Tier 1 Vs. Tier 3: Category Differences

Last week, we diagnosed the Volume contribution of different categories across the different Tiers in India. This week, we uncover the value contribution of different categories. Join us to unpeel the layers of insights with our data (over 1 Million Transactions from April to Sept 2021) and uncover interesting trends! TLDR; Major differences can be observed in order value contribution of Fashion vs Mobiles / Tablets vs. Grocery in Tier1 vs Tier3. While fashion was the biggest Volume contributor for Tier 3 (at 28.44%) the value contribution is much lower, at 18.68%. This is primarily due to higher spends on Mobiles and Tablets in Tier3 markets (we can back this up by looking into our data).

Convenience-seeking Tier1 consumers are spending more Grocery items while aspirational Tier3 users are ordering more Fashion for latest trends and styles. Also confirming this bias is the - nearly 3/4th value contribution in Tier 3 markets is on Fashion, Mobile and Electronics.

‍Lower Tiers are now the new battlegrounds for Indian e-Commerce space. Top marketplaces like Flipkart also building new products (e.g. Shopsy) to capture this market. Offers and strategies are being focused here as well. In our next piece we will explore deeper into volume contributions across Zones for different categories!

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Vumonic Datalabs is a global ecommerce market intelligence platform. We provide high quality, deterministically linked, large structured data that can be used to derive deep consumer,  business and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy secure manner via large global panels.