MAM

Rural is bigger than Urban India: Kashyap

MUMBAI: Rural India is now bigger than urban India, triggered by growth in the hinterland and rise in smaller towns.


“Indian rural economy is a $1 trillion economy. Hence no company can now afford to ignore rural India. Whole rural India is moving from poverty to prosperity. In times to come, there will be a huge upsurge of demand in rural India in durables, consumer electronics etc. In past two years, the urban growth has been by 10 per cent while that of rural has been by 30 per cent. Rural GDP now equals urban GDP,” Mart founder and CEO Kashyap said, while speaking at Mindshare Brand Equity Compass here today.


Marketers are waiting to tap into this expanding market, particularly those dealing with consumer durables.


“Small towns are deeply linked to rural areas. Rural India is transforming from agricultural economy to non-farming economy, from non-farming economy to services economy. Service is 65 per cent of India’s GDP,” said Kashyap.


Government schemes have been the growth drivers for rural India. “In the last 3-4 years, the government‘s spend on the various schemes has increased by 460 per cent. There is a special focus on education,” Kashyap added.


Consults CEO Haish Bijoor believes rural is the new buzz word. “You can’t ignore them no matter where you are and what you do. Rural market embraces every category today. There is a gradual, clear, perceptible shift of power from Urban to rural. Rural is no smaller. It is bigger than urban today. Rural market is completely dispersed. Marketers have to develop the understanding of customers. There has been a pomposity surrounding our marketing lives. Bigger cities are more homogenous than smaller towns.”


Youth is another main reason for rural India’s growth. “They have been going to nearby towns for higher education. It’s they who bring urban aspirations to life and are users of products that are used by urban India,” Kashyap averred.


Service, rather than brand, loyalty is the new reality. Said Bijoor, “Most emerging markets are peopled by the young. 22.7 per cent of rural children go to private school while 50 per cent of urban children go to private. Rural India comprises of more than 75 per cent of the people of the country so this shows how many people are getting education from private school in rural India. But at the same time young are difficult to understand.”


Marketers need to understand the local eco-system and develop appropriate product. They should develop solution through a community co-creation process.


Bijoor said that there are three types of consumers in rural India: one who buys everything for self; second are those who buy 70 per cent for self and re-sell 30 per cent in villages; and the third set of people are the ones who sell 100 per cent.


“The last two are the future of rural reach, distribution and penetration,” Bijoor concluded.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/24/Arshan%20Saha-800x800.jpg?itok=dtACgE7u
Xaxis names Arshan Saha APAC president

MUMBAI: Xaxis the world’s largest programmatic media and technology platform, today announced the promotion of ArshanSaha to President, Asia Pacific (APAC). Saha was previously Vice President, South and Southeast Asia. As one of the founding members of Xaxis APAC, Saha helped established offices in...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/23/tripti%20%281%29.jpg?itok=eV92OYYD
VML appoints Venkatagiri Rao as creative head

Global digital marketing agency VML has announced the appointment of Venkatagiri Rao as Creative Head - India, as part of a significant step to solidify its creative capabilities. In his new role, Venkat will spearhead the office’s creative practice, which continues to form the foundation for the...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/23/akhil%20%281%29.jpg?itok=j0PzdXlj
BankBazaar.com partners with Experian

BankBazaar.com, India’s leading financial marketplace, has announced its tie-up with credit bureau Experian to offer free credit monitoring service to customers, giving them a much better understanding of their financial footprints. Experian Credit Information Company of India Private Limited...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/23/Sonya-Sahni.jpg?itok=ZsNZItAs
Digital communication: Indepay hires Indigo iStrat

MUMBAI: Indepay Networks, the privilege prepaid card issuer and the pioneer of branch-less banking, has hired Indigo iStrat, Leo Burnett India’s digital wing, to manage digital activities after a multi-agency pitch.

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/20/story%20%281%29.jpg?itok=VIElq1RO
Dentsu stories create HarperCollins books

HarperCollins India is celebrating 25 years in India through a film that celebrates books. The campaign consists of a film that shows the journey of a novel. The novel titled 'Journeys Never End’ exchanges hands through the film. Dentsu One, HarperCollins joined hands to create this beautiful film...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/20/asci%20%281%29_0.jpg?itok=UZWVPhZn
AYUSH-ASCI to regulate advertisements

Progressing with the impetus towards supporting co-regulation in advertising, the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) has signed an MoU partnering with the Advertising Standards Council of India (ASCI).

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/20/shopclues-800x800.jpg?itok=JMeM8M6r
Mall wali quality, ShopClues wale prices

MUMBAI: ShopClues, one of India’s largest marketplace, is celebrating its fifth anniversary and it is doing so in an inimitable style between 19 and 26 January. After five years of success, which have seen ShopClues emerge as a prestigious Unicorn in India’s start-up landscape, the company is...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/db%20%281%29.jpg?itok=YMjHptsV
DB Corp's radio business numbers expand with network growth

DB Corp’s MY FM radio network now encompasses 26 live stations with the launch of nine new stations over the last two quarters of this fiscal (year ending 31 March 2017 or FY-17). DB Corp’s radio business revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) increased 12.4...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/fcb%20%281%29.jpg?itok=bnPdV4pW
FCB Interface with Mahindra's 'joy of breaking free'

FCB Interface has launched a brand new campaign for Mahindra’s range of personal vehicles. Set to the tune of the original Live Young Live Free track from the first campaign, this film elevates it from a song to an anthem. Following is the link to the ad for your reference.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories