Unbranded oil brings a big opportunity for direct selling in the rural India
I am in the field of consumer marketing from quite a long time. I have seen the incredible change in the perspective and perception of consumers in the past three decades.
Globalizati on and open market policy brought a miraculous change around, and todays rural market is very different from the era of 90s.
Today, the buyers in small villages and towns know what they are going to purchase and what are the merits and demerits of a particular product.
Having said it, the price of the product is still amongst the prime selection criteria. They dont go for unnecessarily expensive products just for the sake of brand loyalty if a similar quality unbranded product is available at a much lesser price.
Even if there is a slight difference in the quality, they dont mind.
Unbranded oil still has a bright future in villages and towns
While the marketing research companies happily announce a 20 percent annual rise in the branded oil segment in the urban areas, and sunflower and soy are continue to capture the front two seats; rural market happily lives with the unbranded products.
I have been in the rural markets for quite some time and looked at it very minutely to understand the psyche and likings of consumers.
As far as edible oils are concerned, it is a common observation that people prefer oils that get sold loose in the market. They just ask for the variety of it, i.e., soy oil, mustard oil or groundnut oil. There is no curiosity about the brand.
If the oil looks good, smells good and available at affordable prices, then it is more than sufficient for the consumers.
It is a golden opportunity for direct sellers
It is indeed a wonderful opportunity for those who deal in unbranded loose oils. In the urban areas, there is a big challenge to sell lose oil because people dont perceive it a reliable product.
However, if the oil producers and direct suppliers make a small-scale supply-chain model and offer god quality, pure oil to the retailers in small villages and towns, then it could be a win-win situation for all.
Producers will get buyers without spending much on the infrastructure and transportation. Since the chain is not very long, the price increase will not be much.
Consumers will also get excellent quality oil at reasonable prices. This idea is 100% workable and practical. New generation entrepreneurs must try it!