Google+ Consumer Psyche: Go rural


Tuesday, February 9, 2010

Go rural

The potential of the rural market in India is huge. Even after all these years of studying and understanding the rural consumer, distribution channels still remain one of the biggest challenges of working in rural India. When compared to the consumerist urban society, the rural consumer's choices are need driven first, which results in him being a thrifty cost-conscious buyer. There is a conscious effort to spend less but this doesn't mean good quality products don't get picked up. In fact the rural market absorbs huge amounts of products and in certain categories they are faster than their urban counterparts. A study by the National Council of Applied Economic Research (NCAER) threw up some interesting facts. The rural market accounts for:
  • 53% of FMCG sales
  • 59% oc consumer durables sales
  • Almost 100% of agricultural product sales
With the current slowdown ringing death bells n several firms, the focus has shifted towards Indian villages and custom made products to suit these consumers are being sold. This is a good sign. Like I said in the beginning, Indian rural consumer holds a lot of potential and is worth a look.

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