Tata’s Trent Launches Zudio Beauty, Targets Affordable Cosmetics Market

Trent, led by Noel Tata, has launched a new retail concept called 'Zudio Beauty,' marking its entry into the mass-market beauty sector. This move positions Zudio Beauty to compete with established brands such as Hindustan Unilever's Elle18, Sugar Cosmetics, Health & Glow, and Colorbar. The new format aims to capitalize on the rising demand for affordable beauty products, while many competitors like Reliance, Nykaa, and Shoppers Stop primarily target the premium and luxury categories. The first Zudio Beauty store has opened in Bengaluru, with expansion plans for cities like Gurugram, Pune, and Hyderabad.

Tata, who previously introduced India's first beauty brand Lakme (later sold to Hindustan Unilever), already has a presence in the beauty industry with Tata Cliq Palette, a premium cosmetics store. Zudio, Trent’s budget-friendly apparel brand, has seen notable success since its launch in FY17. Initially rolled out within Star stores, Zudio quickly grew, thanks to its exclusive designs and efficient store operations driven by a low gross margin of 35-40 percent. With revenue per square foot at Rs 16,300—twice the industry average—Zudio was spun off as a standalone format in FY18. By FY24, it accounted for over a third of Trent’s total revenue, surpassing Westside in both store count and revenue.

As of June, Zudio operates 559 stores nationwide and is continuing its rapid expansion, outperforming many competitors in the value retail space. Industry experts believe Trent could replicate this success in the beauty sector as well. Competitors, particularly those like Nykaa, might face increased competition, and this expansion could also impact fast-moving consumer goods players.

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