Around 62% of online fashion store Jabong's revenues came from Tier-2 and Tier-3 cities in Q2-FY14. This is probably due to lack of access to premium products in offline stores, especially in apparel category which tends to be available only in Tier 1 cities. (Read about Jabong's financial performance here) Jabong's competitor Myntra had also recently mentioned that 45% of its revenues comes from these tier-2 and tier-3 cities and it expects this contribution to grow further in the future. - Mobile transactions: This revenue growth from smaller cities is partly driven by the increase in mobile traffic and mobile transactions, considering these cities typically have low broadband penetration. Mobile transactions accounted for 27% of Jabong's transactions in Q2 2014, up from 4.4% in Q1 2013. This is quite interesting considering Jabong didn't even have a mobile app until April this year. The monthly average visits from…
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