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Introduction-Upcoming of Rural Marketing in India

Rural India represents a significant marketing opportunity for FMCG companies as 70% of India's population lives in rural areas, with agriculture as the main business. Many major FMCG companies are developing rural marketing strategies to capitalize on this largely untapped market. Rural India has great potential for volume-driven growth, helping companies that have reached maturity in urban India. The number of middle- and high-income rural households is projected to grow significantly faster than in urban areas, demonstrating rural India's potential for driving future market expansion.

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21 views1 page

Introduction-Upcoming of Rural Marketing in India

Rural India represents a significant marketing opportunity for FMCG companies as 70% of India's population lives in rural areas, with agriculture as the main business. Many major FMCG companies are developing rural marketing strategies to capitalize on this largely untapped market. Rural India has great potential for volume-driven growth, helping companies that have reached maturity in urban India. The number of middle- and high-income rural households is projected to grow significantly faster than in urban areas, demonstrating rural India's potential for driving future market expansion.

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divneetdhaliwal
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© Attribution Non-Commercial (BY-NC)
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Introduction- Upcoming of Rural Marketing in India The rural India has a plethora of opportunities all waiting to be harnessed.

Not surprisingly, it has become the latest marketing buzzword for most of the FMCG majors. Many of the FMCG companies are busy formulating their rural marketing strategy to tap the chance .To name few companies showing deep interest in rural India are HLL, Marico industries, Colgate Palmolive and Britannia Industries. Why Rural India? 70 % of India s population lives in 627000 villages in rural areas.90 % of the rural population is concentrated in villages with a population of less than 2000, with agriculture being the main business. This simply shows the great potentiality rural India has to bring the much-needed volumes and help the FMCG companies to bank upon the volume driven growth. This brings a boon in disguise for the FMCG Company who has already reached the plateau of their business curve in urban India. As per the National Council for Applied Economic Research (NCAER) study, there are as many 'middle income and above' households in the rural areas as there are in the urban areas. There are almost twice as many 'lower middle income' households in rural areas as in the urban areas. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. According to the NCAER projections, the number of middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007. In urban India, the same is expected to grow from 46 million to 59 million. Thus, the absolute size of rural India is expected to be double that of urban India.

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