Here’s a quick exercise. Think of an e-commerce website you’re familiar with. Say, X. Now try and recall everything you’ve read about X of late. Chances are there will be a mention of wanting to “expand to tier-2, tier-3 cities”, “deep-discounting” to ensure this penetration, and all this and more leading to, well, losses. In an industry known for deep pockets and deeper discounts, e-commerce player, Tata CLiQ has chosen to stay away from it all.
Tata CLiQ’s quest for the Holy Grail of e-commerce—profitability
Deep-discounting. Deeper pockets. A thirst for quick results. These are the ingredients that go into traditional e-commerce. But Tata CLiQ’s got a secret ingredient, a Chemical X, courtesy its parent. However, its dream for profitability by 2022 could use more fuel
The Indian e-commerce market is seeing some new-old players trying their luck—Aditya Birla, Reliance and Tata Group—in their own way
They have an advantage. A strong foothold in physical retail in the times of omnichannel play and going 'phygital'
That's Tata's premise for Tata CLiQ. It wants to stick to its strengths, avoid deep-discounting—an e-commerce favourite—and stay tier-1
And by doing so, it wants to become profitable. But that won't be easy