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The Rural Urban Divide
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Close to 72% of Indias population resides in Rural Areas and therefore its very
difficult for marketers to be in India and not go Rural
Basic Statistics
Specification Census 2001 - Urban Census 2001 - Rural
Population Density 27.80% 72.20%
900 : 1000 946 : 1000
Urban : 79.9% Rural : 58.7%
Urban: 64.9 yrs Rural: 58 yrs
Literacy Rate
Life Expectancy
1028.7 m
933 : 1000
64.80%
62 Y s
Total Population
x atio (Women : Men)
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No. of Villages in India 3 ,
No. of Towns/ rban Agglomerations
Rural India per Capita Income Rs. 2 /day
58.7% of rural India i literate , whera 7 . % of
Urban India i literate
A expected the gap between rural urban literacy
rate i higher for wo en
Source: Cen
u
of India
Snapshots of Rural rban India
58.70%70.70%
46.10%
7 . 0%86. 0%
72.
0%
0.00%
10.00%
20.00%
0.00%
40.00%
50.00%
60.00%
70.00%
80.00%
0.00%
100.00%
Total Male Fe ale
iteracy Rate
Rural
Urban 15. 1 .4
56.
7.8
25.5
12.2
55.1
7.1
0
10
20
0
40
50
60
0- yr 10-14 yr 15 to 5 yr 60 yr & above
UrbanRural
A very high population of India i young
Even though in percentage ter there i huge
i ilarity but in ab olute ter a far larger nu ber
of people live in rural India con tituting a huge
arket acro age group
% Rural/ rban Age istribution
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Consumption atterns in Rural India-
Not Ju t an Agri-Econo y Any ore
Even though agriculture i till 52%
contributor to GDP in Rural Market , other
ector are fa t catching up
Manufacturing and Re taurant e erge a
trong econd contributor
Contribution to G
Per 1000 households product penetration
C
ar ale in Rural have tripled over the decade Motorcycle ale have ore than doubled in
Rural
Increa e in con u er good in Rural arket
The e are indicator of growing rural pro perity
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FMCG Rs.65000 crore
Agri-inputs Rs.45000 crore
Durables Rs.5000 crore
Automobiles (2 & 4 Wheelers) Rs.8000 crore
Clothes, footwear etc. Rs.35000 crore
Construction material Rs.15000 crore
Total Rs.173000 crore
Source: CII Report (2008)
Size of Rural Market Management In ight
Rural Market are till at a tage where they need ba ic life tyle product
Thi i a great opportunity for FMCG companie which can increa e ale by penetration in
the e area
A entertainment become important, Ruralmarket are attractive for con umer durable
companie that offer ba ic entertainment product
All ruralmarketing campaign hould aim to balance affordability and availability
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Thank ou
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