The sensational “Badam Badam” song that’s sprawling the social web and the subconscious of the millions who are humming it, coincidentally reveals the underlying reality of the Indian economy.
The peanut seller – Bhuban Badyakar, who went viral on the internet for the song he sang and composed, is in reality, a song requesting people to buy raw peanuts IN EXCHANGE for objects like old mobile phones and bangles. These scraps further need to be sold to feed his family of four.
India has a gazillion more Bhubans, Bhartis, Bhavanis and others, who break their backs working every day and yet earn the bare minimum.
So the struggle for FMCG companies to gain a share of these consumers’ wallets, is really, really real.
With inflation rising along with unemployment due to the pandemic, the ten rupees a rural villager spends on biscuits, he now has to save to buy oil, soap and shampoo at increased prices.
Even the Union Budget 2022-23 isn’t focused on helping the country reach a macro equilibrium wherein total production meets total demand.
Instead, the budget emphasizes modernizing infrastructure, introducing digital currency for tech-savvy Indians, rolling out 5G, strengthening railway infrastructure, and other goals to revive the economy.
So given the limited spending levels of rural and urban consumers, how can FMCG brands survive the fight for a share of the stomach and grow their revenue? – By voyaging onto country roads.
So the best bet to boost revenue in the coming years would be to strengthen the rural roots of distribution with the right mix of technology and marketing.
Newer brands need the right resources to let their sales team operate in the remotest parts of India.
While, on the other hand, data-driven marketing will drive the revenue engine by ensuring that the right product of the right size is placed precisely where the demand lies.
Because, even a Bhuban, who has to give up purchasing a biscuit for ten rupees to buy essential commodities, will be happy to explore a pack of biscuits for five rupees, increasing the quality of his lifestyle.
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