The story of 8 metros - unmetro.in Indicus Analytics Market Skyline of India 2013 Layered just below the Top-8 Metros are 522 Cities Accounting for 44% of Urban HHs Presenting a

The story of 8 metros & 7800 towns

The Big Picture

2

522 Cities of the Future

3

Town Class Pop Strata

No.

Admin

Units

%

Distribution

of HHs

Ave

HH

Size

Top-8 Metros MDKCBHPA 8 17% 4.39

Tier 1 >10L 41 16% 4.62

Tier 2 6-10L 27 5% 4.53

Tier 3 2-6L 161 13% 4.53

Tier 4 1-2L 293 10% 4.55

Large Towns 50k-1L 659 11% 4.66

Medium Towns 20k-50k 2003 15% 4.71

Small Towns 10k-20k 2230 8% 4.62

Very Small Towns <10k 2376 4% 4.58

Urban India 7,798 100% 4.57

Source: Indicus Analytics Market Skyline of India 2013

Layered just below the Top-8 Metros are 522 Cities Accounting for 44% of Urban HHs Presenting a seamless layer of transition for marketers

41% of Rs.50 Lakh Crores form this second layer

4


29%

17%

5%

11% 8%

8%

12%

6% 3%

Share of Total HH Income

Top 8 T1 T2 T3 T4 LT MT ST VsT

Almost one half of Urban India’s consumer wealth is spread across 4 Tiers below the Top-8 Metros Hard to ignore, Corporate India is taking note But socio-cultural & economic variations present challenges quite different from established metros

Category consumption bases are in place

5

27%

16%

24% 33%

Processed Food Rs. 1,85,931 Crs

Metros Cities >10L Cities 1L-10L Cities <1L

25%

16%

25% 34%

FMCG Rs. 2,92,240 Crs

23%

18%

26% 33%

Personal Care Rs. 31,178 Crs


Accounting for almost 80% of the Urban Market

6

17%

18%

27% 37%

Durables Rs. 1,57,584 Crs


22%

17%

27% 35%

Clothing Rs. 1,80,989 Crs

22%

17%

26% 34%

Footwear Rs. 32,818 Crs


Consumer essentials are falling in place

7


18%

18%

29% 35%

HHs Availing Banking Services

25%

21%

24% 30%

Education Rs. 84,062 Crs

35%

22% 25%

18%

HHs Computer with Internet


Ad Volume ratio : Metro vs Unmetros

8 Source: TAM Adex

55 1:1.8

44 1:2.2

54 1:1.9

44 1:2.2

31 1:3.2

25 1:4,0

Unmetro Index (Metros = 100)

Metro Ratio

And this is the Real Story of India Unmetro’ed

9

Microwave Ovens

Air Conditioners

Four Wheelers

Computers

Washing Machines

DVD Players

Refrigerators

Two Wheelers

6%

10%

9%

17%

28%

35%

54%

28%

40L+ 10L-40L 1L-10L <1L

40L+ 10-40L 1-10L <1L

Two Wheelers 4% 6% 7% 8%

Refrigerators 7% 9% 9% 12%

DVD Players 17% 18% 18% 23%

Washing Machines 10% 13% 13% 18%

Computers 14% 20% 21% 26%

Four Wheelers 8% 14% 14% 15%

Air Conditioners 12% 21% 21% 23%

Microwave Ovens 14% 28% 28% 31%

DURABLESCAGR 2007 - 2012

PENETRATION 2012

Source: IRS 2008 R1 & 2012 Q4

Lifestyle drivers are in cruise mode

10

Branded Soups

Processed Cheese

Deodorants

Ketchup / Sauces

Instant Noodles

Soft Drinks

Nail Polish

Toilet Cleaners

Shampoos

6%

8%

15%

26%

51%

45%

22%

51%

75%

40L+ 10L-40L 1L-10L <1L

PENETRATION 2012

Source: IRS 2008 R1 & 2012 Q4

40L+ 10-40L 1-10L <1L

Shampoos 5% 7% 6% 6%

Toilet Cleaners 10% 12% 11% 14%

Nail Polish 8% 8% 7% 8%

Soft Drinks 3% 4% 6% 6%

Instant Noodles 14% 23% 21% 24%

Mineral Water 5% 10% 8% 11%

Chocolates 7% 10% 7% 9%

Ketchup / Sauces 7% 13% 13% 14%

Deodorants 16% 22% 14% 17%

Processed Cheese 10% 21% 15% 19%

Branded Soups 17% 27% 21% 18%

FMCGCAGR 2007 - 2012

And this is Young India territory

11

Town Type

Population

aged 15-19

years

Population

aged 20-24

years

Population

aged 25-29

years

Population

aged 30-34

years

Top-8 Metros 8.47% 9.03% 8.93% 9.48%

Tier 1 9.14% 9.81% 9.12% 8.75%

Tier 2 9.05% 9.86% 9.15% 8.48%

Tier 3 9.34% 10.19% 9.21% 8.36%

Tier 4 9.45% 10.25% 9.27% 8.35%

Large Towns 9.35% 10.11% 9.22% 8.37%

Medium Towns 9.16% 9.95% 9.09% 8.31%

Small Towns 9.00% 9.84% 9.09% 8.37%

Very Small Towns 9.07% 10.00% 9.20% 8.52%

Urban India 9.1% 9.8% 9.1% 8.6%

Composition of Age-Group to Total Pop


Most second layer metros and beyond posses a larger proportion of younger age groups A generational shift far more pronounced than the established metros is underway

Coupled with high growth in affluence indicators

13

Not only are the 10L+ segment of Metros mirroring population profiles of the big 8, they are galloping away in the growth in affluent consumers

SEC A SEC B SEC A SEC B SEC A SEC B

Urban India 100 100 11% 17% 25% 18%

40L+ 36% 27% 16% 19% 17% 15%

10-40L 22% 16% 15% 17% 43% 24%

5-10L 10% 10% 11% 17% 20% 13%

1-5L 17% 21% 9% 17% 23% 17%

<1L 16% 26% 6% 15% 29% 19%

Urban India

Pop Strata

Distribution 2012 Composition 2012 Growth 2007-2012

Source: IRS 2008 R1 & 2012 Q4

An extremely media-mature urban India

14

Source: IRS 2008 R1 & 2012 Q4

0%

25%

50%

75%

100%

C&S AD-TR AD-AIR Radio Internet

40L+ 10L-40L 5L-10L 1L-5L <1L

0%

25%

50%

75%

100%


40L+ 10L-40L 5L-10L 1L-5L <1L

MEDIA REACH - ALL ADULTS MEDIA REACH - SEC A

Traditional media continues to hold fort very strongly across Urban Tiers

AD-TR: Any Daily–Total Readership AD-AIR: Any Daily–Average Issue Readership

Media continues to find huge room for growth

15


40L+ 6% 0% 1% -3% 20%

10L-40L 10% 3% 4% 3% 27%

5L-10L 10% 2% 3% 1% 24%

1L-5L 10% 3% 1% -1% 28%

<1L 10% 2% 2% -6% 38%

URBAN

INDIA

CAGR 2007-2012


40L+ 4% 2% 1% -4% 14%

10L-40L 10% 7% 7% 10% 23%

5L-10L 7% 4% 4% 4% 17%

1L-5L 7% 4% 3% 1% 23%

<1L 9% 5% 5% -1% 28%

SEC ACAGR 2007-2012

Source: IRS 2008 R1 & 2012 Q4

Doomsday prophecies not withstanding, consumption of traditional media continue to rapidly grow across every strata of Rest of Urban India

AD-TR: Any Daily–Total Readership AD-AIR: Any Daily–Average Issue Readership

Thank you

16

Documents

The story of 8 metros - unmetro.in Indicus Analytics Market Skyline of India 2013 Layered just below the Top-8 Metros are 522 Cities Accounting for 44% of Urban HHs Presenting a