Smaller Towns And Cities Are Driving Demand For Electronics & Consumer Durable Brands: Justdial Consumer Insights

-          Tier II cities stand out by clocking double the demand of Tier I cities

-          Apple is the most searched smartphone brand in Tier-II cities, and also in India

-          Demand for refrigerators in Tier-II towns and cities is almost 2X of that in Tier-I cities

With the onset of the festive season, demand for branded consumer durables and electronic items in Tier-II towns and cities soared and it is now 2X of that in Tier-I cities, with Apple emerging as the most searched electronic brand across the country, reports the latest Justdial Consumer Insights.

During last year’s festive season, the demand in Tier-II towns and cities, for branded consumer durables, was 1.5X of that in Tier-I cities. This season the demand in Tier-II towns and cities was primarily led by Chandigarh, Jaipur, Lucknow, Ludhiana, Agra, Surat, Varanasi, Vadodara, Patna, and Ranchi.

Demand for smartphones, ACs, refrigerators, washing machines, smart TVs, and microwaves in Tier-II cities outstripped that in Tier-I cities. At a pan-India level, demand for smart phones and ACs contributed to almost 75% of the demand with Apple dominating the searches on the back of a 10% YOY growth.

In Tier-I cities, Samsung, Apple, Xiaomi, OnePlus, Vivo, Daikin, Oppo, Voltas, LG, IFB, and Hitachi were the consumer brands that were in high demand. Among Tier-II cities, the most searched consumer brands were Apple, Samsung, Xiaomi, Voltas, Daikin, LG, OnePlus, Oppo, Hitachi, and Vivo.

Commenting on the consumer trends, Prasun Kumar, CMO, Justdial, said “It is interesting to see that online demand for branded goods in Tier-II cities have surpassed Tier-I cities. The growth is driven by increasing internet penetration, rapid acceptance of online platforms and normalisation of consumption behaviour post pandemic. There seems to be a growth in disposable income as well given that expensive brands are most searched when it comes to smartphone brands in Tier-II towns and cities. After the challenges of last two years, this festive season we expect this rising demand to translate into a bumper sale bringing the much-needed cheer for India’s retail industry.”

Among smartphones, Apple was also the most searched smartphone in India, dominating 30% of the searches with YOY demand growing by 10%. The demand for Apple phones remained stable in Tier-I cities but saw a rise in Tier-II towns and cities. Samsung was the second most searched smartphone brand pan-India followed by Xiaomi, which saw a 57% YOY jump in demand. The demand for smartphones in Tier-II cities was dominated by the cities of Chandigarh, Jaipur, Lucknow, Surat, and Indore, and among Tier-I cities, Delhi, Mumbai, and Pune were the top-3 cities with the maximum demand.

Searches for ACs saw a 15% YOY growth during this festive season and the demand for same in Tier-II towns and cities was 2.5X of that in Tier-I cities. Voltas, Daikin, and Hitachi were the top-3 most searched brands in the country. In terms of popularity, Voltas remained the runaway leader as it dominated 41% of the total searches for ACs. Chandigarh led the demand race among Tier-II cities for ACs followed by Jaipur, Jalandhar, Amritsar, and Agra. Among Tier-I cities, Delhi topped by contributing almost 50% to the demand, followed by Mumbai, and Chennai.

Among refrigerators, LG was the most searched brand with 50% of the searches across India, followed by Samsung, and Haier. The demand in Tier-II towns and cities for refrigerators was 1.8X of that in Tier-I cities, with maximum searches from Chandigarh, Jaipur, Lucknow, Indore, and Kanpur. Among Tier-I cities, Delhi saw a 1.5X jump in YOY demand and topped the list, with Mumbai and Hyderabad in the second and the third place respectively.

For washing machines, Chandigarh, Coimbatore, Ernakulam, Jaipur, and Lucknow led the surge in demand among Tier-II cities. Searches in Tier-II cities was also 2X of that in Tier-I cities, where Mumbai, Delhi, and Hyderabad saw most of the demand. Among the brands, Whirlpool was the most preferred brand followed by IFB and Samsung in the second and the third place, respectively.

Demand for smart TVs in Tier-II cities was 2.6X of that in Tier-I cities, with Sony being the brand in the demand, followed by LG and Samsung. Most of the demand in Tier-II cities was generated from Chandigarh, Jaipur, Ludhiana, Patna, and Lucknow while Delhi, Mumbai, and Chennai saw maximum demand among Tier-I cities.

Searches for microwaves in Tier-II cities remained 50% higher than those in Tier-I cities, with Samsung, LG, and Haier being the top-3 brands in demand. Vijayawada, Visakhapatnam, Coimbatore, Chandigarh, and Thiruvananthapuram were the top-5 Tier-II cities that saw maximum demand for microwaves while Delhi, Mumbai, and Chennai were the top-3 in Tier-I.