Meesho: Gen Z & Tier 4 Cities Drive E-commerce Growth

New Delhi, Aug 8 (PTI) Softbank-backed e-commerce firm Meesho on Thursday said 33 per cent of users under the age of 25 and people from UP and Bihar are driving the growth of the segment in India.

Based on Sensor Tower and Meesho's internal data, the report found that users from tier 4 cities and beyond are the most frequent and repeat shoppers in e-commerce, shopping across categories such as women's fashion, footwear and baby care.

The report titled ‘Meesho's Smart Shopper Report' said, "1 in every 3 users is under the age of 25, making Gen Z the fastest-growing demographic to adopt e-commerce. Uttar Pradesh and Bihar are leading in e-commerce user growth, showcasing remarkable potential and adaptability of these states."

More than 80 per cent of Indian online shoppers come from tier 2 and beyond cities such as Ambur, Rourkela, Sangli and Zirakpur, the report said.

According to the report, customers in the Northeastern states like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim are increasingly making e-commerce purchases based on influencer content, contributing to an impressive 40 per cent of all orders from these states.

The home and kitchen segment is capturing a growing share of customer budgets, with approximately 10 per cent of spending dedicated to the category, reflecting a 50 per cent year-on-year growth.

Purchase of saree and related accessories has emerged as a fresh trend, it added.

The report said, "10 lakh saree shapers and over 60,000 ready-to-wear sarees were sold in just 6 months pointing towards a consumer inclination for quick and easy ways to approach the traditional drape."

Products like selfie sticks, ring lights, microphones and tripods have surged to the top of the electronics category, reflecting growing enthusiasm for producing and sharing digital content as content creation rises in popularity, as per the report.