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I think there is a growing gap between the purchasing power of people in Tier 2 cities (especially among young people) and the activities available in these cities. Startups need to penetrate this gap effectively. You can see a lot of new franchises

Don't you think people are smart enough?... They won't avail a opportunity unless they are made dependent on that product heavily

Yes. I think they are smart enough to switch from ineffective local solutions to effective solutions.