SHARE OF WALLET

Rural India is showing dramatic shift in share of wallet and is fast catching up with urban India in spend trends.

Share of Wallet – Rural India

 

Rural India spends the maximum share of wallet on Food – a whopping 55% followed by 10% on travel. The lowest share of wallet goes to housing and health – a mere 4 and 5% respectively.

Share of Wallet – Urban India

The Urban Indian consumer however spends only 45% of his wallet on Food and Beverages. This is also a reflection of the higher incomes of the urban consumer. There is also a significant  difference in spend on education between the urban and rural consumers – the urban Indian spending 9% of his wallet on education while the rural consumers spends only 6% on education.

Source: Max-NCAER,2007      ET072010

Changing Landscape of Rural India

The rural landscape in India has shown a major change in the last 10 years. Opportunities of creating wealth and progressing economically have never been so great. There is now improved infrastructure, road connectivity has gone up substantially, there are more electrified houses and more permanent homes.

This represents a huge opportunity for retailers and other consumer good companies to expand markets and enter almost virgin markets.

Source : ET072010