What is Socio Economic

Classification (SEC)?
The Indian population is classified by the marketers by the Socio Economic Classification
(SEC).

It is basically classified on the basis of two parameters for the India customers:

 Occupation and
 Education of the chief wage earner (Head) of the households.

To understand the Indian consuming class this is the best tool which was introduced in 1988 by
the Market Research Society of India (MRSI).The whole consumer class is then divided into
more sub units according to the occupation and education of the urban areas.

SECA1, A2, B1, B2, C, D, E1, E2

Socio-Economic classification Grid

yrs\literate but no

Some College but not graduate

School up to 4

Graduation/PG Professional
Graduation/PG General
School 5-9 yrs

SSC/HSC
Illiterate

degree
Education \ Occupation
formal schooling

 
1 Unskilled workers E2 E2 E1 D D D D
2 Skilled worker E2 E1 D C C B2 B2
3 Petty traders E2 D D C C B2 B2
4 shop owners D D C B2 B1 A2 A2
5 Entrepreneurs Employee None D C B2 B1 A2 A2 A1
6 Entrepreneurs Employee < 10 C B2 B2 B1 A2 A1 A1
7 Entrepreneurs Employee > 10 B1 B1 A2 A2 A1 A1 A1
8 Self-employed professionals D D D B2 B1 A2 A1
9 Clerical/ salesman D D D C B2 B1 B1
A supervisory level D D C C B2 B1 A2
 B Officers/Executive : Junior C C C B2 B1 A2 A2
Officers/Executive :
C B1 B1 B1 B1 A2 A1 A1
Middle/Senior

In urban households,

SEC A1 include those with graduation/post graduate holding senior positions like CEO’s and
Middle level managers and also those entrepreneurs having some college education and
employs more than 10 staffs. The chart is self-explanatory.

This SEC classification helps the marketers to identify a segment that has high consuming
potential. The high potential types: A1, A2, the medium ones and the bottom of pyramid ones.

While the Rural Indian Households are classified into SEC R1, R2, R3, R4.

In the rural classification, the parameters are Education of the Chief wage earner and the type of
the house

Type of House
Education of Chief
Wage Earner semi-
pucca kutcha
pucca

Illiterate R4 R4 R4

(self-learning/No
R3 R4 R4
school)

up to class 4 R3 R3 R4

Class 4- Class 9 R3 R3 R4

SSC/HSC R2 R3 R3

College R1 R2 R3

Graduation/PG R1 R2 R3

Professional degree R1 R2 R3
Although this classification is popular for over 18 years, the classification has its negatives also
since it takes only two parameters: education and occupation.

This is based on the assumption that “higher education leads to higher income thus higher
consuming potential”. But we know that this may not be true always. A trader or a retailer with
no qualification can earn more income than a Post graduate executive, but SEC will categorize
the traders/retailers not as SEC A1or A2.