The super app model has existed since 2009 during the “Great Firewall” incident in China. During this period global apps like Facebook, Twitter, etc. were blocked and as a result, the super app model was invented in China to prevent data of citizens from going to foreign institutions. WeChat is considered a perfect example of a super app, where multiple services are served by one app only. But in India, the super app model has never succeeded due to the particular consumer behavior trend, as Indians are inclined to use apps for their specific use.

Despite this, Tata has recently launched its super app “TATA NEU” along with several companies promising to launch their super app in near future like Adani group Inc., Reliance, Spice money, etc. This sudden interest of Indian companies in building super apps has a promising purpose after all – To build a phygital ecosystem in India. Despite the challenges, Tata group has come up with an interesting plan of providing customers with rewards in the form of ‘Neu Coin’ and one neu coin equivalent to one Indian Rupee, by collecting all of their previous purchase data of Tata products.

But why are these companies launching their super apps or showing interest in doing so in the future, despite the proven history of failure of the super app model in India? The answer lies in the aspect of the customer data pool that each of these companies has with them. Being the large conglomerates and e-commerce companies, they have the leverage to use those data to develop a phygital solution with a seamless experience for the customers. For example, Tata group has its foot in a large range of business sectors in India with companies like Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Indian Hotels, Tata Communications, Tata Digital, and Tata Electronics. So, launching to cater to the emerging trend of phygital retail in India, super apps are proving as a pivoting factor for stepping into the phygital world. But will super apps and phygital retail complement each other in the future? Only time will tell.

— Sayan Mukhopadhyay

The post Super Apps: A gateway to phygital retail first appeared on PHYGITAL RETAIL CONVENTION (PRC).

Bharat Sethi, Founder, Rage Coffee explains, “More than 50 % of our online sales comes from the Tier II cities. We’ve got partners who understand the dynamics of these markets from a trade point of view. We associate with the distributors in the region and look at the data from the retail outlets prospect and then plan the strategies. The planning in respect to online and offline is double-forked. Our team truly believes that with the hyperlocal network getting established many Tier II & III cities will be under our business radar directly.”

Lisa Suwal, Chief Growth Officer, PRASUMA adds further, “These regions are the growing markets, and we are making sustained efforts to support the organic growth being generated from these centers. We are experiencing both consumer and retailer pull based on word of mouth of our delectable momos.”

Talking about how to serve the untapped market, Sonal, Founder and CEO of Whitecub says, “Since there is a shift towards vegan, plant based products, the market for dairy and gluten free products and ice creams are expanding. We are building our presence in Tier II cities like Pune & Ghaziabad. Creating brand awareness and changing consumer’s preference to dairy free products in Tier III cities is a challenge and will take time.”

The post Tier II and III cities: the front wheel of the retail industry first appeared on PHYGITAL RETAIL CONVENTION (PRC).