The festive boom in Tier-2 and 3 cities: Bharat's new growth engine

For years, festive marketing strategies were written in boardrooms that spoke the language of metros, celebrities and mass media spends. But in 2025, the spotlight has shifted. 

India’s most valuable customers are no longer just in Mumbai or Delhi. They are in Indore, Surat, Patna, Coimbatore and Bhubaneswar. Tier-2 and Tier-3 cities are no longer “emerging markets”. They are defining the future of commerce.

This year, India’s online festive sales are expected to cross Rs 1.2 lakh crore. More than half of that will come from smaller towns. These shoppers aren’t just consumers; they are creators, curators and decision-makers. And they are influenced not by celebrities but by familiar voices in their language.

According to The Tweeb Tool, an AI-powered influencer tech by Social Tweebs, nearly half of nano influencers (1k–10k followers) deliver engagement rates above 5%. Only 11% of celebrities cross the same mark. Small creators may not have the gloss, but they have what matters most – trust. And in a market this fragmented, trust converts.

Brands that have recognised the opportunity early on are leading the way. Urban Company built Tier 2 trust through local-language explainer videos on services like AC repair and beauty-at-home – a strategy that helped power its successful Rs 1,900 crore IPO this year.

Meesho rose to prominence by empowering housewives and nano creators in Hindi, Tamil, and Bengali-speaking towns, transforming their WhatsApp statuses into physical shopfronts. 

Nykaa unlocked grassroots credibility by leaning on beauty tutorials in Indore, Kochi and Guwahati, a strategy that played a key role in its Rs 61,000 crore IPO. boAt became India’s top wearable brand, not through celebrity endorsements, but by collaborating with creators in Punjabi, Tamil and Bhojpuri. 

Even legacy brands are adapting: Zandu Care (Emami) worked with regional wellness creators during festivals, while Domino’s and Zomato turned meme pages, comedy skits and nano vloggers into cultural storytellers, making food part of a ritual, not just a discount.

This is not a creative experiment. It's a performance strategy. The budget once reserved for one celebrity is now spread across 50 regional creators in five languages. The payoff is clear: higher segmentation, higher engagement, and higher conversion. The smartest brands today aren’t chasing reach; they’re chasing relevance.

What sets these creators apart isn’t just scale, but cultural depth. From Onam in Kerala to Chhath in Bihar, every festival carries its own emotion and visual language. A national campaign can’t decode all of it.

But a garba instructor in Ahmedabad, a Tamil chef sharing Pongal recipes, or a Bengali fashion creator curating looks for Durga Puja already live it. These aren’t ad placements; they're cultural insights wrapped in content.

Technology has only amplified this shift. UPI powers 18 billion+ transactions a month, quick commerce is reaching Tier-2 towns, and AR try-ons and voice commerce are reshaping discovery.

But the real unlock isn’t the tech; it’s the creator who translates it into action: the influencer showing AR filters for lipsticks, the food vlogger embedding one-click order links, and the nano creator explaining voice shopping in Bhojpuri.

Today’s shoppers are value-conscious yet aspirational, digitally fluent yet trust-led. They may discover brands on Instagram or YouTube, but the final trigger isn’t a glossy reel. It’s a familiar voice saying, “I tried this, and it works.”

Influence has moved. From stages to living rooms. From visibility to credibility. From scripted endorsements to lived experiences. And in India’s festive economy, credibility is currency.

The festive marketing playbook has been rewritten. Success is no longer about the loudest campaign but the most believable one. It means investing in 30 relatable voices instead of one national face.

It means planning not just for Diwali, but also for Pongal, Onam, and Chhath. It means measuring not just impressions but conversations, conversions and community sentiment.

Micro- and nano-influencers are not a cheaper alternative to celebrities. They are the creators of cultural capital. And in a country powered by diversity and emotion, cultural capital is what moves markets.

Festive commerce in India’s smaller towns is no longer about reach. It is about resonance. And the brands that understand this shift will not just win the season; they will own the decade.

(Aniket S is the Co-founder and Business Head of Social Tweebs, an influencer marketing agency that helps brands streamline campaigns and drive measurable results.)