Country shop review – A study on FMCG brands sold in rural outlets in Tamil Nadu
K Arul Rajan
Gone had been the days if a rural customer went to a nearby city to buy " Branded” products and services. The impact of globalization made significant enhancements made on the rural markets and is sensed as much as in urban. Tendencies indicate which the rural marketplaces are coming in a big way and growing two times as fast because the urban, witnessing a rise in product sales. Today, rural markets will be critical for every single marketer -- be it for any branded shampoo or electric batteries.
In accordance to a Nationwide Council for Applied Financial Research, there are as many 'middle income and above' households in the country areas as there are in the urban areas. Similarly you will find almost two times as many 'lower middle income' households in rural areas as in the urban areas. Hindustan Lever Limited had discovered that the cash available to dedicate to FMCG items by metropolitan India can be Rs. 49, 500 crore as against is Rs. 63, 500 crore in rural India. Also the projected research by NCAER suggests that the amount of middle and high salary households in rural India is likely to grow via 80 mil to 111 million by simply 2007; while in downtown India, similar is expected to grow from 46 , 000, 000 to fifty nine million. Likewise, 40% percentage of learners graduating from universities are by rural areas, they become your decision makers and are similar in education, direct exposure, attitudes and aspirations for their counterparts for least in smaller metropolitan areas and cities.
Our research aims at identifying whether the globalization has an effect on the shops in rural marketplaces; whether the non-urban shops are selling global brands in a marketplace or still sticking to the merchandise made by local markets (the unbranded products and specifically by simple sector). Towards end the researchers as well try to appreciate some of the order and division aspects.
Rural promoting is the latest buzzword intended for majority of the FMCG Premier, of course India providing the plethora of opportunities to become harvested. Gowns evident that the FMCG dominant like HLL, Pepsi, Skol, LG Electronic devices, Britannia, Regular life, Philips, Colgate Palmolive have started smelling the aroma of rural marketplace.
If a single looks at India, almost per cent of the human population lives in 627000 villages in rural areas. In that, nearly 90 percent of the inhabitants is concentrated in the villages having a population of less than 2000.
As per Nationwide Council pertaining to Applied Economic Research (NCAER) identifies a significant proportion of " central income and above” homes in the countryside areas as with the cities; " reduce middle income” households are twice regarding the metropolitan. Comparing the greatest income level, there are installment payments on your 3 million urban homes as against 1 . six million homeowners in non-urban areas. The projected evaluation shows that, the number of middle and high profits households in rural India is anticipated to grow from 80 million to 111 million by 2007. In urban, this is expected to increase from 46 million to 59 mil. So searching the absolute size, the rural India is supposed to be twice that of city.
THE SECTOR TREND -- THE CURRENT CIRCUMSTANCE:
Gone had been the days in which the rural consumer travels and purchases the branded products and services from a far away town. Nowadays the MNC's have got flocked the rural market and started creating its brands. For any marketer the rural market is very essential whether to trade a shampoo or conditioner or a television set. According to Mr. G. Shivakumar of HLL, the cash available for investing in FMCG by urban India is Rs. 49, five-hundred crores since against Rs. 63, five-hundred crores in rural India. Rural FMCG market projections are given listed below:
%2001-20022006Rural market share
TotalRural shareTotalRural reveal
Toilet soap13. 496456021180861129162. four
Body talcum powder23. 6514457934237229254. 1
Dental paste23. 50319814419376414045. 1
Preparing food oil10. 912094615731322952580673. 4