January - 2017 - Special issue > CXO Insights

Growth of Tier II & Tier III Cities

Sanjeev Bhatia, Co- Founder, Only Mobile

Wednesday, February 1, 2017

Forward

Sanjeev Bhatia, Co- Founder, Only Mobile

Headquartered in Surat, OnlyMobile is an e-Commerce startup which segregates itself from their contemporaries through competitive pricing policies, wide reach via a network of warehouses & call centers, genuine & company authenticated products, and a unique 30-day price protection policy for consumers.

After the biggest block buster peak season period of Diwali 2016, almost all major market places have shared that they have received the most number of orders from the tier-3 and onwards towns. And I am sure, if you have just started your new e-Commerce venture you would have analyzed your sales trend, too. You realized that probably that is not your case and you are forced to think that you are going wrong in chasing the right set of customers?

But is it really worth to focus on tier-II or tier-III during the initial period of your set up? I guess, not. Let us understand why I advocate focusing on metros & tier-I/II cities.

Why Tier-3 & 4 Cities are Growing Fast

Typically, whatever retail revolution has happened in our country, most developments have taken place in the metros and tier-1 & 2 cities. Tier-3 and onwards cities have not yet gotten access to major brands and advanced retail treatment so far. However, there still exists a population out there which is increasingly looking at various options and choices. They are growing increasingly aspirational.