Rural consumers in India tend to be more brand loyal and make purchasing decisions as a family rather than individually. They rely more on word-of-mouth recommendations than media due to limited access to electricity, television, and distribution channels in many rural areas. However, rural India represents a significant portion of the total Indian population and consumption, with over 70% of Indians living in rural areas that account for over half of total FMCG and durables spending.

1. RURAL MARKETS
INSIGHTS

2. Characteristics Of Rural
Consumers
•Believe in trust and Govt. endorsed agencies
•Opinion leaders or knowledge heads
•Conservative – habits once formed difficult to
change
•Exhibit collective consumer behavior
•Strong cultural values and norms
•Pride to get a good deal rather than pay
premium

3. Characteristics Contd..
• More brand loyal
• Women occupy a traditional place
• More of a family decision than a individual
decision
• Youth are more open minded
• Association with bold colors
• Low income levels = low disposable income

4. Challenges
• Word of mouth rather than media publicity
• Media exposure is limited to B/W TV and
Radio
• Lack of storage, electricity, distribution
channels
• Only 44% rural homes have electricity

5. Facts
• 6,39,000 villages with a population of 743
million
• 72% of India's population is in villages
• 62% of villages have less than 1000 people
• Only 3% villages have a population of more
than 5000 people
• Rural FMCG is 53% and durables is 59%
• By 2010 rural India is expected to consume
60% goods in the country