Tier 2 Markets in India | famous FMCG market, brands in India - CTM

Are The Tier 2 Markets in India The Next Big Thing For Brands

Brands thrive on the interests of the common people. The more it is approachable the more they will have followers. According to a recent report, online fashion giant Myntra saw a whopping 86% rise in the number of customers from tier 2 and tier 3 cities. This according to them is the highest so far in this season’s sale. So what can other brands take note from this shift in consumer behavior? Definitely, it is the opportunity they utilized at the right time and in the right manner.

Are tier 2 markets the next big thing for brands?

Marketing Strategies for Tier 2 Penetration

Yes. It is the target for most brands right now. Especially, during this pandemic period, when people are trying hard to get essential items, online sales are a big relief for the consumers.

Since every household has a 3G or 4G internet connection nowadays, it is viable for people to stay home and order food, clothes, and groceries online.

In a recent report, Amazon India stated that they have doubled the supplies owing to increasing demand for pantry items. With the latest expansion to 300 cities, Amazon will now be delivering essential everyday items to tier 2 cities including Allahabad, Amreli, Bareilly, Betul, Bhandara, Churu, Deogarh, Malda, and many more.

Popular brands like Patanjali, Britannia, Nestle, and Dabur are striving to buildup their invasion in rural areas. The rural market corresponds to 50 percent of the total FMCG market in India.

Marketing Strategies for Tier 2 Penetration

People residing in tier 2 cities often choose a brand due to references from others. Though the outreach for luxury brands is lower in these cities, the growth rate of such product usage has been rising rapidly over the past few years. Ahmedabad, Ludhiana, Pune, and Nagpur are some of the tier 2 cities investing in buying luxury goods.

Understanding Tier 2 Consumers

Unlike in metro cities, where people do not mind splurging on an expensive product, consumers in tier 2 cities expect affordable rates.

Tier 2 Markets in India The Next Big Thing For Brands

As a brand, you have to live up to two conditions: Good Quality Products and Keeping The Rates Reasonable. This is the only way to win the hearts of a vast customer base. People residing in small towns have an unshakable love for fashion brands.

Considering that a majority of the people fall under the low-income group in tier 2 cities, keeping the products at the affordable range is the best option. That is how they become popular among groups and are recommended ahead. And, tier 2 consumers largely rely on personal opinion than an online review.

Marketing Strategies for Tier 2 Penetration

Tier 2 Markets in India The Next Big Thing For Brands
  • Become the Storyteller

Real stories sell like hotcakes. That’s what Myntra and Flipkart do while making their ‘feel good’ advertisements. They capitalize on the transformations people have with access to online shopping brands. These brands share inspiring stories about how door-step-delivery of apparels, home appliances, or any electronic item has made the lives of these people so much better. The advertisements focus on the aspirations youngsters have to make it big in life. To attract small-town people, you need to tell stories about their world.

  • Local Brand Ambassadors

Brand ambassadors speaking in a local language has been a highly popular tactic in advertisements in India. These methods work for most brands since the fan base for these public figures is huge in rural areas. Instead of English, a regional language advertisement or a local store inaugurated by a popular influencer can be a great kickstart for brands.

  • Focus on the Product type

Consumers in the Tier 1 cities are often in search of the latest products or upgraded items. However, tier 2 consumers are often filled with first-time buyers for a particular brand. So, while opening a store at one of these cities, make sure to include products which they need and not what you want to sell.

  • Each One Teach One

When trying to penetrate into the local market, the existing owners often give a cold shoulder to bigger brands. Take a cue from how Flipkart which has been closely working with local artisans with the help of NGOs and state governments. They have been actively involved in helping local women and differently-abled people to overcome hassles of finding a job. Talented artisans are given the opportunity to sell their goods online and earn their profit share. Others are trained to become self-sufficient to support their families. So, as a reputed brand, try and open exciting work opportunities for the locals. These are the people who will work for you and bring in more work too.

Brands all over India are focusing on bridging the gap between demand and supply through deep market research. From customizing product specifications to analyzing consumer behavior geographically, everything is getting evaluated to reach out to one and all.

  • Content Marketing

This opens up a lot of tunnels for your brand to sail through. As a marketer, you will always think about attracting the consumer. But, for the tier 2 level, you need to entertain too. Amusing content about the making of a product or its effect on the lives of the general public can hook people to your advertisements. Try to keep your advertisement content believable and appealing to the audience. Video marketing is the best form of publicity you can opt for the increasing number of mobile users in rural areas. Publish honest reviews on your website from genuine people for your products. This is the sort of transparency that is liked by most small-town people as well as metro citizens.

Is it difficult for luxury brands?

Tier 2 Markets in India The Next Big Thing For Brands

Luxury automobile brands have been the favorite among tier 2 and tier 3 cities. Followed by mobile phones, and women’s clothing and accessories.

Men’s luxury purchases are triggered by maintaining social status among their peer groups. So, they invest a considerable amount of money into buying the latest gadgets, cars, bikes, and fitness equipment. Luxury watches are another type of product loved by men liking to portray their classic choices. So, these brands are likely to succeed whether opening a new store or just starting out as an online store. It is not difficult for luxury brands to invade into the tier 2 cities; unless the product is right.

Most importantly, companies planning to expand to tier 2 markets need to rework on their product specifications, marketing strategies, and business goals. These need to carefully monitored and upgraded as and when required. Creative Thinks Media has been assisting companies to overcome marketing hurdles through powerful advertising techniques. Its never too late to get a helping hand; connect with us to know more.

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