Earlier today, our editor Shishir Kumar wrote nice story and his experience with TATA CLIQ. Apart from his review I came across a story which says that the company spent whooping 57crore to build the TATA CLiQ website and APP. I personally used the website and honestly I have not found anything more than a lakh worth product in it. While company would have spent the money to build massive back end analytics and complete supply chain integration, but they forgot the most important piece i.e customer. I have not found anything unique or interesting on site that could have potentially engaged me to buy or comeback to the site after some time.
Especially with the current scenario where the customer loyalty is ZERO in e-commerce with out product innovation, it will be tough for any company to recapture the market.
In the last few years many big companies forayed into e-commerce like Aditya birla’s ABOF.com , Aravind Mill’s – Creyate , ShopperShop’s – Shopperstop.com. Many of them have less than 1M traffic and close to 0.2 to 0.3% of traffic when compared to market leaders like Flipkart and Amazon.
I personally feel that TATA CLiQ or any other new launched big e-commerce players can never become a market leader unless they have disruptive product innovation.
With the same 57cr a startup can build the entire e-commerce company with warehousing, logistic and technology. For adding a product disruption, there are many innovative startup e-commerce companies and intelligent entrepreneurs who are doing interesting stuff and yet struggling to survive because of fund shortage. TATA CLiQ could have easily acquired/hired few of them to build their product differentiation.
On a final note e-commerce does not have an entry barrier and currently is over saturated unless you have product disruption, attaining a decent market position is tough. At this point of time TATA CLiQ definitely needs some interesting ideas.