“Oh, East is East, and West is West, and never the twain shall meet,” averred Rudyard Kipling in his poem The Ballad of East and West . For years, rural and urban India embodied the same spirit and stood steadfastly at two opposite ends of the spectrum. However, a little more than 20 years ago, came a tipping point. The media landscape in India underwent a huge overhaul and provided the rural consumer a window to the wider world beyond his immediate domain. This, coupled with the country’s infrastructural progress in the last two decades, ensured that the products available to urban consumers alone were now available in the hinterland as well.

This was a perfect recipe to create the new category of ‘rurban’ consumers — a fast maturing grey area between India’s urban and rural segments.

This segment of the population is characterised as having the upbringing and background of the rural sect but with aspirations mirroring the lifestyle and habits of its urban counterparts. They are a complex section of consumers who need something more than what has been offered to them so far.

Large corporate houses are recognising their presence and are re-strategising their positioning and techniques to leverage the business opportunity to own this upcoming sect. The emergence of this ‘rurban’ population will prove to be a game-changer for our country and has fast started to determine the shape of India’s democracy as well as market economy. If this consumer market is tapped to its full potential, it can very well become the torch-bearer for a company’s growth and performance.

Scene so far … During the past two to three years, rural markets have been growing faster than urban areas because of increase in incomes. Added to this are the new government’s policies which are largely guided by the ‘rurban’ vision of providing urban facilities and amenities to rural areas and thereby striving to end the rural-urban divide.

At the same time, consumer behaviour in rural areas has undergone a transition over time.

This is because smaller villages with denser populations are less dependent on agriculture and are branching out to small businesses.

The rural market has witnessed the expansion of consumer base for packaged consumer goods and most importantly it has a much larger potential for growth as it is still at a nascent stage. Things such as beauty products and processed food or packaged beverage items are no longer viewed as luxury items for the few.

The rise in demand at the rural level can be attributed to the increasing reach of media which has played a strong role in carrying company brand messages into rural markets. A successful company understands its audience in order to become a better provider and therefore productively creates top-of-mind recall in the minds of consumers. Companies have repositioned their marketing communication strategies to gain a wider appeal amongst potential rural consumers and have given their strategies an earthy touch so that the rural consumer can feel the human connect, thereby creating demand for these products. All these strategies affect the mindset of the rural audience and make them feel a part of the larger scheme of things. However, to capture this market, it is important to understand that the need of the Indian rural consumer in the transition phase is different from his urban counterparts.

Cracking the ‘rurban’ code Although the marketing and communication strategies will help, in the end, all efforts will boil down to the key question — what is it that you are offering? For example, no matter how much you strategise and ‘rural-ise’ a high-end smartphone, your average rural consumer will not see the point in spending his hard-earned money if he does not see the value this product will bring to his life.

I wish I could tell you that there is an easy way of doing this.

Unfortunately, there isn’t. Most of the solutions require significant time and effort in creating relevant product, price and pack architecture as well as in developing optimum supply chain solutions.

Let us move from the good old world of theory to the hard new world of practice. The way we have extended the footprint of Maaza, our lead juice brand (and India’s) into rurban markets, and beyond, is a case in point. We worked with our supply chain partners to create a package that can travel into the hinterland without compromising on aesthetics as well as product delivery. The packaging, at an attractive entry level price point, has helped us connect Maaza to the emerging consumer with aspirations to experience a delicious juice drink.

Our flagship brand, Coca-Cola, continues to resonate and strengthen the connect with millions of Indian consumers. In an effort to provide a fantastic refreshment experience to the rurban consumer, in her or his own backyard, our key partner, Hindustan Coca-Cola Beverages has pioneered the concept of the Splash Bar. It consists of a dispenser design which can serve smaller cups of 100-150 ml ensuring that we can extend the experience of delicious, energising refreshment to a wider audience, while maintaining laser focus on the quality and chilling of beverages. We have complemented this with ‘Happiness on the go’ — an open truck with a fountain machine that offers 100-150 ml beverages in small cups priced at ₹5 and 200-300 ml at ₹8-10, depending on the location.

Customise, collaborate This clearly shows that the key to cracking this emerging market is customisation and innovations which bring the same taste and experience to the consumer at a reasonable price. It is no longer about ‘value for money’ but offering ‘money for value’.

The rurban consumer will spend money depending on the value of the offering. As much as the rural consumer may exhibit similar aspirations as their urban counterparts, they are less willing to experiment if they do not see adequate value. Therefore, companies must invest in research and development to ensure this need is met.

There is reasonable agreement that this market is a potential game-changer and all stakeholders are focused on working on strategies for further penetration into these markets.

Reaching out to the next billion consumers in the diverse Indian landscape requires strategic partnerships. Penetration into rural markets is also set to be a major challenge with lack of power and electricity and non-organised retail in these markets. At our company, we are employing the hub-and-spoke system for distribution in rural areas along with local partners. In India’s never-ending summers, we address the lack of regular electricity in such areas through our solar powered ‘eKOcool’ coolers and ‘Eutectic’ coolers.

We are now in an era where the consumer comes first. It’s a cliché, but probably more true than ever before. Although a lot can be attributed to the ever increasing competition at hand, there is huge opportunity for growth for everyone. However, in an era where the ability to stay ahead of the pack will depend on the ability to the uniqueness of the offering as well as strong consumer connect, organisations will constantly have to reinvent themselves.

Gone are the days where demand was maintained by tightening of the supply chain or giving importance to the rich and affluent. In the new era, all customers reign supreme and we need to make each one of them feel special. It is not a short sprint any more, it is a battle for the last mile.

So, brace yourself for the long, hard haul!

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