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R.SATHVEENA - 72060
RURAL RETAILING 2
• The world’ s econom ce
ic ntre is s hifting
away from the e tablis d, we
s he althy
econom s of Europe J apan, and North
e ardstheAs iaPacific
• India is one of the fas s -g
te t rowing larg e
econom s in the w
ie orld. Ove the las 15
years India has chang d m e uch fas r
thanm any predicte .
RURAL RETAILING 3
• Overall, competition and structural changes
within the economy have raised the bar in
terms of what consumers have come to
• Retailing is the largest private sector
industry . Retail is the sale of merchandise
in small quantities to the ultimate consumer.
RURAL RETAILING 4
The Indian Consumer Is Rapidly Transforming
Outlook– From Traditional to Modernized Traditional
RURAL RETAILING 5
• From Functional to Lifestyle
RURAL RETAILING 6
• Retailing can be defined as the set of
activities that markets products or services
to final consumers for their own personal
or house hold use. This is done by
organizing the availability of goods and
then supplying them to consumer on a
relatively small scale.
RURAL RETAILING 7
• The mix of variables including price,
location, communications, merchandise,
physical attributes, services and personnel
form the retail mix and these components
form the over all strategic marketing
components of retailing.
RURAL RETAILING 8
INDIA N RURA L RE TA IL M A RK E T
Pillars of Indian economy
Rural markets are V irgin markets.
Retailing is part time .
L ow maintenance cost.
High Transportation and traveling cost.
Penetration is facilitated through intermediaries.
98% of traditional retailing is handled by local
RURAL RETAILING 9
TRADITIONAL KIRANA STORES
Complete utilization of space
in traditional outlets
RURAL RETAILING 10
ROLE OF RURAL RETAILING
• Retailing the final phase of the distribution
channel it is the availability and distribution
that drives growth in rural Indian markets.
• Hence retailing will be significant and will
undergo greater organization and maturity
in rural markets.
• Innovative retail models is the way forward.
RURAL RETAILING 11
• S tudy on buying behavior of rural consumer
indicates that the rural retailers influences
35% of purchase decisions.
• Therefore sheer product availability can
affect decision of brand choice, volumes
and market share.
• India offers a huge, sustainable and growing
rural market which can be tapped
effectively through innovative distribution
RURAL RETAILING 12
RURA L RETA IL S Y S TEM
• V illage retailers often double up as money
• Occupation facilitates multi-person
interaction in the closed society.
• Rural Retail spread
• Retail premises
• Rural retail shelves
RURAL RETAILING 13
B EHA V IOR OF THE CHA NNEL
• Understanding channel behavior has critical
bearing in channel decisions.
• The ability to influence the retailer to stock
and promote products requires identifying
the manner in which the retailer performs
RURAL RETAILING 14
• The dimensions of channel behavior
• Credit facilities to consumers
• S easonal pattern of stocking
• Information source and retailer influence
• Purchase source for the retailer
• Channel credit
• Purchasing cycle
RURAL RETAILING 15
Rural Malls Chaupal Sag ar
• Chaupal S agar first organised retail forays. It was
launched on 15 A ugust.
• A warehouse for storing the farm produce that ITC
buys through its e-chaupals.
• Initiated as rural shopping-cum-information
centres in M adhya Pradesh.
• The first rural mall has come up 40 kilometres
journey from B hopal towards S ehore.
• ITC S pent 3 years and Rs.80 crores on research
and development of this concept including
investments in E -choupal.
RURAL RETAILING 16
• A n establishment to create a high-quality,
low-cost channel for rural India.
• A ny organization driven by the profit
motive which are served through this
• Reap benefits from the market they have
• Creating an entry barrier for other
RURAL RETAILING 17
• It has opted for self-service, stocking its
merchandise on shelves lining the neat aisles, it
stocks a breadth of products no supermarket can.
It offers almost everything - from toothpastes to
televisions, hair oils to motorcycles, mixer-
grinders to water pumps, shirts to fertilizers.
• M ost of the brands it sells are national such as
M arico, L G, Philips, torches from E veready, shirts
from ITC's apparel business, bikes from TV S , and
tractors from Eicher.
RURAL RETAILING 18
I TC ’s C houpalsagar store in S ehore district of
M adhya Pradesh
RURAL RETAILING 19
DCM S riram Consolidated L td. (DS CL )
Hariyali Bazaars– Focuses mainly on agri products.
• These bazaars offer –
• QualityAg -Inputs
• Financial Service s
• FarmOutputSe rvices
• Othe ProductsandSe
• S o far, 70 quot;Hariyaliquot; S tores have been set up in different
states across India.
• Ranbaxy’s Fortis Health World is tying up with Hariyali
Kisan B azaar to make entry into the rural market.
RURAL RETAILING 20
GODREJ A GROV ET L TD
• Initiated its rural retail business through
• These outlets offer rural households, the
basic food, grocery, apparel, footwear to
furniture, kitchenware and home appliances
to value-added services including banking,
postal services and pharmacy.
• Godrej is planning to setup 1000 stores
across the rural India in next five years.
RURAL RETAILING 21
KIS A N S EV A KENDRA
• K isan S eva K endra is a low cost business model
by Indian Oil corporation of a retail outlet offering
fuel and other non fuel value added services with
penetration in rural markets generating high
• K S K a one stop center of service(seva) for the
farmers at his doorstep making available: Diesel
and Petrol with Q& Q S eeds, pesticides, fertilizers
and other agri needs Nutan stove, Hurricane lamps
Daily needs such as grocery, personal care
S tationery for children. Tools, auto spares
L ocation specific value additions L ow investment
ranging from Rs.6 to 9 lacks with a pay back
period of 3 to 4 years. RETAILING
• It currently has approx. 100 operational stores.
PA L ENGK E NITO
• A n innovative retail format in
the Phillipines called the
‘Palengkenito’, which means
‘mini-market’ in English.
• The Palengkenito is a mobile
grocery store on wheels,
developed to bring retail
convenience to less-affluent
consumers in the Philippines.
• S pecially converted S uzuki
minivans are outfitted with a
generator, shelving units,
food heating elements and a •The roving store offers quality
refrigerator. pre-packed fresh and processed
food, snacks, canned goods,
toiletries, and other basic
household items in small packages
and sachets !
RURAL RETAILING 23
e ingTrendsfromRural India
• Em ploym nt
• Cons ption
• Rising Aw ne s Le ls and
are s ve its
Cons que Influe
e nt nceon Life tyle
RURAL RETAILING 24
• L ed by the rising purchasing power, changing consumption
patterns, increased access to information and
communication technology and improving infrastructure,
rural retail market is estimated to cross US $ 45.32 billion
mark by 2010 and US $ 60.43 billion by 2015, says a study
by CII and Y ES B A NK.
• Consequently, Corporate India is already firming up
concrete plans to tap the rural retail market, which is
growing at double the rate of urban markets, with innovative
schemes and human resource policies.
• A nd with 87 per cent of rural markets not having access to
any sort of marketing and distribution, this segment has
tremendous potential for growth.
RURAL RETAILING 26