EVOLUTION OF RURAL MARKETING IN INDIA
Introduction
Throughout the years, there have been several shifts in the marketing of rural areas. Agricultural items were the sole emphasis of rural marketing in the past, but as the rural economy has grown and people have more money available to spend, rural marketing has expanded to include other products. The marketing of non-agricultural goods and services has become the primary focus of rural marketing, which previously mostly focused on marketing agricultural products. New technology and communication channels have significantly contributed to the development of rural marketing throughout its evolution.
In the past, the rural market was disregarded because it required additional allure in order to generate profits in business. However, in today’s world, rural markets are also gaining prominence as a result of their ability to generate market income.
Phase I (Prior to the 1960s)
Rural marketing encompassed the marketing of rural products in both rural and urban locations, as well as agricultural supplies in rural markets. It was considered synonymous with ‘agricultural marketing.’ Agricultural commodities such as food grains and industrial inputs such as cotton, sugarcane, and so on were the principal products marketed during this time.
The rural economy was in its basic stage, with conventional agricultural methods, so the scope of farm mechanization equipment (tractors, pump sets, and threshers) and agricultural inputs such as fertilizers, seeds, and pesticides was quite limited. The market was completely unstructured.
Phase II (1960s-1990s)
During this phase, the ‘green revolution’ transformed rural India by introducing scientific farming practices. Improved irrigation facilities and the use of fertilizers, insecticides, and high-yield variety seeds, combined with the use of instruments like tractors, power tillers, harvesters, pump sets, and sprinklers, resulted in increased agricultural productivity, transforming the very substance of rural markets. During this time, in addition to traditional “agricultural marketing,” a new area—”marketing of agricultural inputs”—arose.
Phase III (1990s onward)
Throughout this period, India’s industrial sector grew in strength and maturity. A new service sector formed, signaling the transformation of an agricultural society into an industrial one.
Meanwhile, the increased plan outlay by the Central and State governments for rural development and strengthening of local governance (via Panchayati raj institutions) resulted in socioeconomic growth. Furthermore, economic changes sped the process by introducing market competition. All of these reasons contributed to the expansion of rural marketplaces.
Phase IV: Decade of Ignorance (To the year 2000)
Infrastructure in rural areas is lacking, particularly in terms of village roads, local transportation, and communication. The majority of the population practiced subsistence agriculture. Corporate brands are not available in rural areas, with the exception of Unilever, ITC, Eveready, and a few other brands.
Phase V: (The Decade of Doubt spans from 2001 to 2010)
There is still a lack of conviction among corporations on the potential for the growing demand to justify investments in rural distribution infrastructure. Companies that choose to disregard the rural market will be doing so at their own risk.
Phase VI: (Between 2011 and 2020, the Decade of Demand)
For each and every category, rural demand increased at a quicker rate than urban demand, and for several products, including televisions, pressure cookers, two-wheelers, and others, the number of sales reported in rural areas was larger than in urban areas.
Both consumption and penetration levels were reduced, which resulted in increased headroom for expansion. 100% of the villages are connected by all-weather roads, and 90% of the settlements are electrified. Urban and rural teenagers have similar aspirations. The rise of the non-farm sector and the increase in employment opportunities in recently formed factories in surrounding small towns both contributed to a significant increase in the per capita incomes of rural residents.
Phase VII: A Decade of Digital and Digital Media (2021–2030)
The number of online connections and mobile phones has skyrocketed in recent years. Other companies, including Amazon, are increasingly delivering goods to faraway regions. The literacy rate of rural women has increased by more than 70 percent, while technology and artificial intelligence are revolutionizing agriculture and electronic mandis.
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