One of country’s lagest multinational conglomerate Tata Group has now decided to try its fortune in the whooping eCommerce landscape of India. It has recently launched an eCommerce asset to tap into the market which is largely dominated by heavily funded international retailers and startup backed by global tech investors.
The group said it has developed its Tata Cliq website over a year and half at a cost of ‘several hundred million dollars’ to be a marketplace for in-house and partner companies to sell apparel and electronics.
The move is in line with a second phase in Indian e-commerce development, with the some of the country's oldest and largest corporations entering an industry established by startups likes Snapdeal and Flipkart.
The move comes ahead of some well-known business giants steped into the fray. Last month Reliance Industries Ltd started an online apparel shop followed by Aditya Birla Group and Mahindra and Mahindra Ltd that have too come up with their online retail platforms.
Tata said its focus was profit margins and unit economics, and not just growing sales via discounts.
Commenting upon the same Tata’s Chief Executive Ashutosh Pandey said that the company don't want to get into the discount wars, it wants to serve customers with great products and build a sustainable business.
Pandey also said Tata would use its money establishing a large number of warehouses like other e-commerce players have done, and would instead build inventory networks around existing store locations owned by group partners.
Apart from achieving a milestone in steel production, tea packaging, information technology services and automobiles, Tata Group has now bet on new businesses in recent years with mixed success.
Company’s retail operation includes sellering of gold ornaments, sunglasses, apparel and electronics with a successful expansion over the period of time.