New Delhi: Tata Group is taking a more vocal interest in the regulations shaping the online marketplace, pointing to ambitions as it re-evaluates its retail strategy such as plans threatened by e-commerce reform.
Attendees said the $106 billion conglomerate had far less than e-commerce minnow market leader Amazon.com Inc. in a July 3 meeting with government officials about proposals such as banning the sale of its brand or affiliate goods. The discussion was more outspoken.
According to two attendees, Poornima Sampath, Tata’s vice president, told the gathering online that the rules would greatly increase the compliance burden of a group’s multiple entities and interests, and would harm them far more than smaller rivals.
Tata declined to comment for this article. Sampath did not respond to a request for comment.
Two weeks ago, the government shook the industry by proposing increased scrutiny of links between online marketplace operators and their partners.
The plan was widely regarded as an attempt to curb Amazon and Walmart Inc’s dominance of Flipkart and support high-street stores.
The 153-year-old Tata Group is everywhere on Indian roads, so its voice in favor of e-commerce at its July 3 meeting speaks volumes to the extent to which it is changing its stance.
The firm is known internationally as the owner of the British luxury car brand Jaguar Land Rover, but it also manufactures cars at home under its own brand.
The group is also active in steelmaking, IT outsourcing and hotel and airline operations.
In retail, Tata has a wide offline portfolio which includes a joint venture with cafe operator Starbucks Corp and operates stores for Inditex fashion brand Zara. Yet it’s a minor player online — a situation it’s determined to improve, said five people with direct knowledge of its plans.
It bought most online grocer BigBasket in May for more than $1 billion and took control of online pharmacy 1mg in June. The three people said they would join other marquee brands on an app that Tata aims to pilot this year.
E-commerce is the next big thing for Tata, and keeping this in mind, it is planning to buy many more brands, said one of the people.
None of the sources authorized to speak publicly therefore declined to be identified.
Tata App
Tata’s latest digital push is not its first. It launched its Tata Cliq online marketplace in 2016, which booked sales of $36 million in 2019-20. Yet this is compared to the roughly $10 billion in Amazon, which has invested billions of dollars in India.
Nevertheless, in an e-commerce market widely projected to be worth $200 billion by 2026, Tata has a lot of room for growth.
Through its app, Tata plans to bring its brands together to offer services such as grocery shopping, food and medicine delivery, electronic product sales and online fitness packages, people familiar with its plans said. .
Tata is still developing the features of the app and determining the strategy to go to market, with some likely to launch in phases starting with big cities, one of the people said.
Another said the pilot could start in early September in the southern city of Bengaluru, India’s IT hub.
app to lead Tata Digital Chief Executive Prateek Pal, who has gained vast experience with retailers over 28 years in the IT outsourcing unit Tata Consultancy Services Limited.
Keyur Majmudar, managing partner of India’s Bay Capital, said digitally integrating the multitude of businesses in a conglomerate the size of the Tata Group is a difficult task, adding that it will be tough to retain customers on the Super App, when many have Will increase niche e-commerce player.
“They need a radical change in thinking. That (digital integration) is something they’ve never done before. So, the jury is still out,” he said.
Pal declined to comment.
Just as Tata’s new digital strategy picks up pace with acquisitions and app development, the government has struck a surprise that could mean a rethink before the app even launches.
Sampath said at the July 3 meeting that restrictions on markets offering products from subsidiaries could deter the Croma electronics chain and Starbucks from Tata sites.
The ban on the sale of self-branded goods has also given rise to questions whether it will be able to retail to household names like Tata Tea or Tata Salt on its e-commerce platform.
The Tata brand name adds a level of assurance to consumers, Sampath objected to the meeting, seeking clarity on the government’s policy plans, attendees said.
Attendees said the $106 billion conglomerate had far less than e-commerce minnow market leader Amazon.com Inc. in a July 3 meeting with government officials about proposals such as banning the sale of its brand or affiliate goods. The discussion was more outspoken.
According to two attendees, Poornima Sampath, Tata’s vice president, told the gathering online that the rules would greatly increase the compliance burden of a group’s multiple entities and interests, and would harm them far more than smaller rivals.
Tata declined to comment for this article. Sampath did not respond to a request for comment.
Two weeks ago, the government shook the industry by proposing increased scrutiny of links between online marketplace operators and their partners.
The plan was widely regarded as an attempt to curb Amazon and Walmart Inc’s dominance of Flipkart and support high-street stores.
The 153-year-old Tata Group is everywhere on Indian roads, so its voice in favor of e-commerce at its July 3 meeting speaks volumes to the extent to which it is changing its stance.
The firm is known internationally as the owner of the British luxury car brand Jaguar Land Rover, but it also manufactures cars at home under its own brand.
The group is also active in steelmaking, IT outsourcing and hotel and airline operations.
In retail, Tata has a wide offline portfolio which includes a joint venture with cafe operator Starbucks Corp and operates stores for Inditex fashion brand Zara. Yet it’s a minor player online — a situation it’s determined to improve, said five people with direct knowledge of its plans.
It bought most online grocer BigBasket in May for more than $1 billion and took control of online pharmacy 1mg in June. The three people said they would join other marquee brands on an app that Tata aims to pilot this year.
E-commerce is the next big thing for Tata, and keeping this in mind, it is planning to buy many more brands, said one of the people.
None of the sources authorized to speak publicly therefore declined to be identified.
Tata App
Tata’s latest digital push is not its first. It launched its Tata Cliq online marketplace in 2016, which booked sales of $36 million in 2019-20. Yet this is compared to the roughly $10 billion in Amazon, which has invested billions of dollars in India.
Nevertheless, in an e-commerce market widely projected to be worth $200 billion by 2026, Tata has a lot of room for growth.
Through its app, Tata plans to bring its brands together to offer services such as grocery shopping, food and medicine delivery, electronic product sales and online fitness packages, people familiar with its plans said. .
Tata is still developing the features of the app and determining the strategy to go to market, with some likely to launch in phases starting with big cities, one of the people said.
Another said the pilot could start in early September in the southern city of Bengaluru, India’s IT hub.
app to lead Tata Digital Chief Executive Prateek Pal, who has gained vast experience with retailers over 28 years in the IT outsourcing unit Tata Consultancy Services Limited.
Keyur Majmudar, managing partner of India’s Bay Capital, said digitally integrating the multitude of businesses in a conglomerate the size of the Tata Group is a difficult task, adding that it will be tough to retain customers on the Super App, when many have Will increase niche e-commerce player.
“They need a radical change in thinking. That (digital integration) is something they’ve never done before. So, the jury is still out,” he said.
Pal declined to comment.
Just as Tata’s new digital strategy picks up pace with acquisitions and app development, the government has struck a surprise that could mean a rethink before the app even launches.
Sampath said at the July 3 meeting that restrictions on markets offering products from subsidiaries could deter the Croma electronics chain and Starbucks from Tata sites.
The ban on the sale of self-branded goods has also given rise to questions whether it will be able to retail to household names like Tata Tea or Tata Salt on its e-commerce platform.
The Tata brand name adds a level of assurance to consumers, Sampath objected to the meeting, seeking clarity on the government’s policy plans, attendees said.
.