In the Fast-Moving Consumer Goods (FMCG) sector, understanding and catering to regional preferences is key to success. Urban and rural areas often show distinct consumption behaviours. Recent NielsenIQ data highlights a notable shift in these patterns. From March 2023 to 2024, FMCG volume growth in rural markets rose by 7.6% year-on-year, outpacing urban growth at 5.7%. This shift underscores the need for FMCG brands to adapt their strategies to rural dynamics as well as urban ones.
Understanding City Trends
Fast-Paced Lifestyle
Urban residents lead busy lives, preferring convenience. High demand exists for ready-to-eat meals, quick snacks, and on-the-go beverages. FMCG brands can meet this need with easy-to-prepare options and convenient packaging.
Health and Wellness
Urban consumers are increasingly becoming health-conscious, opting for organic, low-fat, low-sugar, and additive-free products. Brands can attract these buyers by offering whole-grain snacks and preservative-free items, clearly highlighting health benefits on packaging.
Innovation and Variety
Urban markets welcome new and innovative products. Consumers enjoy experimenting with new flavours and formats. Brands can maintain interest and loyalty by introducing limited editions and unique flavours.
Digital Engagement
Urban customers frequently use digital platforms for shopping and brand interaction. In India, 80% of urban internet users research products online, with 25% visiting e-commerce sites before buying in stores. Brands should maintain a strong online presence and engage customers through digital channels and influencer partnerships.
Understanding Rural Traditions
Value for Money
Rural consumers are more price-sensitive, seeking high quality at an affordable price. Value packs appeal as families prefer buying in larger quantities. Brands can gain an edge by offering economical options without compromising quality.
Familiarity and Trust
Rural shoppers exhibit strong brand loyalty, sticking to trusted products. Building this loyalty requires consistent quality and positive word-of-mouth. FMCG brands can foster trust through community engagement and local influencer endorsements.
Traditional Preferences
Cultural and traditional influences shape rural consumer preferences. Products aligning with local tastes and traditions are more likely to be embraced. Brands should incorporate traditional flavours and ingredients in food products to connect with rural consumers.
Limited Access to Digital Platforms
Many rural consumers still rely on traditional retail outlets. Brands should build robust distribution networks to ensure product availability in local stores. Traditional advertising methods like radio, local newspapers, and community events effectively reach rural audiences.
Effective Strategies for Aligning FMCG Brands with Regional Preferences
Market Research
Dive into understanding what urban and rural consumers really want through surveys and focus groups. This helps tailor products and marketing strategies to their unique needs.
Product Customisation
Adjust your offerings to fit local tastes. Provide compact, easy-to-carry packs for city folks, and larger, cost-effective packs for families in rural areas.
Region-Specific Marketing
Craft your marketing messages to resonate with each audience. Highlight convenience and innovation for city dwellers, and emphasise quality and value for those in rural regions.
Distribution Network
Make sure your products are easily available. Use modern trade channels like supermarkets and online platforms in cities, while focusing on traditional retail outlets and local distributors in rural areas.
Aligning an FMCG brand with regional preferences involves understanding the unique needs and behaviours of urban and rural consumers. By tailoring products, marketing strategies, and distribution channels to these differences, brands can effectively reach and engage their target audiences. Embracing city trends and rural traditions allows a brand to build a strong, versatile presence that resonates across regions.
The author is the Head of Marketing, Bikano, Bikanervala Foods Pvt Ltd.
