Challenges of rural market

    

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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.                                                              

 In a country like India , communication in rural area are not very good. During rainy season most of the villages are not accessible . In some places even we don’t find any mobile network.

. 5.Payment realization .

Already explained in some above points, that due to communication challenges , payment realization from rural area becomes very difficult. If you need to go to any place for payment ,you will face difficulties due to communication problems. Also businessman in rural area don’t prefer electronics money transfer process.

6.Collecting unsold goods.

If any stocks becomes unsold , it will be pathetic to collecting these back to nearest town. You need to go to that area for damage counting and collecting.

7. Low per capita income .

Per capita income is low in comparison to urban area. Also low per capita income leads to low purchasing power. More ever the rural income depends on agriculture ,which is again depends on monsoon . So the demands in rural area is not stable.

8.Transportation.

In rural area road conditions are not proper , in some places transportation facilities are not there. During monsoon season roads remains  under water. Rail communication is very poor in rural area.

9.Language problem.

In rural area we find some language problem also . Different tribes, different community ,different culture are big problem for sales people.

10.scattered market .

In rural area people remains scattered in a large area.  So the outlets  are also  in a scattered position. In this situation ,giving them proper service becomes difficult.

11. Sales force management.

Sales force in general don’t like to work in rural area. Due to lack of proper communication and transportation, less facilities available. Pathetic travelling condition is another headache. Also hotel accommodation is almost nil in rural area. You will not find any hotel for proper food .

12.Poor literacy rate.

Literacy in rural area are poor in comparison to urban area . Hence people don’t understand the difference between a good product and a bad product. Life style in rural area are tradition bound and less interested for new development.

13.Small pack product.

In rural area due to low purchasing power, people generally likes low MRP product. Which gives you a low business volume .

14.Limited banking facility.

Unlike urban area , banking facility in rural area are limited. Hence collecting payment from rural area are difficult . Having no options, you have collect cash only.

Pls read this book