Jun 03 2014 : The Economic Times (Mumbai)
Citings Think Rural, Act Global
MAMTA KAPUR ET AL
|
While urban demand for consumer products remains sluggish worldwide, rural markets are growing faster than ever in some of the largest emerging economies.... In China, demand in the countryside has already begun to outstrip demand in the cities.Nowhere is this phenomenon more evident than in India.
From 2009 to 2012, spending by India's 800+ million rural residents reached $69 billion, 25% more than their urban counterparts spent over the same period. And projected growth rates are astounding: according to recent Nielsen estimates, consumption in rural areas is growing at 1.5 times the rate in urban areas, and today's $12-billion consumer goods market in rural India is expected to hit $100 billion by 2025.
What's more, rural Indians are trading up. Commodities are giving way to branded products, and more expensive goods are replacing entry-level versions, as consumers gain more disposable income. Their increased purchasing power is largely due to the steady migration of manufacturing jobs to the countryside.
Credit Suisse estimates that nearly 75% of the factories that opened in India in the last decade were built in rural areas; they now account for almost 55% of the country's manufacturing GDP and 70% of all new manufacturing jobs.
As a result, per-capita GDP in the countryside has grown at a compound annual rate of 6.2% since 2000, eclipsing the 4.7% urban growth rate.
From “The Globe: Unlocking the Wealth in Rural Markets“
From 2009 to 2012, spending by India's 800+ million rural residents reached $69 billion, 25% more than their urban counterparts spent over the same period. And projected growth rates are astounding: according to recent Nielsen estimates, consumption in rural areas is growing at 1.5 times the rate in urban areas, and today's $12-billion consumer goods market in rural India is expected to hit $100 billion by 2025.
What's more, rural Indians are trading up. Commodities are giving way to branded products, and more expensive goods are replacing entry-level versions, as consumers gain more disposable income. Their increased purchasing power is largely due to the steady migration of manufacturing jobs to the countryside.
Credit Suisse estimates that nearly 75% of the factories that opened in India in the last decade were built in rural areas; they now account for almost 55% of the country's manufacturing GDP and 70% of all new manufacturing jobs.
As a result, per-capita GDP in the countryside has grown at a compound annual rate of 6.2% since 2000, eclipsing the 4.7% urban growth rate.
From “The Globe: Unlocking the Wealth in Rural Markets“
