Will buyers choose online shopping or real-time stores? Now they can get both with Tata’s soon to be launched hybrid store. ET reports the Tata group’s latest venture, which will have both an online portal and a physical store. Set to hit the floors before Diwali this year, the hybrid store, which will work on the marketplace model, will focus on smartphones, gadgets, and fashion.
The report states that Tata Industrial Services, which has been renamed Tata Unistore, is holding discussions with major brands to be a part of the new venture. The intention is to give a push to those consumer goods that are not commonly traded online. The offline stores will be used to despatch products ordered online to rural areas.
Tata’s yet unnamed enterprise will not be offering the common temptation of discounts. It has clearly stated that it does not plan to compete with Flipkart, Amazon, Myntra, and other online retailers in handing out massive discounts to buyers. The report quotes Devangshu Dutta, CEO of Third Eyesight, a retail consultancy who says that Tata’s proposed combination of online and offline looks like a sustainable model. He says discounting is not necessarily sustainable.
Handing out huge discounts might help in attracting buyers, but might not help in retaining them, and working out financial stability. Tata has stated that it will leave the discount rates to the sellers’ discretion; however, they are strictly not to sell it below the retail price. This could come as a breather for sellers who are facing the brunt of online discounts.
In a drift from the typical online retailers, Tata’s store will also provide its buyers with after sales support and warranty. This is something that the etailers do not focus on. For most purchases, there is an average 30 day window for exchange or returns. This feature can work in favour of the new model that Tata is planning.
The Tata group has been expanding its area of operation over the years. The attraction of the online market has made Ratan Tata personally invest in quite a few upcoming companies. The Tata group recently launched my247market, an online grocery store. IOS had reported that Tata would soon go online as early as in September last year.
It is too early to speculate whether the Tata hybrid store would work, given that it has not even been launched yet. Do online sellers have cause for worry? Possibly not yet; however, it is prudent to keep a sharp eye on the proceedings.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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