In the competitive beauty and personal care (BPC) world, two giants have been competing for supremacy: Nykaa and Tira. Tira is a direct competitor, which Reliance Retail recently introduced in the market. As Tira steps up its game with a strategic move into private labels, the question arises: Will it be able to leave behind Nykaa’s market dominance?
Rise of Tira Private Label
In 2020, Reliance Retail introduced a disruptive player into the BPC market with Tira, an omnichannel platform. Tira became easily identifiable and quickly gained a good-sized customer following. It has declared launches of two private labels, indicating its clear-cut competition with Nykaa.
The Emergence with the Power of Private Labels
Private labels have emerged as a significant vertical for many retailers’ keen on boosting their revenues and consumer base. Current online giants such as Amazon, Flipkart, and Myntra effectively underlined the significance of private labels for brand segmentation and product diversification. Like Tira, Reliance Retail is also following the route.
Reasons to Introduce Private Labels
Profit and Loss
The establishment of their brands allows retailers to eliminate some costs, cut third-party providers’ dependence, and increase their margins. Tira wants to elevate its bottom line through this strategy.
Difference in Brands
With the attempt to create value for its customers, Tira can differentiate itself from the other platforms by selling various products under its private labels. This differentiation becomes very important in a situation where there are many more competitors in the market.
Consumer Experience
The best consumer experience is a key success factor of Tira. If it can at least provide services similar to or better than Nykaa, it will have a chance.
Nykaa’s Market Dominance
Nykaa has been one of the pioneers in the online beauty segment. For the convenience of the customer, it has various beauty products of international as well as local origin available in store. Due to its carefully selected range and easy-to-navigate design, it has become the beauty-focused customer’s choice.
Tira Private Label’s Potential
Although Tira now presents a directed selection of beauty brands, there is potential for development. In the future, it has the possibility of providing a better experience than Nykaa as it progresses. It is important to realize that Tira benefits from robust financial support from Reliance. It intends to use price strategy and coupons to increase its customer base.
Future Endeavors
The private label is an important strategy by Tira to increase the profitability, uptake, and efficiency of the products. But in the near term, it remains to be seen if it can replicate Nykaa’s performance. Another problem with Nykaa is that it has a large market share and it has many customers who have been with the company from the beginning.
Conclusion
Tira increasingly focuses on its private-label products to counter the competition. Nykaa is not an easy competitor to crack, but Tira and Reliance might be enough to force Nykaa on the defensive. Ultimately, the consumers themselves will be the ones to determine which platform will rule the online BPC market.
Image Source: inc42
