E-commerce adoption surges in Bharat; tier 4+ users lead as repeat shoppers

With about 80 per cent of its 15 crore annual transacting customers coming from tier 2, 3 and 4 and beyond towns, Meesho has been instrumental in bringing new-to-e-commerce users online

Leading e-commerce firm Meesho on Thursday said it has 150 million annual transacting customers as of now, and about 80 per cent of them are from tier 2, 3 and smaller towns, offering a glimpse into the increasing reach of online shopping.

The users from tier 4+ cities emerged as the most frequent repeat shoppers in e-commerce. They shopped across categories such as women’s fashion, footwear, and baby care.

The platform also said that one in every three users is under the age of 25, making Gen Z the fastest-growing demographic to adopt e-commerce.

In its first edition of the e-commerce firm’s Smart Shopper Report, Meesho offered an analysis of online shopping trends in the first half of calendar year 2024.

Meesho caters to one of the largest mass consumer bases in e-commerce, serving customers in diverse locations such as Bhilai, Imphal, Jalandhar, Jhunjhunu, and Nellore. Over the last nine years, it has made e-commerce accessible for millions of users across the country.

 

UP, Bihar & rise of vernacular languages

Uttar Pradesh and Bihar are leading in e-commerce user growth, showcasing the remarkable potential and adaptability of these states.

Also, the adoption of vernacular languages and voice search has skyrocketed by 162 per cent and 40 per cent respectively. 

The firm said the Meesho app has been downloaded over 200 million times this year, making it the most downloaded app in the country. That’s 10 lakh downloads per day. Meesho also on-boarded 300,000 new sellers in 2024, nearly doubling the number from the previous year.

Influencer’s sway   

The firm said that customers in the Northeastern states like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim are increasingly making e-commerce purchases based on influencer content.

This is contributing to an impressive 40 per cent of all orders from these states.

Meesho customers are also highly engaged, contributing to 692 million ratings, 185 million reviews, and 47 million pieces of user-generated content (images and video).

Regarding the demand for different categories, home and kitchen are capturing a growing share of customer budgets, with approximately 10 per cent of spending dedicated to this category. This reflects a 50 per cent year-on-year growth. 

The new hot cakes: Electronic gadgets

Also, tier 2+ cities significantly outpaced tier 1 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).

As content creation rises in popularity, products like selfie sticks, ring lights, microphones, and tripods have surged to the top of the electronics category.

Also, over 1000,000 saree shapers and over 60,000 ready-to wear sarees were sold in just 6 months. This points towards a consumer inclination for quick and easy ways to approach the traditional drape.

With increasingly hectic schedules, mass consumers are prioritising self-care.

This has led to a rise in at-home salon treatments, according to the Meesho report. This year, they have purchased 600,000 face packs, over 400,000 facial kits, 300,000 wax strips, 400,000 press-on nails, and 400,000 nail paints.