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Distribution Dynamites: Categories waiting to explode in small-town India

By: Ranjeet Laungani, Executive Director, Nielsen India

Small towns, big aspirations

Small-town India presents an opportunity that no Indian marketer can ignore. In 2011, the FMCG market in Middle India (1-10 Lac population towns) grew 18.7 percent in value terms over 2010 compared to 13.9 percent for the metros over a similar period. Even the smallest of Indian towns (

Increasing awareness, affordability, and access will mean that these towns will only continue to power the India growth story for the next few years. We’re already seeing their demand appetite evolve as new categories enter the small-town household for the very first time. The metro phenomenon has spilled over, but the big question remains – how can marketers capitalize quickly on the opportunities arising from these aspirations?

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