This is the 31st in a 33-part series on distinct consumer segments, based on a categorization of stage of life and occupation, expenditure and savings propensity, family structure and psychographics. This week we look at the A3 segment—businessmen more than 45 years old, with children above the age of 12 The urban consumer segment taken up last week was A2—households whose chief wage earners were businessmen with graduate degrees and married with young children. This week, we move up the life stage, keeping the same occupation and educational profile of the chief wage earner. The A3 segment is formed by households whose chief wage earners have children above the age of 12 living with them. Most of the chief wage earners are more than 45 years old, well settled in their businesses by now. Even though all chief wage earners have at least a graduate degree, the income profile of this segment is quite diverse. While a quarter of the households earn less than Rs3 lakh a year, nearly one-third earn more than Rs10 lakh a year. To some extent this reflects on the household size—in more than one-third of the households there are two or more earning members. Household income could also depend upon the nature of the business being run and how successful the entrepreneur has been in his efforts. The three most important sectors of employment are wholesale and retail trade, manufacturing, and construction and real estate. It is easy to see how income can vary in each sector depending on various factors—whether the venture is a family business or a new one, the scale of business etc. Even with all the diversity, this group is a much more affluent group than the average urban household—in terms of household income, it ranks fourth from the top with a median household income of close to Rs5 lakh a year. Like all SEC A households, this segment too spends a much higher share of its budget on services—conveyance, health, education and entertainment—at the upper end of what is offered in cities. Children in this segment would be looking to go abroad to study—while traditionally students went abroad for postgraduate studies, nowadays the trend to send them for undergraduate studies has picked up. Many of these households would not be depending on scholarships; they would be saving for the courses abroad. While most of these families own the homes they live in, this segment would also be looking at benefiting from the real estate boom, investing in apartments or purchasing farmhouses for the weekend out in the countryside. Though in all urban segments women by and large are homemakers, the A3 segment has the highest proportion of spouses who are homemakers—88%. There are many reasons for the preponderance of “stay-at-home moms”, despite the fact that this segment sees a wide range in the educational levels of spouses. Nearly 10% have postgraduate degrees and more than one-third have completed college education. To some extent, staying at home and looking after the family can be attributed to the prevalent attitude of a college degree being merely a prelude to marriage. However, it appears that the low levels of employment in this segment can be explained better by looking at the income profiles—it is in low-income households that the women have no option but to supplement household income by going out and working for meagre wages in other homes as maids, cooks, etc. So this segment would have some women who may have the option of working outside or staying home to look after their families, and some who, even with their college degrees, may not be free to work outside. Either way, they depend on maids to do the housework.

1. Published: Mint dated 19 th July 2010 Indicus Consumer Segment