top of page

How Indian Household Consumption and Hyperlocal Commerce Patterns are Shaping Up: Inference from the Household Consumption Expenditure Survey 2022-2023

How Indian Household Consumption and Hyperlocal Commerce Patterns are Shaping Up: Inference from the Household Consumption Expenditure Survey 2022-2023
How Indian Household Consumption and Hyperlocal Commerce Patterns are Shaping Up: Inference from the Household Consumption Expenditure Survey 2022-2023

In the dynamic landscape of Indian commerce, where urbanization often takes center stage, the narrative of rural prosperity is often overlooked. However, recent data from the Household Consumption Expenditure Survey 2022-2023, conducted by the Government of India, sheds light on a significant shift that's been brewing beneath the surface. This shift not only validates Xirify's vision but also underscores its pivotal role in reducing the gap between rural and urban consumers.

Aligning Symbiotically with Sustainable Solutions:

Xirify, a hyperlocal quick commerce platform, embarked on its journey 2 years ago for developing a platform with a mission to digitize Indian retail with an affordable tech platform and connect local merchants with initiatives like ONDC, reaching tier 2 cities, and towns. Today, as we delve into the findings of the survey, it becomes evident that Xirify's endeavor is more pertinent than ever before.

The survey, covering a vast expanse of the Indian Union, meticulously gathered data from over 2,61,746 households, encompassing both rural and urban regions.

What stands out is that though there is still a significant disparity in average monthly per capita expenditure (MPCE) between rural and urban India (The rural MPCE stands at Rs. 3,773, urban India boasts a substantially higher figure of Rs. 6,459) this gap is gradually narrowing, signaling a remarkable shift in consumer behavior we are expecting a high demand for online commerce, especially Hyperlocal Commerce coming from the smaller towns and suburban areas of India.

Another striking revelation from the survey is the decline in the share of expenditure on regular food items, both in rural and urban areas. While this might seem counterintuitive at first glance, it's indicative of a broader trend – as incomes rise, the proportion spent on essentials like food decreases, allowing for diversification in spending patterns. At Xirify we always took a pragmatic approach and focused on the Consumer Daily Needs rather than focusing on a particular segment of the market. We offer consumers access to a plethora of goods beyond necessities, ranging from daily meals, meat, dairy, fruits, medicine to services like cobbler, key makers. The survey highlights the growing preference for items such as dairy, meat, fruits, and vegetables, indicating an evolving consumer landscape.

Xirify, by aggregating neighborhood merchants and providing a seamless online platform, caters to these changing preferences, thereby bridging the gap between demand and supply. Furthermore, regional disparities in expenditure patterns underscore the need for tailored solutions. While states like Sikkim and Kerala lead the pack in terms of MPCE, others, like Chhattisgarh and Bihar, lag behind. Xirify's localized approach ensures that it can adapt to the unique needs of each region, thereby fostering inclusive growth. As the rural-urban gap continues to narrow, propelled by government initiatives like ONDC and market dynamics, Xirify finds itself at the forefront of this transformative journey.

The need of transition from Hyper Local to Online Hyper Local: Hyperlocal selling is not a new concept in India. For decades, neighborhood Kirana stores and small businesses have been an integral part of the Indian retail landscape. However, with the advent of e-commerce, many of these businesses are struggling to compete with the convenience and affordability offered by online marketplaces like Amazon. Xirify’s Online Hyperlocal Buying and selling platform bridges this gap by leveraging technology to connect local retailers with consumers in their vicinity.

The Role of ONDC: The Open Network for Digital Commerce (ONDC) is a government-led initiative aimed at creating a unified digital commerce ecosystem in India. Launched in 2020, ONDC seeks to enable seamless connectivity between buyers, sellers, and service providers through a common digital infrastructure. By standardizing protocols and data formats, ONDC aims to reduce the barriers to entry for small and medium-sized businesses, allowing them to compete more effectively in the digital marketplace. One of the key objectives of ONDC is to promote hyperlocal selling by providing local businesses with the tools and resources they need to establish a digital presence. Once the Integration is complete Xirify registered sellers will be able to sell through the ONDC platform, retailers can create online storefronts, manage inventory, process payments, and fulfill orders, all within a single integrated platform to sell on ONDC as well as neighborhood consumers.

Xirify not only streamlines the selling process but also makes initiatives like ONDC accessible to businesses of all sizes. The findings of the Household Consumption Expenditure Survey serve as a testament to the evolving dynamics of Indian commerce. It epitomizes the spirit of inclusivity and progress, paving the way for a more equitable future. With each transaction facilitated through its platform, Xirify takes a step closer towards its vision of reaching every corner of India, one neighborhood at a time.


bottom of page