E-commerce websites lure in higher online shoppers from Tier II cities in Q1 FY18

Key Highlights

• There has been a 6% rise in the monthly active shoppers.
• Majority of the shoppers came from Tier II and Tier II+ cities.
• Demand for fashion apparel grew in Q1 FY18.

Higher number of online shoppers have emerged from Tier II+ and Tier II cities like Patna and Coimbatore. Active shoppers increased up to 6% in the April to June quarter of this year, insights by RedSeer consulting revealed on Tuesday. 

“The industry witnessed decent Q-o-Q growth in monthly shoppers count in Q2’17. Monthly active consumer count grew by ~5-6% from the previous quarter. Majority of the new customers who joined, belonged to Tier-II and Tier-II+ cities,” the report said.

Source: RedSeer Consulting

With sites like Amazon India hosting its Great Indian Sale and Flipkart holding its ‘Summer Shopping Days’ in May it may have led to the increase in monthly shoppers and in particular a surge in demand for fashion apparel.

Annualised Gross Merchandise Value (GMV) of online fashion retail grew from $3 billion in the April to June period of 2016 to $3.4 billion in the same period this year, the report showed.

“Multiple successful sale events triggered the growth of fashion e-tailers in AMJ quarter of CY17. Both horizontals and vertical players witnessed growth in sales in Q2’17 as compared to Q1’17,” the report read.

Source: RedSeer Consulting

Fashion has now surpassed gadgets and consumer electronics purchases online, as a report by Nomura pointed out that the former comprised 18% of total internet retailing activity while the latter was at 17%.

Also Read: Fashion and apparel overtake gadgets and mobile phones as top categories on e-commerce sites in India