Description
This is a presentation explaining the rural india profile.
Brief Rural Profile
Selling to the poor may be more profitable than selling to you and me. This is where the future is.
Opportunities are every where.
The digital divide is not about lack of opportunity. It is about the lack of imagination - C.K. Prahlad
Approx 72% of India’s population Equal to 12.2% of World ‘s population Approx 30 lakhs sq. km Lives in 6,35,000 villages 13.5 crore households Average size of Farm is 1.5 hectare against 500 hectare in US 42% of Indian villages have a population of less than 500 Between 1981 to 2001 the No. of Pucca houses doubled from 22% to 42%, while Kuccha houses halved from 41% to 23%
Population in India
Year
1951 1961 1971 1981
Rural (million) 295
360 439 508
%
Urban (million) 82.6 62
82.0 801 76.0 79 109 160
%
Total (million) 17.4 357
18.0 19.9 24.0 439 548 668
1991 2001
621 742
74.3 72.2
215 285
25.7 27.8
836 1027
Some surprising facts
Rural FMCG market grew at an annual average rate of over 12 % between 1993 to 1998 Per capita expenditure on Food was 65% in 1993 was 62% in 1998
In 1999 Rural Household spend Rs 229 pm or Rs 3202 pa on FMCG
Item
Nail polish Lipstick Shampoo Mosquito repellents Units Units Tonnes Units
Rural Markets
270 million 250 million 2257 173 million
Urban Markets
81 million 131 million 718 78 million
Some Interesting Facts
•Of 2.0 Million BSNL mobile connections , 50% are in Small towns/villages •Of 6.35 villages, 5.22 villages have Village Public Telephone •41 million Kisan Credit Cards issued against 22 millions credit /debit cards in Urban India •42 Million Rural Household avail banking services against 27 million in Urban India •Investment in formal Saving instruments has been made by 6.6 millions rural household against 6.7 million urban household
Spending Pattern in Rural India
Item
Spending on Different Items (1999)
Overall % Rich Population (Rs) Poor Population (Rs) Average (Rs)
Food Articles Toiletries Washing material Cosmetics OTC products Others Total
44 20 13 10 4 9 100
147 67 43 33 13 30 333
73 33 22 17 6 15 166
95 43 28 21 9 19 215
Saving & Consumption pattern in Rural India
Item
Savings Food Items Clothing
Lower
9.7 45.6 12.5
Lower Middle Middle High
30.7 39.5 11.6 47.6 30.2 11.1
Education
Entertainment
8.0
2.7
5.9
3.3
6.9
3.9
Health
Consumer durables Housing Transport Others
2.0
2.8 5.9 7.3 13.3
5.7
3.6 6.3 7.6 16.5
5.2
5.5 7.9 9.8 19.5
Share of Different Sectors in Rural / Urban India
Sector Share in Rural Income
1995-6 Agriculture Industry Service 43 19 38 2004-5 31 22 47 Share in Urban Income
1995-6
5
2004-5
4
42 53
35 61
Rural Income Dispersal
Consumer Class
Very Rich
Annual Income
Above Rs 2.15 L
1995-6 in % 0.3
13.5 31.6 31.2
2006-7 in %
0.9 25.0 49.0 14.0
Consuming Rs 45k to RS 2.15 L Class Climbers Rs 22 k to Rs 45 k Aspirants
Rs 16 k to Rs 22 k
Destitutes
Below Rs 16 k
23.4
11.1
Constituents of Rural Market
Consumer Class Very Rich Annual Income
Above Rs 2.15 L
Number of People 40 lakh 11.5 cr
Consuming Rs 45k to RS 2.15 L Class
Climbers
Aspirants Destitutes
Rs 22 k to Rs 45 k Rs 16 k to Rs 22 k Below Rs 16 k
33.1 cr
17.0 cr 12.4 cr
Income of Percentage of Rural Households
Household in %
1994-95 Above Rs 1 L Rs 77 k – Rs 1 L 1.6 2.7 2000-01 3.8 4.7 2006-07 5.6 5.8
Rs 50 k – Rs 77 k
Rs 25 k – Rs 50 k Rs 25 k & Below
8.3
26.0 61.4
13.0
41.1 37.4
22.4
44.6 20.2
doc_412958918.ppt
This is a presentation explaining the rural india profile.
Brief Rural Profile
Selling to the poor may be more profitable than selling to you and me. This is where the future is.
Opportunities are every where.
The digital divide is not about lack of opportunity. It is about the lack of imagination - C.K. Prahlad
Approx 72% of India’s population Equal to 12.2% of World ‘s population Approx 30 lakhs sq. km Lives in 6,35,000 villages 13.5 crore households Average size of Farm is 1.5 hectare against 500 hectare in US 42% of Indian villages have a population of less than 500 Between 1981 to 2001 the No. of Pucca houses doubled from 22% to 42%, while Kuccha houses halved from 41% to 23%
Population in India
Year
1951 1961 1971 1981
Rural (million) 295
360 439 508
%
Urban (million) 82.6 62
82.0 801 76.0 79 109 160
%
Total (million) 17.4 357
18.0 19.9 24.0 439 548 668
1991 2001
621 742
74.3 72.2
215 285
25.7 27.8
836 1027
Some surprising facts
Rural FMCG market grew at an annual average rate of over 12 % between 1993 to 1998 Per capita expenditure on Food was 65% in 1993 was 62% in 1998
In 1999 Rural Household spend Rs 229 pm or Rs 3202 pa on FMCG
Item
Nail polish Lipstick Shampoo Mosquito repellents Units Units Tonnes Units
Rural Markets
270 million 250 million 2257 173 million
Urban Markets
81 million 131 million 718 78 million
Some Interesting Facts
•Of 2.0 Million BSNL mobile connections , 50% are in Small towns/villages •Of 6.35 villages, 5.22 villages have Village Public Telephone •41 million Kisan Credit Cards issued against 22 millions credit /debit cards in Urban India •42 Million Rural Household avail banking services against 27 million in Urban India •Investment in formal Saving instruments has been made by 6.6 millions rural household against 6.7 million urban household
Spending Pattern in Rural India
Item
Spending on Different Items (1999)
Overall % Rich Population (Rs) Poor Population (Rs) Average (Rs)
Food Articles Toiletries Washing material Cosmetics OTC products Others Total
44 20 13 10 4 9 100
147 67 43 33 13 30 333
73 33 22 17 6 15 166
95 43 28 21 9 19 215
Saving & Consumption pattern in Rural India
Item
Savings Food Items Clothing
Lower
9.7 45.6 12.5
Lower Middle Middle High
30.7 39.5 11.6 47.6 30.2 11.1
Education
Entertainment
8.0
2.7
5.9
3.3
6.9
3.9
Health
Consumer durables Housing Transport Others
2.0
2.8 5.9 7.3 13.3
5.7
3.6 6.3 7.6 16.5
5.2
5.5 7.9 9.8 19.5
Share of Different Sectors in Rural / Urban India
Sector Share in Rural Income
1995-6 Agriculture Industry Service 43 19 38 2004-5 31 22 47 Share in Urban Income
1995-6
5
2004-5
4
42 53
35 61
Rural Income Dispersal
Consumer Class
Very Rich
Annual Income
Above Rs 2.15 L
1995-6 in % 0.3
13.5 31.6 31.2
2006-7 in %
0.9 25.0 49.0 14.0
Consuming Rs 45k to RS 2.15 L Class Climbers Rs 22 k to Rs 45 k Aspirants
Rs 16 k to Rs 22 k
Destitutes
Below Rs 16 k
23.4
11.1
Constituents of Rural Market
Consumer Class Very Rich Annual Income
Above Rs 2.15 L
Number of People 40 lakh 11.5 cr
Consuming Rs 45k to RS 2.15 L Class
Climbers
Aspirants Destitutes
Rs 22 k to Rs 45 k Rs 16 k to Rs 22 k Below Rs 16 k
33.1 cr
17.0 cr 12.4 cr
Income of Percentage of Rural Households
Household in %
1994-95 Above Rs 1 L Rs 77 k – Rs 1 L 1.6 2.7 2000-01 3.8 4.7 2006-07 5.6 5.8
Rs 50 k – Rs 77 k
Rs 25 k – Rs 50 k Rs 25 k & Below
8.3
26.0 61.4
13.0
41.1 37.4
22.4
44.6 20.2
doc_412958918.ppt