Tata Cliq starts direct selling to consumers

March 5, 2020 written by

According to two industry executives, Tata Group have started direct selling to its consumers through Tata Cliq in the e-commerce marketplace, converting it into an entity which will become a seller holding inventory and not just a marketplace. The company has even invested INR 300 crore into this entity to support this expansion.

The executives also elaborated on how this could be termed as a final desperate effort to spruce up the three-year-old e-commerce business since Tata Cliq has largely remained a fringe player in the Indian e-commerce market which is dominated by Flipkart and Amazon. The executives explained that earlier, retailers, brands and other sellers would sell through Tata Cliq and the platform would earn revenue from it. Now, the new model may lead to higher sales and faster growth since Tata Cliq is now holding inventory as a seller thereby directly controlling price, supplies, delivery and offering discounts to consumers.

The regulatory filings made by the company to Registrar of Companies sourced by Veratech Intelligence states that Tata Cliq has raised around INR 313 crore from its promoters Tata Industries this year till now. There has been fresh fund infusion in December and January. The executives said that a bulk of this money will help Tata Cliq expand into the inventory model. The company has already started trials of direct sales with television and home appliances of top brands like Xiaomi and Voltas and will expand into other high value and fast moving categories like smartphones to gain volume.

Another executive added that Tata Cliq is approaching to sell exclusive models so that it can have a distinct space in the market as a seller and has a ling-term target to generate a majority of the platform sales by itself.

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