Trent, under the leadership of Noel Tata, has ventured into the mass-market beauty space with the launch of a new retail format called ‘Zudio Beauty’. This new endeavor is expected to compete with well-established brands such as Hindustan Unilever’s Elle18, Sugar Cosmetics, Health & Glow, and Colorbar, as reported by The Economic Times.

Zudio Beauty aims to capture a share of the affordable beauty product market, a segment that differs from competitors like Reliance, Nykaa, and Shoppers Stop, which primarily focus on premium and luxury offerings. Sources indicate that the first Zudio Beauty store has opened in Bengaluru, with plans to expand into other key cities, including Gurugram, Pune, and Hyderabad.

This move marks a strategic expansion for Tata, who previously introduced Lakme, India’s first beauty brand, later sold to Hindustan Unilever. With Tata Cliq Palette already targeting the premium beauty segment, Tata’s new Zudio Beauty brand will focus on more affordable beauty products.

Zudio, Trent’s budget-friendly apparel brand, has seen remarkable growth since its launch in FY17. Initially offered inside Star stores, Zudio gained popularity due to its exclusive designs and cost-effective approach, boasting a gross margin of 35-40% that led to high store efficiency. The brand’s revenue per square foot has reached Rs 16,300—double the industry average. By FY18, Zudio evolved into a standalone format, and by FY22, it surpassed Westside in store count and by FY24, exceeded Westside’s revenue.

As of June, Zudio had grown to include 559 stores nationwide, with further expansions underway, outperforming many competitors in the value retail segment. Industry experts believe that Trent could replicate Zudio’s success in the beauty sector as well.

Nuvama’s Executive Director, Abneesh Roy, called the move “another disruptive step by Trent,” adding that if consumers find the quality appealing, Zudio Beauty could be the brand’s next big success. He also noted that the venture could pose challenges for competitors like Nykaa and even fast-moving consumer goods companies.

International beauty giants like L’Oreal and Shiseido are closely watching the Indian market, with L’Oreal identifying India as its fifth-largest market for professional products. Meanwhile, Shiseido has partnered with Shoppers Stop to bring its premium Nars Cosmetics to India.

According to a report by Redseer Strategy Consultants and Peak XV, specialized beauty brands such as L’Oreal, Mama Earth, and Nykaa currently control 33% of the market, a share expected to grow to 42% in the next five years. Meanwhile, legacy players like Hindustan Unilever and Procter & Gamble could see their combined market share drop by 900 basis points to 58% by 2027.