Rural Marketing

Indian Rural Market: Brief Overview

The Indian rural market generates about 50 per cent of the country’s gross domestic product (GDP). Rural India comprises around 840 million people, and growing income levels and greater ambitions are progressively driving demand there. In the period 2009–2012, rural consumption per person increased annually at 19 per cent, according to data from National Sample Survey Organisation (NSSO).

The consumption habits of India’s rural populace are gradually mirroring those of their urban counterparts. Due to this changing behaviour and the sheer size of the market, the hinterlands are a tremendous investment opportunity for companies. Today, premium products are penetrating the market and brands are no longer a novelty.

The following figures reflect rural India’s significance to the country’s economy:

a) Rural India housed 75 per cent of all new factories built in India in the last decade. Also, factories in rural regions currently account for about 70 per cent of all new manufacturing jobs.

b) In incremental terms, spending in rural India during the period 2009–2012 rose by US$ 69 billion to urban India’s US$ 55 billion


Rural Market – Road Ahead

Global information and measurement company Nielsen estimates that the FMCG market in rural India will scale US$ 100 billion by 2025, from the current US$ 12 billion.Online portals are also expected to be instrumental for companies trying to access rural markets, in the near future. The Internet allows for a cost-effective manner of widening a company’s reach by overcoming geographic barriers. With rural India getting progressively empowered with computers and smartphones, it seems just a matter of time before the Internet well and truly establishes itself in the rural regions.

Rural India’s potential as a market is not lost on some of the biggest companies in the world. Hindustan Unilever Ltd (HUL), which is owned by the Anglo-Dutch consumer goods company Unilever Global, can grow six times its current volume if the country’s rural market can be tapped properly, according to Mr Paul Polman, Unilever Global’s chief executive. HUL ended FY 2012–13 with Rs 25,810.21 crore (US$ 4.15 billion) in revenue.

US soft drinks giant PepsiCo is also looking to tap into this growing market. The company announced that it would invest US$ 5.5 billion by 2020, which would give its operations in India a massive fillip. The packaged foods market in India is increasing at a rate of over 15% annually and is expected to touch US$ 30 billion by 2015.


We offer undermentioned services

    1. Rural Surveys and market research

    2. Market entry strategies

    3. CRM programs - rural areas 

    4. Running Rural Campaigns

    5. Implementation of Marketing Programs

    6. CSR (Corporate Social Responsibility) projects