...The size of the prize in Indias hinterlands is on the rise. Rural India accounts for about 50 per cent of Indias GDP and nearly 70 per cent of the countrys population. Since 2000, per capita GDP has grown faster in rural areas than in its urban centres: 6.2 per cent CAGR versus 4.7 per cent. Rural incomes are growing and consumers are buying discretionary goods and lifestyle products, including mobile phones, television sets and two wheelers: between 2001 and 2009, spending in rural India was $69 billion, significantly higher than the $55 billion spent by the urban population. Companies that recognise this enormous opportunity are experimenting with various go-to-market models to garner their share of this growth. But the results have been mixed. To understand why and what to do about it Accenture conducted a major research study of more than 100 companies to discover how successful companies are responding to the opportunities and hurdles. An efficient sales and distribution model is the most critical factor to achieve profitable and sustainable growth in rural markets: nearly 60 percent of the survey respondents ranked it as the top imperative. Our research found that a hallmark of success in rural India is overcoming challenges in the three stages of the consumer lifecycle reaching, acquiring and retaining the rural customer. In terms of reaching the rural consumer, the biggest obstacles facing companies are inadequate distribution networks, partners with limited capabilities...
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...Growth of Banking and Development in India The world’s second largest populated country, India, is the apple of the eye for the world now. The world economies are seeing it as their potential market. This has been going on since quite some time now, ever since 1991 reforms of liberalization, globalization and privatization. Indian markets in urban areas have grown appreciably and are on the verge of saturation, so corporates have started tapping rural markets, since more than 60 per cent of India’s population lives in rural areas. During this global meltdown and fall of exports, if the Fast Moving Consumer Goods (FMCG) sector has been able to show rising quarterly growths, it is because of the Rural Markets and their rising spending power, which have not been affected by this meltdown. If we look at the strategies followed by Rural Marketers in the FMCG sector, it is to sell many small sachets of Rs. 2 shampoo pouches, Rs. 5 Maggi packs and the Rs. 5 chota Pepsi, because here, the strength lies in volume sale, considering the large consumer base in these rural markets which won’t spend altogether at once on buying large family packs of 500ml shampoo or super saver packs of Maggi or a Pepsi pet bottle of 2 litres. Therefore, consumption trends followed by the rural Indian are considered to be the driver of future growth of companies. And this trend of tapping rural markets is visible across all sectors now, be it FMCG, IT, Banking, education etc. For example, today...
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...URBANISATION IN INDIA: A DEMOGRAPHIC REAPPRAISAL R. B. Bhagat Department of Geography Maharshi Dayanand University Rohtak-124001, India Introduction: The United Nations estimates indicate that at mid 1990s, about 43 per cent of the world population lived in urban areas. With the urban population growing two and a half times faster than its rural counterpart, the level of urbanisation is projected to cross the 50 per cent mark in 2005. United Nations projections further show that by 2025, more than three- fifth of the world population will live in urban areas (U. N. 1993). The growth rate of urban population of developing regions has been declining recently. It was estimated to be 3.9 per cent per annum during 1980-85, which declined to 3.79 per cent per annum during 1980-85, 3.62, and 3.43 during 199095 and 1995-2000 respectively. The decline in the rate of urbanisation is also continuing in developed regions of the world. As a result, some of the European countries have experienced negative urbanisation during 80s ( U. N. 1993 ). However, the continued absence, namely, adequate data on rural to urban migration in most developing countries as well as on natural increase in rural and urban areas separately precludes attribution of the slowing down of urban growth in most of the countries to any single demographic process. It reflects the effects the host of factors like the relatively week expansion of urban industries and price shifts unfavourable to manufactured goods, population...
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...Industry Analysis Report FMCG March 11 2014 Submitted By: Ankur Nag – P301412CMG388 Ansuman Singh – P301412CMG340 Ashish Khandelwal – P301412CMG349 Habib Khan – P301412CMG365 Lalatendu Pattnaik – P301412CMG377 Industry Analysis Report FMCG 2014 Contents 1. INDUSTRY PROFILE ........................................................................................................................................... 4 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2. Sector Overview ............................................................................................................................................... 4 Sector Size ........................................................................................................................................................ 4 Major Segments in FMCG Sector ...................................................................................................................... 6 Competitive landscape ...................................................................................................................................... 7 Supply & Demand and-side Drive .................................................................................................................... 9 Porters‘ Five Force Model .............................................................................................................................. 11 Critical Success Factors .....................................................................
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...Rural Economy in India Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[3/5]Total Votes [ 10 ] Rate this page: 1 2 3 4 5 The Rural Economy in India is wholly agriculture based and it is of tremendous importance because it has vital supply and demand links with the other Indian industries. Agriculture is the main stay of the Indian economy, as it constitutes the backbone of rural India which inhabitants more than 70% of total Indian population. The fertility of the soil has augmented the success of agriculture in India. Further, Rural Economy in India has been playing an important role towards the overall economic growth and social growth of India. India has been predominantly an agriculture-based country and it was the only source of livelihood in ancient time. During prehistoric time when there was no currency system the India economy system followed barter system for trading i.e. the excess of agricultural produce were exchanged against other items. The agriculture produce and system in India are varied and thus offers a wide agricultural product portfolio. Today, the rural economy in India and its subsequent productivity growth is predicated to a large extent upon the development of its 700-million strong rural population. The agricultural economy of India is drafted according to the needs of rural India since majority of the population lives in about 600,000 small villages. In India, agriculture accounts for almost 19% of Indian...
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...Why Rural India is important (for policy makers, business country as a whole)? The word Rural has no specific definition and it depends upon the perceptions of the people. Different people differentiate or mark rural area in accordance to their priorities. It is measured by the parameters leading to underdevelopment or unawareness. It can deal with different sectors and is not specific to any area of work. The Rural area for a policy maker may be one but the same area from the point of view of a businessman might not be underdeveloped. This is the reason, the word ‘Rural’ cannot be defined and it doesn’t hold any concrete definition. When we talk about development it basically deals with the quality of life of the people. Development of a country is measured by the HDI index that takes into account parameters like life expectancy, literacy and the standard of living of its citizens. And in a country with such a large population living below this standard needs to concentrate more on the rural areas to bring about an inclusive growth & development. Rural has become a very important area to be focussed upon because of many reasons. It acts as major source of man power, resources, opportunities etc. There is a large force of underdeveloped people. There is a need to enlighten them and make them aware about different things and then they can be helpful to the country as a whole in many ways. Again, there is abundance of resources available in rural areas. But the proper...
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...Understanding the Logic of Consumer India By Shefali Sharma We are like that only is a book which is trying to analyze the buying behavior of Indian consumers. This book is written by Rama Bijapurkar who is one of India’s most respected thought leaders and has a rich and varied experience in business strategy, consulting and market research and has worked with McKinsey & Company, MARG Marketing and Research Group and as a full-time consultant with Hindustan Lever Ltd. This book is divided into several chapters and each one of them is reviewed subsequently: The first chapter is named as ‘made for India’, which talks about India’s movement towards market capitalization. It focuses on how the socialist model failed before 1991 and led to a steep decline in the GDP, and as a result India opened its doors for privatization and globalization. Before 1991, the consumer in India did not welcome the global products because of the boycott movement and Gandhi’s philosophy of self reliance. Rama says that the nature of emerging markets is fundamentally different as they are large in their total size but small in terms of per capita income. The book mentions that the emerging markets need not be virgin markets as many home grown options might already be available and which have the capacity to impose tough competition to global products, for example the local markets such as Sarojini Nagar and Lajpat Nagar in Delhi. Also emerging markets today like India are not what the developed markets...
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...As i a n Aca d e m i c Re s ea r ch J o u rn a l s SAJMMR: South Asian Journal of Marketing & Management Research RURAL RETAIL REVOLUTION: THE RISE OF RURAL MARKET ASHISH GUPTA* *Research Scholar, School of management Studies, Motilal Nehru National Institute of Technology, Allahabad, India. ABSTRACT “The future lies with those companies who see the poor as their customers." C. K. Prahalad Strategic Guru Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion (approximately US$34 billion). The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector15. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing". KEYWORDS: Rural India, Rural retail, rural market, Retail revolution, Kirana stores. ______________________________________________________________________________...
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...AGRICULTURE IN INDIA Indian agriculture has been main source of income for the masses since decades. It is also referred to as India’s mother economy. In the current times as well it accounts for about two-thirds of the employment of the Indian labor force. An intense global food situation in present times signifies the importance of expanding the existent resources and food production in developing countries like India. The Five Year Plans by the Government of India are meant to achieve this goal. The northern states of Punjab, Haryana and Uttar Pradesh contribute over 80% of the production of food grains. “Among the southern states, Tamil Nadu shows the highest percentage of irrigated area and intensity of irrigation but not intensity of cropping.” (2) Growth of plantation crops such as coffee, cocoa, pepper and cardamom are dominated by the states of Kerala and hilly Karnataka. Indian agriculture has developed over the period of years, particularly after Independence in 1947. The stagnating growth which characterized the first of the twentieth century was significantly in contrast with the second half. However, it has been a slow and painful process. This does not come as a surprise since most of the developing countries experiencing transition in economy have encountered the same. They are striving to achieve multiple objectives at a time with limited resources at their disposal. While efficient use of available resources is of utmost importance, getting most advantageous...
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...ON TELECOM SECTOR IN INDIA January 2015 For more information, contact: sateesh.kulkarni@asa.in A brief report on Telecom Sector in India 1. INDUSTRY OVERVIEW 1.1 Introduction The Indian telecommunications industry is one of the fastest growing in the world. Government policies and regulatory framework implemented by Telecom Regulatory Authority of India (TRAI) have provided a conducive environment for service providers. This has made the sector more competitive, while enhancing the accessibility of telecommunication services at affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector and mobile telephony in particular has caught the imagination of India by revolutionizing the way we communicate, share information; and through its staggering growth helped millions stay connected. This growth, however, has and continues to be at the cost of the Climate, powered by an unsustainable and inefficient model of energy generation and usage. Simultaneously, this growth has also come at significant and growing loss to the state exchequer, raising fundamental questions on the future business and operation model of the Telecom sector. Telecommunication services are globally recognised as one of the driving forces for overall economic development in a nation. They are also one of the prime support services needed for rapid growth and modernisation of various sectors of the economy. The Government of India recognises this fact...
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...------------------------------------------------- Poverty in India Poverty is widespread in India, with the nation estimated to have a third of the world's poor. According to a 2005 World Bank estimate, 26.1% of the total Indian population falls below the international poverty line of US$ 1.25 a day (PPP, in nominal terms 21.6 a day in urban areas and 14.3 in rural areas).[1] A recent report by the Oxford Poverty and Human Development Initiative states that 8 Indian states have more poor than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.[2][3] According to a new UN Millennium Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015.[4] The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty in half by the 2015 target date.[4] The 2011 Global Hunger Index (GHI) Report ranked India 45th, amongst leading countries with hunger situation. It also places India amongst the three countries where the GHI between 1996 and 2011 went up from 22.9 to 23.7, while 78 out of the 81 developing countries studied, including Pakistan, Nepal, Bangladesh, Vietnam, Kenya, Nigeria, Myanmar, Uganda, Zimbabwe and Malawi, succeeded in improving hunger condition.[5] ...
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...REGIONAL RURAL BANKS The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) on the ground that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Accepting the recommendations of the Narasimham committee, the government passed the Regional Rural Banks Act, 1976. A significant development in the field of banking during 1976 was the establishment of 19 Regional Rural Banks (RRBs) under the Regional Rural Banks Act‚1976. The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . * Objective * Functions * Regional Rural Banks in India * Regional Rural Banks in Tamil Nadu RRBs established with the explicit objective of Top * Bridging the credit gap in rural areas * Check the outflow of rural deposits to urban areas * Reduce regional imbalances and increase rural employment generation The main objectives of setting up the RRB is to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas. Each RRB will...
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...information, please visit www.ibef.org 1 FMCG NOVEMBER 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: Major players Opportunities Useful information For updated information, please visit www.ibef.org 2 FMCG NOVEMBER 2011 Advantage India Growing demand • Attractive opportunities • 2018E Market size: USD74 billion Rising disposable income of the young population has been a major growth driver for the sector Emergence of organised retail has boosted the distribution of FMCG sector Low penetration levels in rural market offer room for growth Consumers are highly adaptable to new and innovative products • • • Advantage India Increasing investments • There is a growing market for premium products Policy support • Industry saw heavy FDI inflows as they accounted for 2.1 per cent of the country’s total FDI 2000-10 Many players are pursuing inorganic growth by acquiring regional players Automatic investment approval of up to 100 per cent foreign equity is allowed Have improved on the infrastructure facilities which has increased access to the industry • • 2010 Market size: USD28 billion Notes: Market size estimates from Technopak 2018E – estimated figure for 2018 For updated information, please visit www.ibef.org ADVANTAGE INDIA 3 FMCG NOVEMBER 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: Major players Opportunities Useful information For updated...
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...construction contractor and has successfully executed various contracts of Roads, Bridges and Township etc. in West Bengal, Bihar and Uttar Pradesh. The best execution of civil work was in `RAM KI PAIRI’ on the Bank of `SARYU’ River in Ayodhya which was designed on the pattern of `HAR KI PAIRI’ Haridwar. And ITI Mankapur Township was also well appreciated. He also had been the largest manufacturer of Bricks for Entire Township of `Bharat Cocking Coal Limited'. In 1982 he was given a challenging and fully diversified job of manufacturing soft drinks viz: Thumsup, Limca, Gold Spot and Bislery Club Soda etc. as a franchisee of “PARLE EXPORT PRIVATE LIMITED”. He brought the production with a short span of time and achieved the highest growth in India in 1985. The franchisee co. is named as `Amrit Bottlers Private Limited’. Subsequently `PARLE’ brand was taken over by the `COCA COLA’ and Mr. Ladhani converted the mechanized plant into fully automatic and computerized plant and now is having a largest production capacity and highest sale in Eastern U.P. for the last several years. They have a `COLD STORAGE’ named as `Laxmi Cold Storage and Allied Industries’ adjacent to the `Amrit Bottlers Private Limited’, Faizabad now the same has become of the largest capacity to preserve to potatoes and fruits in Eastern U.P. The enterprising factor which can be termed as back bone of the Mr. Ladhani’s success is the joint efforts of the management, which brought all the ventures to highest level...
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...and its impact on Rural market, Consumers and Farmers in India Notan Bhusan Kar* Abstract Globalization, liberalization and privatization have brought many changes in the Indian economy. Since 1991, the New Economic Policy has been implemented in India and that policy is clearly associated with Globalization. As a result, many multinational companies (MNCs) along with indigenous products have entered into Indian Market. The rural market is the biggest market in India because two third of the Indian consumers live in rural areas. Most consumers of these regions, which is around 70 percent, are engaged in agriculture and its allied works for their livelihood. Over 70 percent of sales are made to the middle class households today of which over 50 percent of the middle class belong to rural India. Thus the rural market has been growing to the Fast Moving Consumer Goods (FMCG) and is now bigger than the urban market. According to a study by Chennai-based Francis Kanoi Marketing Planning Services Pvt. Ltd. today the rural market in India is worth Rs.1,23,000 crores, among which Rs.45,000 crores are agri-inputs market. To capture this lucrative market, many producers including multinationals have been developing their marketing strategies. It is a fact that due to ignorance and low awareness, most of the rural consumers are helpless against the unethical marketing practices of these greedy marketers. This paper aims to examine whether the purchasing power of the rural people has really...
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