High Quality
Open the downloaded document, and select print from the file menu (PDF reader required).
Report on Rural Retail
A) Rural Scenario in India:B) Opportunity from changing Demographics in India
C) Enablers for growth in Rural Retail
D) Highlights of significant players
E) Regulations and Policies for the rural retail
F) ImpedimentsG) Recommendations.
Rural Scenario in India:
Rural India accounts for roughly 70% of the population. Almost 6, 27,000 villagesare home to 790 million Indians today.At present 85% of the organized retailing takes place in India’s urban areas. Butthe good thing is that the retail focus has already shifted to the rural areas. TheIndian rural market with its vast size and demand base offers great opportunitiesto marketers. Two-thirds of country’s consumers live in rural areas and almosthalf of the national income is generated here.15% of rural population lives in 20,000 large “non urban” areas with populationmore than 5,000 people. 63% of rural population lives in villages of 1000 to 5000people. Remaining 3, 90,000 villages have fewer than 1000 people accountingfor 22% of the population.For a retailer it is essential to see in which segment it is catering in the abovedivision of villages. For example Shakti caters to villages with a population of 500or above. Where in Eveready considers even the remotest of village as its targetcustomer. It operates through more than thousand company-owned vans andhas over 4,000 distributors to directly providing service to 6,00,000 retail outlets.
Opportunity from changing Demographics in India
The figure below depicts the changing demographics of rural India.The above diagram depicts the population of Rural India divided on the basis of household incomes. Strivers and seekers constitute the middle class. Thediagram depicts how the increase in household income will lead to increasedconsumption by various levels of consumers in the pyramid.In 2005: Number of Aspirers= (32*790/100) million= 252.8 millionIn 2015: Number of Aspirers= (47*875/100) million= 411.2 millionThat is roughly 158 million people will be added to the aspirers class.In 2005: Number of Deprived= (65*790/100) million= 513.5 millionIn 2015: Number of Deprived= (46*875/100) million= 402.5 millionThis depicts that 111 million people will shift from below poverty line to theaspirers class.
Add a Comment
This document has made it onto the Rising list!
drlalitsinghleft a comment