Market

Skyline
of
India
Market Skyline of India

All India, Each State, Each District

 Targetin
Targeting
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Consumer

Targeting Targeting
The The
Relevant Relevant
Consumer Consumer

The Targeting
The
Market Skyline of India

Relevant

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Consumer
 What, Why, How and For
Whom
India’s vast market is one of the most complex in the world
 More than a billion consumers spread out over
More than 600,000 villages
More than 4,000 towns
More than 400 cities
More than 35 urban agglomerations
 Reliable Data is difficult to get
 Large scale primary research is not feasible
 Marketers and strategists have to rely on proxies
Market Skyline of India

and shortcuts
These are increasingly unreliable as the focus
goes more micro
 Why
Surveys vs. Estimations: The problems and pitfalls of overdependence
on surveys
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:
Under-reporting – when information on certain segments is less than
its importance/share in the population
Over-reporting – when information on certain segments is more than
its share/importance in the population
Mis-reporting – when information is not correctly reported/entered
Inappropriate sampling – when sample is not representative of the
Market Skyline of India

population characteristics
Weighting – when incorrect proportions are imposed on certain
segments in the sample to get the population averages/levels
 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
Market Skyline of India

cuts.

Raw Primary Data
Indicus proprietary,
National Sample Survey,
National Family and
Health Survey, District
Level Household
Survey, etc.
How
Find Patterns with The internal structure of the database is
The full range of household and individual synchronous with the economic structure of
Econometrics types is available for further analysis. This the location; moreover, the better weighting
Find relationships between requires that for each district and sub-district scheme ensures representative-ness across
individual and household geographical unit of interest there are enough fine geographic and consumer segments.
characteristics. Estimate under data-points for robust results..
and unreported information
using these relationships.
Core Database
Basic Database
Augmented Database
Contains information on all With appropriate weights
household types across relevant at national,
geographic and demographic state, district,
segments. sub district, city and
neighbourhood level.

Cluster using Neural Networks

Access to raw Find common patterns across geographical and
databases that contain consumer cuts; validate with Indicus data on
information on socio- district economic structure to derive appropriate
economic characteristics weights.
and economic activities of
households - Income,
Expenditure, Saving,
Demography, Asset, Final Products
Market Skyline of India

Gender, Education,
Employment, Trends, Age,
Family, etc.
• Representative• Fine
Market Skyline – Districts,
Segments •
Towns, Rural blocks
Robust and up-to-date Calibration & Distribution
Consumer Spectrum – SEC,
• Validated with Analysis
Life Stage, Combinations Economic and socio-economic
all known info on
Expenditure Spectrum distributions are comparable with credible
Indian economy and known information - National Accounts,
City Skyline - Neighbourhood
consumer markets • Registrar General of India, etc.
 Using Market Skyline
Decipher the Indian consumer markets at high levels of granularity.

 Identify
Largest markets
Rapidly growing markets (for repeat buyers)
Emerging markets (for new buyers)
The ‘on-the-verge’ markets (first mover advantage)
 Discover
New geographies (for the sales manager)
Socio-economic segments (for the market planner)
Relevant income segments (for product planning and pricing)
Market Skyline of India

Economic and Financial indicators (for retaining or building that

edge)
 Users and Uses
Marketing Managers — Identify appropriate markets to target
Sales Teams — Distinguish between new markets where networks need
to be built and old ones where channels need to be strengthened
Market Strategists — Prioritize locations for more effective consumer
targeting
Banking — Find areas with poor credit penetration and unmet credit
demand.
Insurance – Identify locations that have the most appropriate socio-
economic and income profile for different insurance products
Asset Management Companies – Locations and consumer groups
Market Skyline of India

there-in with rapidly growing incomes and with best savings profiles
Real Estate Developers — Focus on areas with unmet housing demand
 Coverage
Market Size:
Aggregate expenditure by households Socio-Economic Classification:
in 5 broad categories that include
Food, FMCG, Consumer Durables,
We. provide the full distribution of urban SEC A to E
Clothing & Footwear, Miscellaneous
households for each district in the country.
Goods and Services
In a complementary product (Consumer Spectrum of
-available for all the geographical,
India) we have further sub-divided SECs on the basis
income, and demographic cuts.
of life stages (young, middle, and senior),
For a selected set the data can be
making an overall 15 cuts.
drilled down to about 20 categories
For those who are interested in finer segmentation,
Indicus has used the latest in neural networks
and statistical algorithms to generate 33 homogenous
Income Distribution: Segments of urban consumers.
A similar segmentation of the rural SEC R1 to R5
Urban and rural households classified households have been done creating a set of 50 cuts
by income in six brackets ranging from (on the basis of 10 life stages and SEC).
less than Rs 75,000 to greater than
Market Skyline of India

Rs 1,000,000 (ten lakh).

Households and population
Income, saving and expenditure
Growth rates
 Geographical Coverage
Granularity:

The Market Skyline provides data separately for rural and urban areas
for all districts of India. Other database products from Indicus provide
information at even finer geographical granularity.

Block level – there are nearly 5,500 (5464 to be precise) blocks spread
over nearly 600 districts as per Census 2001 figures. Income distribution,
expenditures and savings are available for each of these.

Town level – Information on all 450 odd towns with a population of

greater than 100,000 in 2001.

Neighbourhood level - For all the major metros an even finer geographical
segmentation – at the neighbourhood level is also available.
Market Skyline of India

Rural or urban, drilled down to the finest level

 Parameters
Consumer Demography
•Population Separated for
•Households Urban and Rural
•Households in each income bracket.
•Population in each income bracket. segments
•Socio-Economic Classification for
Urban Households

Granularity
Consumer Markets
Country
•Annual Household Expenditure State
•Annual Market Size across
•Food Products, FMCG products, Durables, District
•Clothing & Footwear, Miscellaneous
•Goods & Services
•Per Capita Income A total of 150
•Per Capita Saving
•Per Capita Expenditure parameters at
two points in
Market Skyline of India

time
Sector wise Growth Rates

Geographical Area
 Insights from Product
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).

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
Market Skyline of India

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.
 Insights from Product
Urban Households earning over INR 300,000 pa

Surat, highest number of millionaire

households in Western India (excluding
the Mumbai region)
Chandigarh, India’s richest city, 21% of
households earn more than Rs. 1 million
a year
Belgaum is Karnataka’s second largest
Market Skyline of India

consumer market
Gurgaon, Surat, Ludhiana and Waynad
are India’s richest rural districts
 Insights from Product
Ever-expanding Districts - an
aggregate Market Size of almost Rs 26 49% of India’s market lies in
trillion UP, Maharashtra, West
Bengal, AP and Gujarat
alone

Urban Millionaire Districts:

Faridabad (3rd largest)
Ludhiana (4th largest)

Largest Rural BOP Markets –

Medinipur, South 24 Pgns,
Murshidabad, East Godavari
Market Skyline of India

Belgaum is the second largest Surat ranks top in terms of

market in Karnataka rural millionaire households
in Western Zone
 Insights from Product
21% of total households in Chandigarh
(richest market in India) earn more than Top 2 Urban districts based
10 lakh a year 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

Market Skyline of India

on absolute increase in
income- Thiruvallur,
Potential Rural Markets: Vadodara, Barddhaman,
Alappuzha, Thrissur, Ernakulam, Rangareddi, Faridabad,
Pathanamthitta, Kottayam - high Medinipur
per capita income but low per
capita expenditure.
 For query or placing orders please contact

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4 Bahadur Shah Zafar Marg
New Delhi- 110002.
Phone: 91-11-42512400/01
E-mail: products@indicus.net
www.indicus.net
Market Skyline of India