Tata Group is ecomm arm, Tata Cliq is looking to be India’s biggest retailer in the online marketplace. The retailer is rolling out major discounting initiatives and hoping to give tough competition to the larger existing e-commerce players, Amazon and Flipkart. If Amazon gave the world e-commerce, Flipkart made it mainstream in India as soon.
Tata Cliq is enhancing it’s online presence in online marketplace with spending on digital marketing and heavily discounting products. As Amazon and Flipkart continue to grow day by day, and with Reliance Retail planning to enter the market later this year, the pressure is on the medium to large sized e-commerce firms such as Tata Cliq to stand out in online marketplace.
Tata Cliq sells a variety of product and brands and has a very big emphasis on fashion. However, it is the electronics, home appliances, and smartphone sections that the business is most heavily discounting at present with prices lower than the Amazon and Flipkart in many cases. However, some worry discounting items too heavily in the hope of drawing customers could cause an unsustainable price war, as has happened before.
The CEO of Tata UniStore, Ashutosh Pandey, had earlier said while there will be discounts and it will not burn pockets of customers and customers have lot of option to buy with tata cliq in best prices and choice. The brand will not be the cheapest but the most authentic place to shop. This suggests heavy discounting will not become the main strategy of the brand but more of a short term one.
Tata Cliq started its operation in 2016 named by Tata UniStore and reported sales of Rs 12 crore ($1.8 million) for the 2016-17 financial year, with a loss of Rs 162 crore ($24.4 million).