The landscape of e-commerce in India is undergoing a significant shift, with the emergence of new hubs in regions like North-East India and parts of the Hindi heartland. A recent study by Kearney and Meesho highlighted how these areas, fueled by rising disposable incomes and a burgeoning appetite for varied options, are contributing to the next phase of growth in the industry, estimated to be over $80 billion.
Regional Emergence: North-East India and Hindi Heartland
Cities like Varanasi, Allahabad, Gorakhpur, Noida, Jamshedpur, and Ranchi are witnessing a surge in online shopping. Factors like increased disposable incomes and a lack of robust offline retail in certain areas are driving this trend. In the North East, cities like Imphal, Agartala, Silchar, and Shillong stand out, hosting digitally savvy consumers comfortable with online shopping and embracing modern trends like K-fashion and Korean skincare.
E-commerce Expansion and Adaptation
Initially focused on metros and tier one cities, e-commerce giants like Amazon and Flipkart are now expanding their reach to tier two regions and beyond. They’ve integrated vernacular languages into their apps, established fulfillment centers in smaller cities, partnered with local kirana stores, and expanded logistics services to cater to these untapped markets. Recent festive sales even saw deliveries in remote areas like Hayuliang in Arunachal Pradesh, Longewala, and Chittorgarh in Rajasthan.
Popular Categories and Consumer Mix
Categories like apparel, footwear, accessories, electronics, home décor, furnishings, and jewelry are gaining traction. While the North East leans towards seasonal, trendy assortments and discounts, the Hindi heartland shows interest in a broader array of products including electronics and home decor. Analysts predict women will significantly drive e-commerce sales in the coming years, with an estimated 65% of new internet users up to 2025 expected to be female, marking a shift in the consumer base. Beauty and personal care, along with accessories, are expected to witness significant growth among female consumers.
Conclusion
The evolution of e-commerce in India is no longer limited to major cities. The surge in online shopping in regions like the North-East and the Hindi heartland signifies a significant paradigm shift in consumer behavior and preferences. With e-commerce giants adapting their strategies and tailoring services to these regions, the industry is poised for substantial growth, driven by increased female participation and a widening array of product categories.
This burgeoning trend not only signifies the transformation of shopping habits but also highlights the evolving socio-economic landscape across these regions, paving the way for an inclusive and expansive e-commerce ecosystem in India.