The company is in talks to lease space to sell beauty and cosmetics products at stores in malls and high streets in major cities, they said.
“The company thinks that the beauty segment is a scalable business and with a return to work, consumers are preferring store visits instead of shopping digitally,” said one of them.
Rival online beauty product retailers Nykaa and NewU have already built an offline presence.
Executives said Tata Cliq may pivot its business on luxury or beauty and the challenge for it would be to differentiate itself from rivals such as Myntra in fashion and Nykaa in the beauty space.
The company is currently testing Tata Cliq Palette, a dedicated app for beauty and cosmetics, and plans to take it offline. “While there is a dedicated app for the segment, Tata Cliq will come up with stores also around the same time,” said the person quoted above.
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“These will be small format stores hacking multiple domestic and international brands,” another person said. “Initially, the company will focus on metro cities before going to tier-2 cities.”Tata Cliq declined to comment.
The ecommerce platform deals in segments such as apparel and electronics besides beauty products.
Tata Cliq is expected to be integrated with Tata Neu super app and made a subsidiary of Tata Digital as the group seeks to consolidate its major ecommerce ventures under this entity. At present, Tata Cliq is run by Tata UniStore which is jointly owned by Tata Industries and the group’s lifestyle retail venture Trent.
Tata Cliq may also exit the consumer electronics category, a senior executive at one of the group companies said.
Tata Cliq’s consumer electronics, smartphones, and appliances division form 50-55% of its business. The division is integrated with Croma, Tatas’ flagship consumer electronics retail chain, which will be the primary entity enabling sales of such products on the Tata Neu app, officials said.
As per latest regulatory filings, Tatas infused Rs 11,872 crore into Tata Digital last fiscal – the highest ever fund allocation the group has made into ecommerce in any single year – to help the company build a war chest to take on bigger ecommerce rivals such as Amazon and Walmart-owned Flipkart.
A 2021 report by Avendus predicted the online personal care and beauty market in India to touch $4.4 billion by 2025. Online beauty and personal care shoppers are likely to increase in numbers by over four times — from 25 million in FY20 to 110 million in FY25, it said.