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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 socioeconomic 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

The Marco 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’ SEC ‘R3’ SEC ‘E’ SEC ‘D’ SEC ‘R2’ SEC ‘C’ SEC ‘R1’ SEC ‘B’ SEC ‘A’

1 1.1 1.2 1.4 1.6 1.8 2.3 3.0 5.3

(Rs.830) times of R4

” ” ” ” ” ” ”

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 D SEC E SEC R3 SEC R4

SEC A SEC C SEC R2 SEC B SEC R1

Tier 1
The Consuming Class

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 Rent and utilities Transport and conveyance Loan and other regular liabilities Leisure and entertainment Saving and investment Other unclassified spends
Note - Not all families spend money on all heads

55% 12% 12% 11% 11% 15% 13%

55% 5% 11% 3% 9% 11% 6%

* 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!
Household Asset
Home Any TV Color TV C&S Connection Any Phone Mobile Phone Any Automobile Car 2-wheeler Fridge Washing Machine Computer/Laptop Air Conditioner

% Families Owning
(Urban) 65% 91% 79% 69% 66% 64% 42% 3.5% 41% 35% 14% 10% 2%

% Families Owning
(All India) 86% 86% 63% 56% 50% 48% 32% 2% 31% 22% 7% 4.5% 0.8%

Home + Automobile = 27% urban and 25% all India

Financial Asset Ownerships!
Financial Asset
Bank Account Life Insurance Debit Card FD/Bonds Credit Card Medical Insurance/CGHS Mutual Funds/Shares

% Families Owning
(Urban)

% Families Owning
(All India)

59% 26% 16% 10% 4% 4% 3%

58% 23% 9% 5% 2% 2% 1%

Home + Bank Account = 28% urban and 41% all India Home + Life Insurance = 12% urban and 16% all India

Types of Assets!
Cars
Small Car (<4 lakhs) Mid Size Car (4-8 lakhs) Premium Car (8-14 lakhs) Luxury Car (>14 lakhs)

% Families Owning
68% 29% 5% 1%

Bikes
100cc or less 125cc 150cc 180cc or above

% Families Owning
48% 39% 11% 3%

TV
Regular Flat 21 inch or less Regular Flat > 21 inch LCD & Other Premium

% Families Owning
88% 11.5% 0.5%

Washing Machine
Semi-automatic Automatic

% Families Owning
78% 22%

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

Types of Assets!
Fridge
Single door Double door

% Families Owning
89% 11%

Mobile Phone Features
Color Screen Games FM Radio

% Families Owning
82% 78% 49% 16% 12% 10% 9% 7% 4% 4% 1%

Mobile Connection
Pre-paid Post-paid GSM CDMA Can’t Say

% Families Owning
95% 5% 75% 11% 14%

Any Camera MP3 Player Bluetooth Video recording GPRS Extended memory Touch Screen Wi-fi

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

Types of Assets!
Size of House
Less than 250 sq.ft. 250 – 500 sq.ft. 500 – 1,000 sq.ft. 1,000 – 1,500 sq.ft. 1,500 sq.ft. and above

% Families Owning
21% 36% 27% 9% 7%

Mobile Services Used
Roaming National ISD Calling MMS GPRS GPS Roaming International

% Families Owning
64% 6% 4% 4% 1% 0.3%

Credit Card
Co-branded Silver Gold Platinum/Titanium

% Families Owning
20% 53% 27% 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
Top 5 Urban Communities
% of Urban Families

Top 5 Rural Communities

% of Rural Families

Gujarati Awadhi UP Telugu Kannada Marathi

16% 12% 12% 11% 7%

Telugu Marathi Tamil Non-Awadhi UP Punjabi

9% 8% 8% 6% 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
Media
Families Using At Home
In millions (All India)

Individuals Using At Home
In millions (All India)

% Spending More than 1 Hour Daily
Weekday (All India)

Television Newspaper Radio Internet

187 104 85 8

613 361 274 20

43% 10% 27% 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 Reports
Possible Segment Reports:
1. Families by member composition
Free 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)

Possible Category Reports:
1. 2. 3. 4. 5. 6. 7. 8. 9. Family Profiles by Type of Car Family Profiles by Type of Bike Family Profiles by Type of TV Family Profiles by Type of TV Connection Family Profiles by Type of Fridge Family Profiles by Type of Washing Machine Family Profiles by Type of Mobile Phone Family Profiles by Mobile Service Family Profiles by Type of Credit Card

2. 3. 4. 5. 6. 7.

Urban vis-à-vis Rural Families Single vis-à-vis Multiple Income Families Families by Socio-Economic Classes
(both urban &rural SEC)

Families by Community Types (marwari, gujrati, punjabi,….) Family Profiles by Most Expensive Vehicle Owned 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.

Pricing of Reports
Report Price (Rs.)*
* 12.36% service tax extra

Price (USD)

Any 1 Report 3 or More Reports

150,000 100,000 each

4,750 3,500 each

• •

Payment Terms Delivery Timeline

: 50% advance, 50% after delivery of all reports : 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

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

Thank You!