Understanding The Rural Consumer
Understanding the rural consumer The biggest challenge is to understand the perceptions, viewpoints and actual needs of the rural people, which is dramatically different from urban people.
Low per capita income
India is the fourth largest economy in the world due to a strong economic growth but still has a low per capita income of 1570 dollars
It results in low consumption pattern as compared to the urban population. Low literacy levels
There are not enough opportunities for education in rural areas.
The literacy level is low (68%)
Seasonal Demand Demand for goods in rural markets depend upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.
Lack of proper infrastructure and other physical facilities
Nearly 50 percent of the villages do not have all weather roads. Physical communication to these villages is highly expensive. Even today, most villages in eastern part of the country are inaccessible during monsoon season.
Many rural areas are not connected by rail transport. Kachha roads become unserviceable during the monsoon and interior villages get isolated. Facilities such as telephone, fax and telegram are rather poor in rural areas.
About 20% of the six lakh villages are without telephone facility even today.
Underdeveloped people and underdeveloped markets
Unfortunately, the impact of the technology is not experienced uniformly throughout the nation. Except some districts in Punjab, Haryana and Western Uttar Pradesh, large areas and groups of people have remained beyond the technological breakthrough.
In addition, the farmers with small agricultural land holdings have also been unable to take advantage of the new technology.
Inadequate banking and credit facilities.
Traditional outlook
Due to the traditional outlook of rural consumers, they are resistant to change.
Low per capita income
India is the fourth largest economy in the world due to a strong economic growth but still has a low per capita income of 1570 dollars
It results in low consumption pattern as compared to the urban population. Low literacy levels
There are not enough opportunities for education in rural areas.
The literacy level is low (68%)
Seasonal Demand Demand for goods in rural markets depend upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.
Lack of proper infrastructure and other physical facilities
Nearly 50 percent of the villages do not have all weather roads. Physical communication to these villages is highly expensive. Even today, most villages in eastern part of the country are inaccessible during monsoon season.
Many rural areas are not connected by rail transport. Kachha roads become unserviceable during the monsoon and interior villages get isolated. Facilities such as telephone, fax and telegram are rather poor in rural areas.
About 20% of the six lakh villages are without telephone facility even today.
Underdeveloped people and underdeveloped markets
Unfortunately, the impact of the technology is not experienced uniformly throughout the nation. Except some districts in Punjab, Haryana and Western Uttar Pradesh, large areas and groups of people have remained beyond the technological breakthrough.
In addition, the farmers with small agricultural land holdings have also been unable to take advantage of the new technology.
Inadequate banking and credit facilities.
Traditional outlook
Due to the traditional outlook of rural consumers, they are resistant to change.