Money matters stifles rural consumer aspirations

Hindustan Times

25-04-2025

If you know Ankur Dahiya's background, you will understand why she built Rozana, an e-commerce platform for rural India. Born to a conservative family in Haryana, she grew up in the village, living the rural life, fighting to study computer science and management. Later she consulted on several rural projects of the government, across 13 states, understanding the service need-gaps and paucity of products first-hand.
Four years ago, she co-founded Rozana, a hyper-local e-commerce platform currently servicing 19,000 villages in Haryana and Uttar Pradesh.
Familiar with the hole-in-the-wall kirana shops stocking limited items, Dahiya offers a wider selection of branded products – from food and beverages to personal and home care to kitchen items. Aspirations and tastes of rural India have evolved. 'People living in small villages like the convenience of online shopping, seek quick deliveries and are open to trying out new products', she says.
Her observations are backed by The Rural Barometer Report 2025 released last week by GroupM and Kantar which showcases the evolution of rural consumers, recalibrating their choices amidst economic strain even as they embrace digital platforms. From tighter household budgets to increased trust in digital media, the report reveals a rural consumer that is cautious yet connected.
It says 7 in 10 rural consumers now engage with online media, a 28% rise since 2022. Social media, video content, and instant messaging platforms are becoming the norm, especially, among the younger, affluent users. OTT platforms, digital wallets, and e-commerce are no longer an urban niche, the report says.
Rural consumer aspirations are soaring, says Ajay Mehta, managing director -- OOH Solutions, GroupM India. 'It's led to 60% expansion in their consumption basket in the last three years, which means the number of product categories they are buying has grown to include cosmetics, personal care items and convenience foods,' Mehta says.
Rozana's Dahiya agrees. 'Red lipstick on the platform sold like hot cakes recently. There is an opportunity in villages to create a new category in a segment and a product within the category,' she says.
Likewise, her platform did terrific business selling mixer-grinder-juicers in a village with 400 homes which was ordering 7-8 units in a day, apparently to make mango and banana shakes and to grind daals, Dahiya says. Convenience food is selling and consumers are open to experimenting. 'When we ran out of Maggi on the platform, we pushed pasta. In a month's time it became our best-selling product as people started having it with tomato and onion 'tadka'', she recalls.
Though 80% of Rozana's business still comes from Cash on Delivery, Mehta says digital payments and digital entertainment are getting popular. 'Nearly 70% of rural users are online. From a media perspective, print and TV are trusted but viewership of YouTube and OTT is growing. For digital commerce, people are improvising. They are sending their orders on WhatsApp and making UPI payments. Additionally, they are also buying fashion online from Meesho and Myntra,' he says.
Yet they are concerned about money. Three in four rural Indians express anxiety over their financial stability. Discretionary spends – notably on durables and vehicles – are on a decline, the Rural Barometer Report says.
'Inflation is a real issue even more so since we first flagged it in our report last July,' Mehta says. 'So, while aspirations are rising, there are financial worries. My assumption is that in the medium term, if the situation stabilizes and the pressure eases, there's going to be a lot of pent-up demand. And there may be a consumption boom.'
But brands must not take the rural consumers for granted. 'They are seeking quality. They want a Nike type of product but not at its price point. So, aspirations exist but we have to deliver that aspiration in the budget that they have,' Dahiya says.
Dumbing down rural audiences is a no go, Mehta warns. 'Thanks to YouTube and social media, they are very aware. You cannot compromise on any part of the package you're offering, whether in terms of product quality or delivery,' he adds.
His advice to brands is not to talk down to them. 'Instead, spend time understanding their aspirations, creating products and services which appeal to them. But they cannot be cheaper or inferior versions of urban products. That is a complete no, no,' he says.