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Rural Retailing in India: Trends & Insights

Rural India accounts for roughly 70% of India's population and two-thirds of the country's consumers live in rural areas. Several companies have recognized the potential of rural retailing and have established business models to tap into this market. Godrej Adhaar provides a range of agricultural services through its 24 rural outlets. ITC e-Choupal's model involves setting up internet kiosks in villages that provide farmers with information on commodities, weather, and prices. ITC plans to open 1,000 rural malls across India. Haryali Kisan Bazaar has over 300 outlets that provide end-to-end support to farmers to improve their profitability and productivity.

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Bhumi Shah
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200 views21 pages

Rural Retailing in India: Trends & Insights

Rural India accounts for roughly 70% of India's population and two-thirds of the country's consumers live in rural areas. Several companies have recognized the potential of rural retailing and have established business models to tap into this market. Godrej Adhaar provides a range of agricultural services through its 24 rural outlets. ITC e-Choupal's model involves setting up internet kiosks in villages that provide farmers with information on commodities, weather, and prices. ITC plans to open 1,000 rural malls across India. Haryali Kisan Bazaar has over 300 outlets that provide end-to-end support to farmers to improve their profitability and productivity.

Uploaded by

Bhumi Shah
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

RURAL RETAILING

-BHUMI SHAH
Roll No. 16
DEFINING RURAL INDIA

Census of India defines rural settlements as:

 Population lower than 5000 persons


 Population density lower than 400 persons/ sq.
Km
 At least 75% of male population engaged in
agricultural activities.

INDIAN RURAL SCENARIO
 Rural India accounts for roughly 70% of the
population.
 6, 27,000 villages are home to 790 million
Indians today.
 Two-thirds of country’s consumers live in rural
areas.
 Half of the national income is generated here.

RURAL RETAIL POTENTIAL
INDIAN RURAL RETAIL
MARKET
 Rural retailing growing at 7% p.a.
 Shift in rural consumption from basic food
grains to FMCG products.
 46% - soft drink sales

49% - motorcycle sales

59% - consumer durable sales

53% - FMCG sales

50% - BSNL mobile connections
INDIAN RURAL RETAIL
MARKET
THE RURAL CONSUMER
 Is a value seeker
 Seeks comforts and amenities
 Does not wish to be seen as the deprived cousin
 Does not experiment easily but
this does not mean that
“he would not change”
 Values local relationships because
of unfavorable past experiences
SIGNIFICANT PLAYERS
GODREJ ADHAAR
 India’s first agri service cum rural retail
venture of Godrej Agrovet.
 A complete solution provider for indian farmers.
 Services offered:

crop advisory services, soil and water testing
services, crop finance, etc.
OPERATIONS
 24 outlets in 8 rural locations

 Each outlet serves 20 villages in its vicinity

 JV’s with Apollo Pharmecy, Tata Agrico, Bajaj

Alliance Life Insurance

and HPLC for value added

services at the outlets



ITC E - CHOUPAL
BUSINESS MODEL
ITC

INPUT TECHNICAL
SUPPLY
MARKETING ASSISTANCE
GUIDANCE

FARMERS AGRI-INPUT COMPANY


INSURANCE COMPANY

TRAINING

AGRICULTURAL UNIVERSITIES/STATE AGRICULTURE DEPT


CHOUPAL SAGAR
 Rural mall

 Warehouse for storing the farm produce that


ITC buys through its e-chaupals

 ITC spent 3 years and Rs.80 crores on its R&D



BENEFITS TO FARMERS
 Option of selling to choupal sagar

 Earn 25% higher prices than selling to mandies

 Profit realization increased up to 60%

 Availability of branded products at best prices

 Availability of loan facilities

 Difference in net earning will be high


FUTURE PLANS
 Open1,000 rural malls in India

 Invest in 5- acre malls, costing between Rs 3-5

crore each, across 15 states

 Set up 40 rural shopping centres across rural

madhya pradesh and uttar pradesh


HARYALI KISAN BAZAAR
( DSCL Corporation )
 302 outlets across 8 states

 Provides end-to-end ground level support to

farmers

 Improves profitability and productivity of

farmer
OPERTIONS
 24*7 support through a team of qualified

agronomists at the centre

 Provides good quality, multi-brand agri-inputs

 Provides access to modern retail banking and

financial services like insurance

 Fuel, FMCG, consumer goods, etc.


FUTURE PLANS
 Rapidly scale up the operations & create a

national footprint covering all the major

agricultural markets of the country.

 Catering to cultivable land of over 30 million

acres and touching the lives of over 10 million

farmers
THANK YOU

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