Moving World India: A valuable new audience emerges
Urbanization is a global trend, and with people in cities having better access to employment and amenities, not to mention the latest fashions and technologies, it is easy to see why more people are migrating to them than ever before. It is no different in India, where the pursuit of a better life and the aspiration to live more like those in wealthier countries means 590 million people will live in cities by 2025 (Mckinsey). Kinetic’s Moving World India study looks at the new population segments emerging as a result of this trend, and where this domestic migration is occurring.
“31% of the total population resides in urban areas”
The study found that 42% of Indian people had migrated from another state to live, work and play in a city or mega urban agglomeration (UA, see Fig1). The 2011 Census revealed 31% lived in urban areas, with this number expected to hit 40% by 2030. As a result of this intense domestic migration, there are now 475 UAs in existence, an increase from 384 in 2001. Estimates are that 33 new UAs or cities will be established by 2030, with over a million people residing in each. Unsurprisingly, the five largest mega UAs are Greater Mumbai, Delhi, Kolkata, Chennai and Bangalore. Greater Mumbai population growth fell from a 30.47% increase in 2011 to 12.05% in 2001. This can be attributed to saturation in India’s most population dense area. Similarly, growth in Delhi fell from 52.24% year- on- year to 26.69% and in Kolkata from 19.60% to 6.87%. Kinetic research has led us to believe Indians are now taking a more rational approach in deciding where to reside, taking overall quality of life into consideration. With economic sentiment high and good access to jobs as a result of increased Business Process and IT service outsourcing to the suburbs, better connected infrastructure has created a new reality for marketing. The driving forces for this shift in movement are predominantly: 1. Demand for discretionary categories such as financial, luxury or foreign products amongst premium and middle class consumers everywhere 2. The emergence of new consumer segments from Generation Y: the empowered woman and the rural and educated youth influencer, both with a higher income and propensity to spend 3. The change in personal consumption patterns, particularly in fist time home buyers
The new sustainable model Marketers need to know where to advertise and how to prioritise these markets. In an attempt to help reach the aforementioned 82% of the population not currently targeted, Kinetic has identified three priority clusters based on monthly per capita expenditure ( MPCE1) across India’s key states.