By: Ms. Sweta Sharma
Vidya Bhawan College for engineering and technology
The word retail has a very small meaning, it means ‘to cut or to break the bulk’, however the term Retail Management is not a small concept, it has a very broad meaning and a wide framework. When we say that Retailing is dynamic, it simply means that it is progressive in nature, it keeps on changing itself with the emerging trends. There are various elements that are working as the forces for retail dynamics. One such force is rural retail. The retail business in India accounts for Rs 7400 billion with about 1200 million retailers.90percent of retail shops are kirana stores .Rural India has about 3.7 million shops spread over 063 million villages , with an average of six shops per village with an average sale of Rs 5000 only. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Also rural market is getting an importance because of the saturation of the urban market. As due to the competition in the urban market, the market is more or so saturated as most of the capacity of the purchasers have been targeted by the marketers. So the marketers are looking for extending their product categories to an unexplored market i.e. the rural market This paper basically aims to show that what are the emerging trends in rural retailing, how the organised retailing can be successfully brought in the rural market, what precautions should be taken into consideration by various firms while entering the rural market, what are the shifts in the retail patterns that have taken place in the rural market INTRODUCTION
There may be a slowdown in urban retail, but `Bharat' is still shining for retailers. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, which is valued over $300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50% over the last 10 years, mainly on account of rising commodity prices and improved productivity. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are also bringing prosperity to ruralhouseholds. In rural markets, consumers are practical and price sensitive. Even though consumers at the bottom of the pyramid do not seem to have predictable income (which affects purchasing dynamics), the rural market proved to be surprisingly loyal. Given that an overwhelming majority of India's population lives in rural areas, retailers are fast penetrating the hinterland. Rural India is experiencing the same changes as urban India - changing consumer preferences and consumption patterns, increasing exposure to different lifestyles and products, and increasing purchasing power, different shopping patterns. As much as Rural India presents a great opportunity to retailers, there are still many challenges that have to be overcome CROSS SECTIONAL VIEW OF RURAL RETAILING
Retailing in rural areas was been done by many market linkages , however a shift in the retail format of the rural market has been observed in the recent years, this change has been discussed in this section When we bifurcate the rural retail, we come across its two major cross sections, they are: * The unorganised segment of rural retail
* The organised segment of rural retail
THE UNORGANISED RURAL RETAIL
The unorganised segment of rural retail consists of traditional channel of distribution...