The launch of Tata Group’s super app signals its continuing focus on the e-commerce segment, as it attempts to take on Amazon and Jio platforms. At the same time, the Tatas are doubling down on their consumer-facing businesses, which is likely to complement its super app play.
In particular, the group is looking at synergies. For example, Air India’s acquisition is likely to help a host of group entities – from TCS to the Tata Neu super app – to cross-sell products to the captive airline customers.
As of October 2021, the group was also exploring opportunities for cross-sell Indian Hotels and Tata Capital offerings to Air India’s customers and crew.
The idea is to tap into Air India’s three million frequent flier customer base, which can be leveraged to offer discounted products.
The group has also acquired companies like 1MG, Big Basket and made inroads into online fitness, which will add value to the new digital platform. The 2021 acquisition of Big Basket cemented Tata’s foray into the online grocery market.
In June 2021, Tata Digital had acquired a majority stake in e-pharmacy 1mg, putting it in direct competition with Reliance-owned Netmeds. The same month, Tata Digital signed a 75 million dollars deal with CureFit Healthcare. As part of the deal, CureFit Founder and CEO Mukesh Bansal joined Tata Digital in an executive role as President.
The group, however, is also turning its focus on other segments. Last December, reports emerged that the Tata group was planning to tap on the growing domestic cosmetics market, which is estimated be worth 20 billion dollars by 2025. In an interview, Trent Non-Executive Chairman Noel Tata had said that beauty products, along with footwear and innerwear, would be a focus area for the group. Trent Ltd, which operates Westside retail stores, is a Tata Group company.
Noel Tata recently told a financial daily that the Tata super app could lead to a potential 10-fold increase in the number of customers for Westside.
Thus, Tata’s foray into consumer businesses like Air India, Big Basket and the beauty market together with other established brands under Tata Consumer, will directly benefit the group’s digital play with Tata Neu.
The Reliance and Tata super apps are geared up for a much-anticipated battle royale. While Tata has the advantage of in-house products and brands, RIL has the backing of biggies like Google, Microsoft and Facebook.
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