Catering to Ever-Changing Rural Population Needs a Special Touch…
Picture courtesy: https://www.youtube.com/watch?v=kEcuad_qnqk
India is a diverse country with distinct cultural and socioeconomic differences between its rural and urban populations. These differences are reflected in the desires and needs of these two groups, which in turn require different approaches from jewelers looking to serve them.
The Indian rural market is characterized by a large population, vast geographic spread, and diverse cultural and linguistic differences. According to the latest data from the Indian government, around 65% of the country's population lives in rural areas, which means that there is a significant market opportunity for jewelers to cater to this vast demographic.
However, rural India's needs and preferences are vastly different from those of its urban counterpart. One of the main factors that differentiate rural India from urban India is income. According to a survey by the National Sample Survey Office, rural households have an average monthly income of Rs 8,059, while urban households have an average monthly income of Rs 18,651. This income disparity means that rural populations have less disposable income to spend on luxury items like jewelry.
Another factor is the cultural and social beliefs that shape rural India. Rural populations tend to be more traditional and conservative, and the value placed on jewelry may differ from that in urban areas. For instance, in rural India, jewelry is often viewed as an investment or a status symbol that is passed down from generation to generation. Therefore, the design, quality, and durability of jewelry are crucial considerations for rural buyers.
On the other hand, urban India has a more diverse population with different income levels, cultural backgrounds, and lifestyle preferences. In urban areas, jewelry is more of a fashion statement, and there is a higher demand for trendy designs that cater to the latest fashion trends. The value placed on jewelry may also be different, with urban populations valuing uniqueness and exclusivity over tradition and durability.
The difference in desires and needs between rural and urban populations necessitates a differentiated approach from jewelers looking to serve them. For instance, jewelers looking to cater to rural India may need to focus on providing durable, high-quality jewelry that holds its value over time. They may also need to offer more affordable options that cater to the income levels of rural populations.
On the other hand, jewelers looking to cater to urban India may need to focus on offering unique and trendy designs that cater to the latest fashion trends. They may also need to provide a more personalized service to cater to the diverse needs and preferences of urban populations.
According to a report by the Confederation of Indian Industry, there is a growing demand for jewelry in rural India due to increased disposable incomes and changing consumer behavior. The report highlights that rural India's demand for jewelry is expected to grow by 15-20% per annum, with the sector expected to reach Rs 2.5 trillion by 2022. Therefore, there is a significant market opportunity for jewelers to cater to the rural population's needs and preferences.
However, there are also challenges in serving the rural market. According to the same report, lack of infrastructure, poor distribution networks, and limited access to financing are some of the major obstacles in serving the rural market. Therefore, jewelers looking to cater to rural India may need to invest in building a robust distribution network and providing access to financing to tap into this vast market opportunity effectively.
In addition to the differences in desires and needs, rural populations also have different shopping behaviors and preferences compared to urban populations. Rural populations tend to shop locally and prefer to purchase goods and services from nearby stores within their community.
According to a report by the Boston Consulting Group, around 70% of rural shoppers prefer to shop at local stores, while only 30% prefer to shop at branded stores in nearby cities. This preference for local shopping is driven by factors such as convenience, familiarity with the store owner, and trust in the quality of goods sold.
Therefore, jewelers looking to cater to rural populations may need to establish a presence in rural areas and build relationships with local communities. This can be done by setting up local stores, partnering with local retailers, or establishing a mobile jewelry showroom that travels to different rural communities.
Moreover, rural populations often have limited access to transportation and are less likely to travel to nearby cities to purchase goods and services. According to a report by the Indian Brand Equity Foundation, only 15% of rural households own a two-wheeler or a car, compared to 56% of urban households. This lack of transportation means that rural populations are more likely to purchase goods and services from nearby stores within their community.
Therefore, jewelers looking to cater to rural populations may need to provide home delivery services or establish a distribution network that reaches remote rural areas. This can help increase accessibility and convenience for rural buyers, and also help build trust and loyalty with the local community.
In conclusion, the jewelry industry needs to recognize the unique demands and preferences of rural populations to tap into the vast market opportunity that exists in rural India. PRR Swarna Maaligai, with its specialized focus on the rural market since 1945, is well positioned to provide the much-needed rural touch that other big players cannot. By leveraging its experience and expertise in catering to rural buyers, PRR Swarna Maaligai can establish a strong presence in rural areas, build relationships with local communities, and provide accessible and convenient shopping options. This can help PRR Swarna Maaligai capture a significant share of the rural jewelry market while addressing the unique needs of rural buyers.
References:
"Key Indicators of Household Expenditure on Services and Durable Goods." National Sample Survey Office, Ministry of Statistics and Programme Implementation, Government of India, 2019, mospi.gov.in/sites/default/files/publication_reports/KI_HOUSEHOLD_75th_2.pdf.
"The Changing Face of Indian Luxury Consumers." Confederation of Indian Industry, 2021, cii.in/PolicyAdvocacyDetails.aspx?id=J8WfuNL3EWRtOFzIfbnC9g==.
"Rural India Is Not a Market, It's a Mindset." Boston Consulting Group, 2017, bcg.com/en-in/publications/2017/retail-merchandising-growth-strategy-rural-india-mindset.
"Indian Consumer Market." Indian Brand Equity Foundation, Ministry of Commerce and Industry, Government of India, 2021, ibef.org/industry/consumer-market-india.aspx.
