Flipkart sees 65 percent growth in new users from Tier III plus regions in India

The Bharat part of India has joined the ecommerce bandwagon, especially during the COVID-19 pandemic, as Flipkart saw 65 percent growth in new user additions from Tier III plus regions.

India’s leading ecommerce marketplace, Flipkart, said it witnessed a new user growth of close to 50 percent right after the lockdown, with Tier III plus regions registering the highest growth of 65 percent during the ‘Unlock’ (July-September) phase.

Flipkart also saw close to a 35 percent increase in sellers onboarded in 2020, in comparison to the same period last year. These sellers came from Tier II and Tier III regions such as Tirupur, Howrah, Zirakpur, Hisar, Saharanpur, Panipat and Rajkot. They primarily catered to categories such as household needs, women’s ethnic wear, grooming, home decor and toys and school supplies.

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“Consumers from Tier II and Tier III plus regions also spent the most time on the platform, signalling a continuing rise in user engagement and a shift in shopping preferences,” Flipkart said.

The company said it has witnessed interesting demand patterns in 2020, which include changes in category preferences, the emergence of 'new essentials' to the adoption of native languages, and surge in new-age forms of payments.

Flipkart said between the period of January and November of this year, adoption of native languages saw a 2.5x increase.

On the digital transactions front, UPI adoption on the Flipkart platform increased nationally by 4.5x from January 2020 to August 2020, with Maharashtra taking the lead with a 5.2x growth. Andhra Pradesh, Telangana, Kerala, Karnataka and Tamil Nadu were the other states that were at the top of the list for UPI adoption on the Flipkart platform.

On the evolving consumer preferences this year, Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group, said, “As India’s homegrown e-commerce marketplace, our efforts continue to be dedicated to making e-commerce inclusive for every customer, irrespective of where they are located. Flipkart’s purpose has been elevated this past year, as we continue to play an important role in ensuring the safe delivery of products to consumers’ doorsteps through a safe and sanitised supply chain.”

Looking ahead, Flipkart said Bharat will continue to play an important role in its story as it continues to work towards onboarding the next 200 million consumers.