FMCG firms target rural markets after witnessing rapid technological adoption

NEW DELHI: With the rapid adoption of technology and a growing digitally fluent population, Fast-Moving Consumer Goods (FMCG) companies are increasingly focusing on delivering tech-driven purchasing solutions to rural markets.

“By harnessing AI and smart retail technology, we are not only dedicated to revolutionising the shopping experience, but also supporting local economies and livelihoods”, said Srinivas Kolluru, business head, Ghodawat Retail Pvt Ltd, commenting on the trend.

According to a recent Deloitte-FICCI report, India’s retail industry is projected to reach over $1.93 trillion by 2030. This growth is fueled by the digitally fluent population and the rapid adoption of technology.

In its endeavour to advance the rural digital transformation, Star Localmart, the country’s largest rural-first supermarket chain and the retail arm of the Sanjay Ghodawat Group, has announced an ambitious plan to install 20,000 vending machines across its store network and high traffic areas within the next three years.

According to EY report, use of Generative Artificial Intelligence (GenAI) can boost retail productivity by 35 to 37 per cent within the next five years. The report titled ‘How much productivity can Generative AI (GenAI) unlock in India? The AIdea of India: 2025’ adds that the GenAI will revolutionise insights-driven pricing, promotions and customer experiences in India’s burgeoning retail sector.

It further added that the integration of advanced tech into key areas such as procurement, supply chain, and quality management will make the industry become more agile, efficient, and customer-focused. Pointing out to the increasing adoption of advanced tech in India, it added that an increasing number of organisations in India are adopting it to meet diverse consumer demands, improve efficiency, and foster innovation, enabling growth and adaptability even with resource constraints.

Kolluru further stated that the use of tech-driven purchasing solutions will bridge gaps in retail accessibility, enhance convenience for customers, and provide a seamless, self-service shopping experience, adding that these machines will be installed in high-traffic areas such as community hubs, offices, hospitals, colleges, malls, and other similar locations along with its stores.

According to the company, by embracing unattended retail, it is set to transform how rural consumers access everyday necessities, eliminating barriers of time and location. (ANI)