Rural Vs Urban

N

Nochu

New member
Well I think rural India has a huge potential mainly in the pharmaceutical industries,fertilizers and telecommunication.The purchasing power of rural India has increased tremendously as the sources of income are increasing beyond agriculture.With companies trying to tap the untapped potential of the rural markets,mainly due to the saturation of the urban markets.The penetration pricing strategy used by companies seems to be really helping the companies as C.K.Prahalad rightly says Future really lies at the bottom of the pyramid.Companies are finding more affluent consumers in rural areas and pharmaceutical companies finding more diabetes patient in Tamil Nadu than in Mumbai...so there are lot of opportunities.Road connectivity has increased,which will in turn help companies to strengthen their distribution network.There is a requirement for creating private-panchayat partnership and investment is required for storing perishables.The cost effective ways must be found out and the corporates have to be patient about the returns.
 
P

prtk.nayak

Par 100 posts (V.I.P)
Supporting Siddharth's Stance..The Indian rural market is almost twice as large as the entire market of USA or Russia. The rural Infrastructure is improving rapidly. In 50 years only 40%u0025 villages was connected by road, in next 10 years another 30%. More than 90 % villages electrified, though only 44% rural homes have electric connections.The number of middle class households (annual income of Rs.45,000 -Rs.215000 per year) has been increasing. Rural income CAGR (compounded annual growth rate) was 10.95 percent compared to 10.74 in urban areas in the past decade.A wave of consumerism is beginning to replace age old habits. Its fast changing from a sellers market into a buyers market Dreams and aspirations are materializing in to real thing and lifestyles .Rural India has slowly begun to adopt the ways of urban living and it is visible.In the morning the 'new' rural consumer brushes his teeth with paste, having done away with the traditional neem twig or charcoal powder. After a refreshing bath with a branded soap, he sits down to enjoy a meal cooked by his wife in branded edible oil. Sprinkled with little iodized salt to taste, he rides his motorbike to work in the nearest town dropping off a neighbor or two on the way. During a lull at work, he listens to the radio at under a fan. When the heat gets too much, he walks out to a kirana shop and cools himself with a cold drink, picking up a sachet of paan masala before returning to work. On his way home, he looks in at shop to buy a pressure cooker his wife had asked for. At home, refreshed after another bath with a branded soap, he sits down for a meal with his family. Simultaneously he switches on his B&W TV to watch the latest serial on Doordarshan.

It is clear is that rural markets are growing faster than the urban markets and holds great potential for the companies in India and abroad..:)
 
T

Tuski

Par 100 posts (V.I.P)
Well it also depends on the type of business i.e. in which sector you are going to start business?
 
M

meheer

New member
This quite interesting topic but ridiculously large. I think we should start a new set of threads in the forum, discussing 2 to 3 industries at a time and debating the scope of each one of them in Rural as well as Urban contexts? What say?

Would anyone like to start the threads?
 
P

prtk.nayak

Par 100 posts (V.I.P)
Gladly...

I am starting a new thread on the Manufacturing Sector...."Manufacturing Matters"..:)

Please chip in..
 
J

jitendra05

Banned
Well, businesses in rural areas can prove to be beneficial in long term and can be started out by both anyone. A minimal knowledge and administration skill is adequate to start the enterprise. There are number of government plans which gives loan on low interest so that individuals residing in rural area can start out their own business.
 
P

poornima lagadapati

Active member
Nochu said:
Well I think rural India has a huge potential mainly in the pharmaceutical industries,fertilizers and telecommunication.The purchasing power of rural India has increased tremendously as the sources of income are increasing beyond agriculture.With companies trying to tap the untapped potential of the rural markets,mainly due to the saturation of the urban markets.The penetration pricing strategy used by companies seems to be really helping the companies as C.K.Prahalad rightly says Future really lies at the bottom of the pyramid.Companies are finding more affluent consumers in rural areas and pharmaceutical companies finding more diabetes patient in Tamil Nadu than in Mumbai...so there are lot of opportunities.Road connectivity has increased,which will in turn help companies to strengthen their distribution network.There is a requirement for creating private-panchayat partnership and investment is required for storing perishables.The cost effective ways must be found out and the corporates have to be patient about the returns.
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Yes I agree with you.
 
H

Himanshi Agarwal

Well-known member
rasrajmishra said:
what can be the best option for the business to set up whether urban or rural
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It largely depends on the nature of the business. However, from a socialist view it would be better in a rural area. It would provide employment opportunities to a large number of people in the rural areas and so lead to positive infrastructure development in the rural area.
 
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