Go Rural!!

Many of the Indian companies that are in various sectors such as automobiles, banking, consumer goods and food processing have – “Go Rural” as primary strategy. Its time, these companies have realized that there is a great scope of market growth in the suburbans.

Rural India

Some facts:

  • Rural India is 7800 small towns and 6.4 lakh villages with 75% of purchasing power.
  • Rural India contributes 55 per cent of the manufacturing GDP
  • Rural factories account for 70 per cent of all new manufacturing jobs
  • Rural consumption per person has increased by 19 per cent yearly between 2009 and 2012; two percentage points higher than its urban peers.

Accenture research reveals that making real profits in India’s rural markets is possible, even in the short term. The key: Companies must build and maintain efficient sales and distribution networks tailored to rural India’s unique characteristics.

Amul brand is a classic example with its presence of 4000 villages that has less than 5000 in population.

Mahindra and Mahindra is one of the company has been growing its market in financial business and has its presence in 2 lakh villages.

Also with rural consumers increasing their interest for better products and high-standard services, FMCG companies like Dabur and HUL have increased their efforts in rural sectors.

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