Tata To Re-enter Forecasted $20Billion Beauty Market
Mumbai– After a long exit 23 years ago, the Tata Group is now planning to re-enter the cosmetic business in India. The business of beauty is going to see a massive growth of $20billion by 2025.
According to Statista, a firm that aids online retail figures, India’s cosmetics and beauty market is estimated to nearly double by 2025 from $11 billion in 2017. The lead running currently is Mumbai-based Nykaa that saw a blistering growth during the pandemic and has got itself listed on the stock exchange as well.
Noel Naval Tata is the non-executive chairman of Trent Ltd., a Tata Group unit operating a chain of retail stores. According to him, cosmetics will become a key focus for the company, along with their focus on innerwear and footwear segments. Speaking to media in Mumbai, he added that “extended product line and experimentation with formats for these products are in the offing as we see these as growth areas in retail.”
After Tata sold its Lakme creation to Unilever, it has now expired its non-compete time period since 2008, it only entered the turf again in 2016. It is now planning to up its stakes and re-enter the game. The iconic brand was created by Mrs. Simone Tata, the other of Noel Naval Tata that went on to become the epitome of beauty and fashion in India, when we didn’t have any known brands in cosmetics.
The $103 billion conglomerate, under Trent, is considering building new lines of in-house cosmetic brands that can be a vehicle of growth, Tata said. These products can be retailed through existing large-sized outlets under Westside — Trent’s flagship chain of retail stores — or via standalone stores and through digital channels, he added. About 90% of Trent’s total sales are at full price, according to data provided by the company. Currently, Westside runs its own branding for cosmetics like lipshades, perfumes, nail lacquers, etc.