Companies need to tap purchase power of rural women, says study

Women in the rural area are looking for reliable, trusted products and services, an Accenture Strategy study says

Household goods' manufacturers need to take a cue from fast moving consumer goods (FMCG) manufacturers in understanding and addressing the requirements and aspiration of rural women, a new study from Accenture Strategy says.

The study, conducted in eight states including Bihar and Uttar Pradesh where the disparity between the urban and rural lives are higher than others, says that women in these rural areas are becoming more aspirational and increasingly play a key role in taking purchase decisions.

"The literacy rate in these area has gone up from 46 per cent to 59 per cent and women has started to earn money along with the male in the family. With the size of average family shirnking, the purchase power has increased and women are playing key role in terms of purchasing decision. The companies has to identify that and act accordingly to grab the market," said Raghuram Devarakonda, managing director of Accennture Strategy (Sales & Customer Services).

 

The study, titled 'Masters of Rural Market series- Women consumers in rural India', used a sample size of about 2,500 people from West Bengal, Uttar Pradesh, Punjab, Maharashtra, Karnataka, Madhya Pradesh, Bihar and Andhra Pradesh.

Almost 41% of women consumers have a household monthly income of around Rs 5,001 to Rs 10,000, while 28% have between Rs 3,001 and Rs 5,000, the study found. About 13% had less than Rs 3,000 monthly income, and 15% earned between Rs 10,001 and Rs 20,000 per month.

Companies striving to market and sell to rural female consumers in India must master specific moves at each of the seven steps in the purchase journey, said the company. They should understand key product features valued by rural women, ensure that products deliver on promised functionality and are robust, have a service model that extends reach into key rural markets and foster brand advocacy among women who believe that a brand has performed as promoised.

Women in the rural area are looking for reliable, trusted products and services, where the manufacturer or the seller would offer consistent services during the sales and in after sales services. This lead them to think of buying branded products, which has more functionality in the given price. Besides, most of these decisions are taken depending on word of month rather than going by the advertisement or other brand promotion activities, he added.

"With the disposable income going up and there is need for more time spend on earning revenue, washing machines has become a necessity in most of these households. They are looking for a fully automated product, but what is available in the market within their purchasing power is semi automatic. We have come across a view that the companies could look at offering more functionality for the washing machine though the looks are not good," he added.

He said that the rural women are also influencing the decision of the family buying new automobile.

While the FMCG firms tried to understand the rural customer better and also to position their products according to their requirement, the other industries who cater to the household requirement are yet to adapt to the changing needs of this market.

The companies should understand that affordability plays a crucial role in product selection and should identify local retailers and POS retail representatives who most powerfully influence female consumers at the moment of purchase.

Devarakonda said that digital communication would be the better means for the companies to communicate to these customers going forward. The company is working on a project on digital customer exprience, he added.