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FMCG/ Durables

Smaller Indian Cities to Drive Two-Thirds of New Online Orders by FY26: Report

6 months ago · Lumic

Map of India highlighting Tier 2 and Tier 3 cities with icons representing online orders and growth.
Lumic
6 months ago
Smaller Indian Cities to Drive Two-Thirds of New Online Orders by FY26: Report
IMPACT BULLETS
A new report predicts that towns outside major cities will generate two-thirds of all new online direct-to-customer orde
This means a big change in where the growth for online shopping is coming from, moving away from just the big metros.
The increase in digital access and more people trying online shopping in these areas are the main reasons for this trend
Business Standard·6 months ago

This Fin Shorts report highlights a significant shift in India's e-commerce landscape. By FY26, smaller Indian cities, often referred to as Tier 2 and Tier 3 cities, are expected to drive a whopping two-thirds of all new direct-to-customer (D2C) online orders. This trend signals a major evolution in Indian markets, moving beyond the traditional dominance of metros. Factors like increasing digital access, improved internet penetration, and a growing comfort with online shopping among consumers in these regions are fueling this remarkable growth. Understanding this consumer behaviour shift is crucial for businesses looking to tap into the next wave of online retail expansion in India.

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