Evolution of Rural Markets

A) Phase 1 (A decade Post-Independence) (Before

1960)
Characteristics-
• Rural economy in a primeval stage
• Limited scope for agricultural marketing
• Just ‘no scope’ for marketing of non-agricultural
produces from cottage industries like earthen
vessels, metallic utensils, ropes and wooden
products etc.
• Overall a complete ‘Unorganized Market’
B) Phase 2 (The Revolution Era) (1960 – 1990)
Characteristics-
• The green revolution brought scientific farming techniques with
improved irrigation facilities and agricultural tools along with use of
fertilizers,pesticides and high yield seeds.
• The white revolution initiated formation of milk producer’s co-
operationswhich played an important role in concentrating milk
production and processing.
• Promotion of cottage industries encouraged formation of agencies
like Khadi and Village Industries Commission which exhibited and sold
the rural produces through handicrafts and handlooms expos in
urban market.
• This era saw few risk taking Indian FMCG industries enter the rural
segment market and establish their network.
• Apart from this there was a financial support with unorganized
banking sector spreading its claws over large rural India.
C) Phase 3 (A decade of Liberalization) (1990 - 2000)
Characteristics-
• Central and State Government efforts for rural
development by strengthening the local governance
highly boosted the socio-economic progress.
• Economic reforms converted markets into
competitive ones.
• Indian industrial sector gained maturity and
strength and a new ‘Service Sector’ emerged.
• This phase made the Indian and the new multi-
national entrants realize the importance of rural
markets that had been neglected for a long.
D) Phase 4 (The Millennium Era) (2000 – 2010)
Characteristics-
• Rural markets took a centre stage and became a priority
sector for Indian as well as foreign corporations.
• Various durable and non-durable FMCG companies
employed rural folks on various positions in order to smartly
create a bond and network with the rural population.
• Companies acted smartly and introduced consumables at
affordable price range in order to attract the rural people
towards their products which were manufactured using low-
cost technologies
• Government also gave a thrust to the rural development by
developing necessary infrastructure in rural areas building
the bridge between the urban and rural markets.
• E) Phase 5 (The E-era) (After 2010)
Characteristics-
• Post 2010, the Internet and Smart-phones have taken a toll over the
market. The telecommunication growth dominated the market with
overloading of information. Moreover, with smartphones becoming
cheaper and technology getting affordable, even in rural areas such
mobiles gained huge popularity. Not only that, Dish-Cable connections
became popular in the rural areas on account of affordable hassle-free
connection.
• As a result of all these, the rural consumer got exposed to the
marketing and ad-world.
• Moreover, the companies got a way more acceptance amongst the
rural consumers.
• The social media marketing emerged as a new genre which also
initiated the rural consumption. The e-commerce and e-retailing
online companies like Flipkart, Amazon, Snapdeal, Myntra, OLX etc.
gained huge popularity in the rural areas.
• Number of good monsoons lead to growth in
the financial status and purchasing power of
the rural consumers along with positive and
philanthropist attitude of government in the
form of waiver of farmer loans raised the
standard of living in several Indian villages.
There was a huge transformation in the
lifestyle of rural people.
• Many FMCG products have achieved maturity
in the rural markets on account of their high
penetration levels.