Industry experts advocate concentrating on tier 2 and tier 3 cities for retail expansion, leveraging online data accessibility for precise market targeting
In comparison to tier one metro areas, which attracted USD 1,295 million investment, the retail industry in tier two and tier three cities has attracted USD 6,192 million between 2006 and 2017. In the retail sector, the existence of well-known high streets in Tier two cities like Chandigarh, Lucknow, and Bhubaneswar is also influencing dynamics.
The best part in tier two and three cities that you have access to all the data online which helps in targeting the market
“Our entire focus is on tier two and tier three cities, that’s where the demand is. That’s where the aspirational factor of the end consumers is. People have seen all the investment by the government in infrastructure, the road connectivity has improved considerably, and that has all impacted their lives,” said Sameer Manglani, Partner, Meena Bazaar.
On reading the macro trends and consumer sentiments, Akash Nagpal, VP Leasing, Trehan Iris said that the retailers are actually eyeing towards the tier two and tier three cities as well because all the Metro cities are already overcrowded. Now the next growth part is tier two and tier three cities.
“The best part in tier two & three cities that you have access to all the data online which helps us in targeting the market. Various companies have increased their services in these cities. Road connectivity has made our work easier,” said Shammi Agarwal, Director, Pansari Group.
Khushboo Agarwal, Co-founder & COO, Campus Sutra said, It’s just not tier one, tier two, but the entire retail segment is expanding. You cannot focus on one kind of format. Other formats also work to end with the changing consumer behaviour. Live commerce and social commerce going to be the next big thing.
