HOW TIER 2 & 3 CITIES ARE REWIRING INDIA'S FESTIVE E-COMMERCE

India's festive e-commerce boom is no longer a metro-only story. From Lucknow to Coimbatore, smaller towns are driving record order volumes, experimenting with premium categories, and shaping the very way brands build festive strategies. Tier 2 and 3 cities have shifted from being peripheral markets to becoming the beating heart of India's digital shopping surge.

- By Swati Bhargava

The festive season marks the peak of retail activity in India. It is a time when consumer aspirations translate into spending, and brands are tested on their ability to capture attention and loyalty in a high-stakes period. This year, the stakes are higher than ever. Urban households are expected to increase spending by 115%, with over a third planning purchases above Rs.20,000. These figures are significant, but they tell only part of the story.

Beyond volume and value, the defining shift lies in who is driving this growth and how brands must rethink strategies to stay ahead. For years, metro cities set the benchmark for festive e-commerce, shaping trends and driving sales. That dominance is now being challenged. Tier 2 and 3 cities are emerging as the new engines of growth, recording a 21% rise in sales and contributing an 8% increase in overall e-commerce volume this year. This shift reflects a deeper change in consumer behaviour; redefining how shoppers in these smaller cities discover, evaluate, and make purchases during the festive season.

What's powering this surge?

The rise of smaller cities in festive e-commerce is no accident. It is the outcome of a fundamental shift in how India shops. A new generation of digital-first consumers is emerging, many discovering online retail through mobile apps and seizing the festive season as the moment for their first big-ticket purchases. Their carts are no longer limited to essentials — they now include electronics, fashion, and home décor, with premium brands representing aspirations and lifestyle upgrades that were once the preserve of metro shoppers.