BG Mahesh | Mahesh | mahesh.com

In 2012, 56% of the India’s online shoppers came from tier-II cities, towns

Today the festival Makara Sankranti and Pongal are being celebrated in Karnataka, Andhra Pradesh, Tamil Nadu. Makara Shankranti is the harvest festival. The festive Wishing you all a happy Sankranti & Pongal (this resembles the statement issued by our Chief Ministers, Prime Minister!). Rangoli is an Indian art practiced a lot in South India.

Rangoli for Sankranti by artist Anisha Raghu

It was good to read an article completely focused on Tier-II internet users in India (Tier-II India fueling ecommerce in India). Ecommerce has been pretty much the flavor VCs in India have embraced.  With the funding of ecommerce portals having reached a saturation now everybody is concentrating on revenues, profitability.

The study done by India’s leading VC Accel throws light on growing usage of ecommerce from Tier-II towns of India. With ecommerce industry talking about Tier-II I am sure they will get more coverage in the media. Some highlights from Accel’s ecommerce  report,

Why Tier-2 towns are important in India?

This shows Middle India cannot be ignored, rather Tier-2 towns of India will give the much awaited and needed push to the internet eco system in India.

When will internet penetration in India resemble China?

 India
(2012)
China
(2007)
China
(2012)
Internet population137m111m538m
Internet Penetration8%8.4%38%
Online buyers20m (including travel)
13m (without travel)
22m227m

The above table shows India is yet to witness a heavy usage of internet. But if you look at the past we seem to have improved a lot. I am assuming these numbers are for desktop internet only and doesn’t include the every growing mobile internet user base.

The good news is there is a lot of room for growth of internet penetration in India. Portals such as our Oneindia that have concentrated on Indian languages are going to see a huge growth in our traffic (and revenues).