Financial Daily from THE HINDU group of publications
Thursday, Apr 13, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 13, 2006 |
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Marketing - Marketing Research Industry & Economy - Personal Products `Shampoos biggest growth segment in rural India' Purvita Chatterjee
Mumbai , April 12
Studying the changing consumption patterns across rural India, Hansa Research, has identified shampoos as the biggest growth segment with high penetration levels. According to its report on rural consumerism, shampoos have probably seen the most "astounding" growth rates compared with other categories in rural India. From a penetration level of 13 per cent in 2000, now almost a third of the country's rural population uses shampoo with penetration levels zooming at 31.9 per cent in 2005. While the north and west zones have tripled in penetration, the south and east zones have doubled during the period between the years 2000 to 2005. From just one state that had 25 per cent of its rural population using shampoo in 2000, there are about 13 states that demonstrate this. Of these, Andhra Pradesh and Tamil Nadu now have more than half their population using shampoos. Shampoo penetration has gone up remarkably in states such as Orissa, Madhya Pradesh and Gujarat, These States are showing an increase in product usage by over three times in just five years.
Skin care products
In the skin/face creams category, the overall penetration has risen to 18 per cent. The east zone not only continues to lead but has increased its lead over the other three zones. Orissa shows a notable increase in user base (14 per cent to 25 per cent). The other States that show significant growth are Assam (32 per cent to 39 per cent) and Goa (22 per cent to 27 per cent).
Food and beverages
In the food and beverages category, packaged oils and packaged biscuits have depicted an increase of 5 per cent and 15 per cent respectively in penetration levels. The preferences in rural India are shifting from loose to packaged products. Besides, there has been a 25 per cent increase in soft drink penetration in rural India and a 35 per cent increase in the case of Chocolates. The north zone leads with a 68 per cent increase in the growth of soft drink consumers while the east zone leads in chocolate penetration at 73 per cent. In the Household products category, the overall penetration of utensil cleaners has gone up by 40 per cent in the last five years. Rural India is now buying specialised, branded utensil cleaners and moving away from the typical ash/soil usage in the past. Also households that use toothpaste or tooth powder have seen an increase of close to 5 per cent in penetration. The rise is more marked in the south zone, which continues to be the zone with the highest penetration in this category. While the penetration of consumer durables is low in rural India, colour TV penetration has risen by 200 per cent, followed by motor cycles at 77 per cent, refrigerators at 31 per cent, tractors by 28 per cent and Bicycles by 17 per cent.
Related Stories: More Stories on : Rural Marketing | Marketing Research | Personal Products
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