'Rural is urban with a time lag'

Kolkata: Rural is urban with a time lag, said Alpana Parida, managing director, DY Works, while addressing the third edition of the Rural Marketing Dialogue organised by CII.

Parida said that the drivers of "behaviour and motivation" in rural areas are different from the urban ones. The belief system in rural areas is pegged on revering abundance, socio-economic and socio-political power and uncertain future. This, in turn, influences rural buying patterns, according to Parida.

She told the marketing strategists, decision-makers, CEOs and academics present at the seminar that products that cater to "sensorial fulfilment", have a better scope in rural India as wealth and success are very "visible" and not "line items on paper".

While giving examples of rural beliefs and trends, Parida said as villages have grown up on local drinks which are healthy and substantial, drinks manufacturers can look at innovative health beverages to get a grip on this market.

Parida stressed that rural marketing is more than "small packets, shiny packaging" and the specific product innovations, blending with the environment and belief structures of this unique and integral part of India, would go a long way in successfully establishing various brands.

Rajesh Shukla, managing director & CEO of People Research on India's Consumer Economy (PRICE), said with "39% of rural rich spread across 600,000 villages across India" and with "55% of the national income coming in from the villages", desegregation of information across geographies and understanding attitudes are keys to the success of rural economy.

The Rural Marketing Dialogue focused on the rural FMCG sale that is estimated to be $100 billion, up from the current $12 billion, by 2025.