RURAL INDIA PREFERS BIG FMCG BRANDS WHILE URBAN INDIA IS GOING FOR NON-BRANDED PRODUCTS

The Indian markets have witnessed a clear divergence in the consumer preference amongst it's urban and rural population. While urban India is now embracing unbranded products, rural India consumers continue to prefer trusted FMCG brands such as

, , , , . While unbranded goods have traditionally had a large presence in rural areas, now the tide appears to be turning to urban regions. However, branded FMCG products are penetrating deep into the rural areas due to their vast distribution networks and deep push thereby gradually capturing a bigger share of the market in villages. On the other hand, urban households are influenced by inflationary pressures and a growing trend of online product discovery, thereby leaning more towards unbranded goods. In a recent survey report, unbranded products recorded 8.40% volume growth in cities, as compared to just 2.30% volume growth in rural India. According to the same report, rural markets saw a 5.10% increase in volume for listed FMCG brands, while urban growth was seen only at 2.10%. Traditional FMCG companies are now making strategies to cater separately to rural and urban markets. For example, is launching digital-first products for metro buyers while deepening rural distribution. Similarly, is using quick commerce to drive urban growth and innovating on formats and pricing in rural areas. Further, is focusing on rural markets with specific packs aimed at affordability.