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North Of India Contributes The Major Sales In Rural India: Report

The B2B year-ender report also provides interesting insights into the commercial ecology in rural India.

Xpand, a human-tech B2B aggregator platform enabling Consumer Packaged Goods Sector to create a strong footprint in rural India, has announced a 46% MoM growth from August 2021 in its Rural Kirana market. The two months operational startup by industry veteran Last-Mile Channel Enhancement (LMCE) aims to empower retailers, franchises, and companies.

The report highlights Sales trends for the categories marketed by the Company and suggests categories of soaps, candies, snacks, beauty items, sanitary pads, and electrical commodities have emerged as the front runners in the Consumer Packaged Goods space. 

The report has divided villages into different cohorts based on the population within its geographical periphery. The first classification embodies villages with a population strata of 3000-5000 . This group contributes about 51% of the sales, it lists the top selling items as beauty soaps, candies, mehendi, and agarbattis. The second grouping encompasses the villages with a population strata of 5000-15000 people. This category contributes about 43% of the total sales, it lists the top selling products as beauty soaps, sanitary items, chips and lipstick. The third segment envelopes the villages with a population strata of 15000-25000 people. This bracket contributes about 6% of the total sales, it lists the top selling products as beauty soaps, snacks, biscuits, and diapers.

The B2B year-ender report also provides interesting insights into the commercial ecology in rural India. With hygiene being of importance due to pandemic , soaps and antiseptics have been the best-selling products. Additionally, house cleaning solutions have contributed a significant 68% to the business. It also dissects the geographical representation of the total business contribution. While the North of India contributes 54% of the total sales, the West and the South stood at 16.4% each. The East, however, comes at the lower end with a contribution of 12.3%.

With growing aspirations, many suburbanites/Rural Consumers do not seem to be minding paying more for premium products which may provide value vrs its price . In the smaller SKUs, this choice has been more evident. Cheese crackers and digestive biscuits have had more buyers than the regular glucose ones.

Expatiating on the report Sanjay Kaul, Founder and CEO, Xpand, said, “At Xpand, we want to create a footprint for FMCG and FMCD brands in the rural market space creating a win-win situation for both. There is a significant untapped potential in the commercial space in the suburban areas and great opportunity for brands to establish themselves in one of India’s big market segments. While our recent report highlights many insights, but one key observation has been the growing aspirations of the villagers. As the Euromonitor International lifestyle survey suggested, many suburbanites are looking to elevate their lifestyle standards. We will keep ingressing towards the market in the rural space and support with a consistent flow of relevant categories to help them simplify their daily lives.”


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LMCE Xpand B2B aggregator platform Rural Kirana market

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