Smartphones most preferred purchase choice in rural India: Survey

A survey found that smartphones, mobile accessories, home and kitchen appliances were the most popular purchases in rural India.

The study by village commerce network 1Bridge reveals that 'Bharat' has a low preference for online purchases which is attributed to lack of awareness/information, distrust (or fear of fraud), and delay in delivery.

It also shows that about 50 per cent of those surveyed would prefer purchasing home appliances (TVs, fans/coolers, refrigerators, etc.) while 37 per cent of respondents said electronic gadgets like mobile phones, and tablets would be the choice. Nearly 25 per cent of the respondents are likely to purchase kitchen appliances.

The average value of a purchase is Rs 6,000 for electronic gadgets, Rs 9,000 for home appliances and Rs 2,500 for kitchen appliances.

Over 1,000 consumers were surveyed in 100 villages across Karnataka, Maharashtra, and Telangana.

Detailed product information, affordable pricing, and dependable after-sales services were the top expectations of brands from rural India, the study finds. A deeper analysis unveiled that products above Rs 5,000 are usually purchased in-person, where customers want to touch and feel them.

It was also seen that while many of the villages have access to online shopping, less than 10 per cent have ever tried making online purchases.

Another point to be noted is that 61 per cent of customers prefer to receive after-sales services at their doorstep.

The survey also points out to the logistical challenges that consumers face while trying to purchase these products. In more than 65 per cent of the cases, products are only available at stores at the taluka/district level, making them highly inconvenient to access. Travel costs are exceptionally expensive in addition to the regular product price as the average distance for accessing consumer durables is 10.2 kilometres (km) and in some cases, rural folks travel up to 45 km. To add to the woes, a very limited selection of brands and choices are available at the few stores present and wherever they do, the average distance needed to travel for repairs and after-sales services is 11 km.

The two most powerful forces for driving demand and purchases are trust among village entrepreneurs and word-of-mouth awareness shows the survey.

Commenting on the survey, Madan Padaki, Founder & CEO of 1Bridge said that the consumption patterns in rural areas are dramatically changing to increasingly resemble that of urban India. “We believe the Covid-19 cloud had a silver lining - a renewed focus on rural areas with a thrust on distributed supply chains and the importance of the local village entrepreneurs as the engine of growth.”