Digitalization of Croma

The continued rise of ecommerce has been the most important retail trend fuelled by Covid-
19. Now, with the online electronics shopping trend picking pace, Tata Group is reportedly
mulling to transfer its electronics arm Croma from Infiniti Retail to Tata Digital. The move is
in line with Tata Sons chairman N Chandrasekaran vision to omnichannel commerce brands
under one roof.

Tata Digital, the digital arm of Tata Sons, was set up in 2019 to foray into new business
avenues while serving Indian customers directly. The subsidiary, built on acquisitions of
new-age business ventures, is at the helm of Tata’s super app called TataNeu  in beta version
— which is currently available for testing among Tata Group employees.

Electronics is a top category that clocks the highest share of total online sales, and this is one of
the reasons Tata Sons decided to transfer Croma’s shares to Tata Digital.

Recently, Tata group subsidiary and IT giant TCS, too, announced its focus B2B brands amid
the rising traction of online shopping — it would provide the SaaS enabling its clients to
establish direct customer connect, gain better margins and scale of business and volumes.

The movement of Croma to Tata Digital claims to be fuelled by the increasing share of
electronics in online sales.

Pratik Pal, CEO, Tata Digital, said small retailers can expect more gains. “Some of the
companies like Big Basket or Croma already have large B2B businesses. Small sellers and
retailers are already supplying to these brands. As the footprint increases and growth takes
place, small sellers selling to large brands will also benefit in the same way”. By this small
seller who are supplying to Croma will also be benefitted hence they can have a long term &
loyal relationship.