Amazon India banks on tier 2, 3 cities to drive growth

By

Maverick Martins

Published
Sep 28, 2018

E-commerce major Amazon is banking on its customer base in tier 2 and 3 cities of India and confident of clocking good numbers during its upcoming festive season sale despite its clash with Flipkart.
 

Amazon India, which has a strong presence in these cities, apart from metros, is expecting to generate good sales during its flagship sale event, ‘Great Indian Festival’, which will be held from October 10 to 15. Indian e-commerce major Flipkart’s ‘Big Billion Days’ sale will also be held during the same period.
 
The company is expecting 70 percent new customers from tier 2 and 3 towns. Amazon’s strategic launch of a Hindi version of its website last month is one of the reasons why the e-commerce firm is optimistic about doing well in these markets.

“Each festive sale (Great Indian Festival) has been bigger than the previous one. We feel confident because we have new customers coming in. More than 70 percent of new customers are expected to come from tier II and III towns,” Amazon India Vice President (Category Management) Manish Tiwary told PTI.
 
“Every category is expected to do well with many of them witnessing 10X growth. We expect the fashion category to do really well,” he added.
 
Amazon India had managed to acquire 85% new customers, especially from tier 2 and 3 cities during the last edition of its Great Indian Festival.