With the ecommerce atmosphere already rife with the possibility of Alibaba’s expansion and the growth of marketplaces like Amazon, Flipkart, Snapdeal etc. there is yet another reason for them and smaller players to despair. If speculations are to be believed, Tata group will make its foray into ecommerce soon.
Tata Industries Ltd, a fully owned subsidiary of Tata group and not the existing retail units, will head the venture. “Tata Industries incubates new businesses as they have done with Tata’s entry into auto components and telecom ventures,” said a source, who didn’t want to be named. “Then such businesses are taken forward by their respective units.”
According to sources close to Tata group, plans are on to make a big entry into the Indian ecommerce industry on the marketplace model. Many have already successfully emulated the marketplace business model and it’s no wonder that Tata group too wishes to adopt same model for operations.
Tata has already set foot into ecommerce with the sale of electronics through the online platform of Croma. But with the new venture, other vendors will be able to sell on the platform like any other online platform.
Although the clear plan has not been let out, it is rumoured that the operations will be based on Tmall.com, Alibaba group’s marketplace. Last year, Tmall combined with taobao.com generated around $248 billion in sales for Alibaba, which was more than the combined sales of Amazon and eBay.
Although it’s not yet confirmed, Tata’s existing retail chain brands like Westside, Croma and Star Bazaar will be sold through the platform. Talks are on with Zara also, its joint venture partner, to sell their products too, which they otherwise sell through their own site globally.
Tata group has a prominent presence and success in the retail world, including JV’s. Ratan Tata, chairman emeritus of Tata Sons, has also shown keen interest in ecommerce with his personal investments in Snapdeal and online jewellery platform Bluestone.
So how soon will the speculations and rumours about Tata’s ecommerce platform turn into reality? As soon as next year maybe!
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!
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