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Tata Group’s online retail platform Tata Cliq has reportedly exited consumer electronics business and is set to be integrated with Tata Digital’s super app, Tata Neu.

The move is part of Tata Group’s efforts to get more traction to the Tata Neu app and bring together synergistic businesses for scale. 

Tata Cliq’s consumer electronics category formed 50%-55% of its business. Now, the division has been integrated with Croma, Tata’s flagship consumer electronics retail chain, officials aware of the development told the Economic Times. 

Croma will become the primary entity for electronics sales on the Tata Neu app, the report said.

Inc42 has reached out to Tata Digital for a comment on the matter. The story will be updated if and when the company responds. 

Currently, Tata UniStore runs the Tata Cliq business, which is jointly owned by Tata Industries and Tata Group’s lifestyle retail company Trent.

As per the officials, Tata Cliq would likely become a subsidiary of Tata Digital as the group is looking to consolidate its major ecommerce ventures under it.

“The group is still evaluating how to position Tata Cliq,” a senior executive at one of the group companies told the publication. 

“For instance, its presence in categories like electronics was a conflict of interest for Tata Neu and Croma and hence it had to exit this category to focus on lifestyle and luxury categories where it has built a niche,” the executive added.

Tata Cliq may pivot its business on luxury or beauty, the report said, adding that in that case, its challenge would be to differentiate the brand from rivals such as Myntra in the fashion segment and Nykaa in the beauty space.

In fact, Tata Cliq’s other online platform, Tata Luxury, might be combined with the former to omit duplication.

Tata Ney, which made its debut in April, had failed to achieve its internal target of $200 Mn in gross sales in the first month of its operation. Tata Neu could clock $120-$150 Mn in gross sales during the month.

Also, reports said user feedback for the Tata Neu app was not satisfactory initially due to technical glitches and poor shopping experience.

Tata Group’s super app Tata Neu offers services ranging from hotel and flight booking, grocery shopping, electronics and medicines and more. Tata’s brands, including Tata Cliq, BigBasket, 1mg, Croma, and AirAsia, are available under one roof on Tata Neu. 

In the first year of its operations, the super app aims to reach gross sales of about $2 Bn-$2.5 Bn.

Recently, brokerage firm JM Financial Institutional Securities said that the Tata Group is well-positioned to take market share away from its competitors through Tata Neu.