Demand Recovery: Tier 3 Cities Boost Festive Ecommerce Sales

Dhanbad, Karimnagar, Gorakhpur, Chittor, Kurnool, Guntur and Vizag are some of the key cities driving festive orders at Snapdeal, Amazon and Flipkart, signaling a widespread recovery in demand in the economy.

Tier 3 cities accounted for almost half of the orders in sales on the shopping portals, with the fastest selling TVs and laptops among the major home appliance and electronics categories respectively. At the same time, one in five customers has chosen to exchange their smartphone for a new one.

“In the early days, cities such as Patna, Lucknow and Vizag dominated customer demand alongside major subways, with almost half of all orders coming from cities of Tier 3 and beyond. goods and home have the highest demand, ”said Flipkart spokesperson Business today. Flipkart, backed by Walmart, is hosting its eighth edition of The Big Billion Day sale.

Trends indicate improving income levels, as economic activity resumed after the second wave of COVID-19 in the first quarter. In addition, it may also indicate a wider acceptance of online shopping in small towns, with COVID-19 lockdowns restricting travel and leading to the closure of several local stores due to economic non-viability during this time.

Amazon, led by Jeff Bezos, saw local store attendance double at the Great Indian Festival compared to last year during Prime Early Access on October 2.

“We also saw a 60% increase in the number of sellers who had their highest single-day sales in a year on The number of sellers receiving an order from Tier 2/3 cities jumped 21%, while 16 percent more sellers received orders compared to last year, ”said Manish Tiwary, vice president from Amazon India.

The Prime subscription continues to be a favorite with customers across India, with two out of three new Prime registrations coming from Tier 2/3 cities and customers buying in eight Indian languages, Tiwary added.

Meanwhile, Snapdeal, an Indian e-commerce company, recorded around 43% of orders from Tier 3 cities.

“Sales in many level 3 cities like Dhanbad, Karimnagar, Gorakhpur, Chittor, Kurnool, Srinagar, Guntur, Alwar, etc. Trivandrum also continues to grow as the sale progresses, ”a Snapdeal spokesperson said.

“The pandemic has created faster adoption of digital channels by buyers and sellers, including in non-metropolitan cities. The e-commerce sector has also grown in terms of different business models, new customer segments like the elderly and rural consumers, and the types of products that are now available and purchased online, ”the door added. -speak.

Flipkart’s grocery category saw customers in 200 new towns and villages make their first purchases, with 50% opting for affordable construction.

Fashion is another top pick during the Big Billion Days. Sales of athletic footwear, outerwear and men’s clothing are currently increasing in the fashion category – an indicator of people’s willingness to go out and about. to indulge in outdoor activities after one year of restrictions, ”the Flipkart spokesperson said.

The second wave of COVID-19 in the first quarter hit the rural section the hardest. A study by Motilal Oswal Financial Services showed that consumption grew 6.6 percent compared to growth of almost 16.4 percent in the same quarter last year.

Soumya Kanti Ghosh, chief economic adviser at the State Bank of India, said small towns could order online with the lockdown due to the pandemic changing the buying trend.

“With the movement restrictions, more people would have started ordering goods online. In addition, some physical stores may have also closed. As for demand, there is currently a stagnation, having exceeded the pre-COVID levels some of the time, ”Ghosh added.

According to national accounts data released by the government, private final consumption expenditure, which matches demand, increased 19.3 percent in the first quarter year-on-year, but is nearly 12 percent below levels in the first. quarter of 2019-2020.

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