Rural Market In Rural India

1385 Words6 Pages
Market Size for FMCG Sectors in Rural India
The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioural factors operating in the country. The total size of the rural market is estimated at about 83.3 crore people or 68.84% of Indian population (Census, 2011). The rural market brings in bigger revenues in the country, as the rural regions comprise the maximum consumers in this country. The rural market generates almost more than half of the country 's income. Rural India contributes a big chunk to India’s GDP by way of agriculture, self-employment, services, construction etc. The rural population is empowered with rising income, improving education and awareness levels, enhanced
…show more content…
If the packaging cost is high, the total cost of products goes up. It is suggested that the marketers should use cheaper materials in packaging for the rural markets.
• Media Problems: Media have lots of problems in rural areas. Television is a good medium to communicate message to the rural people. But due to non-availability of power, as well as television sets, majority of the rural population cannot get the benefits of various media.
• Seasonal Marketing: The main problem of rural marketing is seasonal demand in rural areas, because 75% of rural income is also seasonal. For example, the demand for consumer goods will be high during the peak crop harvesting period, because this is the time when the rural people have substantial high cash flow. Rural marketing depends upon the demand of rural people and demand depends upon income and consumer behaviour.
• Low Per Capita Income: Per capita income is lower in rural areas compared to those in urban areas. Again, the distribution of rural income is highly skewed, since the land holding pattern, which is the basic asset, is skewed. Thus the rural population presents a highly heterogeneous spread in the
…show more content…
There are different groups based on religion, caste, occupation, income, age, education and politics and each group exerts influence on the behaviour of people in villages. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in India is still in evolving shape, and the sector poses a variety of challenges. Distribution costs and non-availability of retail outlets are the major problems faced by the marketers. . The unique consumption patterns, tastes, and needs of the rural consumers should be analysed at the product planning stage so that they match the needs of the rural people. Therefore, marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent pattern and each group exerts influence on the behaviour of people in

More about Rural Market In Rural India

Open Document