Yes, it can. China provides us a glaring example for this. In fact the Rural India need to be transformed as manufacturing hub to tap the potential of rural folk by imparting them proper training in the specific field. This really transforms the face of the rural India.
By
Srinivas suravajhala, Asst. Manager.
| 02 08 2012 08:15:03 +0000
If its a startup offering an innovative product / service, YES rural India is the market for them. If one creates segments in rural India, one can discover the population spread across the socio-economic segments and above all these consumers are open to try your products compared to the urban counterparts who have developed "brand loyalty" or are in later stage of consumption cycle.
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Monika S, Trainee (Summer Internship), Hindustan Copper Limited (A Govt. of India Enterprise)
| 02 07 2012 20:48:35 +0000
I feel they will offer vast opportunities for the SME's. Because the population is more compares to the urban and more over the market is getting saturated in urban cities. So according to me the future of market is in the hands of rural India. When we start predicting whether it can be captured by the MNC's or the SME's according to me I say it is easy for the SME's to capture the market soon, since they are small and the products are cost effective and service and quality will be good. Developing relationship among customer is easy in SME's compared to MNC's. @ Madhav I don't think distribution channel is only the issue that should be looked upon, there are many other issues too.
By
Pragya Kothari, Construction-Heavy, DLF
| 01 29 2010 08:59:10 +0000
yes rural india can offer a huge customer base because the percentage of consumer or retail market constitutes 55% of households with aspirants & climbers category who has high disposable income with nuclear families of category dink(double income no kids) and dint(double income no time).if capitalised n offered a solution to this market one can capitaise on huge opportunities vested in the market
By
monty arora, MBA/PGDM student, indira school of business studies
| 01 04 2010 11:22:20 +0000
Yes definitely !!! By going through the little survey we can find out that in the recent recession period Most of the FMCG companies has spurred 15 to 20% growth. And the major cause for that - RURAL DEMAND HAS INCREASED. This is due to the various activity done by the govt to uplift the living and buying standard of the Rural India. ITC, AMUL, Godrej, HLL etc are trying to reach each & every nook and corner of the India by putting various community like E-CHAUPAL etc. But still the gap is there and this SMEs can better fill that. Electrification, Govt stimulous, Industry set up etc. are working from every angle to see the rural Upliftment. Today marketers are eyeing that most cities of Rural India is slowly converting into semi urban cities due to enhanced infrastructure. Production industry is bouncing back from the recession will help a lot in this phenomenon. Alll this is giving the solid background to say YES.
By
Sanjeev Tripathi, Product/Brand Manager, Zavicare india pvt. Ltd.
| 01 04 2010 06:07:18 +0000
Yes it is!!, but subjected to increasing their cash flow and GDP status, unfortunately, in our country rural population is the most neglected, deprived and poor who are striving to meet their ends? it is not the right time, if one approaches the rural with a tag of SMEs, first they would ask for Roti, Kapada and Makaan which is truly their basic need! good content, thanx for referral
By
Dr. S.Pruthviraja pande, Visiting Professor, Bangalore/Ravenshaw University
| 01 04 2010 05:15:21 +0000
Nice Insight!!! I agree James.
By
Kashif Billal, Training & Induction Manager, H&M Hennes & Mauritz
| 12 31 2009 12:26:27 +0000
I agree with you James. There are a lot of government subsidies that are being offered by MIDC and MSSIDC for SME development as far as my knowledge goes. If farm tractors, Turbines and Power projects can reach a remote rural part in India I do not think that there would be any real difficulty for the machinery to reach down there. As land and labor is already cheap, provisions for basic infrastructure is made available in MIDC areas for the SSI's to function normally. Also there is the option of making use of gensets that would keep basic electricity available for the functionality of the units. I really do not foresee any damages for SME's not to thrive in the rural market!! Thanks for the referral james :)
By
Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group
| 12 31 2009 10:09:30 +0000
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In Tamil Nadu,the Self Help Group has been quite sucessful; SME'S's won't be viable in Rural areas. Big MNC'S like ITC-their e-choupal and unilever because of their reach and distribution channel are sucessful.
By
kasturirangan.r , INSURANCE ADVISOR, Life Insurance Corporation Of India
| 01 04 2010 06:37:33 +0000
I don't think so. Iam not exactly against of it, but there will be a lot of cost incurred. For any industry to start up, the basic need is raw materials. Rural India is good source only for land and cheap labour but the machinary to start up a factory is only available in urban areas and a small SME will have to pay heavily for its transportation. Connectivity plays an important role for SMEs to be a success. After the business starts it will take some time to recover the cost it has incurred but the primary expenditure will be so high that SMEs will take a long time to recover them. I doubt seeing this how many SMEs would really be interested to be in rural areas which would mean that rural India is not becoming a good market base for SMEs
By
Jayant Vishnu, Art Director/Sr Art Director, Creative
| 12 31 2009 10:00:30 +0000
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