Amazon India is witnessing a notable shift in consumer behavior, with strong growth in premium product demand originating from beyond major metropolitan areas. Ahead of its Great Indian Festival (GIF) 2026, the e-commerce giant notes that Tier 2 and Tier 3 cities are now significant contributors to its overall growth, particularly in categories like home, kitchen, and outdoor products.
Premiumisation Drives Growth in Smaller Cities
Aman Deep Lohan, Director for Home, Kitchens, and Outdoors at Amazon India, highlighted that these smaller cities were responsible for 60-70% of the growth observed during the recent Prime Day event. This indicates a broader market for higher-end goods, moving beyond traditional urban consumer bases. The trend is evident in smart home appliances, which have seen three-fold growth compared to last year, now accounting for 15-20% of sales in the segment.
Products like robotic vacuum cleaners, induction cooktops, and smart water purifiers are increasingly popular across these regions. Similarly, the health and wellness category shows a preference for premium items, with treadmills and smart bands priced above Rs 20,000-30,000 outperforming entry-level alternatives.
Faster Deliveries and Expanded Selection
Amazon is heavily investing in its logistics to support this evolving market. The Amazon Now service, operating through nearly 800 micro-fulfillment centers, is delivering hundreds of thousands of products within 10-15 minutes across 120 cities. This service is experiencing rapid expansion, doubling orders quarterly and achieving a $1 billion annualized run rate.
The company's broader delivery network now facilitates same-day delivery for over 1 million products and next-day delivery for more than 4 million products across 19,000 pin codes. To cater to the premium demand, Amazon has also expanded its selection of global and direct-to-consumer brands, including names like Atamburg, Lego, and SharkNinja.
Great Indian Festival 2026 Expectations
For the Great Indian Festival, customers can anticipate competitive deals, described by Amazon as some of the lowest prices of the year, alongside various bank offers and no-cost EMI options. Moving forward, Lohan stated that Amazon India's strategy will continue to focus on three key pillars: offering a wider and more relevant product selection, providing better value to customers, and ensuring even faster delivery services.