The contradictory world of online retail continues to throw surprising results. While on one hand, NDTV’s online venture prepares to shut down, on the other hand Tata’s online venture is ready to overtake its offline retail arm.
NDTV IndianRoots stake sale approved
In August 2016, Indian Online Seller had envisaged that NDTV’s IndianRoots might soon be uprooted. The many complaints of buyers and sellers about non-payments had led to this conclusion. It turned out to be true as the Board of Directors of NDTV have approved the sale of its ethnic online retail arm to Nameh Hotels. The decision was taken in a meeting held earlier this month.
In a note addressed to Bombay Stock Exchange (BSE), NDTV stated,
“… sale/disposal of the entire equity stake owned and held by NDTV Lifestyle Holdings Limited, NDTV Convergence Limited and NDTV Worldwide Limited, each a material subsidiary of the company in NDTV Ethnic Retail Limited, another material subsidiary of the Company, constituting approx. 99.92% of the total issued, subscribed, and paid-equity share capital of Ethnic, for INR 3.6518 per equity to Nameh Hotels & Resorts Pvt Limited.”
NDTV Ethnic Retail Limited operates IndianRoots.
The company’s CFO explained that NDTV is divesting its stake in non-core assets Indianroots and NDTV Goodtimes. From here on NDTV would focus on its core businesses, i.e. our broadcast and digital business.
Tata Cliq growing from strength to strength
Let’s move on from a dead business to a flourishing one. Indian multinational conglomerate Tata launched its independent online retail platform Cliq in May 2016. The MNC believes that its etail portal would overtake the business of its offline arm Trent in the next 3 years.
In spite of being expensive than other ecommerce players in terms of product portfolio, Cliq has managed to grab shoppers’ attention. The company is also confident about reaching break-even point soon.
“Our fulfillment cost per unit is half of other players and our average selling price is 10-30% higher than other players. So, you can see what we are pegging viability on. Because most of our products are in stores, and not in separate warehouses, we are saving 50% in fulfillment costs. This year will be crucial in enhancing our break-even visibility,” said Kanwar Rameshwar Singh Jamwal, executive director of Tata Industries.