Untapped Potential: 51 Indian Districts Outshine Major Metros in Market Opportunity
Indian marketers seeking new, burgeoning markets need look no further than 51 districts across the nation. These districts, encompassing major towns with populations exceeding 500,000, present substantial market potential for diverse products, ranging from everyday essentials like soap and toothpaste to high-end consumer durables such as LCD televisions and automobiles. Notable districts include Tiruchirapalli (Tamil Nadu), Amravati (Maharashtra), Bhavnagar (Gujarat), Kamrup (Assam), and Jabalpur (Madhya Pradesh).
These 51 districts possess a combined market potential nearly double that of the four largest metropolitan areas: Mumbai, Delhi, Chennai, and Kolkata. Furthermore, approximately 60 additional districts offer a compelling blend of emerging small towns (with populations under 500,000) surrounded by thriving rural areas. Examples include Gurdaspur (Punjab), Puducherry, Shimoga (Karnataka), Idduki (Kerala), and Wardha (Maharashtra). Concentrating marketing endeavors in these 111 emerging districts could cultivate a market almost three times the size of the combined market in the top four metros, according to exclusive insights from the 2008 edition of the RK Swamy BBDO Guide to Market Planning.
Evaluating Market Potential and Intensity
The guide not only assesses absolute market potential, represented by Market Potential Value (MPV), which can be elevated in specific regions, but also considers per capita potential, measured by the Market Intensity Index (MII). The MII serves as another crucial factor for strategic market planning. The guide encompassed 515 districts (out of a total of 593) spanning 21 states and three union territories. A comprehensive set of 24 parameters—including income, ownership, formal employment, and bank credit—were employed to evaluate MPV and MII for both urban and rural locales.
National Market Leaders and Emerging Contenders
Nationally, the Mumbai district (encompassing Mumbai, suburban Mumbai, and Thane town) retains its position as the largest market, followed by Delhi, Kolkata, Chennai, and Bangalore. Interestingly, among the top ten national markets, while Pune boasts a larger market size based on MPV, Hyderabad exhibits a higher quality market, with an MII of 202 compared to Pune's 173. The top ten markets collectively contribute approximately one-fifth of the country's overall market potential.