Market Skyline of India

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For all the 593 districts of India...Annual Market Size-
Food Products, FMCG products, Durables, Clothing & Footwear ,Miscellaneous Goodsand ServicesSocio-Economic Classification (Urban Households)
SEC A, SEC B, SEC C, SEC D, SEC EAnnual Household Income Category (Urban & Rural)
The households have been divided into categories on the basis of their estimated total annual disposable income during 2008-09. The categories are: <75><75k>1,000k
Information across household income categories on - Percentage of households, population, child population, total household income, potential savings, potential expenditure & per capita income, potential savings, potential expenditure across household income categories
Call Us For query or placing orders please contact Indicus Analytics Pvt. Ltd. 2 nd Floor, Nehru House, 4 Bahadur Shah Zafar Marg New Delhi- 110002. Phone: 91-11-42512400/01

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Market Skyline of India

  1. 1. Market Skyline of India All India, Each State, Each District
  2. 2. Targeting The Relevant Consumer Targeting The Relevant Consumer Targeting The Relevant Consumer Targeting The Relevant Consumer Targeting The Relevant Consumer
  3. 3. What, Why, How and For Whom <ul><li>India’s vast market is one of the most complex in the world </li></ul><ul><ul><ul><ul><li>More than a billion consumers spread out over </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>More than 600,000 villages </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>More than 4,000 towns </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>More than 400 cities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>More than 35 urban agglomerations </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Reliable Data is difficult to get </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Large scale primary research is not feasible </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Marketers and strategists have to rely on proxies and shortcuts </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>These are increasingly unreliable as the focus goes more micro </li></ul></ul></ul></ul></ul>
  4. 4. Why Surveys vs. Estimations: The problems and pitfalls of overdependence on surveys <ul><li>Surveys lie at the core of all economic and market estimates. However, surveys have certain flaws that serious researchers are aware of. Some of the more common problems are: </li></ul><ul><ul><li>Under-reporting – when information on certain segments is less than its importance/share in the population </li></ul></ul><ul><ul><li>Over-reporting – when information on certain segments is more than its share/importance in the population </li></ul></ul><ul><ul><li>Mis-reporting – when information is not correctly reported/entered Inappropriate sampling – when sample is not representative of the population characteristics </li></ul></ul><ul><ul><li>Weighting – when incorrect proportions are imposed on certain segments in the sample to get the population averages/levels </li></ul></ul>
  5. 5. How The Indicus Methodology: Follows techniques of economic research as well as the latest in small area estimation techniques to develop robust estimates. What differentiates Indicus from others is our focus on economic research and an understanding of India’s economic structure at the micro level. This enables us to drill down to finer and finer economic-geographic-demographic cuts.
  6. 6. How Access to raw databases that contain information on socio-economic characteristics and economic activities of households - Income, Expenditure, Saving, Demography, Asset, Gender, Education, Employment, Trends, Age, Family, etc. Raw Primary Data Indicus proprietary, National Sample Survey, National Family and Health Survey, District Level Household Survey, etc. Basic Database Contains information on all household types across geographic and demographic segments. Final Products Market Skyline – Districts, Towns, Rural blocks Consumer Spectrum – SEC, Life Stage, Combinations Expenditure Spectrum City Skyline - Neighbourhood Find Patterns with Econometrics Find relationships between individual and household characteristics. Estimate under and unreported information using these relationships. The full range of household and individual types is available for further analysis. This requires that for each district and sub-district geographical unit of interest there are enough data-points for robust results.. The internal structure of the database is synchronous with the economic structure of the location; moreover, the better weighting scheme ensures representative-ness across fine geographic and consumer segments. • Representative• Fine Segments • Robust and up-to-date • Validated with all known info on Indian economy and consumer markets • Core Database Augmented Database With appropriate weights relevant at national, state, district, sub district, city and neighbourhood level. Calibration & Distribution Analysis Economic and socio-economic distributions are comparable with credible known information - National Accounts, Registrar General of India, etc. Cluster using Neural Networks Find common patterns across geographical and consumer cuts; validate with Indicus data on district economic structure to derive appropriate weights.
  7. 7. Using Market Skyline <ul><li>Decipher the Indian consumer markets at high levels of granularity. </li></ul><ul><li>Identify </li></ul><ul><ul><li>Largest markets </li></ul></ul><ul><ul><li>Rapidly growing markets (for repeat buyers) </li></ul></ul><ul><ul><li>Emerging markets (for new buyers) </li></ul></ul><ul><ul><li>The ‘on-the-verge’ markets (first mover advantage) </li></ul></ul><ul><li>Discover </li></ul><ul><ul><li>New geographies (for the sales manager) </li></ul></ul><ul><ul><li>Socio-economic segments (for the market planner) </li></ul></ul><ul><ul><li>Relevant income segments (for product planning and pricing) </li></ul></ul><ul><ul><li>Economic and Financial indicators (for retaining or building that edge) </li></ul></ul>
  8. 8. Users and Uses <ul><li>Marketing Managers — Identify appropriate markets to target </li></ul><ul><li>Sales Teams — Distinguish between new markets where networks need to be built and old ones where channels need to be strengthened </li></ul><ul><li>Market Strategists — Prioritize locations for more effective consumer targeting </li></ul><ul><li>Banking — Find areas with poor credit penetration and unmet credit demand. </li></ul><ul><li>Insurance – Identify locations that have the most appropriate socio-economic and income profile for different insurance products </li></ul><ul><li>Asset Management Companies – Locations and consumer groups there-in with rapidly growing incomes and with best savings profiles </li></ul><ul><li>Real Estate Developers — Focus on areas with unmet housing demand </li></ul>
  9. 9. Coverage . <ul><li>Market Size: </li></ul><ul><li>Aggregate expenditure by households </li></ul><ul><li>in 5 broad categories that include </li></ul><ul><li>Food, FMCG, Consumer Durables, </li></ul><ul><li>Clothing & Footwear, Miscellaneous </li></ul><ul><li>Goods and Services </li></ul><ul><li>available for all the geographical, </li></ul><ul><li>income, and demographic cuts. </li></ul><ul><li>For a selected set the data can be </li></ul><ul><li>drilled down to about 20 categories </li></ul>Socio-Economic Classification : We provide the full distribution of urban SEC A to E households for each district in the country. In a complementary product (Consumer Spectrum of India) we have further sub-divided SECs on the basis of life stages (young, middle, and senior), making an overall 15 cuts. For those who are interested in finer segmentation, Indicus has used the latest in neural networks and statistical algorithms to generate 33 homogenous Segments of urban consumers. A similar segmentation of the rural SEC R1 to R5 households have been done creating a set of 50 cuts (on the basis of 10 life stages and SEC). <ul><li>Income Distribution: </li></ul><ul><li>Urban and rural households classified </li></ul><ul><li>by income in six brackets ranging from </li></ul><ul><li>less than Rs 75,000 to greater than </li></ul><ul><li>Rs 1,000,000 (ten lakh). </li></ul><ul><ul><li>Households and population </li></ul></ul><ul><ul><li>Income, saving and expenditure </li></ul></ul><ul><ul><li>Growth rates </li></ul></ul>
  10. 10. Geographical Coverage <ul><li>Granularity: </li></ul><ul><li>The Market Skyline provides data separately for rural and urban areas </li></ul><ul><li>for all districts of India. Other database products from Indicus provide </li></ul><ul><li>information at even finer geographical granularity. </li></ul><ul><li>Block level – there are nearly 5,500 (5464 to be precise) blocks spread </li></ul><ul><li>over nearly 600 districts as per Census 2001 figures. Income distribution, </li></ul><ul><li>expenditures and savings are available for each of these. </li></ul><ul><li>Town level – Information on all 450 odd towns with a population of </li></ul><ul><li>greater than 100,000 in 2001. </li></ul><ul><li>Neighbourhood level - For all the major metros an even finer geographical </li></ul><ul><li>segmentation – at the neighbourhood level is also available. </li></ul><ul><li>Rural or urban, drilled down to the finest level </li></ul>
  11. 11. Parameters <ul><li>Consumer Demography </li></ul><ul><li>Population </li></ul><ul><li>Households </li></ul><ul><li>Households in each income bracket. </li></ul><ul><li>Population in each income bracket. </li></ul><ul><li>Socio-Economic Classification for </li></ul><ul><li>Urban Households </li></ul>Geographical Area <ul><li>Consumer Markets </li></ul><ul><li>Annual Household Expenditure </li></ul><ul><li>Annual Market Size across </li></ul><ul><ul><li>Food Products, FMCG products, Durables, </li></ul></ul><ul><ul><li>Clothing & Footwear, Miscellaneous </li></ul></ul><ul><ul><li>Goods & Services </li></ul></ul><ul><li>Per Capita Income </li></ul><ul><li>Per Capita Saving </li></ul><ul><li>Per Capita Expenditure </li></ul>Sector wise Growth Rates <ul><ul><li>Granularity </li></ul></ul><ul><ul><ul><li>Country </li></ul></ul></ul><ul><ul><ul><li>State </li></ul></ul></ul><ul><ul><ul><li>District </li></ul></ul></ul>Separated for Urban and Rural segments A total of 150 parameters at two points in time
  12. 12. Insights from Product Suburbs have come to be independent economic entities : Internationally, the term suburb conjures up images of a relatively unspoilt, less densely populated and predominantly residential community close to a city. In India, it is difficult to find such conditions. The lack of office space in New Delhi, the lack of new residential areas in Kolkata and expensive real estate in Mumbai have contributed to the growth of Salt Lake, Gurgaon, and Navi Mumbai. Now all three are more than just real estate alternatives to larger neighbours. Middle class accounts for bulk of urban spending: About 61% of total urban income comes from households that can be classified as middle class earning between Rs 75,000 and Rs 5 lakh a year. This segment comprises the lower middle class earning between Rs75,000 and Rs 1.5 lakh a year (10% of total urban income is from this category), the middle class earning between Rs 1.5 lakh and Rs 2 lakh a year (29% of income share) and the upper middle class earning between Rs 3 lakh and Rs 5 lakh a year (22 % of urban income).
  13. 13. Insights from Product Urban Households earning over INR 300,000 pa <ul><li>Surat, highest number of millionaire households in Western India (excluding the Mumbai region) </li></ul><ul><li>Chandigarh, India’s richest city, 21% of households earn more than Rs. 1 million a year </li></ul><ul><li>Belgaum is Karnataka’s second largest consumer market </li></ul><ul><li>Gurgaon, Surat, Ludhiana and Waynad are India’s richest rural districts </li></ul>
  14. 14. Insights from Product Ever-expanding Districts - an aggregate Market Size of almost Rs 26 trillion 49% of India’s market lies in UP, Maharashtra, West Bengal, AP and Gujarat alone Urban Millionaire Districts: Faridabad (3 rd largest) Ludhiana (4 th largest) Largest Rural BOP Markets – Medinipur, South 24 Pgns, Murshidabad, East Godavari Belgaum is the second largest market in Karnataka Surat ranks top in terms of rural millionaire households in Western Zone
  15. 15. Insights from Product 21% of total households in Chandigarh (richest market in India) earn more than 10 lakh a year Top 2 Urban districts based on Income Growth rate-D & N Haveli (23%), Gandhinagar(22%) Rural districts with max no. of millionaires-Gurgaon, Ludhiana, Surat, Waynad Ganjam : Largest market in Orissa Upcoming districts based on absolute increase in income- Thiruvallur, Vadodara, Barddhaman, Rangareddi, Faridabad, Medinipur Potential Rural Markets: Alappuzha, Thrissur, Ernakulam, Pathanamthitta, Kottayam - high per capita income but low per capita expenditure.
  16. 16. For query or placing orders please contact Indicus Analytics Pvt. Ltd. 2 nd Floor, Nehru House, 4 Bahadur Shah Zafar Marg New Delhi- 110002. Phone: 91-11-42512400/01 E-mail: products@indicus.net www.indicus.net

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