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Today, rural India has 75% of
the country's population
and its purchasing power is increasing at a rapid pace.
The villages, which were once treated as inconsequential, are now
getting the attention of companies and a full-throttle foray into the
rural markets by companies can be witnessed. The Indian rural
market is full of opportunities and has seen impressive growth in recent
years. The middle to high income households in rural India are
now 17% of the rural population and are growing at an annual rate of
7%. Significant growth in purchasing power, improvement in
literacy level, change in lifestyle, increasing brand consciousness,
changing consumption pattern, improvement in
infrastructural facilities and rapid spread of communication network in
rural areas have presented a growing potential for the
companies. Largely, it can be concluded that there is huge rural market which
is waiting to be served, ready to splurge, willing to explore
new products and services. The corporate sector is,
thus, increasingly looking towards the rural consumers and fine-tuning
its marketing strategies to tap on their wallets and promote their products.
The rural market in India has grown in size, range and sophistication
in recent times. The Indian rural market has great potentialities
and offers bright prospects and attractions to the companies.
For four consecutive years, there was positive growth in rural GDP,
which increased the spending power of the rural folk. The rural economy got
a boost with government initiatives like the Rs. 71,600 cr farm
loan waivers and wage payout of
Rs. 30,000 cr under the National Employment Guarantee Act.
The ambitious Bharat Nirman Program with an outlay of Rs. 180,000 cr
for improving rural infrastructure and more than 40% increase in prices
of crops over the last few years have also enhanced the prosperity of
rural India.
The overall development of rural India assisted in increasing
the purchasing power of the rural folk, besides raising the quality of
rural life. Change has also been brought about by the
enormous improvements in rural road connectivity, from less than 40%
in 2004 to at least 70% connectivity at the end of 2008. Thus, there
is increased contact of rural people with their urban counterparts
due to the development of transport and wide communication
network. Increase in literacy and educational levels among rural people and
the resultant inclination to lead sophisticated lives also has a
bearing in boosting their purchasing power. The rural and small towns
have remained insulated from the economic slowdown.
Higher disposable surplus among consumers in these markets is resulting
in smart buying and creating a lot of business opportunities for
the companies to grow. |
