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Ecommerce Retail Trends in India (2013)- Data based insights from Tier 2 and Tier 3 locations


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Read on to find the impact that Tier 2, and Tier 3 urban locations are having on Ecommerce retail in India. Check out the significance of mobile platforms. If you are an ecommerce or retail person, you would want to take note.

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Ecommerce Retail Trends in India (2013)- Data based insights from Tier 2 and Tier 3 locations

  1. 1. THE TIER 2 AND TIER 3 STORY Ecommerce retail insight of consumer pattern from non-metro locations in India
  2. 2. The study • This study analyzed data of a year from an ecommerce website to understand • The patterns exhibited by visitors from Metro cities versus those from Tier 1, Tier 2 or Tier 3 locations • Engagement caused for these different visitors • Technology choices made by the visitors
  3. 3. Basic Demographics • Data is from an ecommerce web site which sells merchandise specific to K-12 demographic; but also includes many SKUs and some categories which overlap with adult needs and wants • Target clientele resides in India, however visitors to the web site come from all over the world. Some countries e.g. China, Russia etc are blocked. • Time period 1st October 2012 – 30th September 2013 • Of its total visitors 19.4% are returning visitors • Top 100 locations or results chosen • City categorization – Metro includes satellite cities e.g. Delhi NCR includes Delhi, NOIDA, Ghaziabad, Faridabad and Gurgaon – Locations smaller than Tier 3 have been considered Tier 3 – In some cases Tier 2 and Tier 3 data have been melded together for convenience. • A large number of the visitors do not have their location indicators turned on, or data is not available for them. Their data has been included as well.
  4. 4. The demographic spread Unknown, 13% Tier 3, 7% Metro, 41 % Tier 2, 14% Tier 1, 15% NonIndia, 2% • The metros themselves send the largest percentage of visitors surpassing any other category clearly • There is some amount of Non-Indian traffic as well, though most of it is restricted • A fairly large amount of traffic comes from users whose geographical location data is not available and that might cause a minimal skew in the results
  5. 5. The demographic spread (contd.) • Now if we adjusted the data to include all close satellite towns of metros into the metros, then the chasm between metro and nonmetro location is even wider • What this data is unable to clearly point out is the large number of visitors who come in from – Locations which are lower than Tier 3, and rural in nature. – Cyber cafes in the neighbourhood or the nearest semi-developed area. A large number of these might be in the “Unknown” bracket Tier 3 8% Unknown 13% Tier 2 15% Metro 51% Tier 1 11% Non-India 2%
  6. 6. Returning visitors • • • Not surprisingly, most of the returning visitors are from Metro cities The returning visitors from non-metro locations is a weak stream Though a bit of a conjecture, this might be indicative of – Lack of personal computers – Usage of computers in place of employment, to surf a web site and place orders – Relative proliferation and use of cyber cafes in these areas • The above hypothesis is strengthened by the fact that pickup of educational CDs is higher in non-metro areas than online learning. Online learning clearly will be stymied by lack of owned computers and low available bandwidth (required for online streamed learning) Tier 3 6% Unmapped 11% Tier 2 16% Metro 54% Tier 1 11% Non-India 2%
  7. 7. Browser usage (Metros) S40 Ovi Browser 1% Opera 1% Mozilla Compatible Agent 0% Safari 3% UC Browser 1% Android Browser 3% Opera Mini 11% Internet Explorer 11% Chrome 52% Firefox 17% • Google Chrome is the undisputed leader in the browser market with more than 50% market share. • Visible percentage of users are on Opera, Ovi, UC, Android.
  8. 8. Browser usage (Tier 1 -3 cities) Safari S40 Ovi 3% Browser 1% Opera Mozilla 1% Opera Mini Compatible 11% Agent 0% Internet UC Browser Android 1% Browser 3% Compatible Agent 0% Explorer 11% Firefox 17% Chrome 52% Tier 1 browser usage data • • • S40 Ovi Safari 3% Browser Opera 1% Mozilla 1% UC Browser 2% Android Browser 3% Opera Mini 10% Internet Explorer 11% Firefox 17% Chrome 52% Tier 2 & 3 browser usage data You will notice that there is little difference in browser usage patters in the super large cities, and other urban areas. Android browser is clearly phone or tablet based. Similarly a large part of Safari also could belong to Apple portable devices. The large proliferation of Chrome, is also an indicator of this browser on mobile devices and thus an indicator or mobile device based internet access in non-metro areas.
  9. 9. Browser usage (Unmapped areas) S40 Ovi Browser 1% Mozilla Compatible Agent 0% Opera 1% Safari 2% UC Browser 1% Android Browser 3% Opera Mini 11% Internet Explorer 11% Chrome 53% Mobile based internet access is an unmistakable and definite trend, which continues to strengthen with time Firefox 17% • • The browser usage trends in unmapped areas remains the same. It might be safe to assume that the unmapped users can get categorized in the same ratio as in other geolocations. Besides there are visible percentages on UC browser, Ovi (from Nokia), and Opera which are run primarily on mobile devices.
  10. 10. Bounce data 70.00% 68.00% 66.00% 64.00% 62.00% 60.00% 58.00% 56.00% 54.00% 52.00% Metro Tier 1 Tier 2 & 3 Generic visitor bounce Returning visitor bounce Unmapped • The overall %age for each category remains about the same range. • Non-India data has been removed from the Return visitors because of its nonrelevance. • The drop in bounce rate between generic visitors vs. return visitors is natural.
  11. 11. Trinayan ( ) - the third eye is a concept referring to an invisible eye which provides perception beyond ordinary sight. The third eye often symbolizes a state of enlightenment. OUTSOURCING STRATEGY IT ADVISORY LEARNING STRATEGY RETAIL OFFSHORING STRATEGY PROCESS ENGINEERING TRAINING CONSUMER PRODUCTS CIO ON TAP PROJECT MANAGEMENT CONTENT DEVELOPMENT STARTUP ADVISORY +91 9980711477 | +91 9980525553