CONSUMPTION OF FMCG IN RURAL AREAS

abhishreshthaa

Abhijeet S
FMCG consumption in rural areas:


Organizations like Hindustan Lever Ltd., Nirma Chemical Works, Colgate Palmolive, Parle foods and Malhotra Marketing have carved inroads into the heart of rural markets. Various categories of products have been able to spread their tentacles deep into the rural market and achieved significant recognition in the country households.


And, in the process, the regional brands, local brands and the other unbranded offerings got displaced by the leading brands.


Of the expenditure on consumer goods in rural household, approximately, 44% is on food articles such as biscuits, tea, coffee and salt, 20% on toiletries, 13% on washing material, 10% on cosmetics, 4% on OTC products and 9% on other consumables. A number of category products have established themselves firmly in the rural households.


It is evident that in the villages low-priced brands are well accepted and one might feel that a larger proportion of the purchases made in rural market can be attributed to local/ unbranded players. Surprisingly, however, the unbranded/local component contributes to a substantial portion of the volume of only a few of the highly penetrated categories.


Increasing brand awareness among rural consumers:

In the rural families, studies indicate a slow but determined shift in the use of categories. There is a remarkable improvement in the form of products used.


For instance, households are upgrading from indigenous teeth-cleaning ingredients to tooth powder and toothpastes, from traditional mosquito repellant to coils and mats. There is also a visible shift from local and unbranded products to national brands. From low-priced brands to premium brands.
 
FMCG consumption in rural areas:


Organizations like Hindustan Lever Ltd., Nirma Chemical Works, Colgate Palmolive, Parle foods and Malhotra Marketing have carved inroads into the heart of rural markets. Various categories of products have been able to spread their tentacles deep into the rural market and achieved significant recognition in the country households.


And, in the process, the regional brands, local brands and the other unbranded offerings got displaced by the leading brands.


Of the expenditure on consumer goods in rural household, approximately, 44% is on food articles such as biscuits, tea, coffee and salt, 20% on toiletries, 13% on washing material, 10% on cosmetics, 4% on OTC products and 9% on other consumables. A number of category products have established themselves firmly in the rural households.


It is evident that in the villages low-priced brands are well accepted and one might feel that a larger proportion of the purchases made in rural market can be attributed to local/ unbranded players. Surprisingly, however, the unbranded/local component contributes to a substantial portion of the volume of only a few of the highly penetrated categories.


Increasing brand awareness among rural consumers:

In the rural families, studies indicate a slow but determined shift in the use of categories. There is a remarkable improvement in the form of products used.


For instance, households are upgrading from indigenous teeth-cleaning ingredients to tooth powder and toothpastes, from traditional mosquito repellant to coils and mats. There is also a visible shift from local and unbranded products to national brands. From low-priced brands to premium brands.

Hi dear, thanks for your contribution and i am really glad to see that you shared such a nice report on CONSUMPTION OF FMCG IN RURAL AREAS. BTW, i am also adding some more detailed information on CONSUMPTION OF FMCG IN RURAL AREAS.
 

Attachments

Back
Top