Tier 4+ users emerge as top repeat e-commerce shoppers: report

Meesho has released the first edition of its Smart Shopper Report, offering a comprehensive analysis of the country’s dynamic online shopping trends in H1 2024. This report explores the changing habits and tastes of mass customers, who currently make up a noteworthy 80% of the population that shops online.

India's consumer landscape is witnessing a significant transformation, driven largely by the burgeoning influence of Generation Z. This demographic, characterized by individuals under the age of 25, now accounts for one in every three e-commerce users, making them the fastest-growing group in the digital marketplace. The rapid adoption of e-commerce among Gen Z highlights their role in shaping the future of online shopping in the country.

In terms of regional growth, Uttar Pradesh and Bihar have emerged as the frontrunners in e-commerce user expansion. Meanwhile, users from tier 4 and beyond cities have established themselves as the most frequent repeat shoppers, particularly in categories such as Women’s Fashion, Footwear, and Baby Care. This trend underscores the growing influence of consumers from smaller towns and cities on the e-commerce landscape.

Language and accessibility play crucial roles in the evolution of consumer behavior. The use of vernacular languages and voice search has surged by 162% and 40%, respectively, reflecting a strong preference among mass consumers for regional languages and intuitive, user-friendly features. This shift is enabling e-commerce platforms to reach deeper into India's diverse and linguistically rich population. Furthermore, over 80% of online shoppers in India now hail from tier 2 and beyond cities, such as Ambur, Rourkela, Sangli, and Zirakpur, highlighting the increasing penetration of e-commerce into the country's remote corners.

The category of Home & Kitchen has seen a remarkable increase in consumer spending, with customers allocating approximately 10% of their budgets to this segment. This reflects a 50% year-on-year growth, with trends such as wall art, artificial flowers, hanging planters, and bird feeders gaining significant popularity on social media. 

In a noteworthy trend, tier 2 and beyond cities have outpaced tier 1 cities in purchasing electronic accessories, with more than double the number of orders. Items like Bluetooth headphones, power banks, smart speakers, and other gadgets are in high demand across diverse locations such as Alwar, Bettiah, Pursurah, Rajahmundry, Sindkheda, and Sirsa. Additionally, men's grooming products have surged in popularity, with essentials like beard waxes, face washes, and trimmers reflecting a growing trend among men to embrace self-care routines.

The rise of content creation has also influenced consumer preferences, leading to a spike in the purchase of products like selfie sticks, ring lights, microphones, and tripods, indicating a growing enthusiasm for digital content production. Traditional attire, such as sarees, remains popular, with over 1 million saree shapers and 60,000 ready-to-wear sarees sold in just six months, suggesting a consumer inclination towards convenience in wearing traditional garments. Moreover, the demand for at-home beauty treatments has increased significantly, with consumers prioritizing self-care amidst busy schedules. This year, 600,000 face packs, over 400,000 facial kits, 300,000 wax strips, and an equal number of press-on nails and nail paints have been sold, reflecting this trend.