Srusti Management Review (Dec 2016)
Channel Management for Durables : A Study on the Changing Scenario in Rural Market
Abstract
Indian rural revolution is driven by increase in disposable income, rising purchasing power, changing outlook and consumption pattern of people, increase in literacy rate, exposure to information and communication technology, overall improvement in rural infrastructure and various government initiatives to boost rural economy. This gives an opportunity to tap this huge potential customer base for marketers of durable goods by understanding buying habits of rural consumers. In the past, rural consumers used to buy durables from nearby towns. But in recent times, change in buying habits of rural consumers towards durables saw new dimension, shifting their attitude to purchase locally has been observed in many instances. This change in consumer purchase behavior has important implications for rural marketers and compels them to think for establishing rural channel, which was not so dominant in earlier days. There is no standard system to establish a strong rural distribution mechanism to make availability of consumer durables at hinterlands. Challenges to reach the scattered rural market need to address on priority before making any strategy to reach this untapped market to cater rural consumers. But for this, one needs to understand and analyze key distribution challenges and then design cost effective channels of distribution to reach potential rural market through rural retailers. In case of durables, the influence of retailers perceived to be high in rural market. In rural areas, consumer loyalty to the shop as well as brand is significantly high compared to urban counterpart. For any company dealing with durables, successful penetration into Indian rural market depends on availability and affordability of offering, acceptability of the proposition and awareness of the brand.
