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

Topline Findings

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

The Marco Picture

* accounting for approx. 1,112 million individuals (343 million urban and 769 million rural)

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

The Socio-Economic Landscape

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

SEC ‘R4’

SEC ‘R3’

SEC ‘E’

SEC ‘D’

SEC ‘R2’

SEC ‘C’

SEC ‘R1’

SEC ‘B’

SEC ‘A’

1 (Rs.830)

1.1 times of R4

1.2 ”

1.4 ”

1.6 ”

1.8 ”

2.3 ”

3.0 ”

5.3 ”

Monthly ‘Per Capita’ Family Income Ratios

The New Indian Consumer Pyramid

* Total – 226 million families (1,112 million individuals)

SEC A

SEC B

SEC R1

51 million families

SEC C

SEC R2

44 million families

SEC D

SEC E

SEC R3

SEC R4

131 million families

Tier 1The Consuming Class

Tier 2The Aspiring Class

Tier 3The Underprivileged

(260 million individuals)

(217 million individuals)

(634 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

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%)

Glimpse of their Socio-Economic Status….

* 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%

* Taken on valid households base, so doesn’t add up to 100%. ** Taken on all households base, so adds up to 100%.

Note - Not all families spend money on all heads

Physical Asset Ownerships!

Household Asset % Families Owning(Urban)

% Families Owning(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!

Financial Asset % Families Owning(Urban)

% Families Owning(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!

Cars % Families Owning

Small Car (<4 lakhs) 68%

Mid Size Car (4-8 lakhs) 29%

Premium Car (8-14 lakhs) 5%

Luxury Car (>14 lakhs) 1%

* All India Figures. May add up to more than 100% because of multiple ownerships

Bikes % Families Owning

100cc or less 48%

125cc 39%

150cc 11%

180cc or above 3%

TV % Families Owning

Regular Flat 21 inch or less 88%

Regular Flat > 21 inch 11.5%

LCD & Other Premium 0.5%

Washing Machine % Families Owning

Semi-automatic 78%

Automatic 22%

Types of Assets!

Mobile Phone Features % Families Owning

Color Screen 82%

Games 78%

FM Radio 49%

Any Camera 16%

MP3 Player 12%

Bluetooth 10%

Video recording 9%

GPRS 7%

Extended memory 4%

Touch Screen 4%

Wi-fi 1%

Mobile Connection % Families Owning

Pre-paid 95%

Post-paid 5%

GSM 75%

CDMA 11%

Can’t Say 14%

Fridge % Families Owning

Single door 89%

Double door 11%

* All India Figures. May add up to more than 100% because of multiple ownerships

Types of Assets!

* All India Figures. May add up to more than 100% because of multiple ownerships

Size of House % Families Owning

Less than 250 sq.ft. 21%

250 – 500 sq.ft. 36%

500 – 1,000 sq.ft. 27%

1,000 – 1,500 sq.ft. 9%

1,500 sq.ft. and above 7%

Credit Card % Families Owning

Co-branded 20%

Silver 53%

Gold 27%

Platinum/Titanium 5%

Mobile Services Used % Families Owning

Roaming National 64%

ISD Calling 6%

MMS 4%

GPRS 4%

GPS 1%

Roaming International 0.3%

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%)

Glimpse of Segment Level Findings….

Top 5 Biggest Communities in India

Top 5 Urban Communities % of UrbanFamilies Top 5 Rural Communities % of Rural

Families

Gujarati 16% Telugu 9%

Awadhi UP 12% Marathi 8%

Telugu 12% Tamil 8%

Kannada 11% Non-Awadhi UP 6%

Marathi 7% Punjabi 6%

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%

A Glimpse of Segment Level Findings….

Media Usage StatusMedia Families Using

At Home

In millions (All India)

Individuals UsingAt Home

In millions (All India)

% Spending More than 1 Hour Daily

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

Report Details

List Of ReportsPossible Segment Reports:

1. Families by member compositionFree Birds (single independents)

Nest Builders (young married couple with no children)

Baby Sitters (married with eldest child below 12 years)

Mature Mentors (married with youngest child above 12 years)

Dynasties (3 generation joint family)

Vintage Wines (middle age/elderly married couple living alone)

2. Urban vis-à-vis Rural Families

3. Single vis-à-vis Multiple Income Families

4. Families by Socio-Economic Classes (both urban &rural SEC)

5. Families by Community Types (marwari, gujrati, punjabi,….)

6. Family Profiles by Most Expensive Vehicle Owned

7. Family Profiles by Size of House

Note: Segment level analysis in any of the reports is subject to collection of sufficient sample responses at the segment level.

Possible Category Reports:

1. Family Profiles by Type of Car

2. Family Profiles by Type of Bike

3. Family Profiles by Type of TV

4. Family Profiles by Type of TV Connection

5. Family Profiles by Type of Fridge

6. Family Profiles by Type of Washing Machine

7. Family Profiles by Type of Mobile Phone

8. Family Profiles by Mobile Service

9. Family Profiles by Type of Credit Card

Pricing of ReportsReport Price (Rs.)*

* 12.36% service tax extra

Price (USD)

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

Demographic and socio-economic profileLocation – 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 profileShare 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 ownershipType 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 usageMedia 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

Information Coverage

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

Methodology

Thank You!