60 Crore vs. 40 Crore: Why Are We Still Ignoring the Bigger Market? ????

For years, premium brands—especially in real estate and lifestyle—have been obsessed with metros. And to be fair, tier 1 cities are the OG luxury playgrounds—high-rises, exclusive clubs, and a constant battle to create the most sought-after address.

But while everyone’s busy fighting for the same 40 crore people in metros, 60+ crore people in tier 2 and 3 cities are sitting there, ready to invest in world-class experiences—if only someone would bring them there.

I’ve been in Raipur, conducting primary research for a potential Ileseum Club, speaking directly with HNIs. And let me tell you—this market isn’t just open to premium experiences; it’s actively looking for them.

The only question is: Why are so many brands still asleep at the wheel?

India 1, India 2, India 3—and Where the Real Opportunity Lies

Kishore Biyani, one of India’s most legendary retailers, broke the country down into three consumer groups:

?? India 1—The metros, the ultra-elite, the early adopters of luxury. This is the market everyone chases.

?? India 2—The aspirational middle class, primarily in tier 2 and 3 cities. This is the market nobody is paying enough attention to.

?? India 3—The rural economy is focused more on necessities than lifestyle experiences.

For decades, brands have been obsessed with India 1. And why not? These are high-spending, globally connected consumers who are already sold on the idea of luxury.

But India 2—the 400-500 million people in tier 2/3 cities—is where the real game is shifting.

?? They have money (lower living costs = more disposable income).

?? They have aspirations (they want the same lifestyle as metro HNIs).

?? They have limited options (which means whoever arrives first, wins big).

So, let me ask you—why are so many brands still fighting over the same metro customers when there’s an untapped 60-crore-person goldmine waiting?

What’s Happening in Tier 2/3 India?

?? Money isn’t the problem. Options are. HNIs in smaller cities aren’t thinking twice before dropping money on luxury cars, foreign vacations, and premium goods. But when it comes to experiences? They’ve been stuck with “good enough” for too long.

?? They don’t have premium clubs to join.

?? They don’t have high-end wellness & fitness centers.

?? They don’t have world-class social spaces where they live.

So what do they do? They spend their money elsewhere.

?? They fly to bigger cities.

?? They invest in second homes where they can access luxury.

?? They leave their hometowns because metros offer more.

Now imagine what happens when they no longer have to leave for those experiences?

Boom.

?? People don’t want to move to metros—they have to. I saw this firsthand in Solapur. People want to live in their hometowns, but if their city doesn’t offer the jobs, lifestyle, and infrastructure they aspire to… they don’t really have a choice, do they?

Now flip that scenario. What if they had world-class experiences at home?

?? A club where their kids train with the best.

?? A wellness space designed by global experts.

?? A social hub that matches any top-tier metro experience.

Suddenly, staying home is the better option.

?? Easing the pressure on metros = better cities for everyone.

We all know how overcrowded Mumbai, Delhi, Bangalore, and other metros have become. Infrastructure is stretched, traffic is a nightmare, and the cost of living is skyrocketing.

But here’s the thing—it doesn’t have to be this way. If smaller cities offer the same level of economic and lifestyle opportunities, fewer people will feel forced to migrate.

? Less pressure on housing and infrastructure in metros.

? Better work-life balance for people who don’t have to relocate.

? More distributed economic growth across the country.

Metros don’t need to keep absorbing everyone—they just need to be places of opportunity, not necessity.

?? Jobs + Infrastructure = Happier People. When you create premium lifestyle spaces in tier 2/3 cities, you’re not just building a business—you’re building a more balanced way of life.

A city that offers great jobs + world-class experiences = a city people actually want to live in.

Ileseum’s goal has always been to spread joy through experiences. But joy isn’t just found in clubs and social spaces—it’s found in the freedom to live well without having to uproot your life.

So, Why Are We Still Thinking Small?

The truth is, metro markets aren’t going anywhere. They’ll remain the epicenter of commerce, culture, and business.

But let’s be real—does India need another brand fighting for the same 40 crore people in Delhi, Mumbai, and Bangalore?

Or does it need visionaries who see the next 60 crore before everyone else does?

Tier 2/3 isn’t just the next big thing—it’s the inevitable thing. And if you’re still betting only on metros, well… good luck when everyone else finally catches up.

Because by then, the first movers will have already won.