<p class="title">Small-town online shopper Ravishanker from Chikkabanavara thinks nothing of buying the latest Samsung TV from an online store through his smartphone (also bought online during a Diwali sale in 2017).</p>.<p class="bodytext">He says, “I don’t have to drive to Bengaluru for an hour and battle the traffic there to get the latest TV. It’s delivered and installed within a few days right here on my farm.”</p>.<p class="bodytext">His wife keeps up with the latest trends in apparel through her smartphone. She does not hesitate to order clothes from a famous retailer in Hyderabad or jewellery from a fashionable brand in Mumbai with just a few taps on her phone.</p>.<p class="bodytext">The availability of inexpensive data plans and smooth connectivity along with safer and easier online cashless transaction apps are driving sales upwards in the e-commerce industry in smaller cities all over India.</p>.<p class="bodytext">Sales from Tier II and Tier III cities are expected to only keep rising in 2018. With more than 2,000 e-commerce hubs spread out through the country, consumers know that they can get their items on time and without damages (data courtesy: redseer.com).</p>.<p class="CrossHead">Low-cost data and smartphones</p>.<p class="bodytext">The penetration of internet into every part of the country has helped drive e-commerce sales. Jio, with its inexpensive data and smartphone plans, has helped consumers living far from metros to keep up with the latest trends.</p>.<p class="bodytext">No more postponing your shopping to twice a year when you can get to a metro. Everything is available on low-cost Android smartphones. The burgeoning middles classes in Tier II and Tier III cities have found a convenient way to research and browse for their latest buys with cheap smartphones.</p>.<p class="bodytext">The consulting firm RedSeer estimates that 19 million more online shoppers will be added in 2018 from Tier II+ cities. In contrast, four million shoppers will be added from Tier 1 cities. (redseer.com)</p>.<p class="bodytext">Brick and mortar stores don’t have to invest huge amounts in real estate anymore; instead, they can find a wider audience for their products through e-commerce. With the positioning of strategic hubs in different parts of India, timely delivery keeps them and their customers happy.</p>.<p class="CrossHead">Millennials and Gen Z</p>.<p class="bodytext">The trend of shopping online is not slowing down anytime soon. Generation Z and millennials from Tier II and Tier III cities are the driving force behind the upward trend in e-commerce in India. </p>.<p class="bodytext">These young people are not afraid to experiment and the deep discounts offered online are a great attraction. Even big brands offer great discounts up to 90% on some platforms, so the young, rural buyer is happy to flaunt his his/her branded clothes.</p>.<p class="bodytext">Millenials and Gen Z spend a lot of time online, talking to friends, researching, doing finances and shopping. (Data courtesy: BCG) They are comfortable with online shopping and payments.</p>.<p class="bodytext">Often they shop for their parents and other family members online. Parents, too, are a bit hesitant and leave it to the youngsters in the family to guide them through e-commerce purchases.</p>.<p class="CrossHead">Future of e-commerce</p>.<p class="bodytext">It is a fact that the Asia-Pacific area accounts for a 50% share of all e-commerce business worldwide, and undoubtedly, e-commerce is going strong in Tier I cities in India.</p>.<p class="bodytext">Online shopping accounted for $20 billion in the third quarter of 2017. Morgan Stanley estimates that India’s e-commerce will grow to a staggering $200 billion by 2025. This is a jump of 30-40% in growth every year!</p>.<p class="bodytext">With the government formally announcing plans for broader internet reach in rural areas, first-time rural consumers are expected to grow exponentially.</p>.<p class="bodytext">Transactions using Aadhaar number and BHIM app are on a steady increasing in these areas, and by 2020, a huge portion of the rural population is expected to be online.</p>.<p class="bodytext">Currently, 56 million digital shoppers from smaller cities and rural areas are online. Retail businesses in Tier II and Tier III cities are increasingly aware of this momentum, resulting in a shift from retail to online business to tap the potential in these areas.</p>.<p class="bodytext">Small businesses, kirana shops, and other local services are likely to be B2C online businesses in 2018-19. While small businesses will only benefit from their foray into e-commerce, the small town/rural consumer will finally find his place in the sun. A win-win on all sides!</p>.<p class="bodytext"><span class="italic">(The writer is CEO & Founder, Palred Online Technologies Private Limited)</span></p>
<p class="title">Small-town online shopper Ravishanker from Chikkabanavara thinks nothing of buying the latest Samsung TV from an online store through his smartphone (also bought online during a Diwali sale in 2017).</p>.<p class="bodytext">He says, “I don’t have to drive to Bengaluru for an hour and battle the traffic there to get the latest TV. It’s delivered and installed within a few days right here on my farm.”</p>.<p class="bodytext">His wife keeps up with the latest trends in apparel through her smartphone. She does not hesitate to order clothes from a famous retailer in Hyderabad or jewellery from a fashionable brand in Mumbai with just a few taps on her phone.</p>.<p class="bodytext">The availability of inexpensive data plans and smooth connectivity along with safer and easier online cashless transaction apps are driving sales upwards in the e-commerce industry in smaller cities all over India.</p>.<p class="bodytext">Sales from Tier II and Tier III cities are expected to only keep rising in 2018. With more than 2,000 e-commerce hubs spread out through the country, consumers know that they can get their items on time and without damages (data courtesy: redseer.com).</p>.<p class="CrossHead">Low-cost data and smartphones</p>.<p class="bodytext">The penetration of internet into every part of the country has helped drive e-commerce sales. Jio, with its inexpensive data and smartphone plans, has helped consumers living far from metros to keep up with the latest trends.</p>.<p class="bodytext">No more postponing your shopping to twice a year when you can get to a metro. Everything is available on low-cost Android smartphones. The burgeoning middles classes in Tier II and Tier III cities have found a convenient way to research and browse for their latest buys with cheap smartphones.</p>.<p class="bodytext">The consulting firm RedSeer estimates that 19 million more online shoppers will be added in 2018 from Tier II+ cities. In contrast, four million shoppers will be added from Tier 1 cities. (redseer.com)</p>.<p class="bodytext">Brick and mortar stores don’t have to invest huge amounts in real estate anymore; instead, they can find a wider audience for their products through e-commerce. With the positioning of strategic hubs in different parts of India, timely delivery keeps them and their customers happy.</p>.<p class="CrossHead">Millennials and Gen Z</p>.<p class="bodytext">The trend of shopping online is not slowing down anytime soon. Generation Z and millennials from Tier II and Tier III cities are the driving force behind the upward trend in e-commerce in India. </p>.<p class="bodytext">These young people are not afraid to experiment and the deep discounts offered online are a great attraction. Even big brands offer great discounts up to 90% on some platforms, so the young, rural buyer is happy to flaunt his his/her branded clothes.</p>.<p class="bodytext">Millenials and Gen Z spend a lot of time online, talking to friends, researching, doing finances and shopping. (Data courtesy: BCG) They are comfortable with online shopping and payments.</p>.<p class="bodytext">Often they shop for their parents and other family members online. Parents, too, are a bit hesitant and leave it to the youngsters in the family to guide them through e-commerce purchases.</p>.<p class="CrossHead">Future of e-commerce</p>.<p class="bodytext">It is a fact that the Asia-Pacific area accounts for a 50% share of all e-commerce business worldwide, and undoubtedly, e-commerce is going strong in Tier I cities in India.</p>.<p class="bodytext">Online shopping accounted for $20 billion in the third quarter of 2017. Morgan Stanley estimates that India’s e-commerce will grow to a staggering $200 billion by 2025. This is a jump of 30-40% in growth every year!</p>.<p class="bodytext">With the government formally announcing plans for broader internet reach in rural areas, first-time rural consumers are expected to grow exponentially.</p>.<p class="bodytext">Transactions using Aadhaar number and BHIM app are on a steady increasing in these areas, and by 2020, a huge portion of the rural population is expected to be online.</p>.<p class="bodytext">Currently, 56 million digital shoppers from smaller cities and rural areas are online. Retail businesses in Tier II and Tier III cities are increasingly aware of this momentum, resulting in a shift from retail to online business to tap the potential in these areas.</p>.<p class="bodytext">Small businesses, kirana shops, and other local services are likely to be B2C online businesses in 2018-19. While small businesses will only benefit from their foray into e-commerce, the small town/rural consumer will finally find his place in the sun. A win-win on all sides!</p>.<p class="bodytext"><span class="italic">(The writer is CEO & Founder, Palred Online Technologies Private Limited)</span></p>