Innovation in rural retail – an integrated model

The rural market in India today remains largely an untapped market but this is set to change as in the coming times the winning companies would be differentiated from the losing companies on the basis of their success stories on the rural turf as is evident from the saturation levels being witnessed in the urban market, a phenomenon which derives its genesis from the west versus east marketing philosophy. Further it is to be highlighted that such strategies which have worked in the urban context wont find many takers in the rural context because what they need is customized solutions for their unique requirements (say shampoo sachets). So those companies who would go the extra mile vis-à-vis offering differentiated products would be lapped up the rural customers who are the face of the new consumption theory of India, which is set to happen in due course of time. This paper tries to come up with a model to present an alternative approach towards harnessing the potential of the rural market in such a way that it becomes a win-win situation for all the stakeholders involved.