Hike In Online Demand For Products Services In Tier II Cities Re-defining Growth: Report 


With strong signs of economic recovery supported by increasing vaccination numbers, India at large seems to be getting back to clocking overall economic growth with Tier-II towns and cities emerging as the new engine of this growth curve, reports Just Dial Consumer Insights. 

As per latest Just Dial insights, right from the onset of the festive season till the year-end festivities, Tier-II cities have been driving consumption growth and are at par or in some instances have surpassed Tier – I in terms of overall demand cutting across products and services in various areas. 

Higher disposable incomes and a wider exposure coupled with deeper internet penetration and access, India’s Tier II cities seem to have taken a mammoth leap to grab the front-seat in steering the country’s demand surge and thereby trigger economic growth. 

During the Navratri, Tier-II cities witnessed robust demand growth for demand for caterers compared to Tier-I cities. The ensuing Dhanteras also saw a high demand surge for precious metals – gold, silver, and diamond – in Tier-II cities vis-à-vis Tier-I.  

“COVID-induced lockdowns have increased online adoption of services across Tier-II cities as well. Hence, we are witnessing a demand growth on Just Dial across India’s Tier-II towns and cities for a host of services and products. This increasing demand growth across smaller towns and cities augurs well for India’s overall socio-economic growth,” said Chief Marketing Officer at Just Dial Prasun Kumar.  

The report outlined that during the wedding season, the demand for a host of services in Tier-II cities was almost two times more than India’s overall growth rate. Even for the holiday season, the growth rate in travel and tourism industry shot up by 51 per cent. The demand growth in Tier-II cities was at 54 per cent ahead of Tier-I cities, where the rate of growth was 49 per cent. 

 “There is an increasing online demand for a host of services in Tier-II towns and cities. This indicates that the gig economy in sectors like wedding, food delivery, and tourism is flourishing well. With access to quality education and internet, Tier II cities are increasingly becoming digital that also benefits big and small businesses alike. Just Dial looks forward to leading this trend by enabling local businesses to get online and build the future discourse of the Indian economy,” said Kumar. 

 Demand for wedding services across the country grew by 49.7 per cent QoQ with most of this demand being generated by Tier-II cities that saw a growth of 106 per cent benefitting the growing gig economy at large. The demand surge for precious metals too remained higher in Tier-II cities. In terms of gold, demand growth rate in Tier-II towns (24 per cent) remained marginally ahead of Tier-I cities (22 per cent), as per report. 






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