Lets go rural guy's :: wide-ranging, practical implications for creating successful portfolio strategies and packaging formats that recognise these traits and appeal to the rural consumers' senses.
"Beware the clutches of the Corporate"
"The robbers are on too you now to steel your money and your freedom, until you are left with a bowl to beg"
(article in Indian Express :: 21st Nov 2011
FMCG firms intensify focus on premium products
Press Trust of IndiaTags : FMCG firms, Indian consumers, Harish Manwani,Aditya Agrawal, business newsPosted: Mon Nov 21 2011, 00:04 hrs)
“As income level in the rural areas also increases, there is propensity to spend more. So most FMCG firms are trying to upgrade the choices of consumers in those markets,” he added.
According to market research firm Nielsen, FMCG market in rural India is expected to grow more than tenfold to $100 billion in the next 15 years.
Rural markets in India is currently worth around $9 billion in consumer spending in the FMCG space annually. The report said premium products currently contribute more than 21 per cent to the growth of the FMCG sector than other price tiers.
ITC is also adding more premium products portfolio to its foods portfolio.
“We are attempting to build a premium portfolio and definitely premium products are skewed towards urban markets. With this effort we are trying to earn higher margin and try to push back some of the margin to cover cost of some of the products,” ITC Head of Sales (Foods) Vikram Khosla said.
FMCG market in rural India to touch $100 bn by 2025: Nielsen
NEW DELHI: The fast moving consumer goods market in rural India is tipped to touch $100 bn (around Rs 45,735 crore) by 2025 on the back of "unrelenting" demand driven by rising income levels, according to a study by research firm The Nielsen Company.
"The Indian rural market is set to become a USD 100 billion opportunity for retail spending in the next fifteen years," according to a statement released by the company today.
According to Nielsen, rural India accounts for more than half of sales in some of the largest FMCG categories.
"While the ability of lower priced packs to improve accessibility is known, their pace and presence has been unrelenting," The Nielsen Company India Vice President Prashant Singh said.
In addition, premium skin care brands typically associated with the urban population are growing nearly twice as fast in rural areas, he added.
At present, rural consumers spend about USD 9 billion per annum on FMCG items and product categories such as instant noodles, deodorant and fabric, with the pace of consumption growing much faster than urban areas, as per the findings.
The Nielsen study also suggests that the number of direct-to-home television connections in rural areas is already more than double that of urban centres and growing dramatically. "Today, two out of five new mobile telephone connections are in rural," the statement added.
"These findings have wide-ranging, practical implications for creating successful portfolio strategies and packaging formats that recognise these traits and appeal to the rural consumers' senses," Singh said.
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