India’s rural market size at $425 bn: Kinetic study
WPP-owned Kinetic’s ‘Moving World India’ sees India’s rural market as the new goldmine, even as Indian women are turning entrepreneurs in a big way
Published - 27-February-2012
‘Moving World India’ is Kinetics’ perspective on how Indian consumer’s lifestyle and environment is changing and the way it will impact the communication business in the years to come. Changes in environment and lifestyle will dictate the way companies engage and create experiences for consumer. The report will be launched by Kinetic & IMPACT in partnership with Global Advertisers on February 28, 2012 in Mumbai.
The 87-page report examines current trends and insights covering urban behaviour, leisure pursuits, shopping, environment, travel and technology of 3,000 people in five major cities – Delhi, Mumbai, Bangalore, Hyderabad, Kolkata and Ahmedabad.
The research aims to understand the evolution of the Indian consumer behaviour in response to changing economic, social and technological influences. According to the report, urbanisation, consumerism and growth of new consumer segments will drive heterogeneity in the consumer market in the next decade.
As per the report, certain interesting facts and insights come forward.
Cities matter to Indians today - they are already home to an estimated 30 per cent of the total population. By 2030, 40 per cent of the Indian population will move into urban areas.
Entrepreneurship is fast gaining traction amongst the Indian women providing them with a sense of independence and empowerment; with about 44 per cent of them being self-employed in the urban areas.
The Indian youth, described as the ‘Educated Informant’, has become a lucrative segment seeking social transparency. When asked what concerns them the most in the next 12 months, they highlighted corruption issues (33 per cent) and global warming (29 per cent) as the key areas. One that has fuelled them to ‘swarm out’ lending their support to some of these social cause movements.
Indian consumers have fuelled demand across categories. Demand for premium products and services have gone up, especially amongst the well-travelled/ high income Indians. The luxury market will grow by 21 per cent, three times its current size by 2015.
Bollywood and celebrity endorsements are driving the trend of Urban Indian Males paying special attention to personal grooming to gain acceptance.
Social explosion has just begun in India, where many Asia countries have hit saturation in its user base growth. There are about 36.4 million Facebook users as of September 2011; with about 70 per cent of them being male and under 30 years old.
Rural Indian is the new goldmine. It is estimated that the rural market size is almost $425 billion presenting a huge opportunity for marketers to reach this segment. Despite being poorer than their urban counterparts, the rural consumers, are driving volumes and consumption due to their increasing aspirations towards a better lifestyle. Increase in literacy and disposable income growth is the other reason for their increasing consumption.
Moving World India has identified some of the dynamics driving people’s mobility and how they potentially shape how people and places interact. Marketers will need to take notice of these nuances and embed them in their communication strategies to target the buoyant Indian consumer as India marches on its growth path.
Moving World India will be available to agencies and marketers across the Indian markets that will help shape their Out-of-Home campaign.
Kinetic Worldwide is the world’s largest planner and buyer of out of home media and a global leader in understanding how brands can connect with people’s lifestyles and the environments they engage with. Fully owned by WPP and part of the Tenth Avenue performance marketing division, Kinetic’s expertise and insight helps deliver solutions for clients that achieve ambitious brand and marketing goals.For more updates, subscribe to exchange4media's WhatsApp Channel- https://bit.ly/2QUdLCK