Tata To Open 20 ‘Beauty Tech’ Outlets, Tie-up With Foreign Brands
November 18, 2022: Tata’s first “Beauty Tech” store is likely to open by March, with further expansion in the next fiscal year starting in April, in which it could open up to 40 stores, according to a person familiar with the plan, who added that the company will start with Big cities like New Delhi before considering smaller places.
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Tata Group is planning to open at least 20 “beauty tech” stores where it will use virtual makeup kiosks and digital skin tests to entice young, affluent shoppers to buy premium cosmetic products, according to a company document and a person familiar with its strategy.
The move pits Tata against LVMH’s Sephora and local rival Nykaa, whose interests range from cars to jewelry, for a share of the fast-growing $16 billion beauty and personal care market in the world’s second most populous country.
Tata is known in India as “beauty enthusiasts” between the ages of 18 and 45 who prefer to buy foreign brands such as Estee Lauder’s M.A.C and Bobbi Brown, according to the document, which lists The Honest Company, Alice Brooklyn and Gallini. potential partners.
Tata is in talks with more than two dozen companies to supply specialty products to the new stores, according to a person familiar with the strategy, who did not name specific brands.
Tata declined to comment on its planned beauty stores and the contents of the document seen by Reuters.
Representatives for The Honest Company, Alice Brooklyn and Gallini, did not respond to Reuters requests for comment.
Following the recent launch of Tata’s beauty shopping app, Tata CLiQ Palette, plans to open a store are still on hold.
The company is already in the brick-and-mortar retail business in India, where it has joint venture partnerships with global brands such as Zara and Starbucks.
According to a Tata document, the stores will have a bright red facade featuring the Tata CLiQ Palette branding, with 70% of the products within skincare and makeup.
Inside the stores, Tata is planning to install technology that allows customers to try on dozens of lipstick shades virtually on screen and get a digital skin test to find out which product might work best for them.
The technology is not new and is used by other beauty retailers around the world, but this venture into what industry experts call “experiential retail” is still a relatively new concept in Indian malls and high street shops.
“Experiential retail is going to be a big thing in India as more consumers spend their leisure time in such stores,” said Pankaj Renzen, joint managing director of India’s Anarock Retail Consultancy.
“In the premium segment – where the consumer is looking for more than just price – experiential retail helps trigger impulse shopping and entices them.”
Renzen added, however, that “the products and the brands have to be distinctive and good—if they’re not, she (the customer) isn’t going to come back.”
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