Tata Group plans to enter in Indian E-commerce Market After Alibaba’s Success

Tata-Motors-LogoThe Tata Group is planning to enter into the Indian e-commerce space with a marketplace model after China’s Alibaba success, which recently completed its IPO in US for an amount of USD 25 billion.

As per an Economic Times report, the group is expected to take cues from domestic e-commerce websites such as Flipkart, Amazon India and Snapdeal. A person familiar with the Tata Group’s plans said that, “The initiative will be led by Tata Industries Ltd, a fully owned subsidiary of Tata Sons that shepherds the group’s entry into new businesses, and not by its existing retail units.”

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Tata is already running an online portal for its consumer electronic goods business, Croma, but the new marketplace will allow third-party sellers on the platform and take charges from merchants who will be using the platform. The group is modelling its business on Alibaba Group’s marketplace Tmall.com, which generated USD 248 billion of gross merchandise volume with B2C marketplace Taobao.com last year.

The marketplace business is expected to start in 2015 and company is also looking to bring in joint venture partner Zara in the new business. Initially, it will showcase the Tata’s retail business like Westside, Croma and Star Bazaar.