Reliance Retail’s omni-channel beauty retail platform, Tira, is leveraging artificial intelligence tools to suggest perfumes and cosmetics, aiming to captivate customers in India’s burgeoning yet competitive beauty sector.
Tira, launched by billionaire Mukesh Ambani’s conglomerate in April last year, employs electronic vending machines in its stores to dispense free samples of skincare products. According to Tejas Kapadia, head of marketing for the year-old startup, Tira now boasts 12 stores across India and an online presence.
“Customers love that and keep coming back for it,” Kapadia said in an interview. The goal is to provide a “plethora of experiences” through “some form of AI,” he added.
One such interactive in-store experience is the “fragrance finder,” which offers perfume suggestions based on consumers sampling a set of “cubes” infused with various fragrance notes.
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Tira’s “skin analyzer” takes a photo to assess a customer’s features and recommends suitable products. The stores offer a free engraving service, allowing buyers to personalize their purchases by etching names on perfume bottles or makeup boxes. Additionally, the website provides makeup and skincare lessons.
Tira is Reliance’s frontrunner in the race for dominance in the world’s fastest-growing major beauty market. Helmed by Ambani’s daughter Isha, Reliance’s retail division has also acquired the local operations of skincare brand Kiko Milano and LVMH Group’s luxury beauty retailer Sephora over the past year. Tira competes with brands such as Tata Group’s Palette and the current market leader, Nykaa.
According to a September report by RedSeer Strategy Consultants and PeakXV, the local beauty segment is projected to grow at a rate of 10 percent between 2022 and 2027, outpacing China’s 7 percent and the US’s 5 percent forecast growth rates.
This surge in growth has prompted international brands to rush into India. In 2023, Japan’s Shiseido-owned NARS Cosmetics signed a distribution partnership with Shoppers Stop Ltd., and Selena Gomez launched her brand Rare Beauty through Sephora India. This year, Rihanna introduced her cosmetics line Fenty Beauty to India for the first time on Nykaa.
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“It’s an excellent time to be in the beauty and personal care sector,” said McKinsey & Company partner Abhishek Malhotra. “People have more disposable income, greater awareness, and higher aspirations.”
Led by Asia’s wealthiest individual, Reliance has long been diversifying beyond its oil refining origins, venturing into consumer-facing and technology-driven enterprises. The Indian beauty and personal care segment, valued at nearly $32 billion, is the latest addition to its expanding portfolio, which already encompasses massive refineries, a wireless services provider, a streaming platform, and Hamleys toy stores.
Tira offers a variety of brands, including American Smashbox and Estee Lauder, Korean Sulwhasoo, and Indian Re’equil, and positions itself as “slightly premium,” according to Kapadia. However, it is unclear whether Tira will use heavy discounts to gain market share. Historically, Reliance has used aggressive pricing strategies to outmanoeuvre competitors across a variety of industries.
In its earnings report for the December quarter, Reliance stated that Tira showed “strong performance across various operational metrics, including sales productivity and average bill value.” However, specific revenue and growth figures were not disclosed.
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Kapadia emphasizes that Tira must continue innovating to establish a substantial market presence.
“What we’ve done so far is integrate these fantastic technological capabilities.” Naturally, other players are starting to adopt them,” Kapadia said. “Therefore, we must persist in pushing the boundaries.”
