Specific Features of Rural Consumers
As per 3rd
annual edition of Accenture Research rural consumers always aspire to buy
branded and high quality products. It results in optimistic growth and Indian
rural markets. The rural markets in India are expected to rise faster than
urban consumer markets.
The rural consumers
have got enough information by the wider reach of mass media and
telecommunication services. This will influence the buying behaviors of rural
consumers. The corporate houses has to look into various aspects of price
combined with aesthetics, price combined with aesthetics, utility and features.
It is false conclusion that rural
consumers prefer low prices alone.
consumers are residing in 6, 50,000 villages in India. 70% of this population contributes around 50% of
the country’s Gross Domestic Product (GDP). Consumption patterns of rural are
gradually as their urban counterpart. Several largest consumer companies serve to
35% of their consumers who belongs rural India. Due to potential size of the rural
market, and improved changing consumption of rural consumers invites and
attractive investment opportunity for private companies.
Size of the Market
regions India’s per capita GDP has increased at a Compound Annual Growth Rate
(CAGR) of 6.2% from 2000. The fast moving consumer goods sector in semi-urban and
rural India is expected by 2018 to cross US$ 20 billion mark and by 2025 to reach
US$ 100 billion.
Initiatives taken by Government
initiatives were provided to improve the infrastructural facilities by the
central Government in rural India. The goods
and services movements has got multiplier effect improved the consumption by their
Ii is proposed to construct
10 million houses by an estimation for the rural population which require an investment outlay of Rs
81,975 crore for the period from 2016-17 to 2018-19.
In line United Nations
Sustainable Development Goals is to provide interrupted tap water to each household
by 2030 with requiring funding of Rs 23,000 crore every year till the
target is met.
Digital Village project
planned to install Wi-Fi hotspots at more than 1,000 GPs across India. It
is to provide internet connectivity for mass to enable delivery of
services like health and education in remote areas.
Rural Segment Quickly
It is estimated that by 2025, FMCG sector in rural and semi-
urban India to cross US$ 100 billion
FMCG market is anticipated to expand during 2009–25 at a CAGR of
17.41% to US$ 100 billion
In overall FMACG market in India, Rural FMCG market accounts for 40 per cent in revenue terms
In leading retailers, Dabur generates over 40-45 per cent of its
domestic revenue from rural areas. HUL rural revenue accounts for 45 per cent
of its overall sales. Other companies earn 30- 35 per cent of their revenues
from rural areas