TATA CLIQ: PIONEERING PHYGITAL MODEL IN RETAIL

1. Tata CLiQ: The worlds first phygital e-commerce marketplace

Source: www.indiaretailing.com; 2016/07/27
Tata CLiQ brings to India, a smart combination of in-store experience of a large onground network with the convenience of online shopping. It has formalised a strategic
partnership with several international brands, which will offer exclusive range of
products here. CEO, Tata CLiQ, Ashutosh Pandey shares his thoughts with Images
Retail about this first of its kind initiative
Currently, Tata CLiQ is operational in 6,856 pin codes, 23 states and 2 union
territories across 689 cities and towns
Tata CLiQ is one of a kind e-commerce platform. Please tell us the story behind
this initiative.
The team at Tata Industries, under the guidance of Executive Director KRS
Jamwal, envisioned it. Like Google for search and Facebook for social networking, the
team envisioned a differentiated offering, which will deliver innovation and customer
value. After studying various e-commerce and retail models in India and across
different international markets and analyzing consumer pain points in the shopping
journey, we came up with a unique solution of Phygital, which marries the best of
Physical (store) shopping benefits and Digital (online) shopping convenience,
supported by bespoke technology platform that we believe can usher in the next phase
in the e-commerce story.What we had until now was two sets of players retailers and
e-com marketplaces doing their own business in isolation, while the consumer has
been seamlessly moving between the offline and online world in the rest of spheres.
The foundation stones for Tata CLiQ were laid on this belief that the e-commerce we
are experiencing now is just e-retail 1.0. As we go along, e-retail 2.0 is going to bring
revolutionary change to the way we are doing e-commerce. The two identities of a
consumer one who shops online and one who buys at physical stores will merge.
Tata CLiQ aims at leading this changing landscape of e-commerce.
What is the USP of this platform?
We are the worlds first phygital e-commerce marketplace that brings shoppers the
ease and convenience of online shopping along with the reassurance of in-store
experiences. We are a destination of authentic and exclusive brands that provides a
curate shopping experience for customers who are tired of sifting through catalogues
of infinite products from unknown sellers.We have a deep integration with our brand
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partners/sellers and a unique seller portal that aims to integrate the stores to the
platform. This will be a key differentiator in us being extremely responsive and cued
into consumer needs and preferences.

Has Tata CLiQ planned for any innovative promotional strategy in this regard?
Tata CLiQ being a unique phygital e-commerce marketplace has titled its advertising
campaign #SureThing. The digital campaign centered on a camel as its unlikely
protagonist stems from the fact that everything one buys on TataCLiQ.com is a
C.A.M.E.L i.e. Certified Authentic Merchandise Everybody Loves. A delightful, witty,
quirky take on online shopping, the campaign focuses on TataCLiQ.coms USP of being
the #SureThing in shopping. The camel also acts, as a surrogate for the authentic,
exclusive products and brands sold at TataCLiQ.com be it apparel, electronics or
footwear. The campaign is in line with the TataCLiQ.com phygital philosophy i.e. it is
driven across the online world, mobiles and partner brand stores.There are
three announcer films i.e. bubble wrap, photographer and testing, the videos highlight
the care and effort taken by the TataCLiQ.com crew in curating, checking and getting
the camels ready for our consumers.
Tata CLiQ is offering phygital experience to its customers. However, if somebody
orders merchandise from such a city, where either a Tata store or the store of
the particular brand does not exist, how will the click and collect apply?
Currently, we are operational in 6,856 pin codes, 23 States and 2 Union Territories
across 689 cities and towns. We have kicked off phygital services across 500 stores
with instant return or exchange at the brands stores being the primary benefit and
100+ stores that will offer a full suite of services across the purchase process like
order pick up from store, instant returns and exchange, after-purchase support
installations etc. We hope to scale this up to 2,000 stores offering not just same brand
phygital services but also cross formats across multiple brands in the future.With a
significant retail footprint across India including the Tier II and Tier III cities, CLiQ
and PiQ is the advantage of having a phygital eco-system but is not restricted to the
same. Customers who order online on TataCLiQ.com and do not have a store of a
particular brand in their area can get the products home-delivered. We are building
capabilities in delivering the online+in-store seamless shopping journey and will
collaborate or invest in different logistics and service providers that could help us fill
need gaps and bring additional competencies in this space.
Recently we have seen many companies coming up with their own e-commerce
platform like Reliance with AJIO, Arvind with NNNOW, Aditya Birla Group with
ABOF etc. How Tata CLiQ is different from these?
Unlike any other e-retail platform, TataCLiQ.com promises to provide consumers the
surety of high quality authentic products (directly from the brands) coupled with
authentic brand experiences on-site and in-stores. We are the worlds only PHYGITAL
marketplace and redefining the meaning of online shopping in India. TataCLiQ.com is
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the only online portal that will give its customers access to online stores of partner
brands as against buying from unknown resellers. It also promises a full range and
newest merchandise of a brand, as against limited availability and dated inventory.
The biggest differentiator is the choice and convenience of phygital an online and
through partner stores services for collection, returns/ alterations and after-sales
support, as against restrictions of time and place. Further, we also believe that
continuous evolution and innovation is an essential facet in e-commerce. Having great
technology and using it effectively are key factors in the success of a business. We aim
to deliver real-time visibility of order and stock to the customer. We have a robust
technological base and are confident of being able to capitalize on the knowledge and
information to better our offering as we evolve.
There are many e-commerce platforms like Darveys, MajorBrands etc. in the
country, which offers international branded products. Since the market already
has many options in this sector, what prompt Tata to launch this particular
initiative?
We believe that consumers have always had an on-going demand to experience
international brands from across the globe. They are well-traveled and aware of global
fashion trends and have the purchasing power to own several of these brands. The
only barrier preventing them from buying these products is unavailability of these
brands in India and the mistrust and the lack of authenticity. We have curated the list
of brands, and offer products directly from them or their authorised sellers. At
TataCLiQ.com, we dont have an endless listing of products, we have brand-malls. We
offer personalised brand-experience to our consumers, and aim to give them a
delightful and engaging shopping experience of curated brands, rather than just a
choose-and-pick purchase of products.
In India, fake copies of international brands are easily available in a pocket
friendly price everywhere. In such a state, do you think that this platform will be
successful?
Our primary customer is brand conscious and looking for authentic products. If their
favorites are available online directly from the trusted brands, we have no doubt that
they will look at Tata CLiQ as their preferred platform to shop the brands online. We
have formed a strategic partnership with Genesis Luxury Fashion Pvt. Ltd. to offer a
wide range of international luxury brands, like Coach, Burberry, Furla, Tumi, Hugo
BOSS, Jimmy Choo, Giorgio Armani, Emporio Armani, Armani Jeans, Bottega Veneta,
Canali, G-Star RAW, Michael Kors, Paul Smith and Villeroy & Boch exclusively in
India. Apart from this, we have also formalised a strategic partnership with several
international brands including New Look, Warehouse, Oasis, Lipsy London, Quiz,
Phase Eight, FG4 London, Infinity Lingerie, Hawes & Curtis, s.Oliver, Kurt Geiger and
Make It Mine-MIM. These brands will offer exclusive range of products that will be
available on TataCLiQ.com.

As of now, Tata CLiQ is associated with 12 international brands. What is more in

the future?
Currently, we have curated brands from markets around the world such as UK,
France, Germany and Russia to start with. Consumers will now have access to this
portfolio of wide range of international brands and their product ranges on
TataCLiQ.com, the same time they hit the shelves in the global markets. In the coming
months, we plan to launch brands from across the world. Over the next year,
TataCLiQ.com will expand its portfolio to include 100+ international brands to its
kitty.

2. Face2Face; Prathyusha Agarwal; Head- Marketing; Tata Cliq

Source:www.fibre2fashion.com/interviews/face2face; 14/10/2016
Phygital format key to enhancing consumer experience:
Tata CLiQ is Tata Group's multi-brand e-commerce platform offering consumers a new
shopping experience in apparel, electronics and footwear categories at launch and
adding more product categories over the next few months. Prathyusha Agarwal, HeadMarketing, speaks about Tata CLiQ's unique phygital experience and discusses the
philosophy behind it.
How would you describe the Indian e-commerce market? At what rate is it
growing?
At one end there are conversations about over-valuation of businesses and on the
other is robust growth in consumer demand. The latter is good news for businesses
operating in this space. A significant number of Indians are experiencing the Internet
for the first time in their lives on a smartphone. This directly increases expectations
from mobile apps for shopping.A considerable number of consumers in India are also
used to have a look and feel of products they buy. While there are consumers who have
not yet migrated to the online space, digitisation is penetrating in India at a very rapid
pace, with connectivity in Tier II and III cities improving day-by-day. This year, India
overtook the United States of America in terms of active mobile users (220 million
active users), and is currently at second place behind China. Mobile penetration is
increasing exponentially and India is the leader in terms of switch from e-commerce to
m-commerce. About 41 per cent of total e-commerce sales in India are from mobile.
Thus, that user-base is large and growing by the minute. We believe the larger
opportunities for Tata CLiQ are the next 100 million netizens who are currently not
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shopping online because of mistrust. The brick and mortar format, if supplemented by
the web, has immense potential to grow beyond what is currently projected.
Enhancing the customer experience is key and the phygital (seamless integration of
physical and digital) format holds the key to this enhancement.
How has been the response to Tata CLiQ since its launch this May?
Our attempt with Tata CLiQ was to create the first of its kind unique phygital offering
that combines online commerce with store inventory mapping and logistics
management, giving sellers/ brands an interface and complete control to manage their
brand. This multiplayer multi-channel model is complex and requires a bespoke
technology platform eventually providing the end users a.k.a. the customers, the best
of two worlds in one place.We have received remarkable amount of love and support
from customers. From launch day till date, customers have been looking up to us,
which gives us a great deal of joy and satisfaction that we are building something for
the future. Within the first week of launch, we received orders from every Indian state
and 50 per cent of our customers are from metros and the rest from smaller cities. We
have also seen overwhelming response in terms of building traffic to the website. From
where we set out during launch till date, we are witnessing a 3X growth. That comes to
about 30 per cent week-on-week growth in sales since launch, with a 15 per cent
repeat rate amongst customers. Customers love the extra convenience provided by Tata
CLiQ with phygital benefits, where we have seen outstanding orders between the
apparel and electronics categories alone. The exchange and return to stores benefits
are becoming more convenient and time efficient for the consumers and hence
increasing their preferences for shopping with us.
What advantages and challenges do home-grown start-up e-commerce platforms
have in comparison to Tata CLiQ?
Home grown start-ups have a lot of challenges to cater to the potential online
shoppers. The major challenge is to perfect supply chain, logistics/ last mile delivery
plus offer authentic and genuine products given they are a marketplace wherein
product quality cannot be directly controlled by them. We as Tata CLiQ aim to be a
true brand partner where we will not try and dis-intermediate and we get the ecommerce consumer to the physical brand and get the physical retail brands to the econsumer. This translates itself by how we create the brand store fronts, integration
with sellers and control on promotion and pricing. This is our biggest advantage over
other players.
How did you come up with quirky idea of Certified Authentic Merchandise
Everybody Loves (C.A.M.E.L.)?
As is evident from our digital campaign, Tata CLiQ wants to be a brand that engages
and converses with consumers rather than one that broadcasts or communicates at
the consumer. We took on board Cartwheel, a unique creative agency with interests in
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entertainment and advertising, who think beyond the 30 seconds commercial to truly
bring alive the brand in its various forms to the consumers. They delivered a unique
creative idea of C.A.M.E.L. that's Certified Authentic Merchandise Everybody Loves.
The idea germinated from the USP of Tata CLiQ #Surething, in the sense that
whatever you buy at Tata CLiQ is a Camel, as it symbolises and assures our
consumers of authentic and exclusive goods and trustworthy service. We promise to
deliver authentic and trustworthy products at honest price. The camel campaign was
one that naturally belonged to the digital space and we have leveraged it quite well, it
also went out in physical stores.

3. A 'phygital' revolution is coming and we will lead it, says Tata CLiQ
CEO
Source: www.firstpost.com; Sulekha Nair Updated: Jun 1, 2016
The Tata groups foray into e-commerce portal, TataCLiQ.com, which they term as the
first-of-its-kind multi-brand phygital e-commerce marketplace that will seamlessly
blend online and in-store shopping experience for customers will enable customers to
buy from its website (www.tatacliq.com) and also through the mobile apps (iOS and
Android platforms) on Day 1. E-Commerce business in India is at a very nascent
stage and is growing very rapidly. Businesses are coming up with innovative and
clutter breaking ideas. We believe that the industry will witness growth in the coming
years. Digitization in India is growing exponentially along with smart phone and
internet penetration. This gives great opportunity to tap the upcoming market, says
Ashutosh Pandey, CEO, TataCLiQ.com.
Excerpts from interview of Ashutosh Pandey, CEO, TataCLiQ
What prompted Tatas to make an entry at such a late stage after many entrants
have come? Was this a deliberate decision?
Google wasnt the first to the search party nor was Facebook to social networking.
They definitely came with a differentiated offering and ever since delivered continued
innovation and customer value. We have spent the past 18 months studying various ecommerce and retail models in India and across different international markets,
analysed consumer pain points in the shopping journey to come up with a unique
solution and a bespoke technology platform that we believe can usher in the next
phase in the e-commerce story.What we had till now was two sets of players retailers
and ecommerce marketplaces doing their own thing while the consumer has been
seamlessly moving between the physical and digital world in the rest of her spheres.
With TataCLiQ.com, we will be the first in ushering the seamless shopping journey
across these two currently disjoint worlds. A phygital revolution is coming and we will
be leading it.
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What is the business strategy you are adopting to differentiate you in the
ecosystem?
What we have experienced so far is e-retail 1.0 with two different sets of people doing
retail by themselves. What we will offer is e-retail 2.0. It is merging these two different
sides because the reality on the ground is that much more integrated. Managing an
omni channel inventory for several brands is not an easy task. Hence, this is where
our technology is unique. It has the ability to connect the online identity of the
consumer in store and recommend personalised solutions to provide a seamless
experience.We will provide a curated shopping experience for customers. We have a
deep integration with our brand partners/ sellers and a seller portal that aims to
integrate the stores to the platform. This will be a key differentiator.
Why is your focus limited to electronics and apparel?
We have launched with apparel, footwear, and electronics and will progressively add
other categories like accessories, jewellery, home, beauty, and eyewear. Currently we
have 400+ Indian and international brands, both Tata and non-Tata and 15 high-end
international brands of which 10 will be available exclusively on TataCLiQ.com in
India.
Will you also offer discounts? What is your USP?
As any
retailer would, we will be leveraging offers and discounts as a tactical tool. In fact, we
are throwing a freebie fest at launch and everyones invited. The first one lakh
customers will get something extra/ free with their purchase. These will range from
CLiQ vouchers, partner brand gifts with their merchandise purchase to some surprise
gifts for 100 customers every day and bumper gifts at the end of this period. We aim to
offer much more than just discounts to the consumer and build loyalty with our
authentic products and exclusive brands.
How many jobs and hires will your venture create?
Starting out we already have 100+ strong CLiQ Crew handling the key functions of our
business.
What, in your opinion, is the reason for folding up of many ecommerce ventures?
With one in 6 Indians being online but only 30 million actively shopping, we believe it
will be a long and interesting journey for this sector to grow to its full potential. There
are bound to be many shake-ups and consolidation cycles with the rapidly changing
technology and consumer preferences. This is a regular churn, where existing
businesses correct themselves, newer ones bridge gaps and the end consumer is
benefitted.

4. TataCLiQs camel campaign clicks on YouTube

Source: Livemint; 26/10/2016

Executed by Cartwheel Creative, the campaign shows camels as surrogates for

multiple products. TataCLiQ has entered a growing but intensely competitive Indian e7

commerce market which is dominated by Amazon and Flipkart. Tata Group-owned

multi-brand e-commerce marketplace TataCLiQs maiden digital campaign, titled Sure
Thing, has managed to fetch over 2.1 million views on YouTube in just four days. The
campaign was uploaded on the companys official YouTube channel on 30 May.
Executed by Mumbai-based advertising agency Cartwheel Creative, the campaign
opens with a young woman getting a camel home-delivered. In subsequent shots, the
camels are shown acting as a surrogate for multiple products, ranging from apparels
to electronics. The execution centering on a camel as its unlikely protagonist
represents the companys proposition that everything one buys on TataCLiQ is a
C.A.M.E.L (Certified Authentic Merchandise Everybody Loves). The film is further
enhanced with a quirky jingle Get the Oont.
But will such an execution confuse the consumer?
D. Ramki, founder, Cartwheel Creative disagrees. We did a dipstick research and
found that people actually understood the relevance of camel in the campaign. It is
memorable and clutter-breaking. There is a lot of me too advertising when it comes to
the e-commerce space. We wanted to stay away from showing apps and products in
the ad, he said.
Currently, the campaign is being promoted on the digital and social media. The
company is closely gauging consumer response and plans to leverage mass media
platforms in the coming months. Its agency roster includes digital agency Digitas LBi,
media agency Maxus and digital marketing agency Interactive Avenues. TataCLiQ has
entered a growing but intensely competitive Indian e-commerce market which is
dominated by established players such as Amazon and Flipkart. The e-commerce
market will account for 2.5% of Indias gross domestic product (GDP) by 2030, growing
15 times and reaching $300 billion, a Goldman Sachs report said in May.The new ecommerce company differentiates itself as a curated marketplace which works on a
phygital model. This model integrates virtual and physical assets giving consumers
an option to buy online and pick up or return products from partner brand stores.
Prathyusha Agarwal, marketing head, TataCLiQ, said, Unlike most marketplaces,
TataCLiQ deals with brands directly or through their authorised sellers. We are a
curated marketplace of branded products. There are many undifferentiated product
listings on e-commerce sites today. Consumers are tired browsing through products
from unlisted unknown brands. Cliq aims to address this need gap.
TataCLiQ is targeting 25-40-year-old consumers from SEC A, looking for authentic
brand product experience. Owing to its phygital model, it currently works with 12
partner brands across 500 retail outlets across the country. Some of these brands
include Westside, Croma, Killer, Jack & Jones, Vero Moda, Only, Metro and Mochi,
among others.

However, a phygital model comes with its own set of challenges, said Agarwal.
Integrating the inventory of retail stores and scaling the consistency of services at
these stores remain the primary challenges.
Using data analytics to identify a consumer who walked in a store having browsed the
CLiQ site and being able to serve him is another challenge.
K. Vaitheeswaran, e-commerce consultant and founder, Indiaplaza (Indias first ecommerce website), raises a pertinent question on the phygital model. According to
him, unlike in the UK and Europe where it works well, an omni-channel retail
approach might just not take off in India owing to poor urban infrastructure. Talking
about the campaign, Vaitheeswaran said while the camel is an interesting symbolism
for authentic products, the proposition is not new. Recall Flipkarts Bilkul pakka and
Amazon Indias We Indians Love Asli campaigns which are also created around
authenticity.
Meanwhile, Sambit Mohanty, creative head, DDB Mudra North, said that e-commerce
companies are trying to outshout the competition and hence resorting to outlandish
advertising. But there are pitfalls in this approach as exemplified in this ad for
TataCLiQ. One doesnt get the connect between the oont and what the site has to offer.
Wait, did you say Camel isnt a word but a fancy acronym? Well, sometimes its best to
spell things out rather than leave it to a blink-and-you-miss super at the end. Its a
nicely produced ad, but greatly confusing, and thats a real pity, he noted.
According to Anirban Chaudhuri, senior vice-president and executive planning
director, J. Walter Thompson Delhi, TataCLiQ should have focused on the Phygital
platform, which many think could be the driver of the next wave of e-commerce.Tata
is a corporate name that evokes trust beyond doubt. So TataCLiQ trying to reassure
about certified authentic merchandise is a redundant effort. The acronym C.A.M.E.L
too appears too contrived, especially the Everybody Loves bit looks like an exertion
just to make it become a camel! The oddity of using the animal in the advertisement
will surely offer executional cut through, he explained. Chaudhuri believes the
campaign, in its impact of creating brand equity and driving persuasion, is at most
oont ke muh mein jeera (too less for too big a need).