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Tata group's proposed e-commerce venture is likely to focus on specific categories and products, rather than going all out on everything, it is learnt. Emphasis could be on premium play. This strategy is meant to differentiate the Tatas' online project from the e-commerce majors such as Flipkart, Snapdeal and Amazon, sources said.
With online the biggest thrust in retail now, Tata group Chairman Cyrus Mistry is believed to be closely monitoring the progress of the yet-to-be launched e-commerce project. The group is talking to advisors, consultants and other industry experts to roll out the online marketplace within a few months. While the broad format, that of hosting retailers on its platform, will be like the one followed by major online players in India, the scale and quality will be different, people in the know said.
The group's e-commerce connect has already been spelt out by Ratan Tata, the chairman emeritus of Tata Sons, the holding company. In the past nine months, he has invested in several internet businesses including in Snapdeal, Paytm, Urban Ladder and Bluestone. The experience of Tata's personal investment in internet startups could come handy once the group makes its e-commerce debut.
Sources said that the group's new online business will be launched under Tata Industries, a subsidiary of Tata Sons. Many of the group's new businesses in the recent past, including Air Asia and Vistara, were launched under Tata Sons. Both Tata Sons and Tata Industries are unlisted entities.
KRS Jamwal, executive director at Tata Industries, is learnt to be one of the key persons spearheading the e-commerce venture. Also, Ashutosh Pandey, who was earlier the chief operating officer of Landmark, was hired a few months ago for Tata's e-commerce venture. There's no word yet on who will be the CEO of the Tata e-commerce business. But, Trent, which operates the group's retail business, including the joint venture with UK's Tesco, is expected to play a crucial role in the new business.
Replying to a questionnaire, a Tata Sons spokesperson told Business Standard, ''suffice it to say that e-commerce is of interst to the Tata group. We will share more information at the appropriate moment.''
Mohit Bahl, partner, Transaction Services, KPMG, said, "I would be surprised if the Tata group opens a general merchandise market place. I would expect them to target specialised segments." While players like Flipkart and Snapdeal have an IT mindset behind their e commerce business, Tatas and some other brick and mortar companies would come with retail background, according to experts. A source, who didn't want to be identified, said Tatas are likely to focus on premium products, categories and better customer experience in their e-venture. "It would be premium and curated play unlike Flipkart and Snapdeal,'' he pointed out. Apparel and electronic appliances could be among the high-focus categories for the group.
Other traditional businesses are concentrating on e-commerce as well.
Besides the Tatas, Aditya Birla group, Future, and Reliance Industries are all getting ready to compete with the e-commerce majors. Among these, Reliance is expected to roll out a full model e-commerce, according to sources. Reliance Jio, RIL's telecom business, is expected to help the group in its e-commerce business.
