Small towns' growing desires drove D2C and e-commerce growth in 2024
- IBEF
- January 2, 2025
In 2024, India’s Tier-II and Tier-III towns, as well as rural regions, played a crucial role in driving e-commerce growth, with platforms like Meesho, Amazon, Flipkart, and Myntra witnessing significant increases in demand. Meesho reported a 35% YoY growth, with over half of its orders coming from small towns. Similarly, Amazon’s Great Indian Festival (AGIF) saw 85% of customer visits from non-metro cities, highlighting the growing potential of Tier-II and III markets. The demand surge also benefitted direct-to-consumer (D2C) brands, with companies like Bella Vita Organic recording a 173% sales growth, driven by expanded reach into these underserved markets.
The festive season further demonstrated this shift in consumer behaviour, as Flipkart and Myntra saw record-breaking traffic, with Flipkart reaching 7.2 billion visits and Myntra onboarding 1.5 million new customers, 80% of whom were from non-metros. Additionally, brands like Honasa Consumer Ltd. noted increasing demand for personal care products from across India, including remote areas. As digital adoption continues to rise in smaller towns and rural regions, e-commerce companies and brands are effectively tapping into these emerging markets, reshaping the landscape of online shopping in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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