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Indian Rural Market: A Brief Profile
Indian Rural Market: A Brief Profile
India lives in her villages. As described by Adi Godrej, Chairman , Godrej Group The rural consumers is discerning and the rural market is vibrant . At the current of growth , it will soon outstrip the urban market. The rural market is no longer sleeping but we are.
Demographic Environment
1971 1981 1991 2001
548.2
Age Groups Rural 0-4 11.5 5-14 25.7 15-19 9.5 20-34 23.1 35-54 19.7 55+ 10.5 Total 100 Source: Census of India , 2001
Education and the Level Demand Lowers levels of education in rural sector (approximately 60 percent of the population lies below the middle education brackets). But change is taking place because the literacy rate in the rural sector has risen 23 percent over the last twenty years.
1981
1991
2001
36
45
59
Source:Census 2001
Education in India
Education Level Rural
Below Primary Primary but below Middle Middle but below matriculation Matriculation but below Graduates Graduates and Above 31.7 29.5 16.9 18.4
3.5
Urban
18 22.9 16.3 29.6
13.2
Consumers Class
Very Rich Consuming Class
Annual Income
Above Rs. 2,15,000 Rs.45,001-2,15,000
1995-96 in %
0.3 13.5
2006-07 in %
0.9 25.9
Climbers
Aspirants Destitute
Rs.22,001-45000
Rs.16,001-22,000 Rs.16,000& Below
31.6
31.2 23.4
49.0
14.0 11.1
All India
Urban 19,407
Highest
34,509(Chandigarh)
Lowest
12,257 (UP)
Rural
9,481
27,256( Chandigarh)
5,704 (Orrisa)
12,128
Source : NSSO
Saving pattern
Total %of HHs Rural HHs % of Total HHs Urban % of HHs
Households (HHs)
192
138
72
54
26
68
35.5
42
30.1
27
49.5
Large & Scattered market Heterogeneous Market Income from Agriculture Standard of living Infrastructure Facilities
Heterogeneous Market
As many as 20,000 ethnic groups are present rural India and this poses a formidable challenges to the marketer. There are 24 languages and 1,642 dialects (boli) varies ever 100 km or so it extremely difficult to develop a uniform promotional message.
Standard of living
Over 70% of the rural population is employed in small scale agricultural and related occupations. This dependence on agricultural and natural factors. This unreliability factor in case of rural income makes the rural consumers extremely conscious in their purchase behavior,
Infrastructure Facilities
The infrastructural facilities like road, warehouse , communication system and financial facilities are inadequate in rural areas. Road do not connect nearly 50% village in the country. Over 50% rural household have access to electricity as main source of lighting but 46% use kerosene for lighting.
LIC was also increasing its rural focus through its Bima Gram programme. About 16 per cent of LIC's new premium income came from the rural sector last year. The programme, started in December 2001, offers developmental support to gram panchayats, where at least 75 per cent of the families are covered and a minimum of 100 policies sold. The support could take the form of construction of a bus shelter, donation of local library or even digging a well. Last year, over 185 villages had come under the Bima Gram scheme, Mr N.C Sharma (Manging Director) said, adding that 2002-03 had a target of 2,000 such villages. "We will also focus on our rural agency scheme, to enable more rural youths to take up the agency business,'' he said.