Rural areas emerge as growth driver for consumer durables
The demand is evident in the rural areas. It can be gauged from the fact that major consumer durable companies have strengthened their distribution outreach for last-mile connectivity besides increasing spend on consumer promotion — Senior executive, fmcg company
Vijay C Roy
Tribune News Service
Chandigarh, June 25
The rural areas in North are undergoing an image makeover in line with other regions. People in these areas are moving towards buying quality consumer durable goods, a trend that received boost in the months following the pandemic last year. Statistics show the demand from rural markets outstripped urban markets in the past few quarters.
Small towns and rural markets are witnessing an increased demand for products such as fans, sewing machines, home and kitchen appliances and water pumps.
“There have been various lifestyle changes and growth trends in the rural markets that we have observed in the past one year. People in the rural areas now prefer buying from a local retailer rather than travelling to the nearest town for purchasing consumer durables,” said Ajay Sharma, senior vice-president and head (Rural Division), Usha International.
“Rural areas contribute 18-19% to Usha’s sales. During the first six months after the lockdown last year, Usha’s business grew over 50% in the April 20 and July 20 quarters. During the October 20 and January 21 quarters, our sales grew 30-35% in the rural areas. Our growth in the rural areas is twice the growth in urban areas,” he said.
Given the size and diversity of India’s rural population, the value of goods and services consumed is greater in rural India. The industry foresees consumption in rural India growing faster than in urban India in the coming months as well.
“The demand is evident in the rural areas. It can be gauged from the fact that major consumer durable companies have strengthened their distribution outreach for last-mile connectivity besides increasing spend on consumer promotion,” said a senior executive employed in a FMCG company.
