2. Rural India
Is a Rs 3,75,000 Crore market !
But!
Spread across over 6,00,000 villages
3. And the general basic thoughts to
succeed in rural markets are…
4. And what are the top 3 priorities
to succeed in rural markets
*Source – Accenture Consulting
1
2
3
5. Yes Distribution :
is one of the key to success
ConsumersStockiest RetailersWholesalersC&FManufacturer
6. However over the years this challenge
would wither away
Competition will catch up Increasing physical connectivity
1,28,000 Kms
of rural roads built from
(2005-2011)
Technology Intervention Volume growth of product & Services
7. Ok agreed, you have done it all
right
Last mile distribution
Consumer Awareness
Efficient Logistic Planning
Product Customization
Blah Blah Blah…..
BUT… ?
10. Do we expect that the consumer would
find your brand/product here..
He can’t, because he doesn’t have full fledged access to pick the
products inside the store
11. Lets refer the priorities once again
1
2
3
Are we underplaying the second priority ?
12. isn't it that your
products though
present in the
consumer’s
vicinity is at the
mercy of the
GATEKEEPER
….
13. Yes.. He is your re-tailer
Remember him….remember THE GATEKEEPER
15. If we dwell into numbers
15m
Retail outlets*
*Technopak Analysis
16. If we dwell into numbers
6.3m
Rural Retail*
8.6m
Urban Retail*
*RK Swami BBDO Market Guide
17. If we dwell into numbers
6.3m
Rural Retail*
*RK Swami BBDO Market Guide
*2011 census
o That’s ~ 10 shops per village
in India
o However the data is skewed
towards larger villages
19. Rural Retailers influence* up to 35% of
purchase decisions
80-85%
customers loyal* to one
retail outlet for their
daily shopping needs.
Closely analyzing the
retailer-customer relationship
*South Asian Journal of Marketing & Management, Retailing in Rural India, Abhishek & Rajesh
20. Rural Retailers influence up to 35% of
purchase decisions
What if Your brand gets a portion of
this in its favour?
21. Impression of the
retailer in the
mind of consumers
However for the retailer to influence a
consumer would depend upon two factors
Motivation of the
retailer to promote the
brand
&
24. So the larger question rests on how do we
#educate the retailer
#empower the retailer
#equip the retailer
The 3 E’s of rural retail success
lets look at few case studies of marquee
retail strategy…
25. “Knowledge has to be improved,
challenged, and increased
constantly, or it vanishes”
- Peter F. Drucker
THANKS