The rural consumer market in India is growing rapidly. In fact, its growth is faster than the urban markets1. Today, many Indian brands are expanding their markets to Tier III and Tier IV cities of India.
Companies, such as Hindustan Unilever Limited and Marico are already embracing different market models to approach rural consumers. However, for companies to succeed, it is important that they understand the rural dynamics of India.
Rural markets are the future for Indian brands. Brands that recognize this fact are stepping up their game to gain a stronghold into these markets. In fact, rural markets are a source of enormous revenues for any business, as more than half of the Indian population lives in these areas2.
However, there are numerous challenges. First, the rural market is enormous in terms of population. The social situation of rural India is also very complex. Religion, caste, race, and class play an important role. Traditional values and customs still prevail in many parts of rural India, and so thus superstitions. Brands need to be very sensitive about these parameters. To successfully reach a rural market, brands have to communicate with the masses in their local language and associate themselves with them and their cultures. Utilizing the rural media, and communicating with the masses in their vernacular languages can be of great help.
Furthermore, the income levels of these consumers are also relatively lower than urban consumers, but they are very conscious of the value of money. Rural India doesn’t have a good literacy rate too. Hence, brands also need to have an intensive personal selling effort.
According to a report by Maharashtra Media3, we see the emergence of a new trend: the emergence of a new class in Tier III and Tier IV cities of India. This is due to the success of the agricultural programs initiated by the government. These set of buyers are enthusiastic and want to experiment with their purchase decisions. They consume a variety of products and have a higher purchasing power. Brands should also target this new class.
According to the author, R.V Rajan4, ‘it is important to understand the rural consumer to get your message across to him’. Rajan believes that any form of rural communication that may have a national strategy, should be thought about and acted upon locally. As we saw, this couldn’t have been truer.
–Dikshita
Dikshita is an Alumna of the Class of 2020 of PG Programme in PR and Corporate Communications at SCoRe, Mumbai. Hailing from Golaghat, Assam the idea of communication has always intrigued her. After her education in International Studies, she chose to pursue Public Relations. She is a team player and an active learner.
She can be reached at @Dikshita__ on Twitter and as Dikshita Kaiushik on LinkedIn
