CONCEPT – Hub and spoke model involving engagement with farmers in rural India. A rural shopping mall where farmers can sell their commodities and can buy almost everything including cosmetics, garments, electronics, appliances and even tractors. It serves as an agri-sourcing centers, shopping centers, and facilitation centers.
IMPACT – Chaupal Sagar stores have become meeting point for farmers to transact commerce and exchange useful information. ITC awarded – Innovation for India Award 2006 for e-Choupal in the Social Innovations category for business organizations. e-Choupal specially cited in the Government of India’s Economic Survey of 2006-07 for its transformational impact on rural lives. e-Choupal is one of the top five alternative channels for LIC Policy sales, and accounts for 10percent of the national weather insurance market.
Overall, there is a huge market which is waiting to be served, ready to splurge, willing to explore new products and services. Retailers can tap on their wallets given they do their homework well.
According to India Retail Report 2009 by Images, – India’s rural markets offer a sea of opportunity for the retail sector. The urban-retail split in consumer spending stands at 9:11, with rural India accounting for 55 percent of private retail consumption.