With 139 million consumers between the ages of 15 and 55, brands are increasingly looking to cater to the population in Tier 2 and 3 cities, Akshara Srivastava reports for Business Standard. The consumer base across India’s Tier 2 and 3 cities is now at par with Tier 1 cities, according to Kantar data. Aashish Shukla, consumer and market insights lead at ITC, says that companies need to rethink their strategies to tap into this segment. Of prime importance is customised communication to reach out to this consumer base and generate curiosity, he adds. What are the reasons for this surge in consumers in non-metro cities? Widespread use of smartphones, more internet penetration, higher incomes, and greater access to products, the report says. Reverse migration during the pandemic and increasing aspirations are also contributing factors, says Suraja Kishore, CEO at advertising firm BBDO. Not only Tier 2 and 3 cities, the rising demand for fast-moving consumer goods (FMCG) in the rural market is another trend that companies are looking to leverage, Manish Aggarwal, Director at Bikano, Bikanervala Foods, writes in an article for The Economic Times. In fact, the rural market now contributes around 39% of total FMCG sales across the country, according to estimates by Nielsen. Rural areas are emerging as growth drivers due to their wider consumer bases, Aggarwal writes. However, challenges like transportation and the seasonality of demand remain, he adds. Source: Business Standard – https://lnkd.in/gQmHjyqG
The Economic Times – https://lnkd.in/gevqKSyR ✍: Abhiraj Ganguli
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