Specific Features of Rural Consumers As per 3rdannual edition of Accenture Research rural consumers always aspire to buybranded and high quality products. It results in optimistic growth and Indianrural markets. The rural markets in India are expected to rise faster thanurban consumer markets. The rural consumershave got enough information by the wider reach of mass media andtelecommunication services. This will influence the buying behaviors of ruralconsumers. The corporate houses has to look into various aspects of pricecombined with aesthetics, price combined with aesthetics, utility and features.It is false conclusion that ruralconsumers prefer low prices alone. 850 millionconsumers are residing in 6, 50,000 villages in India.
70% of this population contributes around 50% ofthe country’s Gross Domestic Product (GDP). Consumption patterns of rural aregradually as their urban counterpart. Several largest consumer companies serve to35% of their consumers who belongs rural India. Due to potential size of the ruralmarket, and improved changing consumption of rural consumers invites andattractive investment opportunity for private companies. Size of the Market In ruralregions India’s per capita GDP has increased at a Compound Annual Growth Rate(CAGR) of 6.2% from 2000. The fast moving consumer goods sector in semi-urban andrural India is expected by 2018 to cross US$ 20 billion mark and by 2025 to reachUS$ 100 billion.
Initiatives taken by Government Variousinitiatives were provided to improve the infrastructural facilities by thecentral Government in rural India. The goodsand services movements has got multiplier effect improved the consumption by theirpotential earnings Ii is proposed to construct 10 million houses by an estimation for the rural population which require an investment outlay of Rs 81,975 crore for the period from 2016-17 to 2018-19. In line United Nations Sustainable Development Goals is to provide interrupted tap water to each household by 2030 with requiring funding of Rs 23,000 crore every year till the target is met. Digital Village project planned to install Wi-Fi hotspots at more than 1,000 GPs across India. It is to provide internet connectivity for mass to enable delivery of services like health and education in remote areas. Rural Segment QuicklyCatching Up · It is estimated that by 2025, FMCG sector in rural and semi-urban India to cross US$ 100 billion · FMCG market is anticipated to expand during 2009–25 at a CAGR of17.
41% to US$ 100 billion · In overall FMACG market in India, Rural FMCG market accounts for 40 per cent in revenue terms· In leading retailers, Dabur generates over 40-45 per cent of itsdomestic revenue from rural areas. HUL rural revenue accounts for 45 per centof its overall sales. Other companies earn 30- 35 per cent of their revenuesfrom rural areas