Indian Ecommerce Boom: Tier IV Users Lead Repeat Shopping, Gen Z Drives Growth

 Meesho, an ecommerce marketplace, released the first edition of its Smart Shopper Report, offering an 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 per cent of the population that shops online.

Mapping Mass Consumer Behavior 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 ecommerce.*
• Growth Champions: Uttar Pradesh and Bihar are leading in ecommerce user growth, showcasing the remarkable potential and adaptability of these states.
• Heroes of Ecommerce: Users from tier 4+ cities emerge as the most frequent repeat shoppers in ecommerce, 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 per cent and 40 per cent respectively, underscoring mass consumers' strong preference for regional languages and intuitive features.
• Establishing a Foothold in Remote Corners: More than 80 per cent of Indian online shoppers come from tier 2 and beyond cities such as Ambur, Rourkela, Sangli and Zirakpur.
   

Meesho Consumer Spotlight

• Always in Demand: ​The Meesho app has been downloaded over 20 crore times this year, making it the most downloaded app in the country. ​That’s 10 lakh downloads per day!
• App Opens Soar: Customers spend more time on Meesho than other horizontal ecommerce platforms.
• Ecommerce Creating New Avenues: Meesho has welcomed 3 lakh new sellers in 2024, nearly doubling the number from the previous year.
• The Influencer Impact: Customers in the Northeastern states like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim are increasingly making ecommerce purchases based on influencer content, contributing to an impressive 40 per cent of all orders from these states.
• Interactive Community: Meesho customers are highly engaged, contributing to 692 million ratings, 185 million reviews, and 47 million pieces of user-generated content (images and video).**
   

Category Chronicles:

• Home Decor Hits: Home & Kitchen is capturing a growing share of customer budgets, with approximately 10 per cent of spending dedicated to this category, reflecting a 50 per cent 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 II Gets Tech Savvy: Tier II cities significantly outpaced tier I 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 prioritising 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.

Over the last 9 years, Meesho has made ecommerce accessible for millions of users across the country. With ~80 per cent of its 15 crore annual transacting customers coming from tier 2 and beyond towns, Meesho has been instrumental in bringing new-to-ecommerce users online. The platform caters to one of the largest mass consumer bases in ecommerce, serving customers in diverse locations such as Bhilai, Imphal, Jalandhar, Jhunjhunu, and Nellore.