Northeast emerges as high growth market for ecommerce

India’s retail industry has seen a rise in brand awareness and fashion in Tier II and III markets. North-Eastern states, for instance are showcasing double-digit growth for ecommerce companies. Ecommerce is penetrating in this region by reaching out to consumers.

Due to the difficulty of reaching goods in this mountainous terrain, online ventures are fulfilling the needs of consumers. Ecommerce platforms are witnessing a rise in demand for unavailable products as well as discounted branded wear. For Snapdeal, for instance, Northeastern region is driving business on par with leading metros such as Delhi and Mumbai.

Companies like Snapdeal service large parts of the Northeastern region covering more than 1,100 pin codes, and Flipkart reaches out to customers in over 80 cities in partnership with logistics players eKart and India Post. Flash fashion website, Fashionandyou has seen nearly 15 percent of its revenue driven by the Northeast. Even ShopClues.com expects the region’s contribution to rise by 10-12 percent in the coming years.

One year ago, leading fashion platform Myntra took a step by developing a distribution centre in Guwahati, and a centre in Mizoram's capital Aizawl to serve consumers in these states. Aizawl centre has led to 500 percent jump in Myntra’s sales. Even specialized e-retailers like jewellery firm Bluestone.com, witnesses about 11 percent of the company's revenues come from the Northeast. Kids’ products retailer FirstCry.com has four service centres in the region, of which the ones in Agartala and Guwhati are owned by the company. Pan are on to open two more distribution centres in Silchar and Shillong soon.