Tata CLiQ to rope in 400 more brands, double growth in next fiscal, says CEO
The online platform is expecting 200 percent to 300 percent growth in the next two years
Tata CLiQ, the e-commerce platform of Tata Group, which entered the online medium space in May last year, is roping in 400 brands on its platform like kids wear, home furnishing, toys, stationery among others to take its overall brand count to 1000. Presently, it has around 1,000 retail stores connected to its online portal which it plans to double to over 2,000 by end of this fiscal. The company, which forayed into e-commerce market in May last year, currently offers products in categories such as fashion, electronics, accessories and watches.
TataCLiQ.com, which the company claims is the first-of-its-kind multi-brand phygital e-commerce marketplace that seamlessly blends online and in-store shopping experience for customers enables customers to buy from its website (www.tatacliq.com) and also through the mobile apps (iOS and Android platforms).The online platform manages the brand online and also has an exclusive partnership with the brands outlets offline. The company, which did not want to take the discount route to attract customers, has had a growth rate of over 100 percent, said Ashutosh Pandey, CEO. “We are expecting 200 percent to 300 percent growth in the next two years by increasing our brand offerings and more categories.
The company faced a lot of questions for its business model. "Managing an omni channel inventory for several brands is not an easy task. Hence, this is where our technology is unique. It has the ability to connect the online identity of the consumer in store and recommend personalised solutions to provide a seamless experience.
"We found the organized retail space in India was slowing down due to physical constraints and also that online platforms were attracting customers with the bait of discounts being the main push to get them online. Even as the online market attracted customers, the offline model did not lose its charm. We decided to combine the two and offer some luxury brands online that the customer would not be able to shop from other online platforms."
The company has a luxury range of products which has garnered 40 percent customers and 41 percent revenues that come from tier 2 cities such as Surat, Indore, Kanpur, Faridabad, etc. The luxury range has seen 300 percent growth in orders since launch, said Pandey. It currently offers 13 premium luxury fashion brands with men contributing to 51 percent of the sales and women 49 percent.
Pandey says that most companies and their managers are looking at the matrix on sustainability and not on the number of customers acquired. This, he says, leaves a huge opportunity for other players who are following slightly different model. “We have a set of niche customers and as people get familiar with technology and as digital payment gets more traction, e-commerce platforms will be able to get more customers. For us, it is about the large range of offerings we give our customers and not about cheaper brands or discounts. We do offer discounts too but it is because the brand wants to,” Pandey said.
The online platform will also increase its focus on tier 2 and 3 cities as it has seen latent demand in less urban markets. In fact, 50 percent of Tata CLiQ’s sales and business come from non tier 1 cities, Pandey said.
The company has more users coming to its platform for fashion product and electronics. It is now is now in talks with an international brand and hopes to ink the deal soon. “In the next 4-5 years, we should be a fairly sustainable business. Unit economics is good and we should continue with over 100 percent growth as of now,” Pandey added.
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