08 Aug 2023
Nykaa and Reliance Retail, two of the leading beauty and personal care retailers are vying for a bigger market share in the BPC space. Nykaa CEO Falguni Nayar has announced that she will be guiding the marketing space directly to strengthen its leadership and management. This announcement came after increasing competition from Reliance’s Tira, launch in April 2023. However, Nykaa, said that the leadership roles are being shuffled due to strategic realignment, increasing business complexity, and cost rationalization.
Tira has a much smaller market share compared to Nykaa, but it has already started eating into Nykaa’s share. Since its launch in April 2023, Tira’s app has more than 1.7 million downloads and aims to reach 10 million in the coming months through partnerships with local and global brands. It aims to make itself an affordable yet state-of-the-art player in the beauty segment.
On the other hand, Nykaa beauty app has 40 million downloads but it has been in business much longer than Tira. Both platforms offer 10-50% discount for different brands under BOGO (buy one get one) offers. They both have blogs, tutorial tips, virtual try-ons, videos, and recommendations. However, Tira has a unique fragrance finder that helps users find fragrances closest to their personal favourites.
According to Devangshu Dutta, Chief Executive Officer at Gurugram-based retail consultancy Third Eyesight, the competitive edge for all beauty retailers will come through omnichannel presence. Consumers are looking for convenience and easy access, which will be pivotal for sustainable growth.
