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Tag: Dalveer Singh

  • Online is now the second largest consumed media (after television) in rural India, notes the Rural Covid Barometer Report

    Kantar-Dialogue Factory’s rural post-Covid economy scan

    By Our Staff

     

    Kantar, the leading evidence-based insights and consulting company, along with GroupM’s rural and experiential marketing unit- Dialogue Factory have unveiled the second edition of the Rural Covid Barometer Report. The report explores rural India’s concern about the impact of the second wave and how it has altered consumer behaviour and purchase patterns.

     

    Key highlights:

    Rural India is highly concerned about Covid situation in second wave. Concerns are higher amongst females (91%) as compared to males (85%) and within the higher age bands (55+-year-olds). These concerns are mostly driven by Covid’s impact on day-to-day life and functioning (most for 25-55 year old’s), fear of falling sick and overall need for financial planning. As a result, rural consumption and shopping patterns have witnessed a major shift.

     

    While consumers are concerned, most are also positive about economic recovery once the situation normalises. Nearly 3 in 4 rural households have received some form of assistance via Government of India schemes, thus providing the much-needed financial cushion to consumers.

     

    Rural consumers are saving 25% of their income. Southern India (except for Tamil Nadu) is saving more in comparison to other parts of the country. As expected, expenses are higher on personal care, hygiene and cleaning products while spends on indulgence and beauty products have been deprioritized.

     

    With respect to retail channels, consumers prefer local village shops for purchasing groceries (56%), personal hygiene (49%) and cleaning (45%) products. Even big-ticket items like consumer electronics (50%) and durables (46%) are preferred to be bought at these local shops.

     

    Digital trends:

    There has been an internet revolution in rural India, with online being the most consumed media after television.

     

    With respect to online content consumption, music/ audio (69%) leads the pack followed by news (49%) and gaming (33%).

     

    Usage of video / OTT apps are driven by YouTube at 87% (most in Rajasthan, AP/ Telangana, TN and Bihar) followed by Disney+ Hotstar at 30% (highest usage in UP, TN, Gujarat, Kerala).

     

    WhatsApp and Facebook are the most used social media/ messenger platforms at 87% (most in Rajasthan, AP / Telangana, Karnataka) and 66% (most in Odisha, UP, Gujarat and West Bengal) usage respectively.

     

    Phone Pe is the most used digital payments app with 19% rural consumers having used these services in the last six months. Usage of Phone Pe is driven by Karnataka at 46% followed by Rajasthan at 38%.

     

    Foresighting:

    Growth in the consumer durables and automotive (2-wheeler) sectors are likely to slowdown in next 6 months. However, the smartphone category is expected to see fast growth in the near future.

     

    Construction sector is also expected to see a bounce-back with consumers expected to spend on building a house/ undertake smaller construction work in the next 6 months.

     

    Dalveer Singh
    Dalveer Singh

    Commenting on the report, Dalveer Singh, Head of Experiential Marketing- APAC, GroupM Dialogue Factory said: “The pandemic has evolved the rural consumer’s decision-making process. They are watching their spending and prioritizing their buying patterns by the need of the hour. There is a positive acceptance of the vaccination. The upper- and middle-class rural Indians are being more proactive in financial planning to deal with covid constraints, which make these markets a significant place to introduce investment and savings products. To sum up, there is a deep sense of uplift on the subject of India’s economic future.”

     

    Puneet Avasthi
    Puneet Avasthi

    Added Puneet Avasthi, Senior Executive Director, Insights Division, Kantar: “With a highly concerned rural consumer, rural India is planning finances better and inclined towards a savings mindset. This offers a significant headroom for growth to savings and investment products such as insurance and even mutual funds. Additionally, we are witnessing a significant rise in digital payments as an important mode of transaction, this offers a robust platform for rural financial inclusion, as also for suitable hyperlocal promotions. With the change in consumption priorities in favor of health and hygiene products (a trend that has held since the first wave), FMCG marketers should leverage this trend for planning their innovation pipeline.”

     

     

  • Despite the differential impact of Covid-19 across the country, consumers in rural parts of the country seem more confident of a rapid recovery in the economy

    Rural India likely to bounce back faster than urban: Kantar & GroupM’s Dialogue Factory

    By A Correspondent

     

    Insights and research major Kantar, along with GroupM’s experiential marketing unit- Dialogue Factory, have unveiled a Rural Covid Barometer Report. This report provides a provides a unique, fact-based perspective on consumer sentiments, their consumption choices and the behavioral changes brought about by the pandemic. This survey was conducted in 17 Indian states and deep dives into the lives of rural consumers and their adaptations post Covid, providing valuable inputs for any brand’s rural strategy.

     

    The lockdown amidst Covid has brought about varied changes in the lives and livelihoods of Rural India. Loss of income, socio-cultural norms, health and hygiene protocols and reverse migration are some key challenges faced by the rural population during the pandemic.

     

    The report highlights emergence of new trends which will necessitate changes in the way businesses and brands connect with rural consumers:

     

    :: Heightened focus on rural affluent consumers: The report suggests that with 1 in 3 rural adults being impacted by COVID-19, the rural economy is likely to take a hit. However, with fewer job losses and consequent reduction in the incomes of the affluent households, the overall impact on rural consumption pattern is likely to be muted in the future. This presents an opportunity for the businesses to sharply target their brands towards the upper end of the rural consumer spectrum

    :: Quest for balancing the budget: The rural Indian is walking the tight rope and is balancing the budget by cutting on “indulgence” categories like cold drinks, ready to eat snacks like chips etc. and diverting the savings towards hygiene products

    :: Digital adoption: Like their urban counterparts, rural Indians are increasingly relying on digital services for their day to day activities. With the pandemic accelerating digital adoption, there is a huge potential for businesses and brands to leverage mobile as a medium to reach rural consumers

    :: Focus on the future:  The pandemic has heightened the worries around health and safety. The study highlights that rural Indians are today more concerned about their future well-being; especially of the chief earners.  With a relatively weaker health infrastructure as compared to urban areas, the mindset of rural Indians is shifting towards financial planning. They are also considering buying health and other insurance products. This opens a large market for the BFSI segment.

    :: Last mile connectivity: With commute being restricted, the rural consumer is now increasingly shopping within the village for their FMCG needs. It is therefore imperative for the brands to focus on their distribution and last mile connectivity, since product availability in the local village stores will significantly impact brand choices of the rural shopper

     

     

    Dalveer Singh

    Said Dalveer Singh, Head of Experiential Marketing- APAC, Dialogue Factory: “Rural India has always had a higher degree of resilience which makes it more confident for a rapid recovery than the urban areas during these unprecedented times. This report; which is one of the biggest assessment of the impact of the pandemic on rural areas, speaks volumes on the new, defining values that are shaping rural India – resilience, planning for future, protection from falling sick and growing reliance on digital.”

     

    Puneet Avasthi

    Added Puneet Avasthi, Senior Executive Director, Insights Division, Kantar: “For businesses, we would recommend a regional prioritization. We believe that the Western India is likely to bounce back earliest. On the other hand, indications seem to suggest that rural South might take longer to recover as the impact of COVID 19 on employment has been more severe, which in turn has depressed the economic outlook of consumers in rural South. We see this as an opportunity for brands to deploy their resources across zones in a graded and phased manner”

     

    The report also assessed the impact of reverse migration. The study suggests that nearly 53 million migrant workers in India have returned to their villages. 80% of migrants who have returned to due to COVID come from 5 States. Commented Avasthi: “With 1 out of 3 rural migrants not planning to go back to urban India, we are likely to see a huge shift in rural consumption choices. This will also affect the availability of labor in urban India”

     

    The report also highlights a deep sense of optimism regarding India’s economic future; stemming from a healthy growth in the agricultural sector and near universal reach of targeted government programs (75% of all consumers claimed to have received at least one of the major government schemes for Rural India; 66% claimed to have received free rations under PM Garib Kalyan Yojana).

  • MEC gets Sidhraj Shah to head Brand Activation unit

    MEC gets Sidhraj Shah to head Brand Activation unit

    By A Correspondent

     

    MEC has announced the appointment of Sidhraj Shah as Head of Brand Activation. His mandate will be to deliver innovative consumer experiences and to expand MEC’s brand engagement and implementation services.

    Mr Shah’s last assignment was at Wizcraft as Deputy General Manager. An MBA from Bombay University, Mr Shah will report to T Gangadhar, MD, MEC and to Dalveer Singh, Head Experiential Marketing, APAC, GroupM’s experiential marketing unit.

     

    With prior stints at O&M, SSC&B Lintas and Bates 141, Mr Shah has conceived and executed ground-breaking campaigns for clients such as McDonald’s, Standard Chartered, Virgin Mobile, Siemens, MTV and MiD-Day.