How rural markets are gearing to bounce back from COVID-19 disruption

Decoding the COVID-19 impact on Rural India, Impact Communications has released an extensive insight-based report based on 25,400 respondents across 13 states. Titled ‘Rural Darpan’, the report is reflective of the new normal with regard to Rural Ecosystem, Consumer & Market at large.

Rural India – known to marketers as ready to engage, easy to access touchpoints, equipped with the platforms that have ready congregation like Choupal, Haats, Mandis, APMC, YARDS – has undergone a tremendous transformation during this COVID-19 pandemic in terms of functionality and the framework. Choupals are no longer held to discuss local issues. Haats and Mandis are visited only for functional purposes.

Visitors are no more Athithi-Devo-Bahava. If you are not a local resident of the village, you are likely to be viewed with suspicion as a conduit of contamination. Rural India has clearly and swiftly understood the fatal possibilities of COVID-19 transmissions. Families of migrants or migrant families are self-isolating. The report captures the need to curate new strategies of engagement and gives a sneak-peek of media consumption.

“We as an organisation understand that the transformation in the market needs to be captured to pave the way forward for rural marketers, hence we decided to put our ears on the ground, leveraging our 2,000+ on the ground army, who are residing in the various rural parts of the country. ‘Rural Darpan’ is a compilation of insights backed by the data detailing the spiking change in consumer behaviour and trade network,” said Sanjay Kaul, Founder CEO, Impact Communications. 

Key Insights: FMCG 

The FMCG sector is struggling between the gamut of demand and supply. While the COVID-19 pandemic has spiked the demand in essential commodities, the majority of the markets are struggling with addressing the spike due to the breakdown in the supply chain and distribution. 

Stocking and not hoarding: The overall mood of the consumer is not to hoard however be cautious of purchase. 60 per cent of the respondents said that their incomes are affected and are going for a very thought-through purchase.

Moving to new brands: Non-availability and pricing is making rural consumers try new products which are available and have attractive pricing. Pricing and non-availability of the preferred brand is paving the way for the brand shift. 26 per cent of the respondents shared that they tried a new brand in the Lockdown period, out of which, 43 per cent respondents said that they are satisfied with the change and are most likely to stick to the new brand.

Hopeful but cautious: Once the markets open and we deal with the COVID-19 spread, the belief is that the Rural Markets will come back to normalcy quickest. 

Living in a hyper-local economy, the major food consumption comes from the locally grown and available products. Therefore, the overall feeling among rural consumers is that of ‘optimism’. They are calculative in their approach towards their daily lives & working. Corona pandemic is considered more of a city phenomenon. While 40 per cent of the respondents suggested there would be a hit on income, the rest thought there is a difficult phase ahead, but things will soon settle down. Only 6 per cent of them expressed the fear of COVID-19 devastating lives in the coming times. Once the markets open and we deal with the COVID-19 spread, the belief is that the Rural Markets will come back to normalcy the quickest.