Tap into 900 million strong rural India for a $3 trillion return

By Geetanjali Vikram Kirloskar

Rising rural incomes have seen rural consumer markets grow faster than in urban India. Euromonitor Research estimates that rural India accounted for 50% of India's consumer market in 2022. It estimates that this market is growing faster than its urban counterpart across categories. Given India's target of becoming the third-largest economy in this decade, Rural India will need to become a $3 trillion economy.

The 2021 Euromonitor International Lifestyles Survey also found the Indian rural consumer to be open to premium products that offer value for money, and is more conscious of the environment than her average urban counterpart.

Disclaimer: Photo used for representation purpose only

The increasing importance of the rural market accounts for the increased focus of marketers there for product development, advertising, better sales and logistics. For instance, while the fitness market is a high-growth market, the rural and urban contexts differ. Brands in functional foods, sportswear, and exercise equipment market are busy mapping rural consumer needs.

Similarly, the furniture, home decor, and home entertainment industry are fine-tuning the marketing mix to account for not just rising rural incomes but also because, on an average, middle- and upper-class rural households have twice the living space than equivalent urban households do.

The automotive sector is also busy reinventing its rural market strategy. As India's rural roads improve and rural incomes rise, the focus of four-wheeler marketing is moving beyond ruggedness to features like looks, interiors and accessories. Overall, the changes over the last decade have ensured that rural India is not just an integral part but perhaps also the most crucial driver in India's march towards becoming a developed country.

Comments

  1. K D KiniJanuary 21, 2024 at 6:10 PM

    Very true. Seems like we are getting there..in the manner we are headed as of now..

    ReplyDelete

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