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The $14.5 Billion Valued E-Commerce Market Of India Is Driven By Tier 2 Customers


Oct-2018 | QY Research Report | Consumer Goods & Retailing

According to the research report by RedSeer, a research firm, the e-commerce market is driven by the Tier 2–3 and remote area online shoppers. The population of the shoppers that prefer shopping through online is majorly from the Tier 2 and more cities. These numbers are constantly increasing at three times faster compared to the top metro cities.

The online shoppers from Tier 2 Plus cities contributed about 41% in 2017 among all the shoppers in 2017. Thus, 2018 will be the important switch for the enhancement of the e-commerce companies in the Indian market.

Telecom operators making Internet access affordable and offering data plans that can be activated by a normal user and drastically evolved Internet sector with a viewpoint of consumers approach are some of the internal factors affecting the growth of the e-commerce market.

Service providers such as online travel agencies, online cabs, hotel aggregators providing the customer's high valued services have made the e-commerce sector more capable to deliver high growth graphs with ample of opportunities yet to be disclosed.

In the overall market, there are some sectors that are showing magnificent signs of growth and hold a great potential to drive the thrust without discounting the service or products. Similarly, there are also some sectors that are presently in developing stage but in coming time, it will show a considerable growth scenario.

As per the report, the e-commerce industry, which has flourished to reach over USD 14.5 Billion in revenues per year, still has loads of potential left to grow.

Based on the year on year growth there was a record of 34% in terms of exceptional shoppers across Tier 2 and Tier 3 cities. While the Tier 1 and other metro cities also reported a growth of 18%

Consumers getting exciting offers and cheap deals have kept them connected with the e-commerce shopping style, while ease in payment and doorstep delivery and replacement are some of the features that are upholding the momentum of the e-commerce market in India.

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