Tier 2 e-commerce transactions grew by 82% between 2020 and 2021: Bobble AI report

There has been a 77% rise in e-commerce in India between 2020 and 2021, and tier two, three cities are transacting more than ever, according to a report by conversation media platform Bobble AI.

The report is based on over 50 million smartphone users’ data processed in a privacy-compliant manner, from 640+ Indian cities. It also revealed that while tier one cities dominate the fashion festival figures, transactions in tier two cities like Jaipur, Guwahati, Lucknow, Kochi, Mysore, and Bhubaneswar are at an all-time high – up 82% over the previous year.

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It also says that the majority of consumers are between the ages of 26 and 35, accounting for 37%, and between the ages of 18 and 25, accounting for 26%, with 72% males and 28% females.

According to the survey on the state of e-commerce in India, which was conducted across Tier 1, 2 and 3, beauty e-commerce apps usage grew by 64%, whereas fashion e-commerce grew by 368% over the past year.

In another insight, highlighted by the study, India’s fashion e-commerce players are seeing tough competition. Myntra faced tough competition from its competitive counterparts, Meesho, Ajio, and TataCliq. While almost 46% of all transactions belonged to Myntra during the 2020 festive period, Ajio bagged around 69% of all transactions in 2021. The share of Myntra’s active users, also using Meesho, Ajio, and TataCliq has also increased significantly, indicating how users are exploring multiple options this year.

The battle of the e-commerce legends, Amazon, and Flipkart is worth noting, with Flipkart’s active user base rising 83% in 2021 online shopping festival compared to Amazon’s 72%. Despite the fact that Flipkart is dominating in terms of engagement metrics like search frequency and active sessions, Amazon is winning in terms of transactions, significantly less average session times.

In the e-commerce sector, Flipkart’s active user base rose by 83% in 2021 online shopping festival, compared to Amazon’s 72%. However, while Flipkart is dominating in terms of engagement metrics like search frequency and active sessions, Amazon is winning in terms of transactions, significantly less average session times.

Moreover, in the beauty e-commerce segment, Purplle took a piece from Nykaa’s pie. Purplle had a 70% growth in active users in the 2021 shopping festival, compared to a 50% increase for Nykaa. With 15% common user base in 2020, Purplle is now standing at 17% in 2021.

The festive season trends point towards healthy and fast-evolving competition in the e-commerce market, this bodes well for customers who are looking for high-quality products at affordable prices. With India’s e-commerce market set to reach $120 billion by 2025, the future seems promising.

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