Flipkart data 47% y-o-y buyer development in tier 3+ cities this previous yr: Report

Retailers, kiranas, and MSMEs have recorded elevated development in 2021 as in comparison with 2020, in response to the findings of a latest examine by Flipkart.

Tier 3+ cities have emerged as sturdy development markets, as per the report

“There was a change in the best way Indians are buying, not simply in city areas but additionally in smaller cities and cities,” the report mentioned.

Flipkart witnessed a 47 per cent year-on-year (y-o-y) buyer development in Tier 3+ cities this previous yr.

“Buyer insights point out that e-commerce is gaining in recognition because it provides higher comfort, user-friendly interfaces enabled by know-how, inclusive entry to a variety of merchandise and reasonably priced monetary constructs,” it mentioned.

Style emerged as the highest class for buying on the platform in Tier 3+ cities, witnessing the most important y-o-y buyer development of 58 per cent.

“This development might be attributed to the profitable democratisation of vogue by Flipkart and the rising position of social media in influencing buying selections,” it mentioned.

Smartphones, audio gadgets, grooming merchandise, vogue wearables (vogue jewellery, wallets, belts, sun shades), males’s footwear, and home goods have been a number of the prime classes that have been in excessive demand for customers in these cities.

Neighbourhood kiranas

Kirana shops additionally witnessed excessive development. Over one lakh kiranas have been onboarded with Flipkart who make 30 per cent of the over 60 million deliveries made per 30 days throughout the nation. These kirana companions additionally witnessed a rise of over 30 per cent of their common supply incomes in comparison with final yr, “which helped drive the adoption of e-commerce throughout smaller cities by way of a sooner supply expertise,” the report mentioned.

“The rising adoption of shoppers from throughout the nation, notably Tier 3+ cities, was largely enabled by the fast enlargement of provide chain infrastructure and prolonged supply companions,” it mentioned.

Flipkart’s hyperlocal supply enterprise witnessed a 25x improve in orders in comparison with 2020.

The share of hyperlocal orders inside complete grocery orders on Flipkart elevated from 1 per cent in 2020 to over 17 per cent in 2021.

“Flipkart continues to achieve floor on this phase with Flipkart Fast, which allows shoppers to get their merchandise delivered inside 90 minutes of inserting an order on-line,” it mentioned.

The e-commerce main has additionally made deep investments in its Grocery enterprise up to now two years, witnessing elevated adoption by shoppers from Tier 2 and Tier 3 markets.

The class has seen a 2x development in income and clients respectively in 2021. It’s on monitor to service clients in 1,800 cities by the tip of 2021, together with Ajmer, Amritsar, Bhuj, Bokaro, Daman & Diu, Dehradun and Kanyakumari, amongst others.

Vernacular language interface

With e-commerce adoption on the rise in Tier 3+ cities, the share of Indian-language customers on Flipkart has additionally risen from 12 per cent in Q42020 to 18 per cent in Q42021. Additional, smartphones account for 57 per cent of regional language site visitors, adopted by vogue wearables (44 per cent), and audio gadgets (39 per cent) respectively.

Tier 3+ cities additionally had the best share of non-English customers (22 per cent), indicating that regional languages will proceed to play an essential position in attracting and retaining shoppers from these markets as per the report.

Among the many 11 Indian language interfaces on Flipkart, Hindi, Tamil, Telugu and Bengali are probably the most broadly used languages on the platform, rising by over two instances over the previous one yr. Bengali and Malayalam are witnessing the quickest development when it comes to adoption amongst new clients.

Flipkart’s Voice Search witnessed practically three million day by day queries this yr, with Tier 3+ cities constituting greater than half of the general voice queries. Patna, Ranchi, Surat and Bhagalpur are among the many prime 25 cities.


“Kiranas and retailers have proven elevated adoption of Flipkart Wholesale witnessing stable development throughout classes,” as per the report.

Style class clocked an general development of 9.4x and its buyer base grew by 3.5x. By way of e-commerce adoption, it surged by 2x whereas the choice for this class grew by 4x. In 2021, Flipkart Wholesale’s vogue class additionally expanded its attain from 8 cities to 1,715.

Grocery class witnessed 1.2x development at a gross degree and a surge of 1.1x in its complete buyer base. Unassisted share of grocery additionally elevated by 2.5x.

The report additional added that the final merchandising class noticed an general development of 1.12x and its buyer base moved up by 1.2x 4 months into its launch on the Flipkart Wholesale platform. Normal merchandising additionally recorded a 4x development in its e-commerce adoption and 9x development within the choice whereas increasing its presence from 29 cities to 351.

Deeper partnerships

“The expansion of the D2C mannequin and the rise of web shoppers has paved the best way for extra manufacturers to discover deeper partnerships with Flipkart,” it mentioned.

The platform witnessed twice as many extra model partnerships in 2021 in comparison with final yr.

Rajneesh Kumar, Chief Company Affairs Officer, Flipkart Group, mentioned, “As India’s homegrown e-commerce market, we’re dedicated to ship the perfect merchandise to all clients utilizing the most recent know-how, no matter their location.”

“We are going to proceed to introduce improvements that meet shoppers’ rising expectations whereas additionally empowering sellers, retailers and MSMEs to entry the Indian market extra successfully and effectively,” added Kumar.

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