The brand is the surest means of conveying quality to rural consumers. Day by day, though national brands are getting popular, local brands are also playing a significant role in rural areas. This may be due to illiteracy, ignorance and low purchasing power of rural consumers. It has been observed that there is greater dissatisfaction among the rural consumers with regard to selling of low quality duplicate brands, particularly soaps, creams, clothes, etc.
Whose prices are often half of those of national brands, but sold at prices on par or slightly less than the prices of national brands. Local brands are becoming popular in rural markets in spite of their lower quality. 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.
Rural India buys brands with rural GDP growing faster than urban in India, the rural consumer is demanding more of branded products, an opportunity brands are scrambling to make the most of. Rachit Vats reports. Rural consumption growth outpacing urban.
No wonder that 67% of companies in India are expanding their presence in these tier IV and beyond markets, says a study by Accenture, ‘Masters of Rural Markets: Profitably Selling to India’s Rural Consumers’. Since 2000, GDP has grown faster in rural India than in urban: at a 6.2% compounded annual growth rate versus 4.7%. Rural India buys 45% of all branded soft drinks and 49% of all motorcycles sold in India. It quotes a Nielsen estimate that says the FMCG market in rural India will hit Rs 5,48,000 crore (US$ 100 billion) by 2025, up from the current Rs 65,844 crore (US$ 12 billion).
Expand Your Retail Outlets In Territories
Expand to new geographies at minimal cost and have a better reach and control across hinterlands
Shared resources model with optimal assortments of products and SKU's
We offer end-to-end fulfillment at the retailers door step and share complete market analysis brand level , SKU wise stock movement in each counter with Geo tagging
We ensure transparent pricing visible to all stakeholders and a record of all transactions happen through all the mode of payments.
We extend complete end to end marketing and promotional activities in rural markets, brand awareness, product availability helps brands to grow their market share and GMV at the minimal cost.