Rising incomes and modern preferences in tier-2, 3 cities are driving e-commerce growth, reshaping consumer behavior, and transforming India's economy.
Rise in disposable incomes and the increased inclination towards modern experiences are re-shaping the consumer landscape in cities like Chandigarh, Jaipur, Kochi, Coimbatore. The industry reports state that 55% of people from tier-2, 3 cities drive the e-commerce businesses in India. This transformational shift from urban cities is reforming the nation’s economic environment.
Your business strategy needs to be adapted to the new local preferences in order to leverage these emerging growth opportunities. A deeper knowledge of consumer behaviour, lifestyle, distinct needs and the market trends help your service or product stay in the game. As this edition focuses on the key elements that differentiate this new trend, you would understand how effectively your brand can tap into these potential hubs.
For the longest period of time, metro cities have been considered the highest potential hotspots for business expansion and investment. It has been believed that the country’s GDP relies on urban cities. However, in recent years, tier 2 cities have recorded a massive surge in retail development.
Big brands have seen expanding their presence via premium malls in such markets. This entry, along with other domestic brands has intensified the competition and provided a broader range of choices for the consumer segments. In addition, numerous home-grown and D2C brands have also carved out a fair market share.
For instance, leading apparel giants like H&M and GAP expanded their presence into Ranchi and Guwahati respectively. Also, Rare Rabbit’s entry to the Kochi market. This trend spreads to other industries like real estate, textile, consumer electronics, daily essentials and personal care products.
Currently, tier 2 & 3 cities account for over 50% of India’s online shoppers. The limited access to physical stores and brand choices make individuals consider online shopping a gateway to fulfill their aspirations: to buy or consume bigger brands or goods or services. This digital adoption has driven a significant shift in the consumer experiences, whilst rewriting challenges for businesses. They take significant part of inspiration from social media. 7 out of 10 people have tried a product for the first time after discovering it on social channels. This behaviour is highly reflected in the categories such as health & wellness, home, kitchen, sports and fitness.
Several reports state that when urban dwellers value quick delivery 54% of consumers in T2, T3 cities value deals and offers more. Localised strategies that adapt to such distinct needs across regions is crucial for businesses targeting such consumers.
As these markets continue to evolve and mature, let us categorise the cities by sector;
People at Bblewrap prioritizes a research-first approach for building brand assets. A forward-thinking branding and marketing agency with a focus on development of brand identity, product design, UI/UX and product packaging design. The research team ensures an in-depth analysis of the substantial changes happening within the industry and market landscapes in relevance to our client’s businesses. This allows us to offer a set of tailored solutions that resonate with the target audiences, helping our clients in differentiating themselves in the current competitive landscape.
We can identify opportunities and challenges that may impact a brand’s growth and customer engagement. We cater to businesses across a wide range of sectors; including health, beauty, wellness, home goods and consumer packaged goods. Our strategic solutions are customised to address the unique challenges and opportunities within each industry.
Partnering with us would allow you to discover our sustainable marketing consultancy services that emphasize on the future needs and drive your business’s growth in the right direction.
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