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Rural Retailing: A Presentation by

The document discusses rural retailing in India. It defines retailing and notes that rural markets account for around 70% of India's population. Rural retailing is characterized by small, local kirana stores that serve as the primary point of sales. However, rural retailing faces challenges like low sales volumes, lack of infrastructure and financing difficulties. The document outlines new models that large companies are adopting to better penetrate rural markets, such as ITC's rural mall concept and Godrej's plans to open convenience stores in villages. It concludes that rural retail is a large, growing market with significant potential due to low modern trade penetration currently.

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Jivaansha Sinha
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66 views25 pages

Rural Retailing: A Presentation by

The document discusses rural retailing in India. It defines retailing and notes that rural markets account for around 70% of India's population. Rural retailing is characterized by small, local kirana stores that serve as the primary point of sales. However, rural retailing faces challenges like low sales volumes, lack of infrastructure and financing difficulties. The document outlines new models that large companies are adopting to better penetrate rural markets, such as ITC's rural mall concept and Godrej's plans to open convenience stores in villages. It concludes that rural retail is a large, growing market with significant potential due to low modern trade penetration currently.

Uploaded by

Jivaansha Sinha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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RURAL RETAILING

A Presentation

by:

Anish Adhikari-

11268 Amir Mainali- 11262 Pardeep Thapa- 11263 Mukul Bikram Singh- 11266

RURAL RETAILING

DEFINITION
Retailing

can be defined as the set of activities that markets products or services to final consumers for their own personal or house hold use. This is done by organizing the availability of goods and then supplying them to consumer on a relatively small scale.

RURAL RETAILING

The

mix of variables including price, location, communications, merchandise, physical attributes, services and personnel form the retail mix and these components form the over all strategic marketing components of retailing.

RURAL RETAILING

INTRODUCTION
The

worlds economic center is shifting away from the established, wealthy economies of Europe, Japan, and North America and towards the Asia Pacific is one of the fastest-growing large economies in the world. Over the last 15 years India has changed much faster than many predicted.

India

RURAL RETAILING

Overall,

competition and structural changes within the economy have raised the bar in terms of what consumers have come to expect. India accounts for almost 70 per cent of the population as the recent Census 2011 indicates that of the 1.21 billion population, 833 million live in rural India.

Rural

RURAL RETAILING

From

Functional to Lifestyle

RURAL RETAILING

INDIAN RURAL RETAIL MARKET


Rural Retail Pillars of Indian economy Rural markets are Virgin markets. Retailing is part time . Low maintenance cost. High Transportation and traveling cost. Penetration is facilitated through intermediaries. 98% of traditional retailing is handled by local kirana stores.
RURAL RETAILING

ROLE OF RURAL RETAILING


Retailing

the final phase of the distribution channel it is the availability and distribution that drives growth in rural Indian markets. Hence retailing will be significant and will undergo greater organization and maturity in rural markets. Innovative retail models is the way forward.

RURAL RETAILING

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Study

on buying behavior of rural consumer indicates that the rural retailers influences 35% of purchase decisions. Therefore sheer product availability can affect decision of brand choice, volumes and market share. India offers a huge, sustainable and growing rural market which can be tapped effectively through innovative distribution RURAL RETAILING channels.

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RURAL RETAIL SYSTEM

Rural retail spread - Rural India - 65% retail outlets in country - 35 lakh retail outlets spread over 6 lakh villages - High distribution cost * geographical spread * low volumes per outlet - Average monthly sale per shop < Rs. 5000 - restricts variety and range of products stocked - 58% of villagers prefer to buy from haats rather than shops coz of better price, quality and variety - Availability of shops in villages is poor
RURAL RETAILING

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Rural

premises: - infrastructural constraints * lack of sufficient space * inadequate power supply * lack of proper storage system - financial constraints * inadequate funds * unwillingness of banks to extend loans - low retail space per capita <100 sq.ft area - travel and transport costs
RURAL RETAILING

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BEHAVIOR OF THE CHANNEL


Understanding

channel behavior has critical bearing in channel decisions. The ability to influence the retailer to stock and promote products requires identifying the manner in which the retailer performs his business.

RURAL RETAILING

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The

dimensions of channel behavior examined are:

Credit

facilities to consumers Pricing Seasonal pattern of stocking Information source and retailer influence Purchase source for the retailer Channel credit Purchasing cycle

RURAL RETAILING

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DEVELOPMENTS IN RURAL RETAILING


Rural Malls: Chaupal Sagar Chaupal Sagar first organised retail forays. It was launched on 15 August. A warehouse for storing the farm produce that ITC buys through its e-chaupals. Initiated as rural shopping-cum-information centres in Madhya Pradesh. The first rural mall has come up 40 kilometres journey from Bhopal towards Sehore. ITC Spent 3 years and Rs.80 crores on research and development of this concept including investments in E-choupal.
RURAL RETAILING

FMCG
Indian

FMCG veteran Dabur is planning to double its rural reach . Godrej Similarly, paint companies

Automobiles
Rural India accounts for almost 35 per cent of the automobile industry

sales. While Ford is dedicatedly working with its retail banking partners to target the rural customers, General Motors has laid renewed focus on its rural marketing initiatives Toyota is also planning to strengthen its rural reach. Hyundai offers customised finance schemes to its rural customers

Rural markets and rural marketing involve a number of strategies, which include:
Client

and location specific promotion Joint or cooperative promotion.. Bundling of inputs Management of demand Developmental marketing Unique selling proposition (USP) Business ethics Partnership for sustainability

Rural channel of communication

Rural Static

channel of communication Interactive Events


Direct to consumer Sampling Cinema festival Meals

Wall painting Shop fronts

Tin plates
Hoardings Modes of transport

demonstrations
Audio visuals Cinema projections

Created events
Folk shows

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Examples: 1. DCM Sriram Consolidated Ltd. (DSCL)


Hariyali Bazaars Focuses mainly on agri products. These bazaars offer Quality Agri-Inputs Financial Services Farm Output Services Other Products and Services
So

far, 70 "Hariyali" Stores have been set up in different states across India. Ranbaxys Fortis Health World is tying up with Hariyali Kisan Bazaar to make entry into the rural RURAL RETAILING market.

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Examples: 2. GODREJ AGROVET LTD


its rural retail business through Godrej Aadhaar. These outlets offer rural households, the basic food, grocery, apparel, footwear to furniture, kitchenware and home appliances to value-added services including banking, postal services and pharmacy. Godrej is planning to setup 1000 stores across the rural India in next five years.
Initiated
RURAL RETAILING

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Examples: 3. KISAN SEVA KENDRA


Kisan

Seva Kendra is a low cost business model by Indian Oil corporation currently has approx. 100 operational stores.

It

RURAL RETAILING

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Palengkenito
An

innovative retail format in the Phillipines called the Palengkenito, which means mini-market in English. The Palengkenito is a mobile grocery store on wheels, developed to bring retail convenience to lessaffluent consumers in the Philippines. Specially converted Suzuki minivans are outfitted with a generator, shelving units, food heating elements and a refrigerator.
RURAL RETAILING

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CONCLUSION
Led

by the rising purchasing power, changing consumption patterns, increased access to information and communication technology and improving infrastructure, rural retail market is estimated to cross US$ 60.43 billion by 2015, says a study by CII and YES BANK. Corporate India is already firming up concrete plans to tap the rural retail market, which is growing at double the rate of urban markets, with innovative schemes and human resource policies. with 87 per cent of rural markets not having access to any sort of marketing and distribution,RETAILING RURAL this segment has tremendous potential for growth.

Consequently,

And

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THANK YOU

RURAL RETAILING

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