Retail in Asia

In Markets

Small-town India calls the shots

Consumption patterns in the smaller cities and towns of India are increasingly mirroring those of the country’s tier-I cities, forcing marketers to acknowledge the purchasing power of the new urban consumer, consultancy firm Ernst and Young says in its new report The New Market Shehers: Tapping the Potential of Emerging Markets.

The report underlines what marketers in India have known for some time – that it is the towns and cities dotting the countryside that are driving growth. Key urban towns (defined as the top 22 cities outside the metropolitan cities) and cities in the rest of urban India (comprising 39 cities and 5,094 towns) account for over 70 percent of urban consumption today, finds the report.