India is known as the country of villages because most of the population lives in the rural areas. It predominantly depends on agriculture, making it the backbone of the economy. No wonder, the rural market plays a significant role in the consumable sector. However, the segment has been neglected so far, and all marketing strategies have been myopic to the urban population. With the economic development in last three decades and widespread popularity of the satellite television make the rural people aware of the latest lifestyle products. As a result, entrepreneurs realize the immense potential of this unexplored niche.
Indian rural segment is special
As per statisticians and economic pundits, the rural sector of India possesses a few remarkable peculiarities that are just impossible to ignore:
The Indian villages and rural sector are self-sufficient from centuries. A village is a self-contained unit where the people depend on agriculture for food and local market for the day-to-day stuff. There are skilled, semi-skilled and unskilled people in the village that contribute to the economy as per their ability.
With the social and political reforms happened in the last 20 years, people of rural areas became socially and politically aware. They know their strengths and weaknesses and dont hesitate in putting forward their feet on the important national issues. They use the welfare schemes run by the government, get the benefit of subsidies and utilize the power of ballet.
The people who live in villages know the power of commercialization of agriculture. They make use of the opened up economy to yield the maximum profits from the agriculture. They use high production techniques for high-quality crops. A major portion of the profit is used for spending on the lifestyle products. No wonder, entrepreneurs find the market highly lucrative and profitable.
There has been a tremendous emphasis on the road connectivity in last decade. Every village has been added to the mainstream by at least one approach road. The ambitious Pradhanmantri Gram Sadak Yojana and Golden Quadrilateral schemes connect the majority of the villages. It enhances the market potential of the rural India.
With the increase in competition and readiness to offer the best products to the consumers, retail sector opens new horizons. Producers earn more profits than ever before, and consumers get high prices.
The aspects enhance the importance of this niche, making it a greatly promising market of tomorrow.
