Meesho’s Lead on Small Towns & Influencers in eCommerce Growth

There is no denying the fact that the Indian e-commerce landscape has gone through a massive shift in recent years. Multiple e-commerce players are in the market, all eying potential consumers in every nook and corner of the country. Meesho, which has emerged as one of the leading online marketplaces in India in no time, has adopted a new strategy to drive its growth: more focus on smaller towns. Today, a large percentage of its consumers come from tier 4+ towns—cities often considered smaller or more remote compared to metro cities like Delhi, Mumbai, Kolkata, and Bengaluru.

That’s not all. The e-commerce platform also used influencer marketing to drive its growth. As part of its strategy to reach small towns, it has teamed up with social media influencers, especially micro-influencers. Let’s explore how these smaller towns are playing a key role in Meesho’s success.

The Growth Story of Meesho in FY 2023-24

FY 2023-24 turned out to be a great year for Meesho as the platform registered massive growth in its business. It became India’s first horizontal e-commerce platform to generate an operating cash flow of INR 232 crores for the whole year. In addition, the platform also reported a 33% growth in revenue, which rose to a whopping INR 7,615 crores. Meesho could achieve these numbers because of the contribution of smaller towns. Approximately 50% of the company’s consumers come from tier 4+ towns like Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka). This shows that the purchasing power of people living in less urbanized areas is increasing, and they are embracing e-commerce like never before.

Expanding Digital Demand in Small Towns

The availability of internet connectivity and smartphones has led to a rise in e-commerce usage in smaller towns. People in states such as Uttar Pradesh and Bihar shop online like never before. Since these are two of the most populous states in the country, they have emerged as major players in the digital space, driving the rapid growth of platforms like Meesho. 

Tier 2+ towns were key drivers of this expansion and Meesho saw growth from repeat consumers in metro cities like Delhi and Bengaluru. This highlighted the company’s strong presence in diverse markets.

Gen Z: A Key Demographic for Meesho

The rapid rise of Gen Z shoppers is one of the most exciting developments for any e-commerce platform. Meesho is also attracting a large percentage of Gen Z shoppers from across the country. This younger generation, aged between 18 and 24, makes up one-third of Meesho’s user base.

Designed with Gen Z shoppers in mind, Meesho launched its #Trendz campaign earlier this year. It offers a wide variety of curated collections of the latest fashion trends at affordable prices. The campaign and the collection became a hit among Gen Z shoppers becoming a go-to destination for trendy fashion enthusiasts.

Empowering Content Creators Through Messho’s #Trendz Campaign

Meesho’s #Trendz campaign was a huge success among Gen Z shoppers. The platform worked with aspiring and established content creators for its success. Encouraged them to showcase their skills on social media. Whether the creators have thousands of followers or barely any, Meesho provides a stage to create content around their products and services.

While the campaign promoted the latest from Meesho’s #Trendz collection, it also allowed content creators to gain visibility and exposure. Nancy Tyagi is a popular designer known for her ‘Outfit from Scratch’ series on Instagram. Her stunning debut at the prestigious Cannes Film Festival 2024 received an overwhelming response. She attracted nearly 35,000 entries and reached a massive 455 million people.

This strategy helped the company reach different age groups and demographics. For instance, a young Instagram influencer might catch the eyeballs of teenagers, while an older YouTuber could get an adult audience. 

To amplify the campaign even further, Meesho also used popular trends like the #GRWM (Get Ready With Me) challenge on Instagram and YouTube Shorts. Influencers like Vishakha, Divesh, and Shashank Tummala showcased how they were preparing for special occasions, including voting day. This helped Meesho’s trendy collections reach a wider audience within a short period.

Not just Vishakha and Shashank, but many other micro-influencers including Almas Siddique, Reshma, Neha Diwan, Tanvi Pandit and Achal (@theshoppingaddict) were part of Meesho’s #trendz

The growth that Meesho has achieved in no time is really commendable. The credit goes to its ability to adapt to consumers’ needs and cater to the preferences of the younger generation. Its growth also drives home the point that the buying power of consumers in smaller towns is increasing. We must thank the easy availability of the internet and smartphones. Campaigns like #Trendz and Meesho have joined forces with all types of influencers. It is not just growing, but shaping the future of e-commerce in India.

For an exclusive report on Nancy Tyagi’s partnership with Meesho Click Here!