Apparel Online India Magazine March 1st Issue 2019 | Page 59

INDIA’S PREMIER SOURCING SHOW
LALIT AGARWAL,
V-MART
“There is huge
opportunity in Tier-
2 and Tier-3 areas,
especially for retailers,
who have value-for-
money proposition,
which can suit the
pocket size and also
the aspirational needs
of consumers in these
areas and their local life
preferences.”
BIPAN JAIN,
MADAME
“Around 35-40 per
cent of growth for
Madame is coming
from Tier-2 and beyond
areas and e-commerce
has further helped in
customer acquisition
and growth.”
RISHABH OSWAL,
MONTE CARLO
FASHIONS LTD
“The store presence
in smaller markets is
steadily improving
owing to rising
disposable incomes,
increased penetration
of branded wear and
greater awareness
of trending fashions
among consumers.”
Puma Sports is continuously expanding its store presence in Tier-2, Tier-3 areas
Smaller cities have ready consumers hungry for fast-
fashion products but they do not have options to choose
from or a convenient price point. Growing internet users
in Tier-2, Tier-3 have facilitated the entry of e-commerce
in these regions. Also, our homegrown labels, priced
competitively for these consumers, give us an edge over
other online portals entering these markets. We understand
the needs of Bharat (Tier-2, 3, 4 regions and beyond),
where price points and value play a pivotal role in shopping
experience.”
Meanwhile, in order to tap the huge market in Tier-2 and
beyond in the country, the e-commerce major Amazon is
working through its pilot project ‘Udaan’, which integrates
skill development and self-employment with assisted
shopping. And Amazon Pickup is enabling customers to
benefit from the emerging digital commerce opportunity.
Since its launch, Udaan has expanded to 21 states and
union territories, having over 12,000 stores covering
1,700 pin codes across India with partners like Storeking,
Vakrangee and small entrepreneurs like Linq, Indiabuys,
apart from hundreds of mom-and-pop stores, which have
signed up directly with Amazon.
For Amazon, non-metros continue to be the driver of new
user growth and development, with share of new customers
in non-metros moving past 75 per cent as on 2017.
Customer acquisition is the key
A report published by JLL suggests that the retail sector
in Tier-2, 3 cities has drawn an investment of US $ 6,192
million between 2006 and 2017, against US $ 1,295 million
that was drawn by Tier-1 and metro cities during the
same period. While the industry has started taking an
increased interest in these areas, an effective customer
acquisition strategy is the key moving forward. Radhesh
Kagzi, President, 109°F agrees, “Acquiring and retaining
a customer is a prerequisite for success in any market
whatsoever. We are making the latest trends available
to the shoppers in these areas at really sharp prices. We
understand that the spending power is vis-à-vis lesser than
the metros, but the desire to own fashion is probably higher.
Even as the brand works under a standard parameter for
all its markets, we do customise few options, specifically for
the Tier-2 and Tier-3 stores. The average ticket size for us
in these areas is about 12 per cent lower than the metros.”
Monte Carlo prides in having a strong base in small towns of the country as much as in metros
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