rural consumer
TRANSCRIPT
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72%
67%
64%
1981 1998 2017
The
PAKISTAN
Population in %
60.4
89.3
132.2
Population in Millions
Source: GOP Census 2017
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• Rural population resides in 'villages’ while urban population lives in
cities/ towns. As per 2017 census, urban population of 75,584,989
lives in 475 cities/towns while rural population of 132,189,531 lives in
45,752 villages
• All places declared as Municipal Committee (MC), Town Committee
(TC) or Cantonment Board (CB) constitute Urban Pakistan.
• Any area, which is not covered by the definition of urban, is Rural.
• Major differences between urban and rural areas are the size of
location (cities are much bigger than villages) and are thus more
dense in population, occupation of inhabitants (very few in urban are
agriculture related), literacy and in access to amenities.
How is Rural Pakistan defined?
Source: GOP Census 2017
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Share of Rural Population: 1981-2017
72% 67% 64%
57%51% 48%
Category 1
f r|Except Sindh, face of Pakistan remains rural despite steady decline in its share in total population
1981 1998 2017
SINDH
84%76%
72%
Category 1
72% 69%63%
Category 1
100%97% 97%
Category 1
BALUCHISTAN PUNJAB KPK FATA
Total Rural Population in Percentage
85% 83% 81%
Category 1
Source: GOP Census 2017
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Province Share in Urban Population
Province Share in Rural Population
Sind Baluchistan Punjab KPK FATA
Punjab dominates both urban & rural parts of the country despite Sind being the most urbanized
province. Though overall Sind has more population than KPK, within rural later is slightly bigger
than former
19982017
17%18%
6% 7%
57%53%
17%19%
3%4%
19982017
34%34%
4%4%
53% 53%
7% 7%
1% 0%
f r|
Source: GOP Census 2017
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Agriculture share in Economy & Labor force
GDPLabor Force
20%
42%
Share of Labor force in agriculture is already declining
Agriculture has long become subordinate to industry (20% contribution to GDP), though majority
of labor force (mainly rural) is associated with the sector and therefore is less productive. So, in
about a decade agriculture will not be a chief profession even in rural !
f r|
30.00
35.00
40.00
45.00
50.00
55.00
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Labor force survey
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Literacy – Population 10 Years & Older
Literacy by Urban & Rural AND by Gender
64
82
37
69
51
76
0 20 40 60 80 100
Rural
Urban
Rural
Urban
Rural
Urban
Mal
eFe
mal
eO
vera
ll
77
77
66
65
55
42
49
37
PUNJA B S IND H KPK BA LUCHISTA N
Urban Rural
Source: PSLM-(2015-16)
Literacy by Urban & Rural and by Province
Low female literacy is pulling down the overall rural literacy ratio, more so in Sind & Baluchistan!
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45,283
30,110
29% 10%
Rural population earns less despite being economically more active, as they are less skilled &
work less efficiently
f r|
Labor force participation
rate
Females as a percentage of
Labor force
Unemployment rate
49% 39%49% 39% 5% 8 %
Monthly household
income
% of labor force with agriculture
Unpaid family worker
Literacy
22%8%
Urban Rural
2% 40%
76% 51%
Source: Labor force survey
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f r|
Average Household Size, 1998 AND 2017
7.26.3
6.85.7
7.77.87.2
1998 2017
6.9 6.55.5 5.5
6.9 6.56.46.9
1998 2017
Punjab Sindh KPK Baluchistan
URBAN RURAL
Source: GOP Census 2017
Household size is on the decline, more so in urban areas
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Rural population owns a house & increasingly living in some sort of a ‘Pacca’ house f r|
OWN RENT FREESUBSIDIZE
RENTRCC/RBC
WOOD/BAMBOO
SHEET/IRON/
CEMENT
IRONGARDER
OTHERBURNT BRICKS
MUD BRICKS/MUD
WOOD OTHER
PUNJAB 90 3 7 0 14 24 2 58 2 98 1 0 0
SINDH 91 1 8 0 5 59 2 35 0 43 46 9 2
KPK 90 4 5 1 28 47 12 13 1 55 18 1 27
BALOCHISTAN 92 2 6 0 2 82 2 14 0 17 76 2 6
OWNERSHIP ROOF MATERIAL BUILDING MATERIAL
Source: PSLM-(2015-16)
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Percent Distribution Of Households By Fuel Used For Cooking
Source: PSLM-(2015-16)
Wood/sticks continue to be the fuel for cooking in rural households across provinces
82
17
91
15
80
14
60
12
15
69
8
74
19
85
38
86
314
111
1 2 2 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural Urban Rural Urban Rural Urban Rural
Punjab Sindh KPK Baluchistan
16
85
73
13
11
2
0% 20% 40% 60% 80% 100%
Rural
Urban
GAS/OIL WOOD/STICKS OTHER
By Urban & Rural By Provinces
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99 93 99
82
99 96 98
74
15
1
8
11 2
20
0 1 0
3
00 0
4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural Urban Rural Urban Rural Urban Rural
Punjab Sindh KPK Baluchistan
90
99
6
1
1
0
3
0
0% 20% 40% 60% 80% 100%
Rural
Urban
ELECTRICITY GAS/OIL WOOD &CANDLE OTHER
Source: PSLM-(2015-16)
Electricity has reached across Rural with a few exceptions in Baluchistan & Sind
Percent Distribution Of Households By Fuel Used For Lighting
By Urban & Rural By Provinces
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Poor water accessibility in rural Baluchistan
Households by Type of Toilet (%)
Source: PSLM-(2015-16)
Rural Punjab & KPK are more developed than the other two provinces
98
70
97
31
97
71 78
14
1
6
3
53
2
1522
68
1
24
116
114
0
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural Urban Rural Urban Rural Urban Rural
Punjab Sindh KPK Baluchistan
FLUSH NON FLUSH NO TOILET
35
9
69
7
55
30
69
20
7
38
8
63
7
14
3
8
4047
1112 32
25
11
21
1
11 8
4
9
1
15
184 11 9 3
22 17
36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural Urban Rural Urban Rural Urban Rural
Punjab Sindh KPK Baluchistan
TAP WATER HAND PUMP MOTOR PUMP DUG WELL OTHERS
Households by Source of Drinking Water (%)
Around 4/5th of Rural households have toilets, a non-flush in case of Baluchistan & Sind while a flush one in other provinces
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f r|
RURAL ONE
ROOM2 - 4
ROOMS5 & MORE ROOMS
PUNJAB 28 66 6
SINDH 47 52 1
KPK 17 74 9
BALOCHISTAN 17 77 6
Not only rural households are large in size, they live in relatively small houses & hence more
people share a single room
URBAN ONE
ROOM2 - 4
ROOMS5 & MORE ROOMS
PUNJAB 24 68 8
SINDH 25 71 4
KPK 17 69 14
BALOCHISTAN 13 75 12
Source: PSLM-(2015-16)
RURAL Average Person Per
Room (1998)Average Person Per Room (2017)
PUNJAB 2.7 2.5
SINDH 3.5 2.6
KPK 3.0 2.7
BALOCHISTAN 2.8 2.4
URBAN Average Person Per
Room (1998)Average Person Per Room (2017)
PUNJAB 2.8 2.3
SINDH 2.9 2.2
KPK 3.1 2.5
BALOCHISTAN 3.2 2.3
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Shift in paradigm form food to fashion goodsf r|
Percentage of monthly consumption expenditure by commodity groups
Commodity groups2012-13 2013-14 2015-16
RURAL RURAL RURAL
Food & Non Alcoholic Beverages 51 46 42
Alcoholic Beverages, Tobacco - 1 1
Clothing and Foot Wear 10 7 10
Housing, Water, Electricity, Gas and Other 17 17 19
Furnishing, Household Equipment and
Routine Maintenance of the House- 2 3
Health - 4 4
Transport 6 7 5
Communication - 2 2
Recreation & Culture 0 1 1
Education 3 2 2
Restaurants and Hotels - 5 6
Miscellaneous 13 7 5
Source: HIES-(2013-16)
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Still lower Per household spend in rural (PKR/month)
327 290
5,272
325 411
6,053
Home Care Personal Care Foods
Urban Rural
f r|Rural offers greater growth opportunities …
58.1
92.2
132.2
Growing population
1981 1998 2017
Source: HHP Data MAT 09’17
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Across the categories Rural areas have a lion share in the market
31%45% 37%
69%55% 63%
Home Care Personal Care Foods
Urban Rural
Though rural contribution is slightly lesser than their population share
0.87
1.251.041.07
0.860.98
Home Care Personal Care Foods
Urban Rural
f r|Rural Pakistan is an important segment & should continue to be targeted …
Source: HHP Data MAT 09’17
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f r|… Even within Foods, Rural share is less than its population share in most sub-categories
37%
40%
42%
43%
45%
53%
54%
55%
56%
60%
60%
61%
63%
63%
65%
65%
68%
68%
73%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Hotel & Restaurants
Mutton
Tetra Pack Milk
Mineral Water & Soft Drinks & Juice
Fish
Fruits
Spices
Beef
Chicken
Salt
Bread & Cereals
Rice & Rice Flour
Pulses
Vegetables
Tea
Loose Milk
Sugar
Wheat & Wheat Flour
Ghee
Gur & Shakkar
Source: HIES-(2015-16)
Rural Population Share 64%
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Buy small quantities -more frequently
Look for ‘acceptable performance’/ functional
benefits at a reasonable price
Word-of-mouth, very important and credible
Free time is spend with neighbors
(Entertainment and Information)
Buy products that are perceived to be popular: the ‘bandwagon’ effect
Family comes first
Usually feel happy
Education is the only way of prosperity, however, as the children grow the tradeoff between immediate income vs. future income become harder & many still decide for former
Strong belief in religion
f r|Rural Traits