RETAILING IN RURAL INDIA

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INTRODUCTION TO RURAL MARKET

q The Indian rural market with its vast size and demand base offers great opportunities to marketers. q Two-thirds of countries consumers live in rural areas and almost half of the national income is generated here. q Our nation is classified in 4/21/12 approximately 640000

DEFINING RURAL RETAILING

Organised retailing: It refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.ex: super markets, hyper markets. q Unorganised retailing: It refers to the traditional formats of low-cost retailing, for example, the localkirana store ,owner manned general stores,paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
q

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Rural Revolution Is Driven By

q

Rising purchasing power Changing consumption pattern

Increased access to information and communication technology

q q

Improving infrastructure

Increased govt. initiatives to boost the rural 4/21/12 economy

q

RURAL AND URBAN DEMAND

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SWOT ANALYSIS
Strength
70 % of India's population lives in 640000 villages In rural areas q At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas q Middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2011 q In urban India, the same is expected to grow 4/21/12
q

Large and Scattered market q Major income from agriculture q Low standard of living Traditional Outlook q Diverse socio-economic backwardness Infrastructure Facilities q Lack of Proper Physical Communication q Facilities Many Languages q Market Low Per Capita Income q Low Levels of Literacy q Prevalence of spurious brands and 4/21/12 seasonal
q

Weakness

Opportunity
Rural India has a large consuming class with 41 per cent of India's middle-class and 58 per cent of the total disposable income. There purchasing power is increasing. Exposure and increase in literacy rates will open market further. Govt focus on agricultural policies will increase in rural earning. 4/21/12 Population is becoming brand

Threat
Improper / Oversupply of the format in same key market.
q

Shifting of young generation from rural to urban cities.

q q

Entry of small time players Study on buying behavior of rural consumer indicates that the rura retailers influences 35% of purchase occasions.
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q

4 A APPROACH
AVAILABILITY
SHAKTHI BY HUL Economic development through micro enterprise This micro-enterprise offers low risks and high returns. The products distributed include a range of mass-market items especially relevant to rural consumers, such as soap, toothpaste, shampoo and detergent.

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AFFORDABILITY

ACCEPTABILITY

AWARENESS

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4 A APPROACH OF CHIK SHAMPOO

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LIVE EXAMPLES OF RETAILING IN RURAL AREAS

ESCORT BIKE HUL S OPERATION BHARAT

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BPCL S RURAL MARKETING VEHICLE SBI WITH ITC AND HUL

HUL's management has approved an alliance with Tata Teleservices and Tata Teleservices (Maharashtra) for distribution of telecom products in rural markets in India.

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With an aim to strengthen its distribution network and reach out to the rural masses across India, Max Bupa Health Insurance Company Ltd is in talks with regional rural banks, co-operative banks and post offices to distribute its health insurance products. The company, majorly relying on the model of bancassurance. Similarly, drug-makers Ranbaxy Laboratories and Pfizer have tied up with ITC for distributing their overthe-counter (OTC) products across 6,500 echoupal centres

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ITC e -CHOUPAL

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GODREJ AADHAAR

KISAN SEVA KENDRA BY IOC

TATA KISAN SANSAR BY TATA CHEMICALS

RURAL BUSINESS HUB BY RELIANCE INDUSTRIES

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DCM Shriram Hariyali Kisaan Bazaar now a case study at HARVARD

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RETAIL MODEL IN RURAL AREA

HARIYALI/I TC M K T

INSURANC E

FARMERS

AGRI INPUTS

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24 x 7 SUPPORT

TRENDS OF RURAL RETAILING

RURAL INDIA GOES MOBILE

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ENSURING INSURANCE

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MEDIA

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INTERNET REACH

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A BRAND NEW STORY

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CONCLUSION

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