Q1.How will reliance segment it’s cosmetics business for online and offline business? Will it be similar or different? Discuss in details for both. Q2.Based on the available information, conduct a brief five forces analysis to determine the intrinsic long run attractiveness of the beauty and cosmetics market in India.
Reliance Retail is foraying into the intensely competitive online retailing of multibrand beauty and
cosmetics business, taking on Nykaa, Myntra and Tata’s proposed similar ecommerce business,
multiple people familiar with the development said.
One of them said Reliance Brands, Reliance Retail’s unit that sells upmarket brands, has devised a
two-pronged strategy of a dedicated webstore as well as a new brick and-mortar chain of high-end
cosmetics products that will be something similar to LVMH’s Sephora.
“They are building a beauty business that would be like a Nykaa for online and a Sephora for the
offline side,” he said asking not to be identified. “They will sell top international brands as well as
their own private labels.” He said the cosmetics venture could also have a webstore on Ajio,
Reliance Retail’s fashion and lifestyle ecommerce platform.
A Reliance Brands spokesperson said that the company has been consistently building skincare,
beauty and fragrance offerings within the portfolio of brands they sell. Reliance Brands markets
more than four dozen high end international labels in India including Armani, Burberry, Canali,
Diesel, Gas and Hugo Boss. Reliance Brands said it offers a wide range of skin and hair-care
products of Japan-based Muji, while fragrances of Tiffany & Co, Armani, Zegna and Diesel are
doing “exceedingly well.” Similarly, Superdry has been expanding its play into this segment with
the launch of bodyspray and bodywash, Reliance Brands said in an emailed response.
“With rise in personal grooming and multiple gifting occasions — this space is certainly one to
watch out for,” the spokesperson said without giving answers to the specific questions on the
company’s online and offline plans for beauty business.
Two top executives of two prominent malls said Reliance Brands has indicated to them about the
space requirement for the proposed beauty business. ET had reported last week that Tata’s unit,
Tata Digital, is also finalising plans to launch a new ecommerce platform exclusively to sell beauty
and cosmetics products.
Beauty and cosmetics is one of the fastest growing segments of India’s $850 billion retail market.
In lieu of the above information, answer the following:
Q1.How will reliance segment it’s cosmetics business for online and offline
business? Will it be similar or different? Discuss in details for both.
Q2.Based on the available information, conduct a brief five forces analysis to
determine the intrinsic long run attractiveness of the beauty and cosmetics market in India.
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