Eighteen months after the launch of its digital super app, Tata Neu will expand its portfolio by bringing Air India and Tata Motors on the platform.
Both these businesses are among the largest brands of the Tata Group. Tata Motors was founded in 1945 and Air India was the national carrier, before it was acquired by the Tata group.
Sources told businessline that Air India and Tata Motors will come on the digital platform soon, as part of the vision to make people’s life simpler by bringing Tata brands to Neu customers.
Industry sources further said Tata has also been in discussion with non-Tata brands to potentially bring them on-board Neu, in line with Tata Group Chairman, N Chandrashekharan’s vision for Neu.
Tata Neu has had a sluggish start to on-boarding new customers. It was envisioned as a singular platform that would bring all Tata brands under one roof. Sources said the plan is to bring omnichannel shopping experience across all Tata brand. One of the things that has worked for Neu is its loyalty programme wherein customers get points for buying on the platform. These points can be redeemed across products. According to experts, adding a brand such as Air India on the platform could enhance this programme because airline miles could, for example, be redeemed for buying groceries.
While it has grown, Tata Neu has not achieved the kind of ubiquity enjoyed by traditional e-commerce brands. Super apps have usually not done too well in India, and some major Tata brands were conspicuously absent from the platform.
Experts believe that adding new brands to the platform might not be an effective growth strategy for Tata Neu. Sanchit Vir Gogia, Chief Analyst and CEO of Greyhound Research said, “Tata Neu executives need to envisage the super app as an umbrella loyalty programme rather than a platform. Making a platform is no longer a differentiator. Practically everyone has a super app. As traditional Tata brands come on-board Neu, they must sunset traditional loyalty programmes that have worked independently of them. That is the only way customers will be incentived to use Neu. Tata Neu should integrate seamlessly with other e-commerce platforms, where Neu points can be acquired by shopping for Tata products on other online platforms too.”
Last month, Tata Neu launched a co-branded credit card with HDFC Bank, which is purportedly doing well. However, Neu continues to be a platform for the savvy consumer, rather than a seamless go-to programme for Tata customers, according to experts.
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Published on January 2, 2024
