Rural market is characterized by mass audience with less buying potentials as their needs and consumption is less.
Rural market would rather tend to consume day to day required items rather than luxury items. So FMCG companies see a big markets there. At present FMCG companies in the rural markets are growing at a rate of 10% which is expected to grow at a rate of 20% to 30% in 2009- 2010. [Hindu Business Line]
The main factors which drive are :
- Increasing population
- Increase in Demand
- High Standard of living
- Globalization
- Awareness
- Reach of television
- And Lastly excellent logistics which make products available in most of the 0.6 million villages in India.
