FMCG firms target rural markets after witnessing rapid technological adoption

Economic Times
Economic Times
2M ago
32 views
FMCG companies are targeting rural markets by implementing technology-driven purchasing solutions, which is crucial for improving access to everyday items and supporting local economies.
FMCG firms target rural markets after witnessing rapid technological adoption
A What happened
In response to the rapid technological adoption in rural India, Fast-Moving Consumer Goods (FMCG) companies are shifting their focus to deliver tech-driven purchasing solutions. Star Localmart, the largest rural-first supermarket chain, has announced plans to install 20,000 vending machines over the next three years to enhance shopping convenience. This initiative aims to bridge gaps in retail accessibility and support local economies. A Deloitte-FICCI report indicates that India's retail industry could exceed USD 1.93 trillion by 2030, driven by a digitally fluent population. Additionally, the use of Generative AI is projected to increase retail productivity by 35 to 37 percent within five years, revolutionizing pricing, promotions, and customer experiences. By embracing unattended retail, FMCG firms are set to transform how rural consumers access everyday necessities, making shopping more convenient and efficient.
★

Key insights

  • 1

    Rural Market Focus: FMCG companies are increasingly targeting rural areas for growth.

  • 2

    Vending Machine Initiative: Star Localmart plans to install 20,000 vending machines.

  • 3

    Generative AI Impact: Generative AI could boost retail productivity significantly.

Takeaways

The integration of technology in rural FMCG markets is set to enhance accessibility and convenience for consumers, while also supporting local economies and driving industry growth.

Topics

Climate & Environment Agriculture Business & Markets Economy