02/09/2023
and from Tamil Nadu are among the pan India list of 22 cities finding a place in the "Tier II and Beyond Cities: A $240 Billion E-commerce Opportunity by 2030" by Inc42 Media.
with six D2C Startups (Tanvi Foods , AuGrav.com - Personalized Wedding Bands. , Juicy Chemistry , SuperCluster Pi , TABPS Pets Pvt Ltd , Prolgae ) is the only Indian city from these emerging hubs with more than five Startups in this category. The only other Startup from Tamil Nadu featured in the list is Karur-based nativespecial .com
As of FY22, nearly 50% of the recognised Startups in India were from Tier 2 and 3 cities. Here are a few reasons why Tier 2 and beyond cities hold a key opportunity for D2C brands:
Untapped Market Potential in Smaller Cities - Largely unexplored by traditional brick-and-mortar stores, offering fertile ground for online expansion.
The Ripple Effect of Rising Disposable Income - Thanks to the nation's economic growth and trickle-down effect increasing incomes for the middle class.
Limited Physical Retail Options Fuel E-commerce Growth - unlike metropolitan counterparts, thereby offering a diverse range of products and brands.
A Surge in Internet User Base Expands Market Reach - Many are joining social media platforms and engaging online, creating a fertile e-commerce landscape.
Significantly, a growing portion of online orders now comes from these less urbanized areas, indicating the vast market potential in expanding to these regions.
