Indra’s Drishtikona (Viewpoint)

Rural Mall- a Hub for Rural Area

Posted : April 18, 2005 at 10:40 am [IST]

I received a large number of responses at least on this entry. All of them were from the students who wanted do some project. One such is here below

I am a MBA student at Birla Institute of Management Technology and specializing in rural business. I liked your article about ITC - Choupal Sagar, a rural mall initiative. I would like to get more information on it as I am preparing a project on it and not much information is available on Internet. Sir i would like to know the business model, the operating issues and efficiencies, etc If you can provide me with the same, it would be great for me.

I thought I must reply and encourage the young man.

Dear Satyajeet,
I wish I could have helped you with greater details. But I suggest you to visit the rural mall in MP and to contact ITC executives who are behind this initiative. However, I can share with you a dream of mine.

In a year or so, golden quadrilateral and part of S-N and E-W Expressways will be complete and that will cover almost all states of the country. I am seeing similar rural malls as ITC Choupal Sagar at every 50 or so kilometers near petrol pumps but off the Expressways and highways. The builders will construct the malls as unique pieces of Indian local architectural concepts. The area will have all utility services including other shops, cyber cafes, entertainment centers, repair shops, banks, cultural centers, education centers, and many other essential facilities. It will serve the purpose of some fairs (Melas) that were organized in old days in rural areas near some temples or riverbanks where people from nearby rural villages could buy and sell many things and store it for the rest of the year. Sonepur in Bihar was one such a famous fair. They need not store that once the malls are there. The shops in mall will meet their requirements on just-in-time basis. Shopkeepers as well as the rural customers will use cellular phones or Internet on computer for selling and getting the supply as when required. It will improve the quality of life. Rural people will have to bother about fake products. However, it requires a new breed of business class entrepreneurs to exploit the bottom of the pyramid customers.

Have you passed through cities and towns with huge number of filthy shops on both sides catering to the rural requirements? New entrepreneurs with their root in their village itself must come out to provide those services to the users where they need it. Why should users come to sellers? The services will become mobile. For your project, you must list out all that the rural population requires and see how can that be provided to them efficiently. I wish success in your project assignment.

- Indra

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