Rural demand Nature

The rural market is growing steadily over the years. Demand for traditional products, such as bicycles, agricultural inputs, FMCG Products etc. has also grown over the years. The growth has not been only quantitative but also qualitative.

This was the result of new employment opportunities and new sources of income made available through rural development programmes which have resulted in green and white revolutions and a revolution in rising expectations of rural masses. Demand for products such as bicycles, agricultural inputs, farm products etc., has also grown over the years. This result into the increasing the potential of rural areas.

The rural consumer values old customs and traditions. They do not prefer changes. Gradually, the rural population is changing its demand pattern, and there is demand for branded products in villages.

The urban products cannot be dumped on rural population; separate sets of prod­ucts are designed for rural consumers to suit the rural demands. The marketing mix elements are to be adjusted according to the requirements of the rural consumers.

Seasonal demand:

The demand for goods is irregular and seasonal. As agriculture is the predom­inant occupation in villages, demand for goods generally depends on the harvest periods. Their cash flows are better after harvest. The demand is also festival and marriage linked. For example, the demand for sweets goes up during Durga Pooja in villages of Bengal.

Rural Demand Nature

Composition of rural demand:

A large variety of transactions are considered a part of rural demand:

  1. Agricultural inputs such as fertilizers, pesticides and farm equipment.
  2. Products made in-urban centres and sold to rural areas such as soaps, toothpastes and electronic items.
  3. Products made in rural areas sold to urban centres such as khadi cloth and handcrafted products.
  4. Products made and sold in rural areas such as milk and milk products. Locally manufactured toothpowder, cloth, and so on.

Size of rural demand:

The size of rural market is quite vast in India. The rural market is grow­ing steadily over the years. The demand for traditional products such as bicycles, mopeds and agricultural inputs, and branded products such as toothpaste, tea, soaps and other FMCG goods, and consumer durables such as refrigerators, TV and washing machines has also grown over the years.

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