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'Premiumisation remained a defining trend this festive season'

Financial Express Hyderabad

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October 28, 2025

As festive shopping spreads beyond metros, smaller cities are driving record growth for Amazon India.

The 2025 Great Indian Festival saw 2.76 billion customer visits, with nearly 70% from tier 2 and 3 cities, reflecting a shift towards premium choices and faster deliveries. Saurabh Srivastava, vice-president, Amazon India, discusses with Geetika Srivastava the evolving shopping trends, the role of Al, and Amazon’s focus on convenience and value. Excerpts:

What emerging consumer patterns have you seen in tier 2 & 3 cities this festive season, and how is their shopping behaviour different?

During Amazon Great Indian Festival 2025, Amazon India recorded over 2.76 billion customer visits, with 70% from tier 2 and 3 cities, shopping for everything from smartphones and smart TVs to sarees, festive decor, beauty products, and everyday essentials. This year also saw the highest-ever number of sellers registering sales, spanning diverse regions such as Himachal Pradesh, Uttara-khand, Karnataka, Tamil Nadu, Bihar, West Bengal, Goa and Gujarat. Two-day deliveries to Prime members in tier 2 and 3 cities grew by 37% year-on-year. Premiumisation remained a defining trend. Premium smartphones (above ₹30,000) grew by 30%, with 65% coming from tier 2 and 3 cities. Fashion and beauty saw upto 95% yo-y growth in these cities. Amazon Bazaar saw new customers grow by over 400%, with over 65% of users from tier 2 and 3+ cities. Seller success also reached a new high, with the highest-ever participation of small and medium businesses.

Amazon launched Rufus, its GenAI-powered shopping assistant in India. How has Al adoption impacted shopping behaviour?

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