V Rural market is larger than urban market

in India.
V total size of the rural market for FMCG is
Rs.41550 as compared to Rs 37130 crores
in urban areas.
PRODUCT CATEGORY % SHARE

Radio 80.89

Bicycle 77.83

Wrist watch 75

Fan(table &ceiling) 60

Washing cake 66.88

Cooking oil 65.92

Tea 59.85

Mobile 51.12

Color TV 36.68
V In 2001-02 º C sold 55% of its policies in
rural India.
V !ut of ã million BSNL mobile connection
, 50% are in rural India.
V The ã million Kisan credit cards issued
in rural India.
V !ut of ã
million rediffmail signups
6
% are from small towns.

@@
@
@
@


@

@ 

@  !

@
@

@
@

    
2 Customer mindset:-
local retailers have very low credibility
among rural customers due to the rampant
availability of fake and look alike products
which are sold throughout rural India.
NB- ndian FMCG sector incurs a loss of
2
billion each year due to fake
products
The range available at the local retail
stores is also low because people go to
towns.
2. ºow modal incomes:-
unless there is a business model which
helps in increasing the income of the
customers, they will never show interest
for purchasing quality
products/services.
 INCREASED
PR!DUCTIVITY

TRANSPARENCY INCREASED
FARMING BEST PRICE
PRACTICES TRUST REA ISATI!N

ENHANCE
INC!MES
 INCREA
SED
PR!DUC
TIVITY

FARMIN
TRANSP INCREASED
G BEST ARENC PRICE
PRACTI REALISA
CES
Y TI!N
TRUST

ENHANNCE
INC!MES
ENHANCE
CREATE
INCMES
SURPLUS

Shopping
Low experien INF!RMA
TI!N !N
price ce one PR!DUC
stop TS/USage
shop

High
quality
products
/service
s
CHALLENGES IN
RURAL RETAILING S!LUTI!N !F ITC

1. Diverse customer 1. Flexible, fast supply

base. chain.
2. Smaller wallet 2. High quality,
size. affordable
merchandise.
3. Media dark
3. Reach the
customers customers by their
doorstep
V Affordableproducer range.
V Customer friendly layout &innovative
market programme.
V Win-Win situation for both Rural
consumers and ITC.
 [ .

Subject :-rural retailing in india

lessons from ITCs choupal
saagar experience

written by:-seshu kumar

(the writer is business head,
rural retailing, agri bussiness
division, secunderabad, ITC
Reference:-financing agriculture juarnal
vol-