By Aakarsh Rastogi
Edited by Madhavi Roy
Well, the word ‘rural’ forms an image of huts and sheds in the mind of most of the civilized people and an image of affection and pride in the heart of rural people. In this era, having an impact of something will have an impact when it has an impact on those who can impact something substantial with their impact. So, let me connect the rural market to the Economy.
Marketers of India keep on introducing new products or innovating the existing ones to keep their roots attached firmly in the dynamic market environment. But, there are companies which are growing well even with less innovation. Reason behind is that they are using their arms outside the box. They are tapping the ‘one trillion dollar’ economy, i.e., the Indian Rural Market. Many of the businesses of India do not realize the potential of rural markets and the avenues of investment there. If you are exploiting the rural areas it implies that you are tapping around massive 70% of the total habitants of the country.
Providing with products and services to the rural people creates the same impact that the allocation of capital creates on a worker with insufficient capital resources. The only difference is that, that worker has the capacity to utilize the additional capital, but rural folks fall short of resources to exploit the services and products available to them because of unequal distribution of wealth. Ignoring the rural market-needs and rural market potential, if observed technically, pushes both rural habitants and the business houses in the same hole. That is, it keeps away the rural folks from new and necessary products and on the other hand it reduces the sale of businesses which they can procure if they target the needs of village counterparts.
So, there is a dire need of economic understanding of potential hidden in the unnoticed rural markets. I think, if budget allocation on R&D of the companies include some research of rural market base would be a win-win situation for both. The companies will find hardly noticed areas for segmentation and, targeting & positioning of their products. In addition to that, the research will unveil the dark side of rural economic instability in India which can help NGOs and Government Agencies to eradicate this perennial issue, moreover, it can form the part of companies’ 2% CSR expenditure. Expenditure on CSR will embrace the domestic as well as the global image of the company which in turn lead to trust building and trust will lead to ‘Brand Loyalty’ which will ultimately push-up the sales and profits.
Thus, we can conclude three things. Firstly, understanding rural economy will lead to economic stability. Secondly, the firms will get new areas to extend their sales and thus a rise in the Earnings. Lastly. combining rural understanding and its positive effects will ultimately increase the GDP of the country which is the target of every prosperous nation.
We need to create such an impact on our rural counterparts that even their acts can create impact which is substantial!