Consumers in Tier II cities spend over 2 hours per week shopping online: Study

Online shopping is all the rage these days not just in metro or Tier I cities but in Tier II cities and beyond as well. According to a recent study by CyberMedia Research (CMR), people living in Tier II cities spend over 2 hours per week shopping online. Also, the study found that they spend approximately 16 per cent of their income on online shopping. Another interesting trend observed is that 62 per cent of consumers purchase clothing and accessories online.

Prabhu Ram, Head, Industry Intelligence Group, CyberMedia Research (CMR), said that the wide range of choices and conveniences offered by these e-commerce platforms has empowered emerging young consumers in Tier II, Tier III cities and beyond to shop more online. 

“Major players like Amazon and Flipkart, niche market players such as Meesho and others, and conglomerates like Tata and Reliance are fiercely competing in these markets. Our research emphasizes that Amazon, with its extensive and enduring presence across India, has the consumer trust and is their preferred choice,” he added.

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The study also found that around 50 per cent of these people spend around 1-2 hours online shopping weekly. Also, the CMR report stated attractive prices (57 per cent) convenient return and exchange processes (57 per cent) and attractive offers (49 per cent) as the top three triggers for online shopping.

Here are some key findings of the report

• Women entrepreneurs and others spend 149 hours annually on eCommerce. 29 per cent of them purchased value-for-money smartphones (Rs 15,000 to 20,000) online.
   
• Gen Z shops more frequently online (51 per cent) than Millennials (47 per cent).
   
• Two out of three consumers have spent up to Rs 20,000 on online shopping in the past six months. The average spend on online purchases in the last 6 months by Tier II buyers (Rs 20,100) is nearly on par with the online spend by Tier I buyers (Rs 21,700). The average spend is the highest in Mumbai (Rs 24,200). Nagpur and Coimbatore also show similar growth trends in online shopping (Rs 21,600).
   
• 62 per cent purchase clothing and accessories online, while 54 per cent purchase electronics and electronic gadgets online. In Nagpur (81 per cent) purchase electronics and electronic gadgets online. Coimbatore(62 per cent) and Bhubaneswar (62 per cent) show similar trends.

Among electronic gadgets, the top three products bought online are:

• Smartphones (37 per cent)
   
• Headphones/Earphones (23 per cent)
   
• Smartbands/Smart Watches (21 per cent)

Choice of e-Commerce Platforms

• Amazon (73 per cent) is the most preferred, followed by Flipkart (70 per cent), Meesho (30 per cent), JioMart (20 per cent), and others.
   
• 63 per cent of Amazon users report high satisfaction, followed by 52 per cent for Flipkart and, 46% for Reliance Digital.