Rural customers in India do not shop 'just to buy' any longer. They demand brands, and are concerned about quality and preferences. Indian rural market is growing in an incredible speed. Currently rural segment is emerging as a potential market for many big retailers. A report by the associated Chamber of Commerce states that rural consumer market is estimated to grow at the rate of 40%, while urban market sector growth would be only 25%.
Indian rural market is growing at 3-4% per annum, adding more than 1 million new rural consumers every year. Increasing income level and awareness created by electronic media have altered the rural customer making him to seek better life quality. They are now aware of various brands and prefer shopping according to their own brand preferences. Products which were earlier considered as 'status symbols' are now being considered as 'must haves'.
As Indian rural consumers are more associated with values of care and nurturing more women from the rural areas have started working now and this has opened floodgates for Indian retailers. Rural women of today have come out of her long standing image of homemaker and is proving equivalent to men. They make their own decisions thus making one powerful force in the rural market arena.
Consumption patterns of India's rural areas are gradually changing to increasingly resemble the consumption patterns of urban areas. Increased rural consumption is steadily leading to higher demand for branded products in rural India.
The rising level of brand consciousness has paved the way for growth in modern retail. The rural FMCG market in India is expected to grow from US$ 23.6 billion in FY18 to US$ 220 billion by 2025.
Per capita GDP has grown at a CAGR of 6.2%
FMCG sector in rural and semi urban is expected to cross US$100 Billion by 2025
As per household in rural india to rise from 2.8 percent to 3.6 percent
In india consists about 650000 villages.
850 Million consumers
70% of population contributes around half of the country's Gross Domestic Product.
Indian e-commerce has been growing at breakneck speed and is likely to overtake US to claim the position of world’s second largest e-commerce market by 2034. The number of India’s online shoppers is expected to reach 220 million by the year 2025. A study of the current trends show that a major section of these shoppers will come from the rapidly developing rural areas of India. Internet penetration in India has increased from just 4% in 2007 to 52.08% by 2019 and is expected to surge up to 45% in rural India by 2021. Factors like better availability of electricity, data at nominal costs, low-cost smart phones are further expected to boost rural e-commerce phenomenally. Rural India thus presents a huge opportunity.