Tier 2,3 Indian cities drove festive sales for e-com retailers in 2022

05 Jan '23

1 min read

Pic: Shutterstock

E-commerce retailers in India recorded sales worth ₹76,000 crore during the month-long festival season in 2022, almost double the pre-pandemic 2019 sale of ₹40,000 crore, according to Redseer Strategy Consultants, which recently said tier-2 and tier-3 cities drove festive sales, and a significant portion of the sales came from electronic products and mobile phones.

The country’s fragmented retail market of over 13 million general trade stores or the local kirana stores will continue to drive retail for the next decade. The eB2B market stood at $5 billion in 2021 and could touch $100 billion in gross merchandise value by 2030, Redseer CEO Anil Kumar wrote on its website.

Further, the internet market gained confidence, and many tech companies went public, raising funds through initial public offers (IPOs), he wrote.

The drastic increase in digital consumption and increased digital penetration in tier-2 plus cities are the primary growth drivers responsible for the spike in India’s digital advertising ecosystem.

With an increasingly high flow of consumers from tier 2 plus cities adopting short video commerce, India is likely to witness a massive surge in digital advertising investments instead of driving sales, he added.

Fibre2Fashion News Desk (DS)

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