E-shoppers from tier-2 cities bigger spenders than tier-1: IIM-Ahmedabad survey

AHMEDABAD: A survey carried out by IIM Ahmedabad (IIM-A) indicated that tier-2 cities including Ahmedabad are now bigger spenders per purchase online than metros such as Mumbai, Delhi, etc. E-shoppers from such cities spent about 60% more than their metro counterparts or tier-1 cities.
The nationwide survey included Surat, Vadodara, Rajkot, Jamnagar and Valsad as other tier II, III and IV cities from Gujarat. The researchers said that the overall findings of the survey resonated with the Gujarat cities.

Findings of the survey 'Digital Retail Platforms and Consumer Emotions: An Indian Perspective' by professors Pankaj Setia and Swanand Deodhar with research manager (CDT) Ujjwal Dadhich were released by the B-school on Monday. The survey ascertained the online spending, time spent on online shopping portals, nature of purchase and factors such as gender and age.
Researchers told TOI the survey recorded details of the order value of the customers' last online shopping transaction. "By this metric, it is observed that the average last transaction spending by consumers of Tier 2 cities exceeds that of Tier 1 cities by 60%," they said.
In response to a query from TOI, the researchers said that Rs 10,000 was the highest consumers below 35 years spent in their last transactions. The median last-transaction spending is highest for consumers over 50 years.
"We also find that, for consumers in the age group of up to 35 years, more than 50% have purchased fashion and clothing products in their last transaction," the researchers said.
Online shopping spiked in last three years, coinciding with the Covid pandemic where everything from work to education shifted online. "Our survey indicates that more than two-thirds of the respondents started online shopping in past three years. However, the pattern cannot be attributed to a single factor," said the researchers.
The survey findings highlighted that women were more likely to shop for clothing and fashion accessories, while men preferred shopping electronic gadgets online. Online shopping was boosted by factors including ease of purchase, variety and delivery time.