Tuesday, May 25, 2010

B2B: Changing Landscape of an Indian Village

I came to my native village in Bihar to enjoy summer vacation in true rural setting. To my pleasant surprise, the village has changed a lot since I last visited in 2004 summer. Changes are not only physical, i.e., approach road (from district hqrs to village) has become metallic, roads inside the villages are brick soled, and you can really experience electricity in villages etc., but there are other changes which are more important than those physical changes. Villagers are happier, more confident, and proud of their occupations. Although, economy is still agriculture oriented but many of the villagers have now other sources of income. Few of them are government servant, few have their small business in nearby market, and few have their children or relative working in cities. All these have made villagers a bit richer, have added into the confidence of the villagers about their financial security, and have given many options to villagers to spend. Proximity to the urban centres, penetration of media in the village houses, and frequent visits to the relatives working in cities to villages or villagers visits to cities have transformed a conservative villagers into aspiring consumers. Now villagers flaunt their Boleroes (a sturdy sports utility van) and not their bullock carts, show their mobiles phones and not radios, move on mobikes and not on bicycles, use Dove shampoo and not lifebuoy soap …….. i.e., village has undergone major change, i.e., Bullock cart to Bolero (B2B).


It is also true that caste difference and caste based class-differentiations are still prevalent. There are still poor people who have to struggle for meet their basic needs of food, clothes, and shelter. But effect of consumerism was palpable among such group of people as well. At least their thinking and aspirations reflected the impact of ‘development’. Such changes reminded me a book by T. K. Bhatia where author has categorized Indian consumers in three categories, namely, business, bike, and bullock cart. He further classified the business categories as super rich and rich. Second category has again interesting classification of motorbike (upper middle class) and bike/ cycle (lower middle class).

What is more interesting to notice that now in the villages one can notice only a continuum and not clear categories, and the rural population seems to be moving upward. Another interesting change one can observe in the behavior of villagers is that as they move up in the continuum their behavior tends to reflect increasing level of consumerism. Consumerism appears to be directly correlated with the income of the villagers also, which hitherto was the characteristics of urban population. The philosophy of simple living seemed to have been replaced by fast life with maximum consumption. Younger generations, irrespective of their family income, are interested in consuming and owning goods which their parents have not even thought of. I had heard of villagers taking personal loan from relatives or friends to buy lands or for social or religious functions but now villages are taking loans to buy durables and also goods of regular usage from banks. Only a decade ago for we villagers collective identity and community status were of prime importance but now I realized individuality and self status have overshadowed those values.

Electronic media has not only penetrated the village but has also been able to influence the lifestyle and purchase decisions of the villagers. Soap operas are popular among villagers particularly among women. Women are aware of names of different brands of the cosmetics and toiletry products and influencing the decisions of their male counterparts. The afternoon discussions among the women are on the subjects related to soap operas and the products of daily usage. I was surprised to see when village women demanded used branded spices and grocery products which were earlier home made.

Market too is now quite changed and responsive. All major brands are available in rural stores. Although the market and retail format are still same but customers have wide range of products and different brands of same product to buy from. Although actual purchases are still being made by male members but now they either ask for a branded product or ask many questions before they actually purchase and new product / brand. Certainly rural market has been changing from push to pull.

It is right that in last ten years we have lost some age old traditions and values but at the same time new groups of customers have emerged and market has further empowered them. Consumerism has affected the villagers both way, but majority of changes are certainly positive and welcome.

Enjoy your summer...as rain is knocking..
Niraj

1 comment:

Kiran said...

The rural hinterland in India is seeing a gradual shift from a supply based system to a demand based one with the accessibility to a gamut of products and services. A recent study proposes the A-B-C-D Model wherein the proposed paradigm uses four sequential stages to represent the purchase and consumption processes in rural markets viz. access, buying behaviour, consumption characteristics and disposal. I tried to evaluate this framework in context of my summer project and concluded that sooner or later we will see a significant amount of co-extensiveness and cross leveraging in rural markets. Furthermore, the proposed four stages in A-B-C-D Model are universally applicable; the paradigm offers a general framework to understand consumer behaviour be it rural or urban market. Much of the efforts of FMCG giants and other conglomerates had been to enable access and develop channels for exploring rural markets, but of late marketers are putting their best foot forward to evolve into collaborators and co-creators in a bid to ensure convergence with the huge and under-served rural audience. The obsession with studying rural consumer behaviour and the ensuing changes in prices, products and packaging can be touted as a harbinger of sorts before the final thrust and the shift towards establishing a dedicated rural customer base with distinctive brand loyalties!