India’s e-commerce platforms are entering their busiest season of the year with a spate of holidays and festivals lined up, and happily for them, there are early signs of robust demand, particularly from smaller cities and towns. As celebrations kick off with Raksha Bandhan and continue through Janmashtami, Ganesh Chaturthi and Diwali, companies are expanding logistics and inventory capabilities in anticipation of a strong sales cycle driven by consumers outside the metros.
Platforms like Flipkart, Instamart and Myntra are reporting a surge in interest from tier 2 and 3 cities, prompting a strategic shift in hiring, assortment planning and customer engagement. The shift underscores the growing importance of Bharat in India’s online retail landscape.
Tier 2, 3 cities at the heart of e-commerce strategy
The big hitters like Delhi, Mumbai and Bengaluru continue to anchor online consumption but it is the demand from their smaller counterparts that has marketers excited.
“While metros lead demand, tier 2 and 3 cities are driving a growing share of festive traffic and orders,” said a spokesperson from quick commerce platform Instamart. The platform, which saw fivefold growth in Rakhi-related orders in 2024, expects even stronger traction this year. It is ramping up dark store stocking and frontline delivery staffing accordingly.
Fashion and beauty products retailer Myntra is witnessing something similar. “Based on past platform trends during the previous festive seasons, tier 2 cities and beyond play a major role in driving the festive momentum,” said Bharath Kumar, head of revenue and growth at Myntra. “We are already witnessing strong festive demand across metros and non-metros.”
Flipkart, too, noted deepening engagement from non-metros, driven in part by immersive shopping formats like live commerce. “This is a clear indicator of evolving consumer behaviour across Bharat,” a Flipkart spokesperson said.
Hiring shifts to match geographical demand
This rising demand is also being reflected in hiring trends. Staffing firms say a notable portion of festive-season employment is now focused on smaller cities.
“We have witnessed a ramp-up in hiring intent well ahead of the festive season. We expect temporary hiring to grow by 20–25 percent year on year,” said Yeshab Giri, chief commercial officer, professional talent solutions at staffing company Randstad India. He added that the surge is driven in part by e-commerce players looking to make up for muted summer sales.
Staffing firm Adecco India expects to deploy 8,000–10,000 seasonal hires between July and December, with a “significant share of this demand” coming from tier 2 and 3 clusters, said Deepesh Gupta, director and head of general staffing, Adecco India.
Rival talent provider Quess Corp also flagged increased hiring requests from cities like Jaipur, Coimbatore, Indore and Nagpur.
“The spike in client conversations and hiring requests indicates a clear intent to scale operations swiftly and efficiently,” said Kartik Narayan, CEO, staffing, at TeamLease Services, another staffing company.
Categories in focus: Fashion, beauty, gifting, electronics
With consumer interest building early, platforms are aligning their festive offerings to meet preferences across regions. Key demand drivers this year include fashion, electronics, beauty, home essentials and gifting.
Myntra is witnessing early interest in ethnic wear, with strong interest in festive collections. “Beauty and personal care are witnessing heightened traction, with gift boxes, grooming kits, and fragrances seeing early demand,” said Kumar. The company has partnered with over 15 brands to launch co-branded Rakhi gift boxes, including premium collections like Andamen x Salvatore Ferragamo, and offerings from Manyavar, Biba and Tommy Hilfiger.
Flipkart expects strong sales in mobiles, consumer electronics, fashion and home categories. Instamart is expanding its hyperlocal festive catalogue to include traditional items like eco-friendly Ganapati idols and Gopal figurines for Janmashtami, along with a wide assortment of gifting options tailored for local tastes.
Luxury gifting is also finding takers in smaller cities, as premium brands increasingly push festive collections beyond metros.
To meet rising delivery expectations, platforms are turning to technology to streamline operations across PIN codes, including those in remote areas. Flipkart is leveraging AI-led inventory planning and real-time sorting to optimise delivery speed.
Myntra is promoting its M-Now service, which enables 30-minute deliveries in select urban clusters, a feature it may look to scale up during peak festive demand.
In addition, local-language tools, video-led shopping experiences and influencer-led live commerce sessions are helping platforms engage first-time users in smaller towns.
Despite the early momentum, platforms are staying cautious. Many are seeking to avoid overstocking by using predictive analytics to fine-tune supply chains, especially after a slower summer in 2025.
While overall consumer sentiment is improving, analysts say macroeconomic uncertainties could still moderate discretionary spending in some segments. However, platforms are betting on regional diversity, category expansion and logistical agility to navigate demand variability.
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