Introduction
One of the most remarkable technological accomplishments of the last several years may be linked to the growth of online shopping in rural areas of the nation, giving rise to a new phenomenon known as rural commerce. The idea that technology and online shopping were only for city dwellers is now a thing of the past due to the concept’s rapid progress. Modern technology firms are aware of, and prepared for, the enormous potential in India’s rural commerce, which is predicted to expand at a CAGR of about 20%.
A few of this year’s most intriguing and important trends in rural commerce are as follows:
1. Large population
There is a huge opportunity for marketers in India’s rural market due to its size and demand. There are over 630,000 villages and 450 districts that make up our nationality. With 833 million people calling rural India home as of the 2011 Census—a figure that includes 33 percent of the country’s youth—and a rise in the total number of households from 25.33 crore to 833 million, the rural market in India is massive. Currently, the fast-moving consumer goods industry in rural areas values consumer expenditure at around $10 billion USD each year. Food categories are currently the most important among the additional USD 90 billion expected to enter the market by 2025.
2. The expansion of service sectors
At about 54% of GDP, the service sector dominates when looking at the economy as a whole. Rural India has observed similar tendencies, with the service sector steadily growing as a viable substitute for agricultural and related pursuits. In a pandemic-induced economy, while other regions and industries witnessed enormous unemployment, the rural service sector added nearly eight million jobs. Rural commercialization is on the rise as more and more people in rural regions become comfortable with technology and use it to sell goods and services online. The widespread availability of cellphones and affordable, high-speed internet in rural areas of the country could be a contributing factor. The result is a steadily expanding service sector in the area.
3. An increase in picky shoppers
Shoppers in more remote places should brace themselves for a meteoric rise in demand. The widespread availability of the internet and social media has broken down geographical barriers, linking hitherto isolated rural communities to global communities. Through social media, they may satisfy their urge to know what’s happening in the world and what’s trendy. But now, with a single click in their favorite language, consumers may order anything, driving up the e-commerce consumer rate. As neighborhood stores become last-mile service providers, there will likely be a steady increase in the total coverage of eCommerce enterprises.
4. An expanding rural market is a direct outcome of the rising purchasing power of rural Indians.
Due to an increase in purchasing power among rural residents, the rural market in India has been increasingly important in recent decades. As a result of technological advancements, more and more people are acquiring manual skills, which is excellent news for the local handicraft industry and the economy as a whole. The use of e-commerce by rural residents to sell their wares to buyers in cities and around the world also helps broaden the rural market.
5. Rising literacy rates in remote areas
To reach the goals for rural trade, it is essential that rural literacy rates continue to rise. The more people rely on the internet for their day-to-day activities, the more they will want to understand how to make the most of it. Online education is another service offered by e-commerce sites, bringing educational opportunities to individuals of all ages. They will be able to study online with devices they bought from e-commerce websites, so they won’t even have to leave the rural area.
The gradual spread of educational technology into rural areas of the nation also reveals this pattern. Literacy rates in rural areas are on the rise, having recently reached close to 77%, thanks to cooperation between the government and the business sector. Businesses and jobs in rural areas may benefit greatly from the expansion of e-commerce and other forms of commercialization.
6. Online Networking
Even in more remote places, the use of digital technologies like cellphones and internet access is on the rise. Because of this, new avenues for communication, e-commerce, and digital service access have opened up. It opens up the realm of online education and digital platforms to rural areas, allowing them to engage with the broader world.
7. Online trade and purchasing
Online shopping has become increasingly popular in rural India as internet access has improved. The convenience of online shopping and delivery services has made it possible for people in remote locations to access a wider variety of goods and services without leaving their homes. The convenience and availability of a wider selection of items for rural consumers have been greatly enhanced by this.
8. Rural Business Ownership
Rural entrepreneurship, in which residents launch their companies, is on the rise. Agriculture, small-scale manufacturing, arts and crafts, and locally focused services all fall under this category. Start-Up India and the Mudra Yojana are two government programs that have helped rural businesses by giving them funding and connecting them with mentors.
9. Raising rural youths’ educational attainment and employability
The importance of education for their children became clear to the villagers. Thanks to their schooling and media exposure, most rural adolescents, particularly teenagers, are familiar with items. A primary school is within a 1-kilometer walk in 90% of the settlements, indicating significant progress in literacy rates. There has been a 5.5% increase in the enrollment of rural Indian students in private schools throughout the last six years. In rural India, the literacy rate has likewise increased by 68.91%. These initiatives increased the employability of young people in rural areas; as a result, they are less likely to lounge around doing nothing and more likely to travel to neighboring towns in search of work.
10. Policies and Incentives from the Government
Operation Flood (White Revolution), the Blue Revolution, the Yellow Revolution, and other programs implemented by the government to promote self-sufficiency led to the annual production of 15 million tons of milk. The agricultural sector in India received a boost in the 1970s when the government instituted programs such as the Integrated Rural Development Programme (IRDP) and the Rural Electrification Programme (REP). As a result, people’s routines and social lives underwent transformations. The growing consumer durable industry owes a great deal of gratitude to the Rural Electrification Programme (REP).
11. The media
Merchandise and services in rural regions are in high demand due to the influence of the media. The most astute marketers are boosting product demand by using a combination of traditional and non-traditional media. Cable television has played a significant role in changing the thinking and lifestyle of rural people.
12. Computer use in rural India
Opportunities for education, test scores, career guidance, employment, government programs and services, health and legal counsel, global news and information, property records, mandi prices, weather predictions, bank loans, and livelihood options will all be available to today’s rural youth as they grow up. If television has the power to alter the vocabulary used to talk about brands in rural India, then the proliferation of inexpensive Internet access via different kinds of communication hubs will undoubtedly alter the value of the information that is traded. As the culture of technology and electronics expands, new opportunities are emerging in rural India.
Conclusion
Positive tendencies have emerged in the context of rural trade. It not only affords huge eCommerce organizations the possibility to expand their operations to a market that may not yet be fully exploited, but it also gives small and medium-sized businesses the opportunity to have a first-mover advantage and be able to participate in the rural revolution that commerce is bringing about in the sector. The general commercial growth rates of rural areas of the country have been excellent, thanks to factors such as increased purchasing power, a higher literacy rate, improvements in the expansion of the service sector, the availability of new technology, and high-speed internet. The pattern is anticipated to persist into the foreseeable future.
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