Tata CLiQ Luxury is a pioneer in the luxury e-commerce space in the country. Launched in 2016, the platform offers 400+ premium and luxury brands across a range of categories like accessories, apparel, beauty and grooming, footwear, gourmet, home décor, stationery, watches, and more. We speak to Gitanjali Saxena, Business Head - Global Luxury, Tata Cliq Luxury on the impact of the pandemic on the luxury market, growth in e-commerce, and new trends in luxury shopping. Excerpts:
1) How has the Indian luxury market been impacted by the pandemic?
The Indian luxury market has evolved and transformed. The cultural shifts in the sector have resulted in this new world of luxury.
The pandemic has encouraged digital adoption, and this is not limited to just the luxury market. E-commerce has aided the growth of luxury by increasing its reach, therefore, making it more accessible. Consumers have embraced this new way of shopping for luxury. Various brands are leveraging digital commerce and strategising to expand their business beyond major cities.
Luxury today is not just limited to the product, but it is the holistic shopping experience offered by the brand. Technology is being used by online platforms to provide a distinct service without diluting the brand experience.
With the pandemic, consumers' perspectives have shifted, and they are now more mindful about their purchases. Conscious consumption is being celebrated and consumers today look forward to engaging with brands and platforms which provide curated options that are reflective of their personal value systems and are testaments to their evolving taste.
At Tata CLiQ Luxury, we are embracing our brand philosophy of Slow Commerce, where the focus switches to finer elements like craftsmanship, heritage, and the value of an experience while shopping for luxury.
2) Are more brands likely to be brought on board?
Yes, at Tata CLiQ Luxury, we are constantly working towards expanding our different categories by launching various premium and luxury brands from time to time. Some of the recent brand launches on our platform include: Baume & Mercier, Bell & Ross, Rado in watches, Le Creuset, Lladro, Versace in home, Charles & Keith in footwear, True Religion and Versace jeans in apparel, etc. In addition, we are also expanding into beauty, toys, golf categories, premium gourmet, furniture, etc.
We are building Tata CLiQ Luxury as lifestyle destination for luxury shopper which is not restricted to just the wardrobe but also caters to the lifestyle, interests, and passions.
3) How did the pandemic impact sales at TataCliq Luxury? Is growth back to pre-pandemic levels?
The pandemic has accelerated the adoption of digital transactions in the luxury market, which has helped the country's luxury e-commerce boom.
Most people in India spent their money on basics when the pandemic and lockdown first began in 2020. As consumers adjusted to the new normal, luxury spending rebounded to pre-pandemic levels, with a significant shift in demand to online channels. As a result, there has been widespread adoption of digitalisation, which is increasing at a 2x rate year-on-year.
This shift from physical stores to online platforms is here to stay. Online platforms enable consumers to experience the world of luxury with minimal barriers, making it convenient and easily accessible. The essence of luxury is the experience that brands, or platforms provide. This shift will continue as long as online platforms are innovating to enhance the experience and delight the consumer by making it personal while remaining efficient.
With the luxury of time, it has allowed the consumer to spend more time on the platform, browsing through numerous categories and brands, before making the final purchase. In a short period, we've witnessed a 40 per cent increase in the average number of products a customer views before making a purchase, indicating a desire to explore more brands. Furthermore, the average consumer's basket size has substantially increased, and it is no longer restricted to a specific category or brand.
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The definition of luxury has shifted over time. People are conscious of their purchases, and as a brand, we encourage them to invest in products that they will love and that are timeless.
At Tata CLiQ luxury, we're seeing exceptional growth, which has been driven by both brands that have always been on the platform and done well, as well as new categories and luxury brands that are being introduced online for the first time.
4) Has there been a shift in categories? Any new trends that you can highlight?
From a luxury industry perspective, given how our sense of style has evolved during the pandemic, categories like 'at home' fashion and athleisure have witnessed a spike. In addition, when it comes to footwear, the growth of sneakers has been accelerated.
Furthermore, as people continue to invest more in their spaces and homes, the home sector, which encompasses everything from home décor to linens to furniture, is rising. Aside from that, products in youth-oriented categories, products that can be passed down from generation to generation, and those that are size-agnostic will continue to be in demand.
Gifting is a category that has seen immense growth. There's been a growing demand and interest in gifting luxury products to near and dear ones for any occasion or to simply celebrate relationships! On Tata CLiQ Luxury, we've witnessed that categories which are ideal for gifting, such as sneakers, watches, and handbags, are doing well.
5) Has there been an increased demand from Tier-2 and Tier-3 cities? Besides the metros which are your biggest markets?
We see 60 per cent of our revenue coming from non-metro markets. Besides metros, some of our biggest markets are Lucknow, Ludhiana, Chandigarh, Jaipur, Surat, Nagpur, etc. We also see a lot of traction from the North-East as well, especially in the sneaker and fashion categories.
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