The changing trend of the rural market has brought a ray of hope for companies that make daily use products (FMCG). In rural areas, people are beginning to prefer the brand rather than the local. To this end, they have left the urban consumer. Rural markets outperform cities in terms of value and volume. This is stated in the Cantor report.
Gold Price Latest: Large change in gold-silver price, Rs 28289 in 14 carat gold and Rs 1495 in silver.
According to the report, since the corona crisis, enthusiasm for health and beauty products has increased in rural areas. On the other hand, urban consumers spend less on these when working from home. According to Kantar’s Consumer Connection Report, the demand for FMCG products in rural areas increased by 11.6 per cent. But in the case of cities it is 10.2 per cent. On the other hand, in terms of volume, demand in rural areas increased by 4.4 per cent, while in urban areas it was 3.3 per cent. According to the Cantor report, sanitizer, hair color, talcum powder consumption is higher in rural markets than in cities.
38% rural market share
The rural market accounts for 38 per cent of FMCG sales. At the same time, the share of consumer goods is close to 35 per cent. The rural market share of two-wheelers is around 40 per cent. Experts say this is the reason why companies have never overlooked the rural market and started to put more emphasis on it after the Corona crisis.
Petrol in Sriranganagar, Rajasthan, is more expensive than over 130 countries.
Demand for these products
The use of sanitizer, hair color, talcum powder is higher in the rural market than in the cities. The demand for talcum powder in the rural market has increased by 26 per cent. Demand for hair color increased by 12%. Similarly, the demand for soap in rural areas is 1.3 times higher than in urban areas. Market experts say that with the introduction of affordable packs of branded products, it will fit the rural consumer’s budget. So he’s using it too much.
Demand is expected to increase
HUL CMD Sanjeev Mehta says rural demand is still lagging. If we look at the FMCG industry, demand in May this year is very tight, ”he said. But after the restrictions were lifted, June crashed again. On the other hand, MD (South Asia) of the WordPanel division who prepared the report. Ramakrishnan says that if there is no unexpected event, further demand is expected.
Gold Price Latest: Large change in gold-silver price, Rs 28289 in 14 carat gold and Rs 1495 in silver.
