Tier 4+ Cities & Gen Z Drives Ecommerce Growth: Report

Meesho released the first edition of its 'Smart Shopper Report' for the first half of 2024. The report offers a deep dive into the evolving habits and preferences of India's mass consumers, who now represent 80 per cent of the population shopping online. The insights reveal how Meesho has not only democratised e-commerce for millions across the country but also positioned itself as a pivotal player in bringing new-to-ecommerce users into the fold.

Over the last nine years, Meesho has onboarded millions of users from across the country, with approximately 80 per cent of its 15 crore annual transacting customers hailing from tier 2 and beyond towns. The report highlights how Meesho has been instrumental in reaching consumers in remote locations such as Bhilai, Imphal, Jalandhar, Jhunjhunu and Nellore, effectively bridging the digital divide and enabling even the most rural consumers to participate in the ecommerce boom.

The Gen Z Influence
One of the report's findings is the role of Gen Z in driving ecommerce growth in India. With one in every three users under the age of 25, Gen Z has emerged as the fastest-growing demographic on the platform. The age group’s comfort with digital technology and their inclination towards online shopping have made them a key force behind the rapid adoption of ecommerce in India.

Regional Powerhouses
The report also highlights the growth in ecommerce adoption in Uttar Pradesh and Bihar. These states are emerging as champions in user growth, showcasing the potential and adaptability of their populations. The data suggests that these regions are quickly becoming hotbeds for online shopping activity.

Another key insight from the report is the emergence of users from tier 4+ cities as the most frequent repeat shoppers on the platform. These consumers have shown a strong preference for categories like women’s fashion, footwear and baby care. This trend is further supported by the fact that more than 80 per cent of Meesho’s users come from tier 2 and beyond cities such as Ambur, Rourkela, Sangli and Zirakpur.

The report also notes a rise in the use of vernacular languages and voice searches among mass consumers. The adoption of vernacular languages on the platform has surged by 162 per cent, while voice search usage has increased by 40 per cent.

Meesho’s App
Meesho's Smart Shopper Report offers a comprehensive look at the platform's rapid growth and the shifting dynamics of the ecommerce market in India. The Meesho app has been downloaded over 20 crore times in 2024 alone, with 10 lakh downloads per day. Moreover, customers are spending more time on Meesho than on other horizontal ecommerce platforms, indicating strong engagement and user satisfaction.

In terms of seller growth, Meesho welcomed three lakh new sellers in 2024, nearly doubling the number from the previous year. This expansion highlights the platform's role in creating new avenues for small and medium-sized businesses across the country.

Home & Kitchen
The Home & Kitchen category has emerged as a major player in Meesho's marketplace, capturing approximately 10 per cent of customer spending. This reflects a 50 per cent year-on-year growth, with items like wall art, artificial flowers, hanging planters and bird feeders topping the charts.

The report reveals that tier 2+ cities are outpacing tier 1 cities in orders for electronic accessories, with more than double the number of purchases. Products like bluetooth headphones, power banks, smart speakers and screen magnifiers are trendy in cities like Alwar, Bettiah, Pursurah, Rajahmundry, Sindkheda and Sirsa.

Men’s grooming has also seen a surge in popularity on Meesho, with products like beard care essentials, face washes and trimmers becoming increasingly sought after.

Rise of Content Creation
As content creation becomes more popular, Meesho has seen a rise in orders for products like selfie sticks, ring lights, microphones and tripods.

The report also highlights the growing influence of social media on ecommerce purchases, particularly in the Northeastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. In these states, influencer content is driving 40 per cent of all orders.

Traditional Indian attire is also seeing a modern twist, with over 10 lakh saree shapers and 60,000 ready-to-wear sarees sold in six months. Additionally, there has been a rise in at-home salon treatments, with consumers purchasing six lakh face packs, four lakh facial kits, three lakh wax strips, four lakh press-on nails and four lakh nail paints in 2024.