rural retailing- an opportunity ahead

Rural Retailing- A Opportunity Ahead!

By Manu SharmaUniversity Commerce College, Jaipur

Rural Retailing

Rural Retailing includes all those activities that assist in organizing the availability of goods and supplying them to consumer on a relatively small scale specially in rural area.

Changing Scenario

Income Levels- Today income of rural household have increased after the successful employment programs like NAREGA. Their purchasing power has been increased

• Literacy Levels- Today due various government programs primary education in rural India is increasing and as a result literacy levels of rural sector have increased. Today literacy level of rural India is 71 % while in 2001 it was only 58.69%. 71%

58.69%

• Family Size- Today a trend of nuclear families can be seen in rural area.

• Interested in luxury and non- essential goods

Challenges before Retailers

• Warehousing Problem • Advertising Issue• Transportation

Problems• Linguistic Issues• Others

Strategies for Effective Rural Marketing

• Product Strategy - Needs of rural customers are little different from urban customers. Modifications in existing product Is also required.

• Price Strategy- In rural areas people are having irregular income.

Place Strategy- In India village population differs. Some villages are having a population of less than 2000 while some are having population upto 5000.Promotion StrategyTraditional or non Traditional?For rural markets wall writing, bullock cart panels, pamphlet distribution are some good options for communicating with customers.

Successful Rural Retailing Models

HARIYALI KISAAN BAZAAR MODEL-DSCL started its initiative Hariyali

Kisaan Bazaar to cater Farmers needs. This HKB provides agricultural services including improved crop inputs, agronomic support, fuel banking and consumer goods. Today HKB is having 37 outlets in 6 states.

AADHAAR MODEL

Godrej Agrovet Ltd started Godrej Aadhaar a agri services cum retail initiative.

The services offered-Crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door delivery of products etc

RURAL MALLS: CHAUPAL SAGAR

It is a hub and spoke model involving engagement with farmers in rural India. It is a rural shopping mall where farmers can sell their commodities and can buy almost everything including garments, cosmetic, electronic appliances etc..

ConclusionToday there is a huge market which in unexplored and waiting to be servedAs 70 % population of our country is living and consuming products in rural markets.Today action is also required by government for the development of proper infrastructure, so that companies and even little entrepreneurs can take risk to enter in rural retailing