Tier 4+ users emerge as the most frequent repeat shoppers online, says this report
E-commerce marketplace Meesho has released its first Smart Shopper Report, which points to tier 4+ cities as the markets with highest potential for ecommerce and also that Uttar Pradesh and Bihar are leading in e-commerce user growth.
Meesho, the e-commerce marketplace, has released its first Smart Shopper Report, analysing the nation's online shopping trends in the first half of 2024. The report reveals changing consumer habits, especially among mass customers who represent 80% of the online shopping population.
Report Highlights as shared by Meesho:
Mapping Mass Consumer Behaviour in India
- The Gen Zs Takeover: 1 in every 3 users is under the age of 25, making Gen Z the fastest-growing demographic to adopt e-commerce. *
- Growth Champions: Uttar Pradesh and Bihar are leading in e-commerce user growth, showcasing the remarkable potential and adaptability of these states.
- Heroes of E-commerce: Users from tier 4+ cities emerge as the most frequent repeat shoppers in e-commerce, shopping across categories such as Women’s Fashion, Footwear, and Baby Care.
- Say it, See it, Buy it: The adoption of vernacular languages and voice search has skyrocketed by 162% and 40% respectively, underscoring mass consumers' strong preference for regional languages and intuitive features.
- Establishing a Foothold in Remote Corners: More than 80% of Indian online shoppers come from tier 2 and beyond cities such as Ambur, Rourkela, Sangli and Zirakpur.
Category Chronicles
- Home Decor Hits: Home & Kitchen is capturing a growing share of customer budgets, with approximately 10% of spending dedicated to this category, reflecting a 50% year-on-year growth. Wall art, artificial flowers, hanging planters and bird feeders were the standout trends for home decor on social media this year. This influence is reflected in Meesho’s customer purchase trends, with these items topping the charts.
- Tier 2+ Gets Tech Savvy: Tier 2+ cities significantly outpaced tier 1 cities in orders for electronic accessories, with more than double the number of purchases. Meesho saw significant orders for products like bluetooth headphones and earphones, power banks, smart speakers, screen magnifiers, and keyboards from diverse Indian cities such as Alwar (Rajasthan), Bettiah (Bihar), Pursurah (West Bengal), Rajahmundry (Andhra Pradesh), Sindkheda (Maharashtra), Sirsa (Haryana).
- Well Men-Tained: As men's grooming gains popularity, beard care essentials like waxes, washes, and oils, along with men's face washes and trimmers, have surged in popularity on Meesho, reflecting how men are also embracing their self-care routines.
- Lights, Camera, Content: As content creation rises in popularity, products like selfie sticks, ring lights, microphones, and tripods have surged to the top of the electronics category, reflecting growing enthusiasm for producing and sharing digital content.
- Saree Saga: Over 10 lakh saree shapers and over 60,000 ready-to wear sarees were sold in just 6 months pointing towards a consumer inclination for quick and easy ways to approach the traditional drape.
- At-Home Glam on The Rise: With increasingly hectic schedules, mass consumers are prioritizing self-care, leading to a rise in at-home salon treatments. This year, they have purchased 6 lakh face packs, over 4 lakh facial kits, 3 lakh wax strips, 4 lakh press-on nails, and 4 lakh nail paints.
Please Note: Report findings are dated between January 2024 to June 2024
*Indicates Sensor Tower data
**Indicates data findings for Q1 2024