Some leading Indian leading beauty companies are utilizing innovative AI technology to increase their presence in what is one of the biggest and fastest-growing markets of the world.
In-store vending machines by companies such as Reliance Industries’ Tira can dispense free samples of skincare and haircare products, as well as offer sets of make-up. Tira is using artificial intelligence tools to attract the attention of increasingly demanding Indian consumers. And it looks like customers are enjoying the wide range of experienced on offer.
Other features include an interactive in-store “fragrance finder”, which gives perfume options after letting consumers smell a set of cubes with different fragrances.
There is also a “skin analyser” which tests the features of a customer by clicking a photo and recommending products that would suit them best. The website also provides make-up and skincare tips.
The burgeoning and competitive Indian market seems to be taking advantage of these new features in its quest win the race to become world’s fastest-growing major beauty market.
During the past year, Reliance has also taken over the local operations of skincare brand Kiko Milano and LVMH Group’s luxury beauty retailer, Sephora. Competitors in the domestic market are Tata Group’s Palette, and Nykaa — the current market leader with 187 stores across India.
The local beauty segment is expected to grow at 10% between 2022 and 2027, according to a September report by RedSeer Strategy Consultants and PeakXV, beating China’s 7% and the USA’s 5% forecast growth rates.
That’s why international brands are also rushing into India. In 2023, Japan’s Shiseido-owned NARS Cosmetic signed a distribution partnership with Shoppers Stop Ltd. and Selena Gomez launched her brand Rare Beauty on Sephora India. This year, Rihanna brought her cosmetics line Fonts Beauty to India for the first time on Nykaa.
Indian market players believe that it is a great time to be in the beauty and personal care sector. because people have more disposable income, increased awareness, and higher aspirations.
Nykaa is another huge company experimenting with technology-led customer services. At its new flagship luxury format store in Mumbai, Nykaa has brought ‘experiential zones’ where it provides services including the ‘skin analyser tool’ and hairstyling stations.
Nykaa in 2023 posted a near Three-Fold Jump in Q4 Profit increasing dramatically its profits.
The Indian beauty market is developing quite fast and the actual trend of AI applications dedicated to the retail segment will pretty soon also influence the Professional hair and beauty sector.
International brands are aware of the potential of the Indian market but also need to take into consideration the highly competitive environment and the fierce presence of local brands that are well-rooted in the territory and appear to be extremely active in their continuous and innovative actions.
