Tata Capital Ltd, a subsidiary of Tata Sons Ltd, has inked a memorandum of understanding (MoU) with the Canadian loyalty marketing giant Groupe Aeroplan Inc., to launch a multi-party coalition loyalty programme in India, the company has said in a statement on Wednesday.
Groupe Aeroplan Inc. owns Aeroplan, Canada’s premier coalition loyalty programme, Carlson Marketing, an international loyalty marketing services, engagement and events provider, as well as Nectar, UK’s largest coalition loyalty programme.
The new loyalty programme will be modelled after Nectar, enabling the Tata Group to make further foray into the rapidly evolving retail and consumer marketing space across the subcontinent.
“Indian consumerism has evolved manifold over the last decade and offers significant potential for a coalition loyalty programme. Realising this potential requires an established global player who has the necessary expertise and proven track record in launching and managing successful loyalty programmes across geographies,” said Praveen P Kadle, managing director and CEO of Tata Capital Ltd.
“As we expand our global presence by entering the critical and rapidly growing Indian market, we could not ask for a better joint venture partner than Tata Capital,” said Jeff Balagna, chief executive officer of Groupe Aeroplan (USA and Asia-Pacific).
Recently, Canada-based consumer loyalty programme provider LoyaltyOne has acquired 26 per cent stake in Mumbai-based Direxions Marketing Solutions Pvt Ltd for an undisclosed amount. And last year, Europe’s Loyalty Program group acquired Bangalore-based Loyalty Solutions & Research Pvt Ltd (i-mint).
The Indian retail market is currently valued at $350 billion and it is growing at a rate of 30 to 40 per cent per year. The share of organised retail during the past three years has doubled to around 10 per cent.
While Indian retail giants like Shoppers Stop and Pantaloons have in-house loyalty programmes, consumer electronics provider Videocon’s subsidiary Loyalty Management Insights Network & Exchange Pvt Ltd (Loyalty Mine) offers MyCard, which can be used for a range of products – from retail to groceries and home durables to lifestyle products. Its partners include Satya Paul, Sansui, Ferns N Petals, Kenstar, BIGFlix and Surat Diamond Jewellery.