Modern demand prediction models are bringing production and distribution closer to real-time. This paradigm shift is bringing a new set of challenges and opportunities for FMCG companies, data shows.
India’s fast moving consumer goods (FMCG) companies are ramping up their talent acquisition efforts in rural areas. They are seeking versatile or seemingly ‘super workers’ who can seamlessly handle multiple functions, ranging from delivery to sales. High on the list are individuals with valid driving licences or those willing to develop new skills amid the companies’ bid to adapt to rapidly changing consumer preferences coupled with emerging realities of digital channels.
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Analysts cite that the surge in rural multitasking workforce recruitment by FMCG players is driven not only by the rise of quick-commerce (q-commerce), but also the growing need to strengthen traditional distribution networks and ensure product availability in the hinterlands. Modern demand prediction models are bringing production and distribution closer to real-time. This paradigm shift is bringing a new set of challenges and opportunities for companies, including leading FMCG firms such as Hindustan Unilever Ltd (HUL), ITC, and Tata Consumer, which have set up nano factories closer to the markets they serve. These companies have significantly increased their direct distribution efforts over the past two years to reduce reliance on wholesalers. For instance, HUL’s homegrown Shikhar app allows retailers to place orders directly, which are then fulfilled by the company or its authorised distributors.
Beyond sorters and delivery agents, roles such as sales officers, area managers, and supply chain coordinators are in big demand, particularly those capable of managing multiple responsibilities in rural markets.
FMCG job listings on Glassdoor highlight numerous openings for sales officers in areas such as Nandurbar, Surat, and Bhopal, reinforcing this growing trend. Companies have increased hiring by 10 per cent this year and are narrowing their searches to multi-skilled employees, according to data from TeamLease. Currently, the sector employs a total workforce of around three million.
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Rural India poised to lead growth
For FMCG companies, urban markets account for two-thirds of sales by value, while rural areas contribute the rest one-third. However, the strategic focus on Tier-II and Tier-III cities is intensifying as evolving lifestyles and rising purchasing power in rural regions create new growth opportunities. With urban markets facing slowdowns, tapping into rural demand is becoming a crucial avenue for sustaining sales. The desire for convenience products has resulted in a 60 per cent increase in the average FMCG basket size among rural consumers, according to the 2024 Rural Barometer report by Kantar and GroupM.
As stressed urban consumers cut back on spending, sales across categories — from biscuits to cars — have taken a hit. However, rural areas continue to show consistent trends of upgrade amid digital expansion and rising incomes. Rural consumers are increasingly opting for higher-quality or premium products, even at higher costs. For instance, HUL observed that rural consumers who previously purchased Re. 1 sachets of Clinic Plus shampoo are upgrading to Rs. 2 Dove sachets.
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Multi-skilled labour force in demand
“The demand for multi-purpose workers is most pronounced in the FMCG sector as rural markets experience significant growth. The sector is focusing on hiring versatile employees capable of handling multiple functions, such as engaging with rural consumers and retailers and ensuring timely product delivery in areas with limited infrastructure,” Balasubramanian A, Senior Vice-President and Business Head at TeamLease, told Moneycontrol in a recent interview.
He cited the example of van sales representatives, who play a key role in connecting brands with customers in urban and rural markets. Their duties include driving sales vans, replenishing stock, taking customer orders, delivering products, collecting payments and maintaining sales records. Companies are offering upskilling programmes to train these representatives in safe driving, digital sales tools, and communication skills. They are helping these representatives expand into new markets and drive growth.
“Workers are trained in customer engagement, product knowledge, and the use of technology in daily tasks to bridge the gap between traditional and digital sales. Many companies are investing in upskilling initiatives to equip workers with the versatility needed for multi-purpose roles. It’s rare to find an individual with both driving and sales skills,” said Balasubramanian.
As companies seek flexibility and efficiency, there may be a gradual shift from specialised positions to more generalised roles that encompass multiple functions, potentially redefining job descriptions across sectors.
FMCG demand in rural India is projected to grow up to 400 basis points (bps) higher than urban demand, according to TeamLease.
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“The rural landscape is no longer just a geographical space. It’s a digital frontier full of opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are,” said Ajay Mehta, Managing Director (MD), GroupM, OOH Solutions.
India’s FMCG sector recorded 5.7 per cent growth by value and 4.1 per cent growth in volume during the July-September quarter, according to consumer intelligence firm NielsenIQ. Price growth was recorded at 1.5 per cent, with rural volume growth surpassing urban growth for the third consecutive quarter, reaching 6 per cent.
