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Twists in rural retail

Twists in rural retail

The Rural Marketing Agencies Association of India study seeks to estimate the number of retail outlets in rural India by listing them in 609 villages of differing populations (2,000+, 4,000+, 5,000+, etc.) across 67 socio-cultural zones in 203 districts, which account for a third of all districts in the country.
Did you know that the largest rural retail stores are located in the hilly state of Himachal Pradesh? That Goa is one of three states that have the highest density of such stores? And that village households spend more on tobacco than on toiletries?

These are just a few of the findings of a country-wide report on rural retail by Rural Marketing Agencies Association of India. The report is co-sponsored by Francis Kanoi Marketing Research, a Chennai-based market research agency known for its syndicated studies on consumer durables and the agri sector.

A rural outlet: Hinterland surprise
A rural outlet: Hinterland surprise
The study seeks to estimate the number of retail outlets in rural India by listing them in 609 villages of differing populations (2,000+, 4,000+, 5,000+, etc.) across 67 socio-cultural zones in 203 districts, which account for a third of all districts in the country.

As many as 6,105 households were covered in these villages from different socio-economic segments (determined by land holdings and the lack of them) to ascertain their purchase patterns pertaining to more than 40 product categories.

Maharashtra, Goa, West Bengal, Uttar Pradesh have the greatest density of rural retail outlets, at over 3 lakh each (Uttar Pradesh has 19 per cent of the total, while Maharashtra and Goa have 8 per cent each). Himachal Pradesh has turned out to be an eye-opener in terms of the size of its stores. If the national average size of a rural retail store is 150 sq. ft, in Himachal Pradesh it is 250 sq. ft. Food items account for the maximum expenditure of households followed by tobacco, cosmetics/toiletries, followed by stationery and electricals.

—Nitya Varadarajan

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