BENGALURU: For Meesho, Gen Z is rapidly emerging as the fastest-growing ecommerce demographic as it accounts for one-third of the company's userbase. The SoftBank-backed ecommerce marketplace has witnessed a notable increase in demand for products aligned with Gen Z's (people born from 1997-2012) values.
On Friday, Meesho in its 2024 Review announced that it recorded a 35% y-o-y order growth in 2024, driven by expanding consumption in small towns, Gen Z and Gen AI innovation. Among Gen Z shoppers, there has been an increase in orders for items such as glass sippers, reusable straws, makeup wipes, sneakers, and resistance bands.
For about 75% of Gen Z shoppers, purchasing trendy or viral products is a way of expressing their individuality, and over half of these shoppers use the wishlist feature to save items they aspire to own, while many also monitor discounts closely, said Meesho, adding creators and influencers have further fuelled this trend as they help Gen Z discover new items.
In FY24, its operating cash flow stood at Rs 232 crore and its revenue from operations in the same period increased by 33%, and touched Rs 7,615 crore. It reached about 175 million annual transacting users in 2024 and interestingly, half of the user base came from tier4+ towns such as Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka).
For Meesho, Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in e-commerce user growth. Categories such as Beauty & Personal Care (BPC), and Home & Kitchen (H&K) saw a cumulative 70% y-o-u growth in orders.
The ecommerce marketplace pointed out that in 2024, it continued to strengthen platform safety and user trust through its Project Vishwas, and the initiative has prevented over 22 million fraudulent transactions, blocked 7.7 million scam attempts, and significantly reduced lottery fraud by 75%.
The company also took down 18,000 fake social media accounts and 130 fraudulent websites/apps. In its Trust Assurance Report 2024, the company had highlighted that its efforts are powered by advanced analytical models, AI-driven fraud detection tools and a quick response team that provides assistance to customers within five minutes.