08 CORPORATE NEWS

MONDAY, APRIL 12, 2010, DELHI ° WWW.LIVEMINT.COM

mint

INDICUS INDIAN CONSUMER SPECTRUM SERIES­XVII

THE FREEDOM OF
L ast week we took up the studied just up to primary

SELF­EMPLOYMENT
smallest urban consum- school—this segment is over-
er segment, E1, which whelmingly self-employed.
has young, single chief wage Again, as mentioned last week,
earners who lived in joint fam- to a large extent this is a reflec-
ilies and are school-educated tion of the low employability of
businessmen. Keeping the ed- the chief wage earners in this
ucation and occupation profile This is the 17th in a 33­part series on distinct consumer segments, based on a categorization of stage segment rather than of inher-
the same, this week we look at of life and occupation, expenditure and savings propensity, family structure and psychographics. This ent entrepreneurship talents.
E2 households, where the chief There is, however, another as-
wage earners are married, with
week we look at the E2 segment—households where the chief wage earners are married, with no pect that is important for these
no children, and live in joint children, and live in a joint family. small businessmen. Often, rig-
families. id work rules clash with their
Indicus Analytics Research
Yet another small segment, social obligations—for exam-
E2 households comprise those Life stage Younger years Middle years Older years ple, leave to attend marriages,
where the chief wage earners funerals, etc. is not easily
are mostly in the age group of Household head/ Single Married Single Married Married with Married with Married Married Single/ available. Freedom, therefore,
chief wage earner (living without child (living without young children young children with with couple
25-34 years, are school educat- Education with (joint family) alone) child (joint family) (nuclear grown-up married living
is sometimes valued more than
ed, married and live in joint family) (nuclear family) children children alone a regular salary.
families, but do not have chil- family) The manufacturing sector
dren yet. With just over 80,000 takes up the largest share of
households, this segment SEC* E Unskilled worker H1 employment with 37% , follow-
makes up 0.1% of the urban ed by wholesale and retail
G1 G2 G4 G5
population. Primary educated trade (24%), hotels and restau-
E2 households are signifi- Less
SEC D skilled worker G3 rants (13%) and transport
cantly different from those in educated (12%).
School-educated skilled
the E1 segment, as the house- SEC C worker F1 F2 F3 While the concentration of
hold size is larger and there E7 E8 households in this segment is
School-educated
are more earning mem- SEC B businessman E1 E2 E3 E4 E5 E6 highest in the big cities of
bers—nearly half the house- Mumbai, Thane, Delhi, Banga-
holds have four or more mem- Graduate/PG lore and Pune, smaller
SEC B skilled worker D1 D2
bers and 63% have two or more towns—not necessarily state
earning members. C2 C3 C4 C5 capitals—feature in the top 50
Graduate/PG
Yet, the number of seniors SEC A C1 C6 list, including Coimbatore,
professional
are few: Just 21% of house- Highly Kanchipuram, Guntur, Durg,
Graduate executive/
holds have one or two seniors. educated SEC A manager B1 B2 B3 A4 A5 Jabalpur, Madurai, Raipur,
Given the joint family set-up in Kanpur, Thrissur, Kota, etc.
Graduate/PG
this segment, this may seem a SEC A businessman A1 A2 A3 These are in a large part manu-
paradox. However, the young- facturing centres or agricultur-
er age profile of the household Residuals al mandis, drawing migrants
members can be a reflection of *SEC: Socio-economic category; PG: postgraduate from the hinterland and offer-
low educational levels and ear- ing significant scope for those
SHYAMAL BANERJEE/MINT
ly marriages. Moreover, joint who have little educational
families do not necessarily do not have children, 22% of holds earn more than Rs5 lakh or smaller towns, waiting for fore, forms a small market for qualifications but are prepared
mean parents living with chil- households have one or more per year, creating a small rela- the spouse to settle down or one-room flats or one bed- to strike out on their own.
dren, as the households could minors. tively affluent intra-segment move out is one possibility. room-hall-kitchen apartments,
also include relatives or The median household in- group. House ownership is also a demand that remains to be
friends who have come to the come is low at Rs1.45 lakh per While all the chief wage lower in this segment when met across urban India. www.livemint.com
city to study, work or train in annum and the bulk in this earners in this segment are compared to E1 house- With low educational quali- For our previous articles in the Indicus
some profession. In fact, segment earns less than Rs3 married, 40% live without their holds—just 48% own their fications—nearly a quarter of Indian Consumer Spectrum series, go to
www.livemint.com/Indicus
though the chief wage earners lakh a year. Yet 15% of house- spouses—wives in the villages houses. This segment, there- the chief wage earners have
AHMED RAZA KHAN/MINT

Chief wage earner Industry type Spending pattern Spread of segment

Age group (in %) (in %) E2 segment spends on
Services: 29% of budget
12 Transport and Others
Medicine.......................4.6% More than 2,500
55 communications 5
Education....................1% 1,200-2,500
Rent Conveyance.............11.9% 600-1,200
13 21 Entertainment......0.1% 400-600
Hotels and
Less than 400
restaurants Other services........11.4%
24 Goods Services Zero or no data available
12 in % 29
24
11 9 Wholesale and
retail trade
0 Food
33
<25 25-34 35-44 45-54 >55 37
(in years) Manufacturing

Education Food: 33% of budget

14
High value and processed food items...........................25.5%
Others Basic food............................................................................................7.7%

42 36 23 Income distribution
Households with
Enterprise type (in %) Household size (in %) annual income
3 11.2% 1.1%
Higher Middle Literate
secondary below Government/public 36 more than
primary sector company 2.2% Rs15 lakh
77 23 14.6%
Proprietorship 3 16
13 Rs10-15 lakh
Employment profile of spouse of the 12
chief wage earner (in %) Public/private
company
Rs5-10 lakh
8 2 3 4 5 >5
Homemaker 50 8
No. of persons
Partnership Others
No spouse 40 Rs3-5 lakh
House ownership (in %) Other 5
Employed 8 Top states by
Owned 48 Rented 47 population
70.8% less than Rs3 lakh
Seeking 2 More than 17,500
8,000-17,500
No. of employed members (% of households) More than two 23 500-8,000
Studying 0
0-500
One 37 Two 40 Zero or no data available