For the last three year, India is
the talking point everywhere around e-commerce boom with more than 70 million
user uses e-commerce portal for one or another reason. The potential ofe-commerce is huge provided tackled properly in a strategic manner given the
fact that mobility data user are growing. Till now only 23% of total data users
are opting for e-Commerce sites; be it mobile or WEB and transaction rate is in
low single digit until unless e-commerce portals are going for flash sales.
Interesting maximum revenue of
established e-commerce companies revenue comes from electronics section and
predominantly from mobile devices. Still e-commerce companies only sells around
15-17% of the total shipped Smartphone through their portal and rest falls in
Local Retailer segment. After observing the trend of e-commerce companies
performance as well as the threat points; at last Tata group announced their
entry into the said segment.
We should remember that they have
very strong experience through their retail business around fashion,
electronics and other segment and many of the Tata Sons controlled companies
offer many products such as capital goods and all. During phase 1 of retail
business, they defined the process of procuring to warehousing to channel
management to delivery management which is very crucial for any organization to
be successful.
Secondly, Tata sons also controlled one of the
finest companies in the IT segment and can change the tide on the basis of
innovative mechanism which no one can even think off. Given the above facts,
CLiQ may immediately impose itself as non avoidable competitor in the market
place using its unmatched brand value, great market reach, producer of many
product.
They may opt to connect their
retail outlets with CLiQ where user can place an order online whereas delivery
or demo can be done through retail outlets.
Given the branding, most of the
buyer and seller will be more than happy to get attached with them and on top
of that, Tata may not opt to reverse strategy where they choose to acquire only
profitable user base instead of user base to generate virtual valuation to get
the funding.
