Weeks after Ratan Tata’s death, masterstroke by Noel Tata, Tata Group enters in mass beauty market with launch of….

Despite already operating over 550 Zudio stores, Trent has launched Zudio Beauty to extend into the beauty market.

The Tata Group, led by Noel Tata, has taken a bold step into India’s competitive mass-market beauty segment with its new retail format, Zudio Beauty. This venture, as reported by The Economic Timesaims to rival established brands such as Hindustan Unilever’s Elle18, Sugar Cosmetics, Health & Glow, and Colorbar, targeting a broader audience seeking affordable beauty options.

Unlike major players like Reliance, Nykaa, and Shoppers Stop that focus primarily on premium and luxury categories, Zudio Beauty is positioning itself to capture the growing demand in the mass-market segment. The first Zudio Beauty store opened recently in Bengaluru, and Tata Group has announced plans to expand to cities like Gurugram, Pune, and Hyderabad.

Tata’s Beauty Legacy

The Tata Group has a longstanding history in the beauty industry, they were the one who started India’s first beauty brand, Lakmewhich was later sold to Hindustan Unilever. Tata’s continued presence in beauty retail includes Tata Cliq Palettea premium cosmetics platform. With Zudio Beauty, Tata is set to disrupt the beauty industry again, but this time by providing accessible options in the mass market.

Zudio Success Story

Trent’s famous brand Zudio, has seen remarkable growth since its launch in FY17. Initially launched within Star stores, Zudio has since expanded rapidly due to its unique designs and a low gross margin of 35-40%, contributing to high store efficiency. The brand’s revenue per square foot stands at Rs 16,300, double the industry average. By FY24, Zudio had not only surpassed Westside in store count but also in revenue.

Today, Zudio operates 559 stores across India, outnumbering several competitors in value retail. The success of Zudio has set a strong foundation for Trent to replicate this model in the beauty sector.

Beauty Brands Growth In India

India is becoming an increasingly attractive market for global beauty giants like L’Oréal and Shiseido. L’Oréal has ranked India as its fifth-largest market for professional products, while Shiseido has partnered with Shoppers Stop to launch its premium Nars Cosmetics brand in India. A report by Redseer Strategy Consultants and Peak XV projects that specialized beauty brands like L’Oréal, Mama Earth, Nivea, and Nykaa, which currently hold a 33% market share, could grow to 42% over the next five years. In contrast, traditional players such as Hindustan Unilever and Procter & Gamble are expected to see their market share drop by 900 basis points to 58% by 2027.