Distribution and Retailing Trends in Rural Markets - A Study in Villages of Gujarat

The Indian rural market with enormous size and demand base, offers great opportunities to marketers. With nearly three fourth of the country's consumers accounting for one half of the national income, India's rural market is indeed a large one. Talking in numerical terms it consists of more than 741 million consumers, and more than 12 crore house holds, forming over 70 % of the total households in the country.
Agriculture production is growing year by year. If agriculture grows at the projected rate this year, the rural economy could receive a boost as good monsoon leads to a spurt in demand for almost all types of products. As per NCAER India market demographic report 2002 middle class is bulging in size and the increase is very significant in rural areas. New policies announced in Union Budget are expected to put more disposable money in the Indian consumers' pockets. And this will encourage them to buy more products especially in the rural belts. As the rural market becomes more attractive competition will intensify and success will depend on reaching a large no of customers in vast geographical area cheaply and profitably.