Tier-II and III cities are the center point of the next wave of retail growth. These cities are witnessing five times more investments in the retail infrastructure. The growth in these cities has been witnessed due to high disposable income, high usage of mobile internet and support infrastructure. The new age brands have started penetrating their business as this market has a high potential.
Bharat Sethi, Founder, Rage Coffee explains, “More than 50 % of our online sales comes from the Tier II cities. We’ve got partners who understand the dynamics of these markets from a trade point of view. We associate with the distributors in the region and look at the data from the retail outlets prospect and then plan the strategies. The planning in respect to online and offline is double-forked. Our team truly believes that with the hyperlocal network getting established many Tier II & III cities will be under our business radar directly.”
Lisa Suwal, Chief Growth Officer, PRASUMA adds further, “These regions are the growing markets, and we are making sustained efforts to support the organic growth being generated from these centers. We are experiencing both consumer and retailer pull based on word of mouth of our delectable momos.”
Talking about how to serve the untapped market, Sonal, Founder and CEO of Whitecub says, “Since there is a shift towards vegan, plant based products, the market for dairy and gluten free products and ice creams are expanding. We are building our presence in Tier II cities like Pune & Ghaziabad. Creating brand awareness and changing consumer’s preference to dairy free products in Tier III cities is a challenge and will take time.”