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Why to go Rural India?

BY: Raja Vikram | Category: Sales-Marketing | Submitted: 2010-03-05 08:43:06
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Article Summary: "This is about the companies which are moving into rural areas for their marketing and growth..."

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"Running towards Rural" is the statements from the corporates at present . So what is the reason that corporates are moving to Rural Markets? Rural Market in India is a great segment for the Corporates for many reasons. Most of the population in India live in Rural only. The main revenue is generated from rural India only.

Indian rural market has great demand base and offers great opportunities to marketers. The two third of the population lives in rural India and half of the national income generated here. So it is very clear that why corporates are looking for the rural market? the Urban consumer durable markets like color TV's,Washing Machines,refrigerators are zooming with 7% only but where as rural market is growing with 25% annually. So , the rural market is growing more faster than Urban India. So if we think on this then there are different reasons to have a growth in rural India.

These may be Socio-Economic Changes like Life Style, Habits and Tastes. because of which Customers are looking for alternatives and options too chose from, which has increased the competition in rural India. 2. Literacy levels which was 25% before independence is now more than 60% . So, Most of the people are educated and understood what they exactly need . And they are taking care of that only. 3. Infrastructure Facilities 4. Increase in Income , which have given them a level of freedom to buy costlier products then to think of other factors. 5. Increase in expectation . So these are some of the factors by which corporates are looking to grab the market .

So if we look at the practical things then we can say really that better to go for rural India for a healthier Marketing and ROI. In rural market non-farm sector accounts for almost 50% of total rural incomes and this is not Dependant on Monsoon. The Rural market has been growing steadily since 1980's. As the Urban Markets getting saturated and fiercely competitive, The corporates have to move rural market.The Corporates who have Understood the psyche of rural consumers and markets and how to work it have notched up successes. So all the Corporates like HLL , ITC ,FMCG to durables and automobiles are in rural markets and achieving their target.

So because of the above factors most of the companies are moving rural India and understanding the market to survive in a healthier move.

About Author / Additional Info:
An MBA From GITAM University,INDIA . " Love to Learn, Believe in learning".

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