Recall the scenario of 2016 when Reliance’s Jio outshined other communication network companies. Whenever Reliance launches a new product in any segment, it is no less than a thunderbolt for the existing companies. Be it a telecommunication service i.e. Jio or a new cosmetic e-commerce platform Tira! Do you know who the main competitor of Tira as of now is? It is Nykaa! So now, the most common questions are- Can Reliance’s Tira challenge the market share of Nykaa? Will it beat Nykaa? Can a rookie company beat a well-established cosmetic giant? You will find out in this article.
A Brief Overview of Tira and Nykaa
As per industry experts, the BPC (beauty and personal care) market is exponentially growing in India. In that too, the online BPC market is growing at a much faster rate as compared to its offline counterpart. The growth rate of the former is 20-25% while that of the latter is 8-10%. This sort of astonishing growth is a golden opportunity for e-commerce BPC brands like Nykaa and Tira. Before jumping into the comparison between the two, you need to understand the basic functioning of Tira and Nykaa.
It is a newly launched e-commerce platform. Reliance is its parent company. Currently, it focuses on the beauty and personal care products segment of India. So, by default, it emerged as a competitor of other cosmetic companies. Have you ever thought about why a multinational conglomerate like Reliance is entering the cosmetic industry? It is already doing well in the tech, petrochemical, and textile industries. Then why suddenly jumped into the beauty & personal care segment? Well, the answer is to provide affordable and accessible beauty products to consumers in India!
Tira’s focus is on offering products from lesser-known brands and startups, which helps them to differentiate themselves from competitors. Tira is going to be beneficial for new startups as well as for customers looking for flawless affordable products. Tira’s offerings include-
- Hair care
- Eco-friendly products
Tira’s mission is “to make beauty accessible to everyone, regardless of their budget or location.”
You can browse the product by category, brand, or concern on Tira’s website. They offer free shipping on orders above a certain amount. You can pay through various payment methods, including credit/debit cards, UPI, and Paytm/Phonepe wallets.
It is an Indian e-commerce platform for beauty and personal care products. Falguni Nayar founded this company in 2012. Similar to Tira, Nykaa offers a wide range of beauty and personal care products including makeup, and wellness products. It is an online shop where you can purchase products from well-known products like L’Oreal, Maybelline, and Clinique. In addition to its e-commerce platform, Nykaa has also expanded into the brick-and-mortar retail space, with over 141 physical stores across India. It also has its own in-house brand of products.
We have already explained the Business Model of Nykaa. You can check it out to get more information about the company.
Tira Vs Nykaa: A Quick Comparison
Let’s delve into the most awaited part of this article i.e. Tira vs Nykaa. Both of them are popular online marketplaces for beauty and personal care products in India. While they share some similarities, they also have some differences that set them apart.
|Founder||Isha Ambani||Falguni Nayar|
|Operating Segment||B2C (Business-to-Consumer)||B2C (Business-to-Consumer) and D2C (Direct-to-Consumer)|
|Product offering||Beauty products from lesser-known brands and startups||Beauty products from famous and well-known brands|
|Target market||Customers looking for affordable products from new brands||Customers looking for premium products from well-established brands|
|Offline Store||Only 1||Over 141|
|Expert advice service||Absent||Present|
Can Reliance’s Tira Challenge the market share of Nykaa?
It’s difficult to predict whether Tira will be able to challenge the market share of Nykaa in the Indian BPC market. You can consider the following factors for the above query-
1. Products and Customer Experience
As you know, Nykaa is a well-established and popular e-commerce platform that has been operating since 2012. Eventually, it has built a loyal customer base and has a strong brand reputation. Nykaa has a wide range of products and offers a great customer experience. This factor could make it challenging for Tira to compete directly with Nykaa.
On the other hand, Tira is a new entrant in the market, having launched in 2021. So, it will take some time for Tira to build a loyal user base. Tira’s focus on sustainability and affordability, as well as its strategy of offering products from lesser-known brands and startups, could help them to carve out a niche in the market. They may appeal to a different segment of customers who are looking for affordable and eco-friendly beauty products from emerging brands.
2. Quality of the Platform
According to experts Nykaa, a well-established brand has a better platform than Tira. Because of wider product variety, lower delivery time, and better user experience. But the tables may turn soon because of the large-scale operations of the Reliance retail side. Being a successful conglomerate, Reliance may easily garner a sizable market share in the online BPC segment of India. Also, Tira’s platform is performing well despite being a newcomer. It will continue to improve its platform with time.
3. Omnichannel Strategy
You must have seen numerous new entrants in the online BPC space. The primary reasons for the success of those BPC brands are lower discounts, high penetration opportunities, high demand for affordable and premium products, and better profits. Also, a beauty brand’s success highly depends on its omnichannel presence.
In the post-pandemic era, digital-first companies had to cope with whopping marketing and allied costs. But with a presence in the retail space, allows a brand to balance its P&L statements. Therefore, to explore the offline marketplace, Reliance launched a brick-and-mortar store too! It launched a 4,300 square feet flagship Tira store at Jio World Drive World Mall in Mumbai on 5Th April. Reliance Retail has a supreme advantage of the brand value that the customers will see in Tira stores. This omnichannel strategy will automatically help to build customers’ trust in Tira.
Which one should you prefer? Tira or Nykaa
The choice between Tira and Nykaa would depend on your specific needs and preferences. If you are looking for high-quality products from established brands and are willing to pay a premium price. Then Nykaa may be a better choice for you. Nykaa also offers expert advice on beauty and wellness topics through its blog section. This could be helpful if you are looking for guidance on using beauty products.
On the contrary, if you are looking for affordable and eco-friendly beauty products from emerging brands. Then Tira may be a better choice for you. Tira’s focus on sustainability and affordability sets it apart from other e-commerce platforms. Also, it has a wider selection of products that align with your values and budget.
Will Tira Beat Nykaa?
However, Reliance’s Tira is not likely to outshine Nykaa in the current and the following few years. While Tira could potentially offer a better experience as it expands, it currently offers a curated assortment of global and home-grown beauty brands. In contrast, Nykaa has a wider product variety which, according to a senior vice president of Elara Capital, makes it a better platform than Tira. Also, Nykaa still holds a strong foothold in the BPC segment. It is anticipating higher growth rates in the third quarter of FY23.
It’s worth noting that the beauty and personal care market in India is growing rapidly, with increasing demand from consumers for affordable and high-quality products. This presents an opportunity for new entrants like Tira to gain market share and compete with established players like Nykaa.
Final Words: Who is the winner in Tira vs Nykaa?
Ultimately, the winner in the battle of Tira Vs Nykaa will be determined through various factors. Such as the quality of their products, their pricing strategy, their marketing efforts, and the overall customer experience they provide. However, for now, it is challenging for Tira to beat Nykaa in terms of overall market share and brand recognition. Because Nykaa is almost 10 years older than Tira. But, it is possible that Tira could gain a significant market share with the help of its parent company Reliance Industries. Thus, it challenge Nykaa’s dominance in certain segments of the market in the future.