With market liberalisation, increasing consumerism and the entry of more foreign players, Indian markets are seeing revolutionary changes. The Indian consumer is rapidly evolving and is spoiled for choice by a host of international brands selling their products at competitive prices.

According to a study by the McKinsey Global Institute (MGI), India's middle class will swell by more than ten times—from its current size of 50 million, to 583 million people—by 2025. And over 23 million Indians—more than the present population of Australia today—will be counted as billionaires. By 2025, India will also become the 5th largest consumer market, surpassing Germany, moving up from the 12th position it occupied in 2007.

India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm A T Kearney in its entity's Global Retail Development Index (GRDI) 2009.

Vodafone, Hindustan Unilever, Bharti Airtel, Nokia and PepsiCo are India's 'Most Admired Marketers', best in the marketing class of India Inc 2009, according to a survey carried out by Economic Times, thanks to marketing and strategy innovation, million-dollar ad budgets and some of the finest marketing executives in the business.

Rural Market: The Next Big Opportunity

Rural India makes up 40 per cent of India's US$ 280 billion retail market and offers alluring opportunities for retailers. The rural market offers great untapped potential. In 2008, the rural market grew at an impressive rate of 25 per cent compared to the 7-10 per cent growth rate of the urban consumer retail market. Further, according to international consultancy firm Celent, the rural market will grow to a potential of US$ 1.9 billion by 2015 from the current US$ 487 million.

Today, the rural market accounts for a hefty share in most market segments—55 per cent of LIC policies, 70 per cent of toilet soaps, 50 per cent of television, fans, bicycles, tea and wrist watches.

Also rural India is less affected by the global slowdown. Consequently, an increasing number of marketers are targeting it across fast moving consumer goods (FMCGs), cars, two-wheelers and consumer durables.

Most FMCG companies are now working on increasing their distribution in smaller towns and focussing on marketing and operations programme for semi-urban and rural markets.

For instance, GlaxoSmithKline Consumer Healthcare is not only launching smaller packs at lower prices but is also developing products at appropriate price points for rural consumers.

Similarly, HMT Watches is planning to strengthen its brand in the rural market and will invest on brand-building this year, including in advertising.

Car makers are making greater inroads into rural markets with industry majors reporting 50-100 per cent rise in sales in such regions in the current fiscal.

Market leader, Maruti Suzuki's rural sales more than doubled to 116,000 cars in April-December 2009. For Maruti the share of rural sales this year increased to 16 per cent from 9 per cent last year.

Hyundai, the second major player, noticed that the shares of its tier-2 and tier-3 markets' sales – largely rural and semi-urban – grew to 29 per cent from 23 per cent.

Others such as Hyundai, GM and Mahindra & Mahindra have also seen higher growth.