LMCE releases XPAND RURAL DISTRIBUTION KALEIDOSCOPE

NEW DELHI, INDIA, March 24, 2023/- As India strives to become a $5 trillion economy by 2025-26, the growth of rural markets is crucial to achieving this vision. Rural India is one of the fastest-growing markets globally, with significant improvements in infrastructure, connectivity, and literacy rates. The pandemic has further highlighted the resilience of rural markets, which remained strong in demand for essential goods.

However, penetrating and growing in these markets has been a challenge for corporates. To shed more light on the current status of rural distribution and provide insights to FMCG companies, a comprehensive study was conducted by XPAND under the stewardship of Mr. Pratik Modi, Professor of Marketing, IRMA. The study covered 51 FMCG companies across 36 product categories in 75 districts in UP and 35 districts in Bihar. Over 500 villages were surveyed, covering the availability of various brands across product categories.

The report reveals that companies need to realign their distribution strategy by implementing a mix of wholesale and direct distribution models. Wholesale distribution should be used to augment availability, whereas direct distribution will provide sustained growth. Companies should build partnerships for direct distribution to pursue growth and minimize expenses. Many brands have less than 30% availability, signaling the need for improvement in their distribution strategy. The report challanges lot of widely held distribution preceptions , as some of the well distributed companies have gaps in availability in sub 25K rural villages.

Commenting on the report, Sanjay Kaul Founder & CEO of LMCE said "The rural markets present a vast opportunity for FMCG companies, and realigning the distribution strategy can significantly impact their market share in rural areas. Rural marketers must develop a differentiated product-market strategy and focus on building a strong rural distribution network to exploit the growing potential of rural markets."

The study also found that rural retailers are fast adopting digital payment technologies, and many use smartphones for inventory management and customer record-keeping. Rural marketers should leverage these digital technologies to reach out to rural consumers effectively.

A detailed report can be downloaded at www.lmce.in

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Xpand is a platform that aims to expand the reach of brands to rural areas in India. The platform operates as a B2B aggregator, allowing big brands to reach beyond their current coverage and drive incremental business. Additionally, Xpand supports new-age challenger brands by providing them with speed to scale, helping them take their brands to populations with less than 25,000 people. By leveraging technology and local partnerships, Xpand aims to connect brands with rural consumers, helping to bridge the gap between urban and rural markets. The platform is an excellent opportunity for brands looking to expand their reach in India's rural areas and tap into a vast, untapped market.

This release was published on openPR.