How does the rural consumer decide which brand to buy? Who influences him? According to a Nielsen India study ‘The Rise of India’s Rural Super Consumer’, rural India is nothing less than a “powerhouse of networking”. Personalities of some standing in the village, such as a respected farmer, doctor or a teacher, can influence opinion. Four out of five villages also look to dealers, shopkeepers and distributors for information.

Rural consumers, even the super consumer that the study discusses, are unwilling to incur debt. Purchases are funded from savings, and in case of a loan, banks are the preferred lenders, considering that the study found that over 50 per cent of villagers approached them. Less than 10 per cent went to the local moneylender.

The urban-rural divide is a thing of the past, says the study. The FMCG sector offers huge potential. Villages with populations of up to 10,000 account for around 5 per cent of the Rs 5,500-crore chocolate and cream (biscuits?????) market. Most sales are made at the Rs 5 price point and the fast growing price point is Rs 10.

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