
When Tata Neu launched in April 2022, it aimed to bring together Tataโs powerhouse brandsโBigBasket, Croma, Tata 1mg, Tata Cliq, flights and hotel bookings, and moreโinto ๐จ๐ง๐ ๐ฌ๐ฎ๐ฉ๐๐ซ ๐๐ฉ๐ฉ
Backed by a $200M investment and ๐๐๐ฎ๐๐จ๐ข๐ง๐ฌ loyalty program, the goal was seamless shopping, travel, and financial services all under one app
But delivering a unified digital ecosystem isnโt easy!
In the first year ended March 2023, Tata Neu reported ~$4B in sales, far short of the $8B target. Why?
Here are the ๐ค๐๐ฒ ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ it faced:
โข ๐๐๐๐ก๐ง๐ข๐๐๐ฅ ๐๐จ๐๐ฌ: Frequent crashes, laggy performance, and complicated design turned users away
โข ๐
๐ซ๐๐ ๐ฆ๐๐ง๐ญ๐๐ ๐๐ง๐ญ๐๐ ๐ซ๐๐ญ๐ข๐จ๐ง: Services felt disconnected, making the app seem like a patchwork rather than a unified platform
โข ๐๐๐ฎ๐๐จ๐ข๐ง๐ฌ ๐๐ข๐ฆ๐ข๐ญ๐๐ญ๐ข๐จ๐ง: Low redemption value and restrictions couldnโt match competitorsโ lucrative cashback offers
โข ๐๐๐ซ๐ค๐๐ญ ๐๐๐ญ๐ฎ๐ซ๐๐ญ๐ข๐จ๐ง: Tata Neu entered sectors already dominated by strong players like Amazon, Flipkart, and Google Pay
๐๐ก๐ ๐๐๐๐ฅ๐ข๐ญ๐ฒ: Despite hitting 12M downloads, retention was just 35%, compared to Amazon Primeโs 75%
๐ ๐๐ก๐ ๐๐๐ฐ ๐๐๐ฎ: ๐๐๐๐ซ๐ง๐ข๐ง๐ , ๐๐๐ฏ๐๐ฆ๐ฉ๐ข๐ง๐ , ๐๐ซ๐จ๐ฐ๐ข๐ง๐
In April 2023, Tata Neu revamped with improved UI/UX, faster performance, and personalized chatbots, leveraging IPL 2023โs visibility as aย title sponsor to boost engagement
๐ฅ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ ๐จ๐ ๐ญ๐ก๐ ๐๐๐ฏ๐๐ฆ๐ฉ
โข App ratings rose from 3.8 to 4.2 stars on app stores
โข 75 million NeuPass loyalty members (web + app combined)
โข 13 million downloads during the IPL season, pushing total downloads to 60 million
โข 60% increase in repeat purchases
๐ ๐๐จ๐จ๐ค๐ข๐ง๐ ๐๐ก๐๐๐
In October 2024, Tata Neu launched ๐๐๐ฎ ๐
๐ฅ๐๐ฌ๐ก in 20 cities, stepping into the q-commerce with a promise of 10-minute essential deliveries, competing with players like Zepto and Blinkit, leveraging a tiered fee model
๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข A user-friendly, intuitive design is key to retaining customers
โข Gradual service rollouts and leveraging established brands like BigBasket and Croma could have provided a stronger foundation and prevented early technical challenges
๐๐ง ๐๐จ๐ง๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง
Superapps have thrived in East and Southeast Asian countries like China, where people share similar languages and cultures. For a super app to succeed in India, it must offer a highly personalized and localized user experience while overcoming users’ strong reliance on existing apps.
๐๐๐ง ๐๐๐ญ๐ ๐๐๐ฎ ๐๐ซ๐๐๐ค ๐ญ๐ก๐ซ๐จ๐ฎ๐ ๐ก ๐๐ง๐ ๐๐๐ก๐ข๐๐ฏ๐ ๐ข๐ญ๐ฌ ๐ฌ๐ฎ๐ฉ๐๐ซ-๐๐ฉ๐ฉ ๐ฏ๐ข๐ฌ๐ข๐จ๐ง, ๐จ๐ซ ๐ข๐ฌ ๐๐ง๐๐ข๐โ๐ฌ ๐ฌ๐ฎ๐ฉ๐๐ซ-๐๐ฉ๐ฉ ๐๐ซ๐๐๐ฆ ๐ ๐ญ๐จ๐ฎ๐ ๐ก๐๐ซ ๐ง๐ฎ๐ญ ๐ญ๐จ ๐๐ซ๐๐๐ค?
Tata Neu
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Amardeep is a retail analyst who studies global retail trends and forecasts across diverse sectors, offering insights into the market dynamics, opportunities, and challenges faced by businesses. Her expertise spans both market-wide and city-level analysis, helping organizations navigate the complexities of the retail landscape with informed, data-driven perspectives.
Radhika is a retail analyst specializing in tracking multinational retailers on their strategy, with a focus on "Go-To-Market" approaches. Radhika examines each potential retailer in-depth, across the geographical scope of the USA, APAC, UK, and Europe
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