Factors Affecting the Growth of the Rural Markets

Rural Markets | Vi-john group

Vi-john Group has established itself as a leading brand of personal care, cosmetics and perfumes in India. It has now spread its wings in the global market to be recognized as a prominent international name.
India is a dynamic Country where growth will come from all Sections of Society be it Urban India or Rural India. On one side the E-Commerce and Modern Trade are growing very-very fast in Cities and Towns and on the Contrary Rural India is showing the growth even faster.
In the Rural Markets Growth of FMCG Products depends upon three major factors:-

  1. Infrastructure available to Reach the Villages
  2. Education
  3. Consumer Awareness

Rural India is untapped potential for the Marketers in FMCG Sector. Youth in Villages is also aspiring towards moving for Towns and Cities and adopt what is being used in these areas. The Roads are a vital reason for the Growth of FMCG sector in Rural India. People are getting more Educated and therefore the Consumer Awareness in increasing.
The Growth of FMCG products largely depends upon the reach to Rural Sectors. And Reach depends upon the Infrastructure available to rural India. Even today many of the Rural Markets are unexplored due of the lack of Infrastructure. This is the reason why we have not been able to explore the Rural Markets till and also it is the Biggest opportunity available for the FMCG sector for their further growth.
The infrastructure development is happening fast in India. Roads are being constructed all across India. Villages of India are getting closure to towns and Cities. Previously the Consumer was dependent upon the Retailer in the Villages, whatever he used to get from the Catchment wholesale markets, same was available for the consumers. He knew that consumer is going to buy whatever he wants to sell else consumer had no other Choice. So he always used to sell what gives him more profit. Result was organised FMCG products were not reaching Rural India. But with the Roads getting better, he has the threat that if he doesn’t sell what consumer needs, someone else will replace him. Therefore improvement in Roads has resulted in the FMCG Products to grow and same will continue to happen in the years to come.
The above said reasons are the reasons of Growth due to increase in the width of distribution. But how the demand in the Villages will increase remains unanswered.

Education is also one of the biggest reasons which will attract growth in Rural India. Earlier the needs of consumer were to Food, Clothing & Shelter. He didn’t need much and so the scope for growth was limited. But the educated youth knows what he should buy and not merely depend upon what a rural Retailer sells.

Education is going increase the awareness among the consumer. The consumer who has always been dependent on the retailer will now become demanding from the retailer for the products he needs. Marketers will eventually make the consumer more and more aware. The marketers are going to find new and new ways to communicate with rural consumers and make them aware.
The demand of FMCG products in India is bound to increase as the rural consumer is getting the awareness faster than before about the products. Gone are the days when the consumer was satisfied because his needs were fulfilled with what is available in the villages. Now the Consumer is getting aware and his aspirations to Go for Brands rather than commodities is also going up.
“It is the combination of education, awareness and Infrastructure that will bring the growth of FMCG products in Rural India for many more years to come. It is the untapped Opportunity for all the marketers to explore and avail the opportunity available.”   

About the Author
Vimal Pande, CEO of Vi-john has an extensive experience of working over three decades in the FMCG Industry. The professional journey of Vimal started as a front line salesman but over the succeeding years his principled work ethics and sheer contribution has achieved him the position of CEO with Vi-john group of companies. He is very passionate about his work and enjoys what he does. In conversation with him, he shared his insights on the various aspects on the FMCG Sector.

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