Given a lot of retail markets in Tier-I cities have reached close to a saturation point, businesses have started to explore and expand into rural markets and non-metro cities. Consequently, these businesses have been eyeing to understand consumer trends and stats that will help them build their strategies to thrive in the market.
Soaps, candies, snacks, beauty products, sanitary pads, and electrical products happen to be the front runner for sales, according to a report by B2B aggregator platform Xpand. The company itself has been growing 46 percent MoM growth since August in rural markets.
With hygiene being of importance due to the pandemic, soaps and antiseptics have been the best-selling products. Additionally, house cleaning solutions have contributed a significant 68 percent to the business, the report added. It also dissects the geographical representation of the total business contribution. While the North of India contributes 54 percent of the total sales, the West and the South stood at 16.4 percent each. The East, however, comes at the lower end with a contribution of 12.3 percent.
Another observation is with growing aspirations, many suburbanites/rural Consumers do not seem to be minding paying more for premium products that may provide value Vs its price. In the smaller SKUs, this choice has been more evident. Cheese crackers and digestive biscuits have had more buyers than the regular glucose ones.
Sanjay Kaul, Founder, and CEO, Xpand, said, “There is significant untapped potential in the commercial space in the suburban areas and a great opportunity for brands to establish themselves in one of India’s big markets segments. While our recent report highlights many insights, but one key observation has been the growing aspirations of the villagers. As the Euromonitor International lifestyle survey suggested, many suburbanites are looking to elevate their lifestyle standards. We will keep ingressing towards the market in the rural space and support with a consistent flow of relevant categories to help them simplify their daily lives.”