Unlocking The Wealth In Rural Markets HAN UNGSUK Final 
Unlocking the wealth in rural markets
2014427026 Han ungsuk
■ Summary and implications
• Intro1 : Important of rural markets
Rising wages are creating a growing middle class
While urban demand for consumer products remains sluggish worldwide, rural markets are growing faster than ever in some of the largest emerging economies.
In China, demand in the countryside has already begun to outstrip demand in the cities, and nowhere is this phenomenon more evident than in India
• Intro2 : Growth of rural markets in India
In india, consumption in rural areas is growing at 1.5 times the rate in urban areas, and today’s $12 billion consumer goods market in rural India is expected to hit $100 billion by 2025.
What’s more, rural Indians are trading up. Their increased purchasing power is largely due to the steady migration of manufacturing jobs to the countryside.
• Strategy #1 : Developing a Distribution Strategy
Establishing cost-effective ways to get goods to India’s rural dwellers is the critical first step in penetrating these markets. have found that they need to focus on distribution even before making the seemingly commonsense moves of identifying and approaching target customers.
The most successful companies, though, have adopted a multipronged approach.
*Example1 : ITC - has added three layers to its urban food distribution network ① In rural areas with populations of 10,000 to 20,000, ITC relies on smaller-scale subdistributors who carry a narrower assortment of products geared to local tastes. ② More sparsely populated areas (5,000 to 10,000 people) with good roads are served by vans that bypass distributors and supply ITC’s products to retailers directly.
③ Still smaller and less accessible micro markets (with populations below 5,000 and no paved roads) are served by two- or three-wheelers
*Example2 : Tata Motors - added two indirect channels
① company has hired and trained local residents to become Tata Motors gram mitras (“village advisers”) ②
2014427026 Han ungsuk
■ Summary and implications
• Intro1 : Important of rural markets
Rising wages are creating a growing middle class
While urban demand for consumer products remains sluggish worldwide, rural markets are growing faster than ever in some of the largest emerging economies.
In China, demand in the countryside has already begun to outstrip demand in the cities, and nowhere is this phenomenon more evident than in India
• Intro2 : Growth of rural markets in India
In india, consumption in rural areas is growing at 1.5 times the rate in urban areas, and today’s $12 billion consumer goods market in rural India is expected to hit $100 billion by 2025.
What’s more, rural Indians are trading up. Their increased purchasing power is largely due to the steady migration of manufacturing jobs to the countryside.
• Strategy #1 : Developing a Distribution Strategy
Establishing cost-effective ways to get goods to India’s rural dwellers is the critical first step in penetrating these markets. have found that they need to focus on distribution even before making the seemingly commonsense moves of identifying and approaching target customers.
The most successful companies, though, have adopted a multipronged approach.
*Example1 : ITC - has added three layers to its urban food distribution network ① In rural areas with populations of 10,000 to 20,000, ITC relies on smaller-scale subdistributors who carry a narrower assortment of products geared to local tastes. ② More sparsely populated areas (5,000 to 10,000 people) with good roads are served by vans that bypass distributors and supply ITC’s products to retailers directly.
③ Still smaller and less accessible micro markets (with populations below 5,000 and no paved roads) are served by two- or three-wheelers
*Example2 : Tata Motors - added two indirect channels
① company has hired and trained local residents to become Tata Motors gram mitras (“village advisers”) ②