E-commerce transactions surge 82% between 2020 and 2021 in Tier II cities, fashion segment big gainer: Study

The study found Tier I cities dominating the fashion festival figures, while transactions in Tier II cities such as Jaipur, Lucknow, Guwahati, Mysuru, Kochi, and Bhubaneswar are at an all-time high, rising 82% from the year-ago period.

For their part, the senior executives of the e-commerce players, who attended Tuesday’s meeting, highlighted how their companies had bolstered the entire retail eco-system by empowering small retailers, artisans and MSMEs.
For their part, the senior executives of the e-commerce players, who attended Tuesday’s meeting, highlighted how their companies had bolstered the entire retail eco-system by empowering small retailers, artisans and MSMEs.

India’s e-commerce business surged 77% between 2020 and 2021 with transactions from Tier II and III cities higher than ever, a new study has found.

The study, conducted by data intelligence company Bobble AI, is based on data from 50 million smartphone users in over 640 cities. The study found Tier I cities dominating the fashion festival figures, while transactions in Tier II cities such as Jaipur, Lucknow, Guwahati, Mysuru, Kochi, and Bhubaneswar are at an all-time high, rising 82% from the year-ago period.

A majority of e-commerce consumers are between 26 and 35 years old, accounting for 37%, while the 18-25 segment accounted for 26%.

The survey found a 64% growth for beauty e-commerce apps, while fashion segments grew 368% on over. The recently-concluded festival period led the two e-commerce domains to surge, with individuals completing at least two transactions during the season.

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The Bobble AI survey also found that Flipkart remains the dominant player in terms of engagement metrics such as active sessions and search frequency, while Amazon has higher transactions. The festival season also witnessed a direct battle between Amazon and Flipkart — the country’s two biggest e-commerce giants. Flipkart’s active user base grew 83% during the 2021 online shopping festival against Amazon’s 72%. However, despite Flipkart’s dominance over active sessions and search frequency, Amazon is winning the battle in terms of transactions with significantly lower average session times.

The fashion segment has become a lot more competitive with Flipkart-owned Myntra now facing competition from Meesho, TataCliq, and Ajio. Myntra bagged 46% of all transactions during the 2020 festival period, while Ajio bagged 69% in 2021. The share of active Myntra users also using Ajio, Meesho, and TataCliq has also gone up, indicating users are now exploring multiple options.

In the online fashion segment, Purplle’s active user base grew a staggering 70% growth during the 2021 festival period, while Nykaa had a 50% rise.

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According to Bobble AI, the festival season trends indicate a healthy and fast-evolving competition that bodes well for customers looking for quality products at affordable prices.

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