Kuldip Maity

 

The past few years have witnessed a significant increase in internet penetration in rural India. Initiatives such as Digital India, affordable smartphones, and inexpensive data plans have made the internet accessible to millions. According to a 2021 report by the Internet and Mobile Association of India (IAMAI), rural internet users surpassed urban users, showcasing the rapid digital adoption in these areas.

It is time to utilize the media effectively for business growth.

I am no expert on digital media. However, from whatever I gather from the team, and keeping it limited to organic content sharing only, the different channels have their behavior and utility. While it is important to utilize all the channels, the type of content that the audience expects may differ.

YouTube: This platform is popular among rural content creators for sharing long-form videos. Awareness of culture, techniques, and local customs may be the content that rural entrepreneurs can post to get attention.

Facebook: Versatile and widely used, Facebook allows its users to share a mix of text, images, and videos. It’s effective for community building and reaching a diverse audience.

Instagram: With its focus on visuals, Instagram is used to share photos and short videos. It’s popular for showcasing local crafts, traditions, and personal stories, making it a perfect platform for rural entrepreneurs who focus on arts and crafts.

WhatsApp: Widely used for communication, WhatsApp also serves as a medium for content sharing and small-scale business promotions. However, it can be used only when the rural entrepreneur has access to the prospective buyer's contact number. I feel that our rural entrepreneurs need to be properly trained before starting to use WhatsApp. Otherwise, owing to its simplicity and ease of use, there is a high risk of misuse, especially with regard to privacy.

The nature of content also makes a huge difference in the endeavor's success. As MD & CEO of VFS Capital, having to interact with rural entrepreneurs regularly, and also as someone who likes rural India’s art and craft, I have looked at it from both sides. From my experience, I feel the types of content that will find the most audience and engagement are those made on topics as below:

Local Culture and Traditions: Showcasing local festivals, crafts, dances, and daily life can attract audiences interested in authentic cultural experiences.

Production Practices: Sharing innovative techniques, organic tips to overcome the mass production of machines, and success stories can attract both rural and urban viewers.

Craftsmanship: Highlighting traditional crafts, handmade products, and local artistry can garner the attention of potential customers.

Storytelling: Personal stories of resilience, community initiatives, and rural innovations can inspire and engage a broader audience.

From the feedback I have received, one of the biggest letdowns for the audience is if the content creator spends more time showcasing their economic distress than the value of the product. Mixing philanthropy with business may not be the best idea in this context.

As mentioned earlier, I wish to share more aspects of content creation in my forthcoming blogs. Until then, please share your views as comments.

 Over the last few blogs, I have focused on how digital media is revolutionizing rural businesses by expanding their market reach, enabling cost-effective marketing, and fostering customer engagement. Digital media facilitates online sales, promotes local products globally, and supports business growth through access to digital tools and resources, thereby driving economic development in rural areas.

The rise of short-form video content, particularly through platforms such as Instagram Reels or YouTube Shorts, has significantly impacted rural India. Reels, with their concise and engaging format, offer a dynamic way to create and consume content. I have been exploring the multifaceted effects of Reels in rural India from its social, economic, and cultural dimensions.

A traditional weaver from a small village in Bengal can start using Reels to showcase her intricate weaving techniques and finished products. The chances of her short, engaging videos catching the attention of urban consumers and boutiques are extremely high. This increased visibility will help her business grow, allowing her to employ more women from her village.

Similarly, a progressive farmer from Haryana can use Reels to share innovative farming practices and organic farming tips. Her informative and visually appealing content may garner a large following, including fellow farmers and agricultural enthusiasts. Her influence may lead to collaborations with agricultural companies and NGOs, providing her additional income and resources. She may also get other enthusiastic women farmers to start innovative farming with financial support from microfinance companies such as VFS Capital.

Among those who earn money from performing arts, a folk dancer from Jharkhand may use Reels to perform and teach traditional dances. Her videos will not only entertain but also educate viewers about the rich cultural heritage of her region. Having gained recognition, she is highly likely to get opportunities to perform at cultural events and workshops nationwide.

The future of Reels in rural India looks promising. As digital literacy improves and internet connectivity expands, more rural individuals will harness the power of this short-form video content. Government initiatives and private sector investments in digital infrastructure and education will be crucial in this growth.

Reels can drive economic development, social empowerment, and cultural preservation in rural India. By providing a platform for rural voices to be heard and appreciated, Reels contribute to a more inclusive and connected society.

But is all good with Reels? Far from it...

For every upcoming initiative, we go through a learning process during which we are bound to make mistakes. Reels can divert attention from productive activities, decreasing work efficiency in rural businesses. The focus on creating trending content might overshadow traditional business practices. Additionally, the digital divide can exacerbate inequalities, leaving some rural entrepreneurs behind in leveraging these digital tools effectively.

The positive outlook is that such digressions are often short-lived. Slowly, as our understanding matures, these are bound to stabilize. I plan to write a few more blogs on how to use Reels effectively. Stay in touch…

 

 Recently the world witnessed the biggest festival of democracy, the Indian General Election to Parliament. The election and its campaign were conducted over three months in seven phases, where over 8,000 candidates contested for 543 seats in the Lok Sabha. The election saw a record 910 million eligible voters, making it the largest democratic exercise globally. The declaration of the results determined the composition of the 18th Lok Sabha and was followed by the swearing-in of the council of ministers.

But this blog is not about the politics of the 2024 General Election. I want to share thoughts about the event’s impact on rural businesses.

Elections to Parliament play a crucial role in shaping a country's economic landscape. They influence various sectors, including rural businesses. Conducting general elections can have several direct and indirect benefits for rural enterprises. Also, the government often announces policy changes and freebies before the Election Commission’s cutoff date.

During election campaigns, there is a surge in economic activities as political parties spend heavily to carry their message to their electorate. This spending includes purchasing goods and services from local businesses, such as printing materials, transportation, catering, and accommodation. Rural businesses, especially small-scale vendors and service providers, benefit from this increased demand. The logistics of organizing election rallies, setting up campaign offices, and other related activities create temporary jobs for rural residents. This influx of jobs provides additional income, often spent locally, further boosting rural businesses. Candidates encourage local sourcing of materials and products to benefit rural businesses by increasing demand for locally produced goods. This helps the candidates get into the good books of the rural electorate and can stimulate growth and development in the rural business sector.

During the campaigns, political candidates often promise to improve rural infrastructure, including roads, bridges, and telecommunications, to win votes. Once elected, fulfilling these promises becomes crucial. Improved infrastructure enhances connectivity, having a long-term effect on rural businesses accessing markets, transporting goods, and receiving supplies. In this context, it is critical to note that promises related to electrification and better water supply systems are common during elections. When these promises are fulfilled, rural businesses benefit from a more reliable supply of electricity and water, essential for manufacturing and other business operations.

The economic stimulus from campaign spending, improved infrastructure, favorable policies, and enhanced market access all contribute to the growth and development of rural enterprises. The social and economic stability fostered by successful elections also creates a conducive environment for business operations. Addressing the specific needs and challenges of rural businesses through general elections plays a vital role in strengthening the rural economy and promoting sustainable development.

Elections promote community engagement and participation in the democratic process. This heightened sense of involvement and unity can translate into better collaboration among rural businesses, leading to the formation of business associations that can lobby more effectively. These enhanced networks can facilitate business revenue, knowledge sharing, and mutual support among rural entrepreneurs, contributing to the overall growth of the rural economy.

 

 

After discussing the business processes that rural entrepreneurs are likely to face while implementing the D2C or direct-to-consumer business model, let's delve into another important aspect of the model.

Promotions play a crucial role in the D2C model by directly engaging consumers and driving sales. Promotions help build brand awareness, attract new customers, and incentivize repeat purchases through discounts, special offers, and loyalty programs. Effective promotions create a sense of urgency and exclusivity, encouraging customers to act quickly. Additionally, targeted promotions tailored to specific customer segments can enhance customer satisfaction and loyalty, fostering a strong seller-buyer relationship. In the competitive D2C landscape, well-executed promotions can differentiate a brand, boost revenue, and sustain long-term growth.

Traditionally, rural-based businesses follow a simple pricing policy devoid of the complexities of the new-age promotion-driven business.

Promoting products effectively in the D2C model requires creative marketing strategies tailored to the unique characteristics of rural products. Over and above designing a good price-promotion strategy, rural suppliers also face challenges in reaching their target audience and driving engagement amidst limited internet penetration and digital literacy.

While India is experiencing rapid internet penetration, rural suppliers in most geographies must still overcome the barrier of limited internet access and connectivity. This restricts the effectiveness of promotions communicated through online channels such as social media and digital advertising. Moreover, rural consumers may have limited exposure to these channels, making it challenging to create awareness and generate interest in promotional campaigns.

Additionally, rural suppliers must navigate cultural and linguistic diversity in rural markets to ensure that promotional messages resonate with their target audience. This may require localized marketing efforts and partnerships with influencers and leaders who have a deep understanding of consumers' preferences and behavior. However, there is a flip side to this. A substantial segment of buyers of rural products do not have any link with urban tastes, so involving urban influencers in communication may not give the product an edge.

Rural suppliers also face competition from established brands and traditional distribution channels that may have greater resources and reach. This makes it challenging to stand out and capture the attention of rural consumers in a crowded marketplace. But I do not see it as much of an issue for the entrepreneur. As long as a buzz is created around products sourced from rural areas, the entrepreneur enjoys increased sales opportunities through B2B or D2C. While D2C may have future benefits, nothing beats increased sales!

By adopting innovative strategies, leveraging technology, and collaborating with trusted partners, rural suppliers can overcome these hurdles and unlock the vast potential of the D2C model in rural India.