Find out more about how Tata Neu is being revived again. Tata investing 2 billion into Tata Neu to make it digital centerpiece
March 27, 2023
Great concept, but it seriously needs a rethink to be truly useful
After Tata Neu was almost relegated to the background, there seems to be an attempt to revive the idea. Tata group now plans to invest $2 billion into Tata Neu and once again wants to make it the digital centerpiece of Tata group.
is Tata Neu all about?
Tata Neu was an
attempt by the Tata group to provide a digital platform for all the Tata
products. For instance, the customer could log into Tata Neu and could actually
book tickets on Vistara, order for groceries, buy apparel at the Westside
store, buy electronic goods at Croma, and even book a car or an EV from Tata
Motors; all on one interface. The project began with a bang, but it fell short
of targets and later saw a slew of top-level exits. Now the Tata Neu is being
revived, but will it really work?
One of the main
reasons that Tata Neu did not take off in the first round was that it did not
offer the value proposition that the names like Amazon, Flipkart or even
Reliance Retail offered. You shop on the internet since you get a choice and
are able to digitally compare the various products and make a choice and
execute the transaction. That is what is an agnostic platform. However, the
Tata Neu platform was limited only to Tata group products and that took away
the most salient feature of ecommerce, which is the array of choice available.
for Tata Neu
The first thing
that the Tata group will have to decide upon is whether to follow the ecommerce
model or the group model. For instance, Adani is planning a super-app that will
be entirely focused on being a group app. It will purely be launched with the
idea to bring all the businesses of Adani under one digital roof. That is one
extreme model. The other extreme is the ecommerce model where you emerge as an
agnostic base but then you compete with the likes of Amazon and Flipkart; both
with very deep pockets and digital DNA. The future of Tata Neu will depend on
how they make this choice and move ahead.
Tata Neu work
Tatas have a choice to make and they have to
make the choice before they commit $2 billion. It is best to convert Tata Neu
into a very innovative digital platform wherein all the products and services
of Tata group can be accessed, but it must be a lot more. It has to be a portal
rich in content and a combination of B2C and B2B. For a diverse group like the
Tatas, the platform like Tata Neu can add tremendous value. However, it would
largely depend on how the same is positioned. You really have too few super
apps in the market to benchmark and not for a group as diverse as the Tatas.
However, if they can pull off this project, it could be huge. It could set a
major benchmark for digitization!