Festive Demand Surges in Smaller Towns

This festive season, tier 2 and 3 towns are witnessing a major shopping boom. Buyers are upgrading their purchases, opting for large-screen televisions, water purifiers, dishwashers, washing machines, and premium fashion wear, according to industry executives.

Recent GST cuts and promotional offers have played a key role in boosting demand. Shoppers in smaller towns are now investing in higher-value products, moving beyond entry-level options and embracing premium choices.

A report by Unicommerce, an e-commerce enablement platform, shows that smaller towns accounted for around 58 percent of transactions in the first “festive week.” While metros and tier 2 cities recorded a 22 percent increase in order volumes from September 22-29, tier 2 and 3 towns together saw a 20 percent growth year-on-year.

Big Screens Become the New Norm

Until recently, rural and tier 3/4 markets mainly bought entry-level 32-inch TVs. Now, following GST cuts, the entry point has shifted to 40 and 43-inch models, while 55-inch TVs are also seeing strong demand, said Avneet Singh Marwah, CEO of SPPL, licensee for Kodak and Blaupunkt.

“With television penetration already above 85 percent, the share of first-time buyers is declining, and upgrading to bigger screens is the new trend,” he added.

Godrej Appliances also reported strong demand. Kamal Nandi, business head & EVP, said non-metro markets grew nearly 30 percent during Navratri, while metro cities recorded a 12 percent increase. The trend is seen across air conditioners, washing machines, and other home appliances.

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Washing Machines and Water Purifiers in Demand

Washing machines recorded over 30 percent growth across both metro and non-metro segments. Advanced water purifiers are also gaining popularity, especially in tier 2 and 3 towns.

Anurag Kumar, Chief Growth Officer at Eureka Forbes, said that multi-stage RO+UV purifiers, hot & ambient models, and stainless steel tank-based systems are selling fast in smaller towns. The Jal Jeevan Mission, which expands tap-water access, is expected to further increase demand for purifiers in rural and semi-urban areas.

According to Philip Xia, General Manager at TCL India, sales in early October likely increased further as employees received salaries in late September, keeping the festive momentum strong.

Premium Fashion Gains Popularity

Fashion brands are seeing a revival of demand in smaller towns this season. Amazon reported that 65 percent of orders and 85 percent of new customers come from beyond metros, with premiumisation emerging as a key trend.

Sidharth Bindra, MD of BIBA, said that tier 2 and 3 cities are embracing premium fashion, with collections like BIBA Reds generating strong appeal.

Luxury fashion platforms are witnessing even sharper growth. Culture Circle reported a 340 percent increase in orders from tier 2 and 3 cities, led by Jaipur, Lucknow, Indore, Chandigarh, and Kochi. Premium sneakers like Air Jordans and Yeezys, perfumes, and other high-ticket items drove most of the sales.

“The festive season has been phenomenal, with tier 2 and 3 towns emerging as our fastest-growing markets,” said Devansh Jain Nawal, CEO & Co-Founder of Culture Circle.

Conclusion: Smaller Towns Are Driving Premiumisation

This festive season has highlighted a shift in consumption patterns. Tier 2 and 3 towns are no longer just price-sensitive markets; shoppers here are upgrading to larger TVs, advanced appliances, and premium fashion, spurred by GST cuts and attractive festive deals.

E-commerce platforms and brands are increasingly focusing on smaller towns, recognising that they now contribute significantly to overall sales and growth.

With premium products becoming more accessible across Bharat, the trend of upgrading over first-time buying is set to continue in the coming years, shaping festive shopping trends across India.

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