Hariyali_SanjayChhabra

8/12/2019 Hariyali_SanjayChhabra

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Contents

The Indian Rural Market

Innovation for inclusive growth

The Hariyali experience

Challenges


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- The producer


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Only farmers can beat inflation : FM

.inflation is a larger social issue that could be tackled in the long runthrough increased supply of farm products..

.Just as an augmentation in the supply of inputs is the durable answer

to industrys growth, increased supply of inputs is the answer for

agriculture too. The laws of economics are not different for

agriculture..

Mr.P.Chidambram,

Finance Minister

9th March, 2007


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Farms are not islands

..It is no secret that agriculture with less than a fifth of the GDP hasto provide livelihoods for around three-fifths of the population.

.The immediate challenge is on the food front. Shortfall in production

has affected supplies & prices..

.But we donot need a fresh dose of the Green Revolution

Strategy...The Green Revolution instruments to encouragefarmers will no longer be effective

Mr. Narender Pani

9th March, 2007


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- The consumer


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The Consumer Classes

The rich (


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The Rural Consumer Class

Rural India too has its share of The Rich

However, most of rural India would still comprise

The Aspirers.

Growing at a fast pace, this is the FUTURE MARKET,

creating buyers of quality products and services


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Rural Occupations

0

10

20

30

40

50

Cultiva

tor

Petty

Shopkee

per

Wa

ge

ear

ner

Salary

ear

ner

Oth

ers

Urban

Rural


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The Shifting Income Distribution

0

100

200

300

400

Low Lower-

middle

Middle-

high

Low Lower-

middle

Middle-

high

Urban Rural

2001-02 2009-10

(Million people)


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Increasing Purchasing Power

0

2000

4000

6000

8000

10000

1989-90 1994-95 2001-02

Urban Rural

Rural purchasing power is growing at a faster pace

PCI

(Rs /annum)


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Is a value seeker

Seeks comforts and amenities Does not wish to be seen as the

deprived cousin.

Does not experiment easily butthis does not mean that he

would not change.

Values local relationships becauseof unfavourable past experiences

The Rural Consumer


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The magnitude of the hinterlands potential is beyond doubt.

The Aspirers market is becoming increasing attractive givenits growth rate.

Agriculture remains the primary source of rural livelihood

The rural consumer seeks the means and avenues to meet hisaspirations

Inference


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Existing Market structure


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Village shops, haats satisfy

demand

Usually present in 500+ people

villages

Weekly Haats spread over 2-3acres , more than 300 stalls

selling everything from animal

feed to local medicines

A relationship exists between

the locals and local retailers

Traditional Retail


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Lack of depth and variety within a category

Look-alike Locals dominate the market.

Few trusted, national brands

Malpractices prices higher than MRP, faulty weights and

measures, consumer schemes not passed on Would often misuse their position as the only source of

information.

A poor shopping ambience

Shortcomings of Traditional Retail


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Innovation for Inclusive Growth

Making a difference The Hariyali Experience


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The Trusted Rural Business Hub

Help the customer increase his income, educate the customer,before you sell to the customer


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Triggering Rural economy

Creates Purchasing Power by focusing on increasing Income Levels


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Enabling implementation of New Technology in Agriculture


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Adding the critical service element


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Forging New Market linkages


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Giving the Customers the right to choose


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Assured quality & quantity


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Providing Urban Amenities in Rural Areas (PURA)


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Deploying IT for real empowerment


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Creating Local Employment


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Improving the quality of life


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Rural Businesses

Challenges


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Rural BusinessChallenges

Low density, high fragmentation market

850001085Population per market3768627000Markets

320680Population (in million)

UrbanRural

500000340000Less than 500

1470000230000Between 500 and 2000

133000060000More than 2000

No. of retail outletsNo. of villagesPopulation range


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High gestation business

Increasing costs of land

Pace of expansion

High operating costs

Low margin of agri-inputs

Increasing manpower costs

Low purchasing power of consumers


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High effort business Need for localisation due to regional variations in

taste and consumption patterns

Adequately qualified manpower

Inadequate infrastructure and Wide geographicalspread make supply chain and logistics benefitdifficult to achieve

Low literacy and education levels of consumers

Number of government approvals Payment processes


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Thank You

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