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

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.

Because it can. Because it’s backed by the might of one of India’s oldest conglomerates, Tata Group.

Tata CLiQ, despite being a traditional e-commerce player in terms of its various verticals—electronics, fashion, large appliances and other categories—has a slightly odd target.

AUTHOR

Abinaya Vijayaraghavan

Abinaya is a Bengaluru-based writer, covering the sprawling and exciting world of Indian e-commerce. When she is not trying to understand alpha sellers and complex supply chains, she enjoys travelling and playing badminton. Abinaya was previously a reporter at Reuters.

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