Business News Health & Beauty

Digital Transformation

Last month, Tata Group said it will open 20 ‘beauty tech’ outlets to woo what it calls the “beauty enthusiast” in India aged between 18 and 45 years who likes to buy foreign brands such as Estee Lauder’s, M.A.C and Bobbi Brown. The group is in talks with more than two dozen firms to supply exclusive products to new stores, according to media reports. The stores will deploy virtual makeup kiosks and digital skin tests to lure young and affluent shoppers. The store opening plans follow the launch of Tata’s beauty shopping app, called Tata CLiQ Palette. The move will pit the group against the likes of LVMH’s Sephora, which has 26 outlets, and Nykaa, which has 124 outlets, for a share of the fast-growing beauty and personal care market in India that is currently valued at $26.8 billion and is poised to reach $37.2 billion by 2025.

The onslaught of beauty products in the market has increasingly overwhelmed the new-age consumer, says Samir Kumaar Modi, founder and managing director of Colorbar Cosmetics. Tata group’s move will encourage brands to use technology as an enabler to drive in-store sales rather than solely use technology advancements to drive traffic online. By enhancing in-store experiences through technology integration, he adds, brands can create a more seamless purchase journey allowing consumers to make educated purchases.

Darpan Sanghvi, group founder and CEO, Good Glamm Group, says customers seem to be inclined towards shopping online because they are drawn by discounts. In contrast, the ‘beauty-tech stores’ would be powerful tools to elevate the shopping experience. Customers are moving beyond transactional purchases and are looking for immersive experiences to accelerate their decision-making and improve their purchasing experience.

Elevating in-store experience

The move to integrate technology like augmented or virtual reality and personalised recommendations at brick-and-mortar outlets will be a game-changer for beauty brands across the globe, say experts. These views are backed by data. A 2022 Ayden-KPMG Retail research says 55% of the shoppers today prefer retailers who offer tech-enhanced in-store experiences (virtual showrooms, smart mirrors, self-service kiosks), and 70% of shoppers will switch brands following negative in-store shopping experiences.

Tata Group is not the only one to deploy technology to strengthen its foothold in the beauty space. Being a digital-first brand, Colorbar Cosmetics is planning to include facial technology, immersive virtual reality try-ons and a virtual lipstick try-on service in its stores (currently available on its website) next year. The skin analysis tools will help shoppers identify the right product. The brand is also looking at a starting investment of Rs 30 lakh and additional installation costs to the tune of Rs 15 lakh to make its offline stores into tech-led beauty experiences. “In the coming quarters, we plan to ramp up the web experience and integrate advanced virtual reality customisation at our offline outlets,” Modi adds. The firm plans to allocate 7-8% of its revenue to entrench itself in the segment.

Digital native doesn’t want to be left behind. “With our technology and well-trained beauty advisors, we are looking at building the experience at the store around personalisation and innovation,” says Rahul Dash, co-founder and COO, The brand is looking to build a large omnichannel opportunity over the next few years and has started with a few experimental stores across Delhi, Bangalore, and Jaipur. “We will have an omnichannel tech in-store approach showcasing endless aisles, mobile checkouts, and features,” adds Dash.

As a part of its plans, it will invest in consumers’ beauty profiles using augmented reality tools, marrying that with products created to address a specific problem. Consumers will be offered new experiences at the store, Dash adds.

Most of these tech-enabled stores target affluent consumers, who are also very discerning. They are aware of global trends so getting the product mix right would be of utmost importance, says Pankaj Renjhen, COO and joint MD, Anarock Retail.



About Author

Leave a comment

Your email address will not be published. Required fields are marked *

You may also like

Advertisement Fashion Health & Beauty Lifestyle

Titan forays into women’s handbag segment with IRTH

TITAN ON MONDAY unveiled a new brand in the women’s handbag seg ment called IRTH and targets to earn *1,000
Business News Digital Transformation

IRCTC adds new buy now, pay later option: Check details

Indian Railways Catering and Tourism Corporation (IRCTC), has partnered with the CASHe to offer a Travel Now Pay Later (TNPL)
Wordpress Social Share Plugin powered by Ultimatelysocial
error: Content is protected !!