People in smaller cities like Tier 2 and Tier 3 have been spending more money than ever, and all of this credit goes to online payments like UPI (unified payment interface).
FMCG And E-Commerce
FMCG (fast-moving consumer goods) and e-commerce can see a spike in sales by selling everyday products in online and physical stores. People there have started believing in spending money more than saving it up. It also shows they have a good amount of money to spend.
Companies like Nykaa (an online beauty store), Dabur (an FMCG company), and Meesho (a social commerce startup) are making a lot of sales from these smaller places. Even brands like Manyavar, which sells traditional clothing, are opening big stores in towns like Ranchi and Gorakhpur.
Technology like internet access and apps play a huge role in this development. For instance, farmers have started using satellite-based technology for weather forecasting. Technology is also helping people in smaller towns access better services and products. Brands, due to technology, can now reach out to these people.
Invester Moving Towerd Technology Base Business
Investors are now paying more attention to whether a business can make a profit, which is different from before. They’re also investing in companies that use technology to reach customers better.
The way individuals spend money in smaller communities has altered due to the internet and UPI becoming available. Their ability to make payments without cash and make purchases online has improved.
Even in smaller places, more people are turning to apps like Zomato and Swiggy for food delivery and UrbanClap for home services to make extra money. This tendency is similar to purchasing small (sachet) packets of products rather than large ones; that is, individuals spend more money in smaller amounts more frequently.
People from smaller towns are now aiming for better jobs, like those in big IT companies. Even the children of farmers are moving away from traditional farming and using online platforms to learn about agriculture.
