Digital Payments in Rural India – over next couple of years.

Predicting specific trends can be challenging due to various factors that could influence the

Digital payments in Bharat

trajectory of digital payments in rural and semi-urban India. However, based on the existing momentum and ongoing developments, I can speculate on potential directions this trend might take, and this gives me the confidence to go with a 100% digital payments mandate for Shunya. My confidence is boosted by the fact that UPI transactions in rural and semi-urban India increased by 118% in 2023, with a 106% increase in value. 

The short-term trends point towards:

1. Continued Growth: The trend of increased UPI transactions in rural and semi-urban India is likely to continue. Factors such as continued government initiatives, improved internet infrastructure, and growing smartphone penetration will contribute to sustained growth.

2. Further Adoption: As digital literacy improves and more people become comfortable with using smartphones and digital payment platforms, the adoption of online payments is expected to increase. I recently spend a few days purposely avoiding any cash payouts in rural UP and I was pleasantly surprised at the lack of complications – rural merchants of all kinds have adopted to the UPI / Paytm / Google Pay. 

3. Expansion of Services: Digital payment providers are likely to expand their services and offerings to cater specifically to the needs of rural and semi-urban users. This could include features such as language localization, simplified user interfaces, and tailored financial products like buy-now-pay-later to better serve these demographics.

4. Government Support: Continued government support through initiatives like Direct Benefit Transfers (DBT) and other subsidy programs will encourage more people in rural areas to adopt digital payment methods. The government's focus on financial inclusion and promoting a cashless economy will further drive the adoption of online payments. Was a little disappointed to see that some of the village based milk-collection centers were making cash payouts every fortnight, however, I think that will change fairly quickly. 

5. Infrastructure Development: Further improvement in internet connectivity and infrastructure in rural areas will also contribute to the growth of online payments. Investments in 5G technology and expansion of broadband services will enable smoother and faster digital transactions, encouraging more people to use digital payment platforms, however, internet availability and power (electricity) is now a non-issue. 

6. Partnerships and Collaborations: I expect the digital payment providers to form partnerships with local businesses, government agencies, and non-profit organizations to facilitate easier access to digital payment services in rural areas. Collaborative efforts to address specific challenges, such as connectivity issues and last-mile delivery of financial services, will help accelerate adoption.

7. Security and Trust: Ensuring the security of online transactions and building trust among rural users will be essential for sustaining the growth of digital payments. Continued efforts to enhance security measures, educate users about safe online practices, and address concerns related to fraud and data privacy will be crucial in maintaining user confidence. I was very happy to hear one of the merchants talk about benefits of receiving digital payments – lesser trips to the bank (or intermediaries) to deposit cash, lack of soiled notes, “more savings”.

Overall, while it's difficult to predict the exact trajectory of digital payments in rural India, the current trends suggest an extremely positive outlook with continued growth and adoption of online payment methods. My prediction – Bharat will pleasantly surprise us over the next few years. 

Why are we called Shunya?

Shunya means “nothingness” –  and everything else starts from this nothingness. 

The concept of Shunya is truly Indian and clearly defined first in arithmetic by Brahmagupt, Shunya is the foundation of modern mathematics and scientific thinking. 

It is the cornerstone of everything digital that is impacting our lives. You might know Shunya as Zero – as referred to in English. 

Shunya does not have a character or value of its own, but adds tremendous value and character to anything that it gets added to – in our case to the lives our the farmer and his farm animals and of course to our environment. 

For more info visit www.shunya.live or connect with me. 

Animal Fodder Deficit in India - a real problem

As of my last knowledge update in September 2021, India has faced challenges in meeting the demand for quality fodder. The availability and quality of fodder can vary across different regions of the country, and several factors contribute to the fodder deficit:

Green Fodder in Fields

1. Inadequate Cultivated Land: India has limited arable land, and a significant portion is
dedicated to food crops. As a result, the land available for fodder cultivation might be insufficient to meet the demand.

2. Dependence on Rainfed Agriculture: A large part of India's agriculture is rainfed, making fodder cultivation heavily reliant on monsoon rains. Irregular rainfall patterns can lead to fluctuations in fodder production.

3. Seasonal Variation: Fodder production is often affected by seasonal changes, with shortages being more common during the dry seasons.

4. Lack of Knowledge and Awareness: Many farmers may not be fully aware of the benefits of high-quality fodder or may lack the knowledge and resources to produce it.

5. Fodder Management Practices: Improper management and storage of fodder can lead to spoilage and nutrient losses, affecting its quality.

6. Competition for Resources: The competition for resources like water and land between fodder production and food crops can limit the availability and quality of fodder.

7. Climate Change: Climate change impacts, such as unpredictable weather patterns and extreme events like droughts, can further exacerbate fodder deficits.

It's worth noting that the government of India and various non-governmental organizations have been working to address these challenges and promote better fodder management practices. Initiatives like improved seeds for fodder crops, promotion of hydroponic fodder systems, and awareness campaigns on fodder conservation and management have been undertaken to bridge the gap between demand and supply.

Mobile Coupons Drive Traffic to the small retailers.

The independent retailers have had a drawback. Their marketing efforts lacked teeth. Unlike the large format stores, the neighborhood based independent stores have been unable to undertake precise and results oriented marketing. 

Mobile Coupons are known to drive consumer engagement and usage, but their usage has traditionally been limited larger establishments with well defined CRM practices. 

AaramShop has finally brought forth a solution that combines the power of mobile coupons with the ease of use and flexibility. A solution which is custom designed for small retailers and their specific requirements.

Our coupon solution helps the retailers drive:

1. increased awareness among the shoppers in the neighborhood.

2. sales of specific product lines or bill cuts of higher value.

3. increased footfalls and orders. 

And all with the flexibility of using our free merchant solutions on the app, cloud or in-store - AaramOn

Trends Study - FMCG, India & Digital.

Google and Bain Consulting's recently released report on the impact of digital and ecom on the FMCG brands was extensively covered.

Of the multiple aspects of the report the two that leaped out for attention were:

50x projected growth in about 5 years - with about 5% of the sales being online.

 The other was that in 5 years 35% (35 Bn USD), would be digitally influenced sales.










The critical role of "digital" for FMCG brands is clearly established. Fun times ahead.

State of Grocery Home Delivery Report : India

As part of our constant endevour to understand the evolving trends & shopping behavior of grocery

consumers, AaramShop undertook an exhaustive research across 150 stores in the Delhi & NCR. The core objective was to understand the entire scope of "home delivery" within the FMCG segment and its current and future impact on brands. 

The research results are in and they indicate that Home Orders at the neighborhood retail stores are starting to become very significant indeed.  This, of course, has significant implications for brands from the following points:

a.    How to influence the customer when she is planning her monthly purchase

b.    How to influence her when she is placing the order

c.    How to influence her when she is getting the delivery

We found that 60% of the shops surveyed had more than 40% of their business coming from the Home Orders. Y-axis represents the % of business via home orders.

If you are interested to get hold of the full report, please send me an email or a tweet.

Related articles

• The changing profile of Indian retailers & AaramShop.
• Point of Sale has moved - from the store to the consumers' home.
• Mobile Disrupting Path to Purchase.
• Simplified Online Plan for FMCG brands in India.

Neighbourhood kirana shop is spiffing things up.

Business Today examines how the traditional trade stores (general trade stores) are managing the challenge posed by the large format modern trade outlets in markets like India. 

The feature examines both the initiatives taken by the owners / retailers themselves and the support that they are getting from multiple organizations like AaramShop not just to stay competitive but to thrive.

Read the full article here

Related articles

• Networking the neighbourhood kirana @ AaramShop
• Who Wins? Modern retail chains or Mom and Pop stores?

Prof Rajiv Lal on retailing in India.

Came across Prof. Rajiv Lal's interview in the recent Forbes and this brief interview with Mint. His views echo our business premise and his jargon-less logic is superb especially on food retail.

Point of Sale has moved - from the store to the consumers’ home.

Traditionally FMCG brands have focused their marketing efforts on ensuring high brand visibility at the stores & while that is critical – there is an aspect that might be getting overlooked.

Home Delivery!!

The new point of sale is the consumers' home.

Home Deliveries are the backbone of the general trade in India. Our research has revealed that some of our AaramShops have as high as 55% of their business from home deliveries, while the average home delivery business across urban stores is a high 32%.

The prevalence of such a high level of home delivery across urban centers of India warrants a strategic rethink by brands.  The challenge with home delivery is that the consumers are just not walking-in to the store, as the orders are getting placed on the phone or online. Obviously the last mile visibility & communications strategy is not working for these consumers.

The solution lies in reaching the consumers in their homes, and influencing the buying decision right where it is made.   

At AaramShop, we have custom created unique solutions to tap this huge opportunity – we have the network, the coverage & reach, the technology and fine-tuned processes to ensure that brands can influence consumers to get a place within the home delivered orders. 

Talk to us if you need help in reaching your brand communication, offers and promotions directly to consumers and have them serviced via AaramShops.

Related articles

• AaramShop's Mobile Coupons.
• 2000+ AaramShops to choose from.
• Free Services Available for Brands on AaramShop
• Integrating the moments of truth for FMCG brands.
• Why digital & why AaramShop

AaramShop's Mobile Coupons.

Happy to roll-out our end-to-end mobile coupon solution for FMCG brands. The solution leverages the strong network of AaramShops across the country to ensure ease in redemption. 

AaramShop’s Mobile Coupons enable brands to deliver their promotions directly to the consumers mobile, targeting the right audience with the right offer. Our mcoupons, are proven to deliver higher redemption rates and reduce operational costs in Indian retail environment.

Learn More here

The most shared sectors on Facebook is FMCG.

Fashion-savvy brands have the strongest and most social communities on Facebook, according to an infographic from Socialbakers.  They arrived at this by Measuring activity from 5,000 Facebook users during one month, the graphic shows that fans of fashion, automobile, and e-commerce pages take the top three spots when it comes to total interactions, total “likes,” and total comments.

Not surprising, as new lines & products are introduced virtually every day in these categories, however, what did interest me was that when it comes to total shares, fast-moving consumer goods (FMCG) led the pack, followed by the nonprofit and travel sectors. FMCG brands a reason to smile on their FB walls.

Related articles

• Customer Journey to Online Purchase (CPG / FMCG)
• 3 things for FMCG brands to consider when using social media
• FMCG sector faces regulatory risk from TRAI that could impact their advertising spends
• The Digital Wake-up Call for FMCG Marketers
• Online FMCG / CPG Retailing - it's challenges and opportunities

"Call to action" on FMCG print ads.

A number of daily essential brands (FMCG & CPG) have started experimenting with integrating the benefits of the AaramShop platform into their digital assets and also in creating viable "call to action" on their traditional advertising initiatives like print adverts and product packs. However, some confusion persists and hence this post. 

Brands have traditionally been used to creating advertising & communication campaigns which are predominantly focused on increasing awareness & recall. 

While consumer durable print ads normally have a dealer panel where customers / readers can visit and buy or a website where the purchase could be done, FMCG / CPG ads are completely devoid of any "call to action". 

The assumption is that the consumer would be able to recall the advert in his / her next visit to a store and then will proceed to buy - leading to a gap between interest and action, and thereby inaction.

AaramShop now enables consumers to add brands that they love directly to their shopping lists - which can be used both online and offline. Once the brand is within the consumers' shopping list, re-purchase becomes effortless. 

Try the above mentioned example and write to us for more details on how we can help you modify your next advert into a shop and convert your reachability into shoppability.    

Related articles

• Integrating the moments of truth for FMCG brands.
• The Aaram Widgets will help close the loop.
• Why digital & why AaramShop
• QR Code integration opportunities for brands on AaramShop

EveryWhere Commerce via mobile devices.

Now add "Shoppability" to "Reachability".

FMCG & CPG brands reach out to consumers using every media option available - both offline and online. However, what has often been missing is the possibility of translating brand awareness into action - that too real-time.

AaramShop's plug-ins now enable consumers to add the brand they want directly into their shopping list - commerce happens across touch-points and across devices.

Talk to us to understand how we enable EveryWhere Commerce.

From the web to the consumers' doorstep; enabled commerce for FMCG brands.

FMCG brands are uniquely challenged when it comes to exploiting the digital boom. The in-ability to close the loop using a traditional e-commerce route has plagued the sector forever. 

Almost all digital spends undertaken by FMCG brands have resulted in an increased awareness and engagement, however, resultant transactions have been a challenge. 

Traditional ecommerce has been a non-starter in the sector due to low product cost, lower retailer margins, very high logistics costs etc. 

AaramShop’s unique model, enables FMCG brands to extend their digital campaigns to have a last mile connect. 

Connecting digital assets to last mile assets for FMCG brands

AaramShop enables home delivery of your brands to millions of households across India via its thousands of partner retailers who are strategically placed within the neighborhoods. 

View a simple example here of how a “buy now” integration can change a touch-point to an action point. 

To ensure that your next digital campaign or your existing digital assets get you a higher and a trackable RoI, do contact me.

Related articles

• Digital marketing drives ROI for FMCG brand
• Five trends that will drive FMCG growth in 2013
• FMCG brands must lift category vision to compete with multiples, says specialist
• New challenges for FMCG
• AaramShop Grocery Festival - the power of many.

Einstein Simplified!!

If Einstein can be simplified, I bet digital  marketing for FMCG / CPG brands can be simplified as well.

You would have noticed that it is difficult (if not impossible) to wrap up a digital / online marketing discussion, without learning a few extra jargons and tech-speak. All the jargon has a MEGO effect on me (`My Eyes Glaze Over') :-). 

If you are into jargons pick up a few from here.

The other interesting bit in most discussions is the "evasive action" when it comes to quantifiable returns from the marketing spends. 

At AaramShop, we have taken a few steps towards addressing this challenge by creating a marketing program which converts consumer touch-points (jargon 1) into shopper action-points (jargon 2) for FMCG / CPG brands. 

Talk to us about our Simplified Online Plan for FMCG brands (in India) and sign-in for the Step-Up Program. 

You are assured of time porn (jargon 3) 

Related articles

• Get into shoppers' favourites, Ocado marketing director tells FMCG brands.
• FMCG's rise to the top of the online adspend pile
• FMCG firms help push digital adspend to record high of £2.6bn
• Un-learning Sampling : Re-learning Sampling.