Pls read this book 1.Number of outlets are low .   You will not find so   many outlet like   urban area, due to low population ,the number of retail or wholesale   outlet are also low . In some places you will find even 2 or 3 outlet.   2.Stock supply problem   . In rural area stock supply creates a problem. Due to low business volume ,stock supply from nearest town becomes difficult . Distributor or super stockist from nearest town face   difficulties while sending small quantity.   3.High margin product.    FMCG rural visibility Asking for high margin is common in rural area.   It may be retailer , wholesaler or rural distributor always they thinks for their own profit volume.   As quality product cannot give high margin , traders become reluctant to sell these product. 4.Difficult Communication.                                     

Pls read this e book Definition of rural area. As per census govt. of India 2011,rural area means all the area or location except the following                 A.A place where minimum   population is 5000                                                                  B. At least 75% of male working population are engaged in non agricultural sector.              C. Density of population is at least   400 per square KM. Working in rural area. Rural market working is not like urban market . In rural market there are many challenges . First of all population for rural are low in   comparison to urban area. In rural area majority of   population   are not aware of quality product. In this area retailers play a vital role .   As the retailers are concerned about their own profit ,obviously they will sell high margin product. Quality products cannot give too much margin for retailers , here comes the challenge for low margin brands. Sale people working with low margi

1.Reduce overhead  cost .                                                                                                          Wholesaler purchase in bulk quantity and sell at their own effort. Hence manufacturer’s overhead   cost are saved.   Once a product is supplied to a wholesaler , it will be distributed in different location. Manufacturer need not to take any headache.   So   it is cost effective for manufacturer. 2.Supply to interior  place.  Manufacturer cannot reach to all the spread out and interior location, here wholesaler plays a vital role . Retailers from these interior location comes to whole sell market for their purchase. Wholesalers  are also gets business from these retailer. 3.Gives huge  volume .                                                                                                              Whole   seller purchase in huge quantity and sell in a small quantity to retailer. Since wholesaler sells to large numbers of retailer