Rural demand Nature

-

Rural Demand Nature

The nature of rural demand has evolved significantly over the years, driven by new employment opportunities, rural development programs, and increasing aspirations among the rural population. Here's an in-depth look at the characteristics and dynamics of rural demand:

Steady Growth in Demand

  • Quantitative and Qualitative Growth: The rural market has seen both quantitative and qualitative growth in demand. Traditional products such as bicycles and agricultural inputs have seen increased demand. Additionally, the demand for Fast Moving Consumer Goods (FMCG) and other consumer products has also risen.
  • Employment and Income: New employment opportunities and income sources through rural development programs have fueled this growth. Initiatives like the Green Revolution and White Revolution have not only increased agricultural productivity but also improved the economic conditions of rural households.

Cultural Influence

  • Value of Traditions: Rural consumers highly value old customs and traditions, which significantly influence their purchasing behavior. They are generally resistant to change but are gradually showing an increased preference for branded products.
  • Custom-Tailored Products: Urban products cannot be directly marketed to rural consumers. Instead, products need to be tailored to meet the specific needs and preferences of rural populations. This customization is crucial for successfully penetrating the rural market.

Seasonal Demand

  • Irregular and Seasonal: The demand for goods in rural areas is often irregular and seasonal. It largely depends on agricultural cycles, with cash flows improving after harvest periods.
  • Festival and Marriage Linked: Demand also spikes during festivals and marriage seasons. For instance, the demand for sweets significantly increases during Durga Pooja in Bengal villages.

Composition of Rural Demand

  • Agricultural Inputs:
    • Examples: Fertilizers, pesticides, and farm equipment.
    • Significance: These products are essential for enhancing agricultural productivity and are in constant demand among farmers.
  • Urban to Rural Products:
    • Examples: Soaps, toothpaste, and electronic items.
    • Significance: Manufactured in urban centers and sold in rural areas, these products cater to the daily needs and improving lifestyles of rural consumers.
  • Rural to Urban Products:
    • Examples: Khadi cloth, handcrafted products.
    • Significance: These products, made in rural areas, find markets in urban centers, promoting rural craftsmanship and providing additional income streams to rural artisans.
  • Local Products:
    • Examples: Milk and milk products, locally manufactured tooth powder, cloth.
    • Significance: These are produced and consumed within rural areas, catering to local demand and sustaining rural economies.

Size of Rural Demand

  • Vast and Growing Market: The rural market in India is vast and has been growing steadily. The demand encompasses traditional products like bicycles and mopeds, agricultural inputs, FMCG goods, and consumer durables like refrigerators, TVs, and washing machines.
  • Rising Aspirations: With increasing incomes and exposure to media, rural consumers aspire for a better standard of living, driving demand for a wide range of products beyond basic necessities.

Additional Insights

  • Influence of Government Schemes: Government initiatives aimed at rural development play a crucial role in shaping rural demand. Subsidies, grants, and schemes like MGNREGA provide rural consumers with additional purchasing power.
  • Impact of Media and Technology: Increased access to media and technology has made rural consumers more aware of new products and brands, influencing their purchasing decisions.
  • Logistics and Distribution: Effective logistics and distribution networks are essential to cater to the geographically dispersed rural market. Companies need to develop innovative distribution strategies to reach remote areas.