Tata Group to open 20 beauty tech stores to beat Nykaa, Sephora

The Tata Group, which is opening around 20 beauty tech stores in India, plans to offer premium cosmetic products by setting up virtual makeup kiosks and digital skin tests.

The move marks the entry of one of the first Indian retail companies into the experiential retail segment and is intended to compete with beauty marketplace Nykaa and LVMH's Sephora to capture India's fast-growing $16 billion beauty and personal care marketplace, Reuters has reported.

YourStory could not immediately verify the report. Tata Group did not respond to queries at the time of publication.

The conglomerate is eyeing the beauty enthusiasts segment in India, aged between 18 and 45, who like to buy foreign products from companies such as Estee Lauder's MAC and Bobbi Brown. The Honest Company, Ellis Brooklyn and Gallinee are potential partners, along with more than two dozen companies to supply exclusive products to the new stores, according to the report.

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The move follows the launch of Tata's beauty shopping app Tata CliQ Palette a few weeks ago. Other marketplaces including Nykaa and Myntra (in the fashion segment) have been betting big on onboarding international brands for local consumers.

The stores are expected to have the Tata CliQ Palette branding with over 70% of the products being skincare and makeup. Tata is also planning to install technology allowing customers to try on dozens of lipstick shades virtually and to get digital skin tests to find out what products work best for them.