starting April that might see it open as many as 40 shops, in accordance with the individual aware of the plan, who added the corporate will begin with greater cities equivalent to New Delhi earlier than contemplating smaller locations.

Nonetheless, Tata is struggling to influence homeowners of upscale malls, the place house is scarce, to tackle a brand new magnificence retailer the place one already exists, if it doesn’t have sufficient unique merchandise or one other differentiating issue to draw new prospects and enhance foot site visitors to the mall as an entire, in accordance with one other individual with direct information of the discussions.

Alongside unique product launches, Tata is specializing in the in-store expertise, which the doc seen by Reuters describes as a “key differentiator.”

One of many tech instruments will likely be a tool Tata calls a “pores and skin analyzer,” a tool with a mirror that may learn and analyse a buyer’s pores and skin to disclose 25 to 30 attributes that may assist make product selections. There can even be “digital try-on” kiosks for eye and face make-up. Amongst them will likely be a round stand with lipsticks slotted in; as somebody lifts one, a digital mirror-screen in entrance will routinely begin displaying how the color shade will seem on the face, eliminating the necessity for repeated handbook try-ons earlier than a purchase order.

Tata can be testing use of so-called geofencing expertise to permit its retailer employees to detect when a buyer utilizing its app enters, and share the procuring historical past and wish-lists with employees to make higher suggestions, the individual aware of the plans mentioned.

Reporting by Aditya Kalra in New Delhi
Enhancing by Invoice Rigby

Our Requirements: The Thomson Reuters Trust Principles.

Leave a Comment