Mumbai, India – While most brands fight for dominance in urban India, smart companies are quietly shifting focus to untapped rural and Tier-3 markets. Two unlikely examples—Pidilite’s new paint brand and café chain Barista—prove that the real growth lies beyond metros.
▪️Pidilite’s Smart Paint Strategy: Not 15%, But 3-4.5% of the Big Pie
Recent reports claimed Pidilite was eyeing a 10-15% share of India’s ₹ 70,000 crore paint market. But that’s misleading.
Outgoing MD Bharat Puri actually highlighted that 30% of the paint market (~₹ 21,000 crore) comes from small towns and rural India —and that’s where is targeting a 10-15% share.
▪️What does this mean?
- An overall 3-4.5% market share—modest but meaningful.
- In its focus segment (non-urban markets), could quickly become a Top player.
▪️Why it matters: While giants like Asian Paints, Nerolac and more battle in cities, Pidilite is making a low-cost, high-reward bet on Bharat. Lower competition, brand trust (thanks to Fevicol), and rural distribution could make this a winning move.
▪️Barista’s Tier-3 Café Dominance: No Competition, High Aspiration
A similar story is unfolding in India’s café sector. While Starbucks and other bleed money fighting over urban coffee lovers, Barista has quietly expanded in Tier-3 market.
▪️Why Tier-3 works for Barista:
✔ Almost zero competition – No Starbucks or other here.
✔ Aspirational demand – Young consumers want trendy cafés.
✔ Lower costs– Rent, labor, and operations are cheaper.
Result? Profitable growth while metro players struggle.
▪️The Big Takeaway: Go Rural or Get Left Behind
As urban markets saturate, Tier-3 and rural India are becoming the next frontier for brands. Companies that tailor products, pricing, and distribution for these markets could reap massive rewards—just like Pidilite & Barista.
(Sources: Industry reports, management commentary)
1.jpeg)
.jpeg)
