In the rapidly growing e-commerce landscape, Meesho has made significant strides with its branded products vertical, known as “Mall.” Over the past six months, this innovative platform has attracted 3.2 crore shoppers, showcasing a remarkable 117% year-on-year increase in gross merchandise value (GMV). Additionally, the monthly active users have surged by 90%, illustrating a formidable shift in consumer behavior towards branded products in tier 3 and 4 markets.
Meesho has strategically positioned itself to cater to the unique needs of these markets, which traditionally consumed unorganized products. The company’s CXO Business, Megha Agarwal, emphasized their user-first approach, stating, “We start with anything when we see a very clear demand from customers.” This insight reveals Meesho’s commitment to understanding and adapting to its customer base, which is increasingly seeking organized and value-focused products.
Initially, Meesho Mall concentrated on the beauty and personal care segment but has now expanded its offerings to include categories like footwear, kitchen utilities, appliances, groceries, and books. More than 75% of the demand stems from tier 2 and above, reinforcing the platform’s commitment to these underserved markets.
One pivotal strategy in Meesho’s growth involves onboarding direct-to-consumer (D2C) brands, facilitating their entry into new pin codes. Currently, the Mall hosts over 1,000 brands, demonstrating significant potential for expansion. Brands that align closely with Meesho’s value proposition are witnessing substantial growth. Rajat Khullar, Chief Business Officer of BellaVita, shared that since partnering with Meesho, his company has achieved a monthly GMV of Rs 7 crore, showcasing exponential month-on-month growth from initial sales of only 10,000 in the first month.
As the festive season approached this year, Meesho announced the onboarding of well-known brands such as Mamaearth, Denver, Himalaya, and Bata. The results have been impressive: Meesho Mall has reported a 2.5X growth in orders compared to the previous year, with 45% of orders coming from first-time shoppers. This indicates strong market penetration and the effectiveness of Meesho’s marketing strategies.
Leveraging data insights for targeted marketing and brand collaborations has proven to be a critical element of Meesho’s strategy. By focusing on what resonates with their customer demographic, Meesho has not only grown its user base but also expanded the types of products that brands offer.
The importance of Meesho’s reach into tier 3 markets cannot be overstated. As Khullar notes, “We were present in tier 1 and 2, but Meesho has helped us enter tier 3. Now when we go into the market, the general trade, people know about us.” This grassroots brand recognition is invaluable, particularly in markets where word-of-mouth and community engagement are crucial for success.
The emergence of e-commerce platforms like Meesho reveals a larger trend where value e-commerce is takings its place alongside traditional retail giants. By understanding and addressing the unique characteristics of India’s diverse consumer base, Meesho is not just facilitating sales; it is empowering small businesses, enhancing brand visibility, and fostering a vibrant marketplace for millions of consumers.
As online shopping continues to evolve, Meesho’s innovative approaches and strategic partnerships position it as a competitive player in the Indian e-commerce sector. With a commitment to prioritizing value and consumer satisfaction, Meesho is well on its way to shaping the future of online retail in tier 3 and 4 markets across India.