India’s small (semi-rural, classified as tier 3-5) markets with population of as low as 5,000, have stolen a clear lead over physical retail spending, outpacing growth in metros and tier-1 and 2 cities in year 2025, said a new report by Mastercard, ClarityX and MapmyIndia, on ‘decentralisation of demand’, shared exclusively with ET.
This is in clear contrast with retail spending trends in 2023-24, when tier-1 and 2 markets had been called out by consumer companies across sectors, such as Nestle, Hindustan Unilever, Maruti and Hero, as the country’s largest consumption cohorts. The aspirational demand emerging out of India’s micro markets is further being fuelled by last-mile reach enabled by quick-commerce and social media, leading companies to expand reach to hyper-local pin-codes, with affordable packs and localised produ ..
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