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|Great Indian Families 2009|
|Written by Juxt Consult and Indicus Analytics Research|
|Wednesday, 25 March 2009 09:15|
A JuxtConsult – Indicus Analytics Joint Study. Understanding the Indian ‘Families’ as Consumption Units
Great Indian Families 2009 Understanding the Indian ‘Families’ as Consumption Units A JuxtConsult – Indicus Analytics Joint Study
Correcting a basic market research anomaly! ? Consumers live their lives as ‘families’ and not households. And family consumptions get driven by the all the people living in them and not just by the ‘chief wage earner’ of the house ? How a family consumes gets defined as much by the ‘family composition’ and the ‘lifecycle stage’ the family is in, as by its socio- economic status and the ‘ability to spend’ ? It is therefore important to ‘distinguish’ and understand families by their ‘member composition’ to target them appropriately
The Macro Picture ? There are approx. 226 million families in India* (72 mn urban, 154 mn rural) ? The average family size varies from 1 to 6.9 depending on the family composition ? 25 mn Indian families (11% of all families) have more than 1 earning member ? 28 mn Indians (2.5%) prefer to read in English, marginally more than Malayalam. 50% of Indians preferring to read in English live in rural areas ? Average monthly family income in India is Rs.5,930 (‘per capita’ is Rs.1,350) ? 70% of all Indian families earn average to below-average incomes * accounting for approx. 1,112 million individuals (343 million urban and 769 million rural)
The Socio-Economic Landscape At 30%, highest proportion of families belong to SEC ‘R4’ ? 19.5 million families (27% of urban, or 9% of all Indian families) belong to SEC ‘A’ and ‘B’ ? Chief wage earners of 87% of SEC ‘A’ and 36% of SEC ‘B’ families are graduates ? No SEC ‘C’ and ‘R1’ chief wage earners are graduates. But 15% SEC ‘C’ families and 22% ? SEC ‘R1’ families have a graduate member within the household Clearly then, defining the socio-economic status (SEC) of a household using education ? level of the ‘chief wage earner’ is losing its meaning and can often mislead Time to look beyond the ‘urban-rural’ divide, and the ‘chief wage earner’ driven SEC definitions to understand families as consumption units!
The Real Socio-Economic Ladder by Incomes Monthly ‘Per Capita’ Family Income Ratios SEC ‘R4’ 1 ? (Rs.830) 1.1 ? SEC ‘R3’ times of R4 SEC ‘E’ ? 1.2 ” SEC ‘D’ 1.4 ” ? SEC ‘R2’ 1.6 ” ? SEC ‘C’ 1.8 ” ? SEC ‘R1’ 2.3 ” ? SEC ‘B’ 3.0 ” ? SEC ‘A’ 5.3 ” ?
The New Indian Consumer Pyramid 131 million families (634 million individuals) Tier 3 The Underprivileged 44 million families (217 million individuals) Tier 2 The Aspiring Class SEC A SEC D SEC C SEC B SEC E Tier 1 SEC R2 SEC R1 SEC R3 The Consuming Class SEC R4 51 million families (260 million individuals) * Total – 226 million families (1,112 million individuals)
Looking at Families by ‘Lifecycle’ Stage ? 51% Indians are married. But only 1 in 5 Indian family (21%) is a 3-generation joint family, or ‘Dynasties’ ? An equal proportion of Indian families (21%) are ‘Baby Sitters’ - with the eldest child below 12 years in age ? The majority 45% of Indian families are ‘Maturing Mentors’, or families with the youngest child above 12 years in age ? Young married couples without any children, the ‘Nest Builders’, account for only 7% of all Indian families ? The single independents, or ‘Free Birds’, account for only 1.3% of all Indian families
Glimpse of their Socio-Economic Status…. ? Dynasties have the highest average monthly family incomes (Rs. 6,530). But they have the lowest average ‘per capita’ monthly incomes (Rs.975) ? Free birds show the second highest average monthly family incomes (Rs.6,385), and the highest average ‘per capita’ monthly incomes (Rs.6,385)* ? Rented accommodation is highest among Free Birds (at 35%). Dynasties show the highest incidence of ‘inherited’ property (at 74%) ? Automobile ownership (both cars and 2-wheelers) is highest among Dynasties ? Preference for reading in English is relatively highest among ‘Free Birds’ (6%) and lowest among ‘Dynasties’ (0.5%) * Note – Sample of ‘Free Bird’ segment relatively low for high statistical accuracy of its segment level findings
How a Family Rupee is being Spent! Household Consumption Head Distribution of Spends (%) Families Who Spend on Them* All Families** Basic food and clothing 55% 55% Rent and utilities 12% 5% Transport and conveyance 12% 11% Loan and other regular liabilities 11% 3% Leisure and entertainment 11% 9% Saving and investment 15% 11% Other unclassified spends 13% 6% Note - Not all families spend money on all heads * Taken on valid households base, so doesn’t add up to 100%. ** Taken on all households base, so adds up to 100%.
Physical Asset Ownerships! % Families Owning % Families Owning Household Asset (Urban) (All India) Home 65% 86% Any TV 91% 86% Color TV 79% 63% C&S Connection 69% 56% Any Phone 66% 50% Mobile Phone 64% 48% Any Automobile 42% 32% Car 3.5% 2% 2-wheeler 41% 31% Fridge 35% 22% Washing Machine 14% 7% Computer/Laptop 10% 4.5% Air Conditioner 2% 0.8% Home + Automobile = 27% urban and 25% all India
Financial Asset Ownerships! % Families Owning % Families Owning Financial Asset (Urban) (All India) Bank Account 59% 58% Life Insurance 26% 23% Debit Card 16% 9% FD/Bonds 10% 5% Credit Card 4% 2% Medical Insurance/CGHS 4% 2% Mutual Funds/Shares 3% 1% Home + Bank Account = 28% urban and 41% all India Home + Life Insurance = 12% urban and 16% all India
Types of Assets! % Families % Families Cars Bikes Owning Owning Small Car (<4 lakhs) 68% 100cc or less 48% Mid Size Car (4-8 lakhs) 29% 125cc 39% Premium Car (8-14 lakhs) 5% 150cc 11% Luxury Car (>14 lakhs) 1% 180cc or above 3% % Families TV % Families Washing Machine Owning Owning Regular Flat 21 inch or less 88% Semi-automatic 78% Regular Flat > 21 inch 11.5% Automatic 22% LCD & Other Premium 0.5% * All India Figures. May add up to more than 100% because of multiple ownerships
Types of Assets! % Families % Families Fridge Mobile Phone Features Owning Owning Single door 89% Color Screen 82% Double door 11% Games 78% FM Radio 49% Any Camera 16% % Families Mobile Connection Owning MP3 Player 12% Bluetooth 10% Pre-paid 95% Video recording 9% Post-paid 5% GPRS 7% Extended memory 4% GSM 75% Touch Screen 4% CDMA 11% Wi-fi 1% Can’t Say 14% * All India Figures. May add up to more than 100% because of multiple ownerships
Types of Assets! % Families % Families Size of House Mobile Services Used Owning Owning Less than 250 sq.ft. 21% Roaming National 64% 250 – 500 sq.ft. 36% ISD Calling 6% 500 – 1,000 sq.ft. 27% MMS 4% 1,000 – 1,500 sq.ft. 9% GPRS 4% 1,500 sq.ft. and above 7% GPS 1% Roaming International 0.3% % Families Credit Card Owning Co-branded 20% Silver 53% Gold 27% Platinum/Titanium 5% * All India Figures. May add up to more than 100% because of multiple ownerships
Glimpse of Segment Level Findings…. 35% urban families live in a rented house. Only 5% rural families do so ? 38% of SEC ‘A’ families live in 1,000 sq.ft. plus house ? Only 2.5% urban families have a home loan running currently ? 54% small car ownership and 57% motorcycle ownership is in rural India ? 24% SEC ‘A’ families have a car, only 6% SEC ‘R1’ households own a car. But in absolute numbers, while SEC ‘A’ own ? 1.58 mn cars SEC ‘R1’ own 1.66 mn cars 3 out of 4 car owners also own a 2-wheeler. Only 5% of 2-wheeler owners also own a car ? The average monthly family income of a ‘small car’ owning family is 2.1 times higher than a ‘motorcycle’ owning ? family; that of a ‘premium car’ owning family is 3.8 times higher than a ‘motorcycle’ owning family ‘Maturing Mentors’ have the highest proportionate ownership of mid size cars (at 33%), ‘Vintage Wines’ of small ? cars (at 88%)
Top 5 Biggest Communities in India % of Urban % of Rural Top 5 Urban Communities Top 5 Rural Communities Families Families Gujarati 16% Telugu 9% Awadhi UP 12% Marathi 8% Telugu 12% Tamil 8% Kannada 11% Non-Awadhi UP 6% Marathi 7% Punjabi 6%
A Glimpse of Segment Level Findings…. Highest per capita monthly income is among Kannads (Rs.2,190) and lowest among the Bihari Hindis (Rs.730) ? Marwari community shows the highest proportionate spend on ‘loans and liabilities’ (at 15.4%). Telugu ? community shows the highest proportionate spend on ‘savings and investment’ (at 20.7%) Gujaratis and Marwaris show the highest ownership of ‘any automobile’ (at 43% and 39%). Assamese show the ? highest penetration of cars at 7% Tamils and Kannads have the highest penetration of color TV (at 89%) ? Punjabis have the highest penetration of fridge at 56% ? Telugus have the highest penetration of air conditioners at 4% ? Kannads and Gujaratis have the highest penetration of mobile phones at 68% and 66% ?
Media Usage Status Families Using Individuals Using % Spending More Media At Home At Home than 1 Hour Daily In millions (All India) In millions (All India) Weekday (All India) Television 187 613 43% Newspaper 104 361 10% Radio 85 274 27% Internet 8 20 32% ? ‘Vintage Wines’ are the relatively heaviest watchers of TV. So are Marathis, Telugus and Tamils among communities ? ‘Nest Builders’ are the relatively heaviest listeners of radio. Among communities, Telugus, Delhi Hindis and Gujaratis stand out ? Oriya and MP Hindi communities are significantly heavier readers of newspaper ? ‘Baby Sitters’ are the relatively heaviest users of internet from home
List Of Reports Possible Segment Reports: Possible Category Reports: • Families by member composition 3. Family Profiles by Type of Car Free Birds (single independents) Nest Builders (young married couple with no children) 4. Family Profiles by Type of Bike Baby Sitters (married with eldest child below 12 years) Mature Mentors (married with youngest child above 12 years) 5. Family Profiles by Type of TV Dynasties (3 generation joint family) Vintage Wines (middle age/elderly married couple living alone) 6. Family Profiles by Type of TV Connection • Urban vis-à-vis Rural Families 7. Family Profiles by Type of Fridge • Single vis-à-vis Multiple Income Families 8. Family Profiles by Type of Washing Machine • Families by Socio-Economic Classes (both urban &rural SEC) • Families by Community Types 9. Family Profiles by Type of Mobile Phone (marwari, gujrati, punjabi,….) • Family Profiles by Most Expensive Vehicle Owned 10. Family Profiles by Mobile Service • Family Profiles by Size of House 11. Family Profiles by Type of Credit Card Note: Segment level analysis in any of the reports is subject to collection of sufficient sample responses at the segment level.
Pricing of Reports Report Price (Rs.)* Price (USD) * 12.36% service tax extra Any 1 Report 150,000 4,750 3 or More Reports 100,000 each 3,500 each • Payment Terms : 50% advance, 50% after delivery of all reports • Delivery Timeline : Single/First Report – 10 days from date of order (or immediately if ready) : Subsequent Reports – 10 days per report thereafter (or immediately if ready) • Report Delivery Format : PDF
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Information Coverage ? Demographic and socio-economic profile Location – Town class (village class), region, community ? Educational qualification, current occupation (and industry of occupation) of members in the household ? SEC (urban, rural) ? Gender, age, marital status, preferred language of reading of all members in the household ? Income status and composition (monthly household income, income from outside, earning and dependent ? members) Per-capita household income ? ? Consumption, asset ownership and liability profile Share of expenditure by main household spending heads (food & clothing, rent & utilities, transport / conveyance, leisure & ? entertainment, loan & liability payments, savings & investments) House ownership, size of house, no. of rooms ? Vehicle ownership (bicycle, 2-wheeler, 4-wheeler) ? Physical asset ownership – TV, fridge, washing machine, AC, microwave, music system, radio, DVD player, Ipod, ? video games, regular camera, digital camera, video recorder, tube well/pump, landline phone, mobile phone, computer, laptop, printer, TV connection Financial asset ownership – land, bank account, demat account, fixed deposits, govt. bonds, chit fund deposits, ? life insurance, medical insurance, debit card, credit card, mutual fund, shares, etc Currently running loan types if any ?
Information Coverage ? Quality of key asset ownership Type of car ? Type of bike ? Type of TV ? Type of TV connection ? Type of fridge ? Type of washing machine ? Type of mobile phone ? Type of mobile services subscribed to ? Type of credit card possessed ? ? Media usage Media used at home (TV, Newspaper, Radio, Internet) ? Daily time spent on various media at home ? Which medium relied on most for information for buying products and services ?
Methodology ? Large scale land survey conducted to profile the composition and consumption characteristics of Indian families. Survey covered over 16,000 households in 40 cities and over 12,000 households in 480 villages spread across all the four regions of the country ? Sampling methodology chosen to ensure coverage of ‘town’ and ‘village’ classes of all population strata, and ‘households’ of all socio-economic classification within each of these towns and villages. Villages sampling done in a way to ensure coverage of villages up to distances of 20 kms from the nearest surveyed town ? Finally, town/village class and socio-economic class combination level ‘weights’ were derived from authentic Govt. of India data and applied to the land survey data to make it representative of the entire Indian population