Tech Desk. Festival season sale has started in India. In such a situation, heavy demand is expected. Interestingly, this time this demand is coming more from small towns and rural areas. According to Usha International Senior Vice President Ajay Sharma, in such a situation, it is considered very good to return the rural economy back on track. Also, it can prove to be better for the development of consumer goods companies. The festival season to be set up in the entire country in the coming month will also be very important for the industry. This year, trends are showing that the companies which will win in rural areas are going to be very profitable.
Reasons for increased demand for goods in Tier II and III regions
We should understand that the reason behind the rise in demand for consumer goods is hidden in the preparation of celebrating festivals in Tier 2 and 3 areas. Apart from this, there are many other reasons, due to which the demand in small cities has increased considerably. This time the weather has been very good for agriculture, due to which the yield is good and the MNREGA has also paid well. Along with this, a lot of people got employment under the rural employment guarantee, due to which the economy in rural areas has gained a lot. Also, due to the return of workers and laborers working in the factory, the demand for household goods such as air coolers, fans, home and kitchen appliances has increased considerably.
Importance of rural markets
There are 85 crore consumers in 6.5 lakh villages of India. They constitute around 70% of the country’s population and contribute about 50% to the country’s GDP. Thus, to capture the pulse of rural areas in India, brands and businesses need to recognize the potential of this market. Rural consumers in India are more vigilant and loyal to companies that make goods. They are willing to trust well-known names that are associated with their needs and aspirations. Many rural consumers also take pride in purchasing a reliable brand of goods, as it is a ‘status symbol’ for them.
Digital axis of rural India
It is also understandable that for the first time this year, India has more Internet users in rural areas than urban areas. This is due to various factors such as convergence of lifestyles in Tier II and III areas, availability of low cost internet etc. Apart from this, since the nationwide lockdown and the return of workers and laborers has started due to the epidemic, since then consumers in rural markets are spending more and more time on digital devices i.e. mobile, etc. This has led to a huge increase in data consumption. A unique trend has been observed in the rural consumer that they trust shops around them more than shopping on e-commerce platforms. Also, they choose the goods by looking at them online, but make purchases from the shop around them. Demand for consumer goods is likely to increase further due to increasing prosperity and prosperity in rural India and increasing presence of people on digital devices.
Need to strengthen rural network of brands
It is a good thing that consumers of all cities, big or small, are becoming aspiring and searching for products online. Also getting to know about brands and their products. This is why businesses and brands need to pay special attention to expanding their business across the country and expanding their distribution and sales systems in rural markets.
Companies should focus on increasing digital expansion and strengthening of their e-commerce systems to serve consumers in all parts of India. Once brands start doing business in rural markets in the true sense, it becomes easier to expand opportunities and leverage them for growing businesses. It is only when brands strategically build their geographic footprint that they will realize how rural consumers can help them win big. Brands that are also adding end points and making themselves available closer to the customer will have the opportunity to grow faster.
Rural Empowerment for Revival of India’s Economy
Brands have an inherent responsibility to support and uplift the rural economy and generate employment in the Tier II, III cities and interior areas of the country. Objective-based initiatives help enhance the rural economy and enhance brand reputation. It is this rural market that is truly powerful and enticing that will eventually revive India’s economy. To put it simply, now is the time for brands in rural India and let go of all the stereotypes that rural India has. Today’s rural consumer is also rejecting traditional prejudices by being well aware, aware and aspirational, having the key to positively influence the growth of the consumer goods industry in this festive season.