Demand for large devices will be driven by tier 3 cities in H2 2021: Flipkart
Tier 3 cities and beyond made up a large part of the demand for large appliances, according to a report by Flipkart.
According to the report, over half of the total demand for large appliances such as refrigerators, televisions, washing machines, etc. came from these cities in the second half of this year.
“This is due to changing consumer lifestyles, working from home and the wide availability of products that are affordable online,” said the local e-commerce major.
According to Flipkart, 53 percent of the demand for large devices on Flipkart came from tier 3 and beyond cities during the 2021 festival season, while metro and tier 1 and tier 2 cities came to 47 percent of total demand.
In 2019, the demand from Tier 3 and beyond was 46 percent. Cities like Bhagalpur, Patna and Lucknow have also replicated similar demand trends as in major cities like New Delhi, Mumbai, Bengaluru, Chennai and Kolkata, according to the report.
“The availability of affordable payment constructs such as No Cost EMI, Debit Card EMI, Buy Now Pay Later has also added to the shift,” it said.
“Almost a fifth of all customers opted for inexpensive payment structures during the festival season,” it continues.
A considerable number of customers from smaller cities also opted for prepaid payment methods this year, with around 75 percent of televisions and household appliances being purchased using the prepaid method.
Hari G Kumar, Vice-President, Large Appliances at Flipkart, said, “We have seen a significant shift in customer preferences over the past two years with various new trends around adoption from smaller cities, favoring energy efficient devices and affordable payment constructs overall indicates the growing confidence in e-commerce. “
“Flipkart continues to expand its choices, offering its customers better affordability and seamless delivery. We also provided several technical features such as augmented reality functions and expert chat to ensure a seamless e-commerce experience for our customers, ”added Kumar.