If you are thrilling consumers more than anyone else then it doesn’t matter if you are a late entrant, Jamwal said.
The salt-to-software conglomerate, which runs numerous retail companies that include selling electronic devices, apparel and jewellery, has become the current conglomerate to join the e-marketplace bandwagon by using its deep pockets and leveraging synergies throughout the group. Tata launched its e-commerce site and mobile app under the trademark name of Tata Cliq, which will sell garments, shoes, electronics and jewellery sourced from in-house as well as external domestic and global brand names.
Tata Industries owns 90 percent of Tata Unistore, the company that will run the online marketplace, and Trent, another Tata group company that runs retail chains such as Westside, Star Bazaar and Landmark. The endeavor will start off with 2 lakh stock-keeping devices throughout 400 brands being offered to customers and will be scaled up over the next few months. Tata Cliq will cater to customers throughout 5,000 pin codes in 101 cities, which covers 85 percent of the e-commerce market in India.
Tata Cliq a first of its kind Omni channel e-commerce market is in keeping with this custom, Cyrus P Mistry, chairman of Tata Sons said in a recorded video message. Tata Cliq is also symbolic of consumer focus, tech orientation and collaboration throughout Tata Group.
So where is the difference between Tata Cliq and its rivals like Snapdeal and Flipkart?
According to Ashutosh Pandey, CEO of Tata Unistore, Tata Cliq will follow a curated marketplace design. That is to state that unlike regular online marketplaces where sellers are complimentary to sell any and every product, Tata Cliq will carefully choose the kind of items that it puts up for sale on its platform to make it more exclusive in nature.
According to Pandey, this will likewise give Tata Cliq a cost benefit of around five to six portion points when it pertains to obtaining items for the market, and is a more efficient method to handle inventory.
Tata Cliq is also set to become the sole licensed online seller of high-end goods brands including Giorgio Armani, Bottega Veneta, Burberry, Canali, Jimmy Choo, Hugo BOSS, Coach, Paul Smith and Tumi in India. These global marquee brand names will be offered as part of a tie-up between Tata Cliq and Genesis Luxury Fashion Pvt. Ltd, which is the marketing and circulation partner for these global fashion labels.
For the other garments, shoes and electronic brands that Tata Cliq will sell on its platform, it plans to leverage the physical footprint of Tata Group’s retail business, in an Omni channel technique. Through this technique, which Tata Cliq has actually christened Phygital, a customer can both shop in the store or online, and get delivery of products in the house or in the store nearby to them. This will likewise help in making sure much faster after-sales services such as exchange or return of goods, Pandey stated.
To start with, Tata Cliq is looking to use a consumer database of 10 million brand-affined shoppers (half the clients who are part of commitment programs run by 4 Tata Group companies) with its targeted offerings. Pandey stated that Tata Cliq will attempt and develop a sense of commitment amongst these purchasers and keep them for repeat purchases, which will improve the per system economics of business.
Tata Cliq wants to follow an asset-light marketplace model. The Omni channel model, through which, say, an ac unit can be offered to a customer from the nearby Croma store, will assist the endeavor lowered its reliance on warehousing and logistics which are 2 vital overheads for an e-commerce company. Where it requires to source products from external brands, it plans to do so straight from the warehouses of the manufacturer or its licensed seller.
Further, much of the manpower requirement has actually been outsourced to other group business like Tata Consultancy Services (which has actually aided with the IT foundation of business) and Tata Business Support Services Ltd, a company procedure outsourcing company wholly owned by Tata Sons, the conglomerate s flagship holding company.
Most importantly, Tata Cliq is being bankrolled by one of the largest corporations in the country that has deep pockets and is willing to be patient with the new venture, according to Jamwal. Though he didn’t disclose the specific quantum of investment that is being poured into Tata Cliq, it was a few hundred million dollars, which will be invested in stages, Jamwal said.