Indian market has a strong middle class buying power and MNCs & Indian companies aim big at the emerging rural market with 70 % population. Be it telecom, toiletries, food products all aim at the urban market initially and gradually enter rural markets with products packaged in sachets coupled with affordable rates. The concept of sachets or small packs has benefited the MNC and Indian companies to make inroads into the rural market and the rural consumer enjoys the products in line with the urban consumer. Be it a mobile phone recharge of Rs 10/- or a MNC shampoo for Rs 4/- masala packs,it’s a huge risk for companies if rural market is ignored.
The rising trend of improving lifestyle in rural areas is also leading to a boom in the emerging rural market. The concept of making available products within the range of Rs 10/- is creating a win-win situation and due to its repeat consumption pattern volumes are assured. In most of the cases the brands which are advertised on national television and local newspapers are benefited. But there are many local brands which can’t afford to be on national television or in print, get a push by the local stores and also by word of mouth publicity. There are brands in the Indian market in the category of herbal medicine, foot care cream which have been into this business since several decades and have not even migrated from print yet to television enjoy a reputation and instant recall value in times of need of the product. These brands enjoy considerable market share and a major share belongs to the rural markets. So if we are in the age of shopping in a supermarket picking up a reputed brand, the same is available in rural market in a smaller quantity and at an affordable price. If there is a middle class spending power in the urban areas, in the parallel rural market there is an emergence of strong buying power.