A JuxtConsult – Indicus Analytics Joint Study Understanding the Indian ‘Families’ as Consumption Units 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 socio-economic 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 Macro 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 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 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 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%) How a Family Rupee is being Spent!

1. Great Indian Families 2009 Understanding the Indian ‘Families’ as Consumption Units A JuxtConsult – Indicus Analytics Joint Study

3. Topline Findings

7. The New Indian Consumer Pyramid * Total – 226 million families (1,112 million individuals) SEC A SEC B SEC R1 51 million families SEC C SEC R2 44 million families SEC D SEC E SEC R3 SEC R4 131 million families Tier 1 The Consuming Class Tier 2 The Aspiring Class Tier 3 The Underprivileged (260 million individuals) (217 million individuals) (634 million individuals)

10. How a Family Rupee is being Spent! * Taken on valid households base, so doesn’t add up to 100%. ** Taken on all households base, so adds up to 100%. Note - Not all families spend money on all heads Household Consumption Head Distribution of Spends (%) Families Who Spend on Them* All Families** Basic food and clothing 55% 55% Rent and utilities 12% 5% Transport and conveyance 12% 11% Loan and other regular liabilities 11% 3% Leisure and entertainment 11% 9% Saving and investment 15% 11% Other unclassified spends 13% 6%

11. Physical Asset Ownerships! Home + Automobile = 27% urban and 25% all India Household Asset % Families Owning (Urban) % Families Owning (All India) Home 65% 86% Any TV 91% 86% Color TV 79% 63% C&S Connection 69% 56% Any Phone 66% 50% Mobile Phone 64% 48% Any Automobile 42% 32% Car 3.5% 2% 2-wheeler 41% 31% Fridge 35% 22% Washing Machine 14% 7% Computer/Laptop 10% 4.5% Air Conditioner 2% 0.8%

12. Financial Asset Ownerships! Home + Bank Account = 28% urban and 41% all India Home + Life Insurance = 12% urban and 16% all India Financial Asset % Families Owning (Urban) % Families Owning (All India) Bank Account 59% 58% Life Insurance 26% 23% Debit Card 16% 9% FD/Bonds 10% 5% Credit Card 4% 2% Medical Insurance/CGHS 4% 2% Mutual Funds/Shares 3% 1%

13. Types of Assets! * All India Figures. May add up to more than 100% because of multiple ownerships Cars % Families Owning Small Car (<4 lakhs) 68% Mid Size Car (4-8 lakhs) 29% Premium Car (8-14 lakhs) 5% Luxury Car (>14 lakhs) 1% Bikes % Families Owning 100cc or less 48% 125cc 39% 150cc 11% 180cc or above 3% TV % Families Owning Regular Flat 21 inch or less 88% Regular Flat > 21 inch 11.5% LCD & Other Premium 0.5% Washing Machine % Families Owning Semi-automatic 78% Automatic 22%

14. Types of Assets! * All India Figures. May add up to more than 100% because of multiple ownerships Mobile Phone Features % Families Owning Color Screen 82% Games 78% FM Radio 49% Any Camera 16% MP3 Player 12% Bluetooth 10% Video recording 9% GPRS 7% Extended memory 4% Touch Screen 4% Wi-fi 1% Mobile Connection % Families Owning Pre-paid 95% Post-paid 5% GSM 75% CDMA 11% Can’t Say 14% Fridge % Families Owning Single door 89% Double door 11%

15. Types of Assets! * All India Figures. May add up to more than 100% because of multiple ownerships Size of House % Families Owning Less than 250 sq.ft. 21% 250 – 500 sq.ft. 36% 500 – 1,000 sq.ft. 27% 1,000 – 1,500 sq.ft. 9% 1,500 sq.ft. and above 7% Credit Card % Families Owning Co-branded 20% Silver 53% Gold 27% Platinum/Titanium 5% Mobile Services Used % Families Owning Roaming National 64% ISD Calling 6% MMS 4% GPRS 4% GPS 1% Roaming International 0.3%

17. Top 5 Biggest Communities in India Top 5 Urban Communities % of Urban Families Top 5 Rural Communities % of Rural Families Gujarati 16% Telugu 9% Awadhi UP 12% Marathi 8% Telugu 12% Tamil 8% Kannada 11% Non-Awadhi UP 6% Marathi 7% Punjabi 6%

20. Report Details

27. Thank You!

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