After many major retail players such as Aditya Birla Group (ABOF), Reliance Industries (AJIO) have made way into the un-dying ‘online retail platform’, even the TATA’s have made the move with its venture called TATACLiQ. The $108-billion worth of Tata group, spent a year-and-a-half and “several hundred million dollars” to create this e-commerce website which is expected to be a game changer for the industry.
The site would act as a marketplace for its in-house and partner companies and will sell apparel, electronics and footwear among other products. The venture marks a new direction for the salt-to-steel conglomerate which has so far focused on physical retail stores only.
“Currently, there are only 30 million regular online shoppers in India and there is immense potential to bring the next 100 million with an offering that builds from their current path to purchase rather than expecting them to change behaviour,” Ashutosh Pandey of Tata Unistore, which runs Tata Cliq, said.
The company named it’s online platform ‘Phygital’ where the customers can get the items home-delivered or pick them up at designated stores. It currently is available in 700 cities and towns in partnership with 500 stores which is planned to go upto 2,000 stores.
Through the digital platform, the company is preparing itself to achieve its 10 year strategy that is to be the world’s 25th-most-valued company at ~$350 bn. The entire plan is spearheaded by Kumar, a former professor of marketing at London Business School, who joined the company 2 years back.
The Indian online retail space is certainly on the upward curve and the early birds will have an advantage to capitalize max market share out of the total $11 billion market (2015) projected to touch $220 bn (2025).