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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