Tata Neu may sell brands outside of Tata firms : N. Chandrasekharan
Premium- Chandrasekaran said that the super app is built on an open architecture system that allows it be more inclusive
Tata Group chairman N Chandrasekaran on Wednesday said that the newly launched group's super app Tata Neu which currently sells products from Tata group companies will likely allow third party sellers to use the platform going ahead. Chandrasekaran said that the super app is built on an open architecture system that allows it be more inclusive.
"Tata Neu will have all the products and services from the Tata stable, Tata Neu(built on) open architecture. Our aim is to ensure that Tata Neu becomes that super app which simplifies the lives and meets the demand of every consumer from the product services and commercial needs point of view. For that the offerings may come from the Tata stable or from outside,' said N Chandrasekaran on Thursday.
The Tata chairman also denied suggestions that the app which has been in the making for two years has suffered inordinate delays to launch and insisted it was infact a calibrated approach
Tata Neu is currently a part of Tata Digital, the wholly owned unit of Tata Sons Pvt. Ltd. It allows users to shop across categories ranging from groceries to luxury goods and hotels, combining all the Tata group’s consumer brands on a single platform.
Since its launch last week, the super app has seen 2.2 million downloads. "I believe in the Indian economy; it is a very strong economy. It is going to 5 trillion to 10 trillion. The per capita income is going to double or triple and all of this is a brilliant opportunity for us to shape Tata Neu te go to place for every Indian consumer," added the chairman.
For consumers, the app brings together the group’s airline Air Asia, hospitality company Indian Hotels Co., online grocery firm BigBasket, as well as other retail brands such as Croma, Starbucks, Tata 1Mg, Tata CLiQ, Tata Play and Westside.
On April 8, Mint had written that Tata Group’s super app comes at a time India’s retail landscape is transforming, with the pandemic having pushed more people to shop online. India’s e-commerce market is set to touch $88 billion by FY25, commanding nearly 8% of the overall retail market. Categories such as food and grocery are expected to touch $28 billion, while consumer electronics will be a $20 billion opportunity online, according to a report by consulting firm Technopak.
In May last year, Tata Digital acquired a 64.3% stake in online grocer BigBasket for ₹9,500 crore, citing accelerated adoption of e-grocery. It also acquired digital pharmacy 1mg and signed a deal to invest up to $75 million in CureFit Healthcare.
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Chandra denied that the two years taken to build the app was due to any delay. "There was no delay. We were calibrating it all the way on when to launch it and what to go with," he said.
The app allows users to log in with just a name and mobile number and uses the device’s biometrics such as fingerprint sensors on Android phones and face ID on iPhones to secure access to the app.
The chairman said that the team is working on number of services, tech innovations that includes an AI driven personal assistant to improve consumer experience.
For instance, the app records purchase histories from the company’s pre-existing databases for existing Tata customers. As a result, the app will give a customer who has stayed in a Tata hotel or already uses BigBasket, Tata Cliq, etc., a digital reward in the form of “Neu Coins", which can be redeemed against purchases made on Tata Neu.Customers can spend these new coins across any category.
One of the crucial differentiating factor in the super app from the rest is its rewards programme—NeuPass. "Neu Pass will also go beyond Tata group at some point," the chairman said.
"Neu Pass not only is a loyalty programme across every touchpoint where you can easily earn and consumer effortlessly nut also have an integrated financial credit line which gives instant loan very easily," said the Tata Group chairman. He added that NeuPass will keep getting upgraded in terms of benefits, offerings.
We have worked out a string commercial model. Our aim is to become a profitable business, driving growth, simplifying the life of the consumer," said Pratik Pal, chief executive officer (CEO)-Tata Digital.
The day the app was launched there was a glitch for three hours because of the "surge" in "unprecedented demand," said the CEO . He said since then the app "stabilisation phase" and then the problems did not reoccur.
Tata digital president Mukesh Bansal, the founder of Myntra expects a high traction of consumers moving from being a single app user of Tata brands to the super app. "During the pilot stage we have seen that our single category customers have increased from 10% to 30% and that is substantial increase-people...We expect the number to go as high as 50%," he said on Thursday.