The Tata Group’s e-commerce division, Tata Digital, is attempting to compete with larger rivals such as Flipkart, Amazon India, and Reliance Ajio by developing a “value fashion” offering for its fashion and lifestyle marketplace Tata Cliq, people aware of the development said.
Cliq, a mass-affluent company, is reportedly in discussions with a number of brands to improve its value propositions. A group of people who are willing to spend more money on accessories and clothing are referred to be mass affluent.
They also stated that Cliq will likely collaborate with international and Indian businesses to match the variety of products offered by Walmart-owned Flipkart, Amazon, and Reliance rather than creating a distinct brand for bargain fashion.
Popular value fashion chain Zudio is owned by the Tata Group, but according to the sources mentioned above, the retail brand will only be available offline and there are currently no plans to integrate it with Tata Digital’s super app Neu.
Under Noel Tata’s leadership, Zudio has had significant development in FY24, surpassing revenue of Rs. 7,000 crore. Cliq was merged into Tata Digital last year as part of a reorganisation that brought the salt-to-steel conglomerate’s major e-commerce divisions together. According to those briefed on the situation, Tata has been thinking of expanding its fashion business through an inventory play while putting its proposed e-commerce policy on hold.
