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On the heels of Tata Value Homes, a subsidiary of Tata Housing, tying up with the Kunal Bahl-led Snapdeal.com, another Tata group company, Croma, is gearing up to ink a pact with the e-commerce portal.
Sources in the sector said the deal would involve the electronics chain’s products being sold through Snapdeal, but a source close to the development insisted it would be different from the Tata Value Homes-Snapdeal tie-up, where the former’s properties are to be sold through portal.
Notably, this is the second such tie-up after Tata Sons chairman emeritus Ratan Tata bought a stake in Snapdeal recently.
Snapdeal and Croma are expected to hold a press conference here on Tuesday to announce the deal.
Both Croma chief executive officer (CEO) Ajit Joshi and Snapdeal CEO Kunal Bahl could not be contacted. According to experts, in the wake of Ratan Tata’s investment, Tatas could use the Snapdeal platform for various companies.
“The e-commerce marketplace has taken off in a big way. If Croma expands itself through Snapdeal, it is good for both. Tatas could use this platform for various companies. Who knows, tomorrow Westside could also come on Snapdeal,” said Arvind Singhal, chairman of Technopak Advisors, a retail consultant. That Snapdeal sold about 100 apartments of Tata Value Homes online within a week of the partnership shows the e-commerce site’s strength, experts point out.
As part of the deal, about 1,000 Tata Value Homes properties across Mumbai, Pune, Ahmedabad, Bangalore and Chennai were put up for sale on Snapdeal. Ranging from one bedroom, hall, kitchen (BHK) to three BHK, the houses are priced between Rs 18 and Rs 70 lakh. Although Tata Value Homes and Croma have their own e-commerce portals, both are also exploiting a marketplace model to sell their products, say experts.
“Many retailers have their own websites and also use marketplace to sell their products. Metro Shoes and MobileStore are two such examples,” said Singhal.
“Croma is a respected and strong brand. The Tata connection would definitely help Snapdeal,” he added.
STRATEGIC MOVES
- Aug 26: Tata Housing ties up with Snapdeal to sell its properties online
- Aug 28: Snapdeal announces Tata’s investment in it
- Sept 15: Snapdeal, Croma to announce strategic partnership
