BG Mahesh | Mahesh |

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?

Internet population137m111m538m
Internet Penetration8%8.4%38%
Online buyers20m (including travel)
13m (without travel)

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).