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Millennials in small towns mimic big-city cohort

Aspirations on careers, looking good, keeping up with trends are getting similar
Last Published: Thu, Nov 01 2018. 09 23 AM IST

Shuchi Bansal

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Photo: Mint

In its festival sale held between 10-15 October, e-commerce platform Amazon claimed it
saw more than 80% of its customers come from small towns. Large appliances saw
phenomenal sales with more than 50% coming from tier 2 towns and below. Even in
fashion, 63% of the orders came from tier 2 and tier 3 cities. Amazon delivered to
customers in locations such as Malda (West Bengal), Angul (Odisha), Havelock
(Andamans), Hapur (Uttar Pradesh), Tinsukia (Assam) and Dumka (Jharkhand).

Clearly, the millennial consumers in the tier 2 and 3 towns are mimicking those living in
tier 1 cities as far as online shopping is concerned. Millennials refer to those born
between 1981-1996 or those aged 22 -37 in 2018. According to Kishore Thota, director,
customer experience and marketing at Amazon India, the age group between 25 years
and 35 years is among their biggest customer cohorts. He says millennials in tier 2 towns
have the same aspirations as those in metros. “We sell the same iPhone in the remotest
part of India. We also sell high-priced beauty products in tier 2 and tier 3 towns. In
cohort to cohort comparison, where affordability is not a concern, their purchases are
similar,” he says. He cites the example of the American sports apparel brand Under
Armour—selling exclusively on Amazon—that did well not just in the metros but in
smaller towns too. “Of course, the basket size in tier 3 towns may be slightly smaller,” he
adds.

The similarity between millennials in big and small towns does not end with online
shopping. This cohort in tier 2 towns is also open to eating out. Especially, if he gets to
experience the same pub and restaurant brands that are available in the metros. A recent
report in Hindustan Times said that tier 2 cities are developing a taste for big-city dining.
Restaurants and pubs from the metros are now opening branches in tier 2 towns—so
there’s a Farzi Café in Chandigarh, The Flying Saucer Café in Lucknow, Mocha in Raipur
and a restobar called Hoppipola in Ranchi (which is also present in six other cities,
including Mumbai). Most of these outlets are frequented by consumers in their twenties.
There are several reasons behind their proliferation. For starters, a small-town consumer
is aware of all these brands, thanks to social media. This has also fast-tracked the process
of food trends reaching tier 2 towns quickly.

Clearly, the lifestyle of the non-metro millennial is increasingly resembling that of the
metro millennial. According to V.S. Kannan Sitaram, venture partner at Fireside
Ventures (which has invested in several consumer product companies), there are several
similarities between small-town and big-city millennials: both are tech savvy, and
smartphones give them access to the same content (movies, music, sport) and shopping
opportunities via Amazon, Flipkart and others. “So no longer do the guys in tier 2 towns
have to go to big towns to buy stuff. Aspirations on building careers, looking good,
keeping up with trends are getting similar,” he says.

Like their tier 1 counterparts, consumers in tier 2 and 3 cities are also watching
entertainment on digital platforms. According to findings of the media research firm
Pixights, the over-the-top (OTT) video streaming consumer in tier 1 and tier 2 towns is
equally discerning. Millennials in big and small cities say that they get more variety on
OTT than on TV. OTT allows them the freedom of time to watch content that can’t be
watched with parents but can be accessed in private on their phones. This cohort is
inclined to eschew linear TV in favour of digital viewing.

According to Ashwini Sirsikar, executive director and head of qualitative research at

Ipsos, millennials are in their own echo chamber. Tier 1 and tier 2 millennials are digital
natives. Instagram is their most preferred social media platform. Facebook is now passé
and perceived to be for the older generation.

Millenials also like to experiment with food. Food delivery start-ups like Zomato and
Swiggy have made ordering convenient and cheaper for this generation. However, access
to brands, new trends and fads are seen more in larger towns. The smaller town
millennial may be a bit behind but is catching up. “Interestingly we have noticed that
across towns the millennials are very much responsible, goal-oriented, focused and
conscious about their duties towards their family, busting the myth around this
generation being self-centred, irresponsible and bothered only about themselves,”
Sirsikar said.

Shuchi Bansal is Mint’s media, marketing and advertising editor. Ordinary Post will
look at pressing issues related to all three. Or just fun stuff.

First Published: Thu, Nov 01 2018. 09 23 AM IST

TOPICS: MILLENNIALS E-COMMERCE FASHION ONLINE SALE

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