Business

Exploring the Divide: Urban India's Shift to Unbranded vs Rural's Loyalty to Legacy FMCG Brands

The Grocery Bag Divide

Urban Indians are increasingly gravitating towards unbranded products and experimenting with new-age brands, while rural consumers remain loyal to legacy FMCG brands. This shift highlights a significant divide in consumption patterns across India's urban and rural landscapes.

Rural India shops brands, urban goes beyond labels

Volume Growth Gap

Recent reports show unbranded products growing faster in urban areas, with an 8.4% volume growth compared to rural's 2.3%. Conversely, branded FMCG products saw a 5.1% growth in rural areas versus 2.1% in urban regions, underscoring the differing consumer preferences.

Online Vs Mainstream

The rise of online shopping in urban India has opened doors for new-age brands, challenging traditional FMCG players to innovate and adapt. Brands like Slurrp Farm are leading the way, leveraging digital platforms to reach consumers directly.

Distribution Power

Companies are tailoring strategies to cater to urban and rural markets differently. From digital-first launches in metros to expanding rural distribution networks, the focus is on meeting the unique needs of each demographic.