Tata Group hops onto e-commerce bandwagon with TataCliq.com

Salt-to-software conglomerate Tata Group joined the e-commerce bandwagon with an omni- channel marketplace TataCliq.com for selling curated brands, with a focus on better after-sales service as the key differentiator.

Tata Group Chairman Cyrus P Mistry said, "TataCliq is a first-of-its-kind 'phygital' e-commerce marketplace bringing a smart combination of the reassurance and in-store experience of a large on-ground network with the convenience of online shopping, bringing the best of both worlds together." TataCliq is curated by Tata Industries, which owns 90% stake in the venture, with the group's retail arm Trent owning the remaining 10%, and is run by Tata UniStore.

Mistry said the fact that there are only 30 million regular online shoppers in the country shows immense potential to bring the next 100 million customers online.

When asked about the USPs of TataCliq, Ashutosh Pandey, its chief executive, said it has a three-pronged strategy which is anchored on brand stores, 'phygital' strategy and a curated approach to sales, products, and after-sales service.

"TataCliq aims to serve customers by blending both in-store as well as online shopping with its unique 'phygital' services and certified authentic merchandise that evokes consumer trust and builds loyalty," Pandey said.

He said 'phygital' means digital as well as physical presence and experience as one can buy online and chose to pick up the goods from any of its over 530 stores. This model also reduces the turnaround time for both the company and the customer in case the product needs to be returned.

In the first phase, the store will offer upto 400 brands, including almost 25 exclusive premium foreign brands in the apparel, footwear and electronics segments, which constitute almost three-fourths of e-commerce sales, he said.

By September, the store plans to offer accessories like watches, sunglasses, and jewellery. Going forward, the company would introduce other categories, including home furniture, toys, and stationery, he said. 

TataCliq can deliver goods to nearly 7,000 PIN codes, spanning around 690 cities in the first phase, covering almost 95% of the e-commerce delivery universe.

Phygital services would be available across over 530 stores of 12 partner brands as of now, Pandey said.

"The phygital strategy would help the company skirt the need to have own warehouses, thus bringing down operational costs considerably," said R S Jamwal, Executive Director at Tata Industries.

When asked about its late entry into e-commerce, Jamwal said the delayed entry has helped them launch a service with the least hiccups and latest technology.

Pandey claimed TataCliq has a database of 10 million online shoppers out of the total 30-50 million in the country.

He, however, admitted that customer acquisition and retention would be the key challenge.

He also did not give a timeframe for the break-even, saying the shareholders have given him a long runway.

When asked whether they are open to acquisitions, Jamwal said it is too early to look at it.

To a question on whether discounts would be the initial strategy to get and retain customers in a highly cluttered market, Pandey did not offer a direct answer but said TataCliq would offer "real good brands at feel good prices".