Non-metro cities’ Micro, Small, and Medium Enterprises (MSMEs) are surpassing their metro counterparts in Diwali sales this year, with an estimated ecommerce opportunity of a whopping USD 13 billion for Indian MSMEs during the festive season, according to a report by tech-enabled logistics platform and unicorn, Shiprocket.
The report suggests that 10-15 per cent of the total order volume is expected to come from first-time shoppers.
Shiprocket reveals that a significant 56 per cent of its order volume originates from non-metro cities, highlighting the rapid adoption of online shopping and digital transactions in smaller towns and rural areas. MSMEs from tier-2, tier-3, and tier-4 cities are anticipating higher Diwali gift orders compared to sellers from metro cities.
The platform predicts that Delhi NCR will lead the festive sales with a substantial 28 per cent share, followed by Mumbai at 13 per cent and Bengaluru at 7 per cent. The economic activity in Delhi NCR, driven by a thriving business environment and a high concentration of MSMEs, is fueling consumer spending during the festive season.
Shiprocket notes an increase in festive exports from India, with leading categories for global exports including artificial jewelry, beauty and grooming products, clothing and accessories, healthcare items, books, automotive accessories, home furnishings and decor, and pet supplies. The demand is particularly prominent in the US, the UK, Germany, Australia, Canada, France, and the UAE.
To meet the surge in festive season demand, Shiprocket has expanded its warehousing capacity by adding three facilities, doubling the warehousing space to 2 million, and increasing the workforce by 50 per cent to ensure efficient order processing and fulfillment.
