Tier 2 & 3 cities driving festive sales for Shopclues?

Rebecca Menezes | Sep 10, 2020

The ecommerce biggies Amazon, Snapdeal and Flipkart, have already shown off their success with the festive season sales. Shopclues many not be a front runner like the top three but the etailer certainly achieved an amazing feat.

Shopclues owes its success to tier 2 & 3 cities

Shopclues entered the festive season with well defined goals. Did its planning pay off? Seems like it but mostly in tier 2 and 3 cities. The marketplace claims it received 50% more festive demands from these two urban categories.

The platform experienced five-fold growth in its business within just the first two days of its Diwali sales. Tier 3 contributed to al least 48% of over sales for the company, says Shopclues.

Performance summary

Shopclues co-founder, Radhika Aggarwal states, “Shopclues is witnessing a significant growth in demand across various geographies. The Diwali Sale has also validated, and given an impetus to, our goal to provide par excellence service delivery and effective reach of the platform across all geographies in our country.”

  • Compared to last year Shopclues saw a 50% increase in its Diwali sales
  • New registrations doubled on the website
  • Shopclues shoppers spent 25% more time on the platform
  • Shopclues gifting category had 6 times more activity
  • The platform’s best selling product was a set of 4 designer doormats (25 units were sold in a few hours of the Dhamaka Deals)

Snapdeal experiencing similar trend with tier 2 & 3 cities

The rising demand from tier 2 and 3 cities was witnessed by Snapdeal as well. But unlike Shopclues the Snapdeal’s demand from these cities grew only 20 times more. The etailer is in third place with a sales of 11 million units during its first festive sales.

Snapdeal hosted round 2 of its festive sales from 12th to 14 October to push sales further. But, it  isn’t the only marketplace with this brilliant idea. Amazon and Craftsvilla are hosting a second sale on their platforms.

Online shopping trends

The emerging demand for online retail from the tier 2 and 3 cities is expected to launch the online fashion market into a better position. This is based on a market research study conducted by Technavio.

According to a RedSeer Consulting report, ecommerce companies are expected to bring in about 11,000 to 13,000 crore this month. Etailer performance has exceeded expectations and GMV is likely to only increase.

Mizoram, Meghalaya, Goa, Himachal Pradesh and Jammu and Kashmir were the most participative in the sale.

In Tripura, Sikkim, Andaman and Nicobar Islands, Mizoram and Meghalaya there has been an increase in the search for online shopping over the last 7 days, say Google Trends. It recorded a 250% surge.

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Rebecca Menezes

Rebecca Menezes

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