How Tuco Cracks The Beauty Code For Kids

Just a little tweak. That’s all it takes to imagine Snow White in the age of Gen Alpha tweens. Only the eternal quest gets a makeover: “Mirror, mirror on the wall, who’s the prettiest of them all?”

In the little over two centuries between Snow White and Sephora Kids, the Magic Mirror has changed to smartphone screen and Evil Queen has resurrected as the kid next-door. But, there’s nothing grim about Brothers Grimm in this Sephora-tweens phenomenon.

A $1,387 Mn global market for kids’ beauty products, scaling at an annual average of 6.9% to reach $2,365.36 Mn by 2033, is no child’s play.

The beauty frenzy has caught on children aged 10 to 18 years across the planet. And, kids can’t be dwarfed with their 15-20% share in India’s $5 Bn-plus beauty and personal care market that hopes to create a more than $28 Bn opportunity by 2030.

While social media influencers are at the wheel, rapid urbanisation, surging ecommerce, and growing disposable incomes are fuelling the sharp momentum at which teens and tweens are transforming into a major contributor to the growth in the BPC segment. A 5-10% annual growth rate for kids’ beauty products has thrown open the way for new-age brands that ‘vibe’ better with them.

Tuco Kids was quick to take the road less travelled when Aishvarya Murali rolled it out in 2023. “Most parents, including myself, were using adult or baby products on kids, without realising that children between 3 and 15 have completely different skin and scalp biology,” she told Inc42, recounting how she conjured up the idea.

Children in this age group usually have higher skin and hair-related issues such as drying, sensitivity, rashes, dandruff and lice. Products tailored for them are scarce even today. The less-crowded market has Goliaths like Johnson & Johnson and Himalaya that have gained consumer confidence over the years. “We have a different positioning. We are catering to the segment that is older than babies and younger than youths. This place is largely unserved,” Murali said.

Almost 95% of mental and physical development takes place between 4 and 14 years. “Once parents take note of changes like body odour and associated pubertal transformations, they can’t overlook it. That’s what we’ve locked as the reason for success.”

The brand secured $4 Mn in a Series A funding round last month to boost its marketing, awareness and distribution, and research, taking the overall mop-up to $6 Mn, backed by investors like RTP Global, MG Investments, Fireside Ventures and Whiteboard Capital.

Operating for two years now, the startup onboarded Chanakya Gupta as cofounder of the brand earlier in February, who had earlier served as the business head at Cult Play (erstwhile Fitso) and group chief human resource officer at Curefit.

Cracking Into The Kids Category

Youth might be wasted on the young, but beauty never fails to wave at them. Using teenagers as a marketing demographic goes back to the postwar boom of the 1940s, but what made them a growth driver for beauty brands is the growing awareness of toxic chemicals used in most skincare and haircare products aimed at children.

Lawsuits have been rampant against major global brands like J&J for the use of harmful ingredients. Components such as formaldehyde, used in haircare and skincare products, trigger skin irritation and allergic reactions, while also raising the risk of various types of cancer. Some brands have started researching novel ways to formulate skincare products by replacing paraben and harsh chemicals with ayurvedic, natural and safer ingredients approved by dermatologists.

“Our edge lies in the formulation authenticity. These are natural, PETA-certified, dermatologist-tested, but built around kids’ actual lifestyle. And, they certainly resonate with our brand voice – it’s for kids, not just about kids,” Murali said.

Tuco Kids claims to be using age-old ingredients like turmeric and saffron in its skincare products. While turmeric fights inflammation and lightens skin pigmentation, saffron balances skin tone. Ritha or soapnut is used in hair and mint to heal dandruff problems.

Tuco races with brands like Whimsy, Mamaearth, and BabyOrgano. Delhi-based Whimsy, founded in 2023, has earned fame for its cruelty-free beauty products for kids and teens. Taco is shortened from The Unbottle Company. “Unbottling was the literal idea while initiating the business,” Murali said. “All the packaging is made from 100% recycled plastic, creating products that protect, not pollute, the planet or harm our kids.”

Some of its market peers such as Vilvah also use recyclable containers and aluminum bottles to seal skin and hair care products, prioritising sustainability.

Breaking Down The Business Model

Tuco Kids operates in four core regimens – skin, hair, sun, and gifting – with its products at the affordable-premium range of INR 199 to INR 699 for most SKUs. Murali mentioned that the startup has expanded to over 35 SKUs and 12 curated combos tailored to different age bands and skin types. The brand also has kids’ beauty products like kajal, lip tints, body mists and nail paints.

“We don’t compete on price, we compete on trust and efficacy. Every product is designed to be accessible for urban and semi-urban parents,” she said.

Gupta mentioned that Tuco Kids has grown 10 times since last November and has retained a healthy double-digit month-on-month growth.

The kids’ personal care brand has served more than 2 Lakh mothers. Without getting into specifics, he said its retention rates are one of the best in the segment. “Our conversions are 1.5 times that of the BPC category on key channels for brands at similar trajectory.”

Tuco Kids sells its products primarily through its own D2C website, online marketplaces such as Amazon, Flipkart, Nykaa and Myntra, as well as quick commerce platforms like Blinkit and Instamart.

“We also run mom ambassador programmes and festival-driven discovery boxes that help parents try before they buy,” Murali said.

Tuco’s Influencer Strategy

“After coming home from school, my eight-year-old daughter stands in front of the mirror. ‘Let’s do some skincare, friends,’ she says. You can’t overlook how she apes beauty influencers on YouTube,” said a Bangalore-based senior journalist.

“Missy has her separate skincare regimen. In fact, it’s like playtime for her.” Missy is no exception in the age of India’s evolving digital lifestyle. “If Gen Z has been a digital-savvy generation, you can imagine what defines Gen Alpha. These kids learn to swipe before they learn to spell,” said the scribe mother, refusing to be identified for her professional ethics.

Influencer marketing has been key to shaping the trends and choices of consumers. What makes kids a target for brands is their increasing influence on purchasing decisions. The rise of young influencers drives demand for products and services and, in turn, change in consumer decisions. BPC brands that offer nature-based products are stepping on their marketing efforts to win over an environmentally aware and health conscious consumer class.

Tuco too plans to double down on its marketing efforts to boost brand awareness among consumers by running campaigns, building trust through its ingredients, as well as engaging with mothers. It also invests in digital storytelling such as short-format videos, UGC-led content, and partnerships with parenting creators who use the brand on their children.

The startup now bets on expanding its business offline by next year through setting up shops in select Tier I cities. Tuco Kids hopes to join the 100 Cr Club in the next 18 months through stronger distribution channels and greater presence on digital platforms as well as in the retail market.“We are on course to reach INR 100 Cr ARR in the next 18 months. But more than financial metrics, we are focussing on serving a million parents with our products by this time,” Murali said.

Snow White has changed her address from seven jewelled hills, beyond the seventh wall, in the cottage of the seven dwarfs to our ubiquitous household. Can Taco unbottle the most potent beauty secret for her? Up for grabs a $28 Bn market that’s well on course to scale $34 Bn by 2028.

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