1. Large and Scattered Market
In the 1st place, in terms of number of consumers, the rural market of India is a very large market; it consists of more the 600 million consumers. It is also highly scattered market: the consumers are scattered over 5,70,000 villages spread through the length and breadth of the country. In terms of business generated too, it is a big market; 22000 crores rupees worth of non-food consumer goods are being sold per year in the market at present.
2. Fast Changing Pattern and Demand
During the last decade the rural consumers were in need for low end products which would meet their basic demands and necessities. But of lately due to change in technology rather advancement in technology the demand for people have also changed and the buying pattern which initially comprised of basic products have now shifted to luxurious products.
3. Heterogeneous Market
The relative status of the rural areas of different states differs. Parameters on which they differ are Health and education facilities, nature of facilities, availability of public transport, electricity, TV transmission, banks, post offices, water supply etc.
IMRB study reveals that an average village in India has 33 development index points, Kerala’s average Is 88; Bihar’s average is just 22; while MP, Rajasthan and UP are close to Bihar; and states like Maharashtra, Haryana, Karnataka range between 40 and so.
3. Demand, Seasonal and Agriculture dependent:
The basic occupation of people in Rural Indian is Agriculture and agriculture is seasonal. Rural people have money only during the harvest period and most of the harvest periods are celebrated as Festivals in India. Hence, Rural demand is not only harvest linked but also festival linked.
4. Characterized by Great Diversity
The rural consumers of India are vastly diverse in terms of religious, social, cultural and linguistic factors.
5. Steady growth despite inhibiting factors
The market has grown not only in quantitative terms, but qualitatively also. Many new products have made entry into rural consumer basket. The upper segment in particular have started buying and using a variety consumer products which were till recently unknown in the rural.