Increase in demand for branded goods in rural areas as compared to cities

In terms of value, urban demand grew by 10.8 per cent while rural demand grew by 11.5 per cent.

After the Corona period, great changes are taking place at all levels of society. In the last one and a half years, the living conditions of the people have changed radically. According to a recent Consumer Connection Survey conducted on FMCG (Fast Moving Consumer Goods) sector, the demand for branded goods has increased significantly in rural areas as compared to cities after the epidemic. Thus, a new impetus is being seen in the FMCG sector companies as the market trend in rural areas is changing.

In the aftermath of the epidemic, people in rural areas have largely turned to the use of branded goods. Due to which various products are now available in the markets of rural areas. Which was not seen before. After the epidemic, people in rural areas have also turned to branded health, food products as well as cosmetics. As a result, rural markets have surpassed urban markets in terms of value and volume.

Other adversities, including lockdowns, hit urban incomes hard during the epidemic. While all the activities in the agricultural sector were going on in the rural areas and employment was also available under the MGNREGA scheme, the purchasing power of the rural areas remained high as people could easily spend. In addition, due to the lockdown, people from the rural areas who had migrated to the cities were returning and the markets in the rural areas were throbbing.

According to the Consumer Connection Survey, demand for FMCG products in rural areas grew by 11.5 per cent. Against this, the demand for urban areas grew by 10.6 per cent. In terms of volume, demand in rural areas has increased by 7.5 per cent. While demand in urban areas has increased at a rate of 7.5 per cent.

Given the current situation, the share of rural markets in all these sectors is likely to increase in the near future. It is for this reason that companies in the sector are now focusing on rural areas.