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Domestic and global brands flock to Indian tier II cities

17 Jan 2024

Following high demand, brands like Marks & Spencer, H&M, Tasva, and GAP are opening outlets in untapped markets.

Global and domestic brands are setting up shops in Tier II cities like Patna, Ranchi, Mysore, Mangalore, Indore, and Coimbatore. Factors driving this momentum are the eCommerce expansion and high market demand from tech-savvy consumers who can afford to spend on discretionary purchases that are basically wants rather than needs.

Realtors like Phoenix Mall, Bhumika Group, Nexus Malls, and Lulu Group are opening malls and street outlets to offer space to these brands. Earlier, the crowd in tier II cities had to come to metro cities for shopping. During Covid 19, when the labour returned to their hometowns, brands started eyeing an entry there.

The median age of shoppers is around 30 years. Those working in Tier II and III cities have a better spending threshold due to lower living costs. Among the consumers, 51% of the Gen Z population and 47% of the millennials shop online.

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