When Tata Neu launched in April 2022, it aimed to bring together Tataโ€™s powerhouse brandsโ€”BigBasket, Croma, Tata 1mg, Tata Cliq, flights and hotel bookings, and moreโ€”into ๐จ๐ง๐ž ๐ฌ๐ฎ๐ฉ๐ž๐ซ ๐š๐ฉ๐ฉ

Backed by a $200M investment and ๐๐ž๐ฎ๐‚๐จ๐ข๐ง๐ฌ loyalty program, the goal was seamless shopping, travel, and financial services all under one app

But delivering a unified digital ecosystem isnโ€™t easy!

In the first year ended March 2023, Tata Neu reported ~$4B in sales, far short of the $8B target. Why?

Here are the ๐ค๐ž๐ฒ ๐œ๐ก๐š๐ฅ๐ฅ๐ž๐ง๐ ๐ž๐ฌ it faced:

โ€ข ๐“๐ž๐œ๐ก๐ง๐ข๐œ๐š๐ฅ ๐–๐จ๐ž๐ฌ: Frequent crashes, laggy performance, and complicated design turned users away
โ€ข ๐…๐ซ๐š๐ ๐ฆ๐ž๐ง๐ญ๐ž๐ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ญ๐ข๐จ๐ง: Services felt disconnected, making the app seem like a patchwork rather than a unified platform
โ€ข ๐๐ž๐ฎ๐‚๐จ๐ข๐ง๐ฌ ๐‹๐ข๐ฆ๐ข๐ญ๐š๐ญ๐ข๐จ๐ง: Low redemption value and restrictions couldnโ€™t match competitorsโ€™ lucrative cashback offers
โ€ข ๐Œ๐š๐ซ๐ค๐ž๐ญ ๐’๐š๐ญ๐ฎ๐ซ๐š๐ญ๐ข๐จ๐ง: Tata Neu entered sectors already dominated by strong players like Amazon, Flipkart, and Google Pay

๐“๐ก๐ž ๐‘๐ž๐š๐ฅ๐ข๐ญ๐ฒ: Despite hitting 12M downloads, retention was just 35%, compared to Amazon Primeโ€™s 75%

๐Ÿ›  ๐“๐ก๐ž ๐๐ž๐ฐ ๐๐ž๐ฎ: ๐‹๐ž๐š๐ซ๐ง๐ข๐ง๐ , ๐‘๐ž๐ฏ๐š๐ฆ๐ฉ๐ข๐ง๐ , ๐†๐ซ๐จ๐ฐ๐ข๐ง๐ 
In April 2023, Tata Neu revamped with improved UI/UX, faster performance, and personalized chatbots, leveraging IPL 2023โ€™s visibility as aย title sponsor to boost engagement

๐Ÿ’ฅ ๐‘๐ž๐ฌ๐ฎ๐ฅ๐ญ๐ฌ ๐จ๐Ÿ ๐ญ๐ก๐ž ๐‘๐ž๐ฏ๐š๐ฆ๐ฉ
โ€ข App ratings rose from 3.8 to 4.2 stars on app stores
โ€ข 75 million NeuPass loyalty members (web + app combined)
โ€ข 13 million downloads during the IPL season, pushing total downloads to 60 million
โ€ข 60% increase in repeat purchases

๐Ÿ›’ ๐‹๐จ๐จ๐ค๐ข๐ง๐  ๐€๐ก๐ž๐š๐
In October 2024, Tata Neu launched ๐๐ž๐ฎ ๐…๐ฅ๐š๐ฌ๐ก 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

๐Ÿ”‘ ๐Š๐ž๐ฒ ๐“๐š๐ค๐ž๐š๐ฐ๐š๐ฒ๐ฌ
โ€ข A user-friendly, intuitive design is key to retaining customers
โ€ข Gradual service rollouts and leveraging established brands like BigBasket and Croma could have provided a stronger foundation and prevented early technical challenges

๐ˆ๐ง ๐œ๐จ๐ง๐œ๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง
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.
๐‚๐š๐ง ๐“๐š๐ญ๐š ๐๐ž๐ฎ ๐›๐ซ๐ž๐š๐ค ๐ญ๐ก๐ซ๐จ๐ฎ๐ ๐ก ๐š๐ง๐ ๐š๐œ๐ก๐ข๐ž๐ฏ๐ž ๐ข๐ญ๐ฌ ๐ฌ๐ฎ๐ฉ๐ž๐ซ-๐š๐ฉ๐ฉ ๐ฏ๐ข๐ฌ๐ข๐จ๐ง, ๐จ๐ซ ๐ข๐ฌ ๐ˆ๐ง๐๐ข๐šโ€™๐ฌ ๐ฌ๐ฎ๐ฉ๐ž๐ซ-๐š๐ฉ๐ฉ ๐๐ซ๐ž๐š๐ฆ ๐š ๐ญ๐จ๐ฎ๐ ๐ก๐ž๐ซ ๐ง๐ฎ๐ญ ๐ญ๐จ ๐œ๐ซ๐š๐œ๐ค?

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amardeep.kaur@resconpartners.com | + posts

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.

Rescon Partners | radhika.r@resconpartners.com | Website | + posts

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