1. SOCIO ECONOMIC CLASSIFICATION-INDIAN
POPULATION-” The Tiger Roars”
PRESENTED BY:
ROLL-
03,09,16,17,22,35,44,48,55,56,70,78,
91,99
KIRLOSKAR INSTITUTE OF
ADVANCED MANAGEMENT
2. 4
STEPS
4.Capturing
the Prize
1.The size of
the Prize
2.Understanding
the Prize
3.Finding the
Prize
3. 1.The size of the
Prize:
India’s consumer market is
poised to grow 3.6 times
between 2010 and 2020,
faster than most other
emerging markets.
4. 2.Understanding the Prize:
1.Household income:
India’s income pyramid has typically had a wide base of “struggler” households and
increasingly smaller layers as incomes rise.
This Pyramid is quickly becoming a diamond, as household incomes grow.
More than one-third of the population is likely to reach the “aspirer” class by 2020,
compared with 20 % in 2010 and 9 % in 2000.
At the same Time, the share of households classified as strugglers earning less than $3,300
Today will likely fall from 51 % in 2010 to 28 % by 2020.
5. 2.Urbanization:
In 2010, 31% of India’s population lived in cities.
By 2020, that % will rise to 35 percent. As people move from rural areas
to cities, they tend both to increase their purchases and to spend on
different items.
Urban dwellers have better access to goods and are exposed to
greater consumerism.
For example, 80 % of urban households own a television, while only 39
% of rural households do, and 25 % of urban residents consume
packaged instant noodles, compared with just 3 % of rural residents.
6. 3.The Nuclear Family:
Defined as a couple or a single person, with or without children rose from 61 % in 2006
to 66 % in 2010.
The per capita spending of nuclear families is between 20%-50 % higher than it is for
traditional joint families.
While per capita spending on food and health is comparable in nuclear and joint
families, nuclear families spend much more on clothing, housing, education, and leisure
activities.
In research, we met several joint families that buy the cheapest possible option for
regularly used household products and avoid paying widely varying prices for products
that are individually consumed.
7. 4. Gen I:
Economic liberalization in 1991 marked a turning point in India’s
ascendance.
Members of Gen I were in their early teens at that time, so they have
witnessed firsthand the opening of markets, the influx of foreign brands, and
the creation of wealth.
They have different beliefs and have made different choices than their
parents.
8. Contnd…
Members of Gen I believe in living in the present and indulging themselves more
than their parents do.
Thus, the beauty and personal-care market has grown almost 20 times over the
past 20 years.
The Gen I have far greater choice than prior generations. The number of car
models, for example, has jumped from about 5 in 1990 to more than 160 today.
At home, members of Gen I feel less constrained by scarcity and the limitations
of the nation’s infrastructure. Two-thirds of all households have electricity,
compared with just 42 % before liberalization.
9. 3.Finding the Prize:
4 Key segments define the consumer landscape in India on the basis of
income, location, education, and occupation.
Affluents
Aspirers
Next Billions
Strugglers
Professional Affluent
Traditional Affluent
Urban Aspirers
Rural Aspirers
Large Town Next Billions
Small Town Next Billions
10. Affluent:
Annual household income > US$ 18500
These consumers are typically well educated, have mid to large
businesses or good jobs with sufficient income to allow significant
indulgence.
This segment constitutes six percent of households in India.
11. Aspirers:
Annual household income between US$7400 - US$ 18,500.
These consumers are educated,have mid–sized businesses or stable
jobs with income sufficient to live comfortably as well as indulge a
little.
Constitutes 14 % of households in India.
12. Next Billion:
Annual household income between US$ 3,300 and US$ 7,400.
Basic education and have small businesses or hold low paying jobs.
Their income levels allow them to sustain a basic lifestyle.
It constitutes 30 % of households in India.
13. Strugglers:
Annual household income < US$ 3,300.
Typically illiterate with limited education,
These consumers have jobs that are manual labour
Based with very low income, generally daily wage
17. 4.Capturing the Prize:
For Companies,to invest in India they need to develop a deep understanding of
the nation in order to win it.They need the following 2 Mantras for achieving the
same:
1.Follow an Indian Market Approach
>Consumption Pattern
>Lifestyle
>Attitudes & Behavior
> Financial Maturity
18. 2.Understanding the evolution of consumption trend:
>Children: Driving consumption growth
>Internet wave
>Trading up
>Brand: Strong recognition, weak loyalty
>Healthy Living
20. Inference:
The Resonant Roar Of the Bengal Tiger is a fitting metaphor for
consumer spending in India. Only a few patient and persistent
people actually succeed in seeing it. Consumer spending in India
will continue to roar, but the companies that try to capture it without
adequate preparation will likely short. India’s is a big and growing
consumer market, but not an easy one. Understanding the size and
shape of the prize and where it is hidden in the crazy quilt fabric of
India are the first steps to capturing it.