RURAL CONSUMER MARKET GROWTH STORY

It is now the turn of rural India to mirror the growth story of urban India. The rural consumer market, which grew 25 per cent in 2008, is expected to reach Rs 19125 Billion (US$ 425 billion)  in 2010-11 with 720-790 million customers, according to a white paper prepared by CII-Technopak . The figures are expected to double the 2004-05 market size of Rs 9900 Billion (US$ 220 billion).
FMCG
According to figures released by market researcher Nielsen, demand for personal care products grew faster in rural areas than urban areas during the period January-May 2010.
In shampoos, rural demand grew by 10.7 per cent in value terms, while in urban markets, it rose by 6.8 per cent. Similarly, toothpaste sales grew by 9.1 per cent in rural India and by 4.4 per cent in urban markets.
Retail
The rural retail market is currently estimated at Rs 5000 Billion (US$ 112 billion), or around 40 per cent of the Rs 12,500 Billion (US$ 280 billion) Indian retail market, according to a study paper, 'The Rise of Rural India', by an industry body.
Hindustan Unilever (HUL) is planning to significantly increase its rural reach. According to Harish Manwani, Chairman, HUL, the quality and quantity of rural coverage will go up to the extent that "what we have done in the last 25 years we want to do it in the next two years." Currently HUL products reach approximately 250,000 rural retail outlets and the company intends to scale it up to nearly 750,000 outlets in two years time.
Automobiles
Car sales in rural India have been on the increase in the last three years since the government announced various schemes such as farm loan waiver etc, for the rural population.
Maruti Suzuki's share of rural sales has increased from 3.5 per cent to 17 per cent in the last three years. Mahindra & Mahindra (M&M) is now selling more Scorpios in rural and semi-urban markets. Scorpio sales have increased from 35 per cent to 50 per cent in the last two years.
Exciting days ahead for Rural India !!