The likes of the Indian e-commerce and startup scenario are currently on the verge of blooming. With several ventures emerging within the market space, offering a unique and cumulative range of services has become a ritual for blooming and budding retail players. Although the e-commerce market is dominated by the likes of giants like Amazon and Flipkart, several small-scale e-retailers are attempting to seek their dominance in the race.
Recently, the Indian conglomerate Tata Group debuted in the e-commerce space with its ‘super app’. Named ‘Tata Neu’, the app is to offer everything from electronics to grocery and entertainment to health. With its Super App, Tata takes on Amazon as well as Mukesh Ambani’s Jio.
How Competitive is the Tata Neu?
The ‘Tata Neu’ is the culmination of years of effort invested by the Indian giant. With the app, the company will audaciously offer a range of services from e-commerce and grocery to hotel stays—budding like a one-stop shop. With its broad range of offerings, Tata seeks to compete with the likes of Walmart-owned Flipkart, Amazon, as well as Ambani’s Jio ‘Mart’.
Besides delivering retail values, the 154-years old company is attempting to domineer the likes of Amazon and Flipkart in the following ways:
NeuCoins: (1 NeuCoin = 1 INR) With the incentives, Tata plans to phase out various loyalty offerings by ventures like BigBasket, 1 mg, and other services using its NeuCoins across all its services. The rewards are one of the major focuses for Tata Group as it attempts to build a “connective layer” for its services that operate in a wide range of categories. If successful, the giant is positioned to conjure up the largest loyalty program in the country.
Cashback and Discounts: On top of the rewards, the firm will also offer cashback and big discounts on items across all of its properties on the app and provide its members with free deliveries, built-in credit lines and early access to products, it said.
Can Tata pivot the future of Indian e-commerce?
Currently, e-commerce has transformed the way businesses are done in India. Owing to its increasing demands, the Indian e-commerce market is expected to grow to $111.40 Billion by 2025 and by 2030, it is expected to hit $350 Billion.
This growth has been triggered due to the surging digitalization in the country. An increase in internet usage and humungous smartphone penetration has boosted demand for e-shopping. Tata aims to simplify the lives of Indian consumers who are currently bewitched by the (cluttered) Indian digital retail market. What (Indian) consumers tend to seek are:
- The power of choice
- A Seamless Experience
- Numerous category-leading consumer brands (from electronics, fashion, hospitality to pharmacy)
- Highly differentiated consumer platform
With that said, Tata is not only incorporating the above but also aiming to deliver a powerful ‘One Tata’ experience to Indian consumers. The home-grown and ‘Born in India’ brand proclaims to offer everything that an Indian consumer seeks in the market.
Due to its wide range of services, Tata can definitely pivot the future of Indian e-commerce. Moreover, it is all set to take on the increasing universal adoption of digital services offered by global giants like Google, Facebook, Amazon as well as Flipkart, including the Indian billionaire synonym, Ambani’s Jio mall.