At the Beginning of Their Careers

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At the Beginning of their Careers

Published: Mint dated 29th

March 2010

This is the 15th in a 33-

part series on distinct

consumer segments,

based on a categorization

of stage of life andoccupation, expenditure

and savings propensity,

family structure and

psychographics. This

week we look at the D1

segment²young, single

or married without

children, living in a joint

family.

Indicus Consumer Segment




Last week we looked at D2 households, where the chief wage earner was married with grown-up

children, and was a graduate or postgraduate skilled worker. We move down the life stage this week

to the D1 segment, which involves the same educational and occupational profile but where the chief

wage earner is young, single or married without children, and lives in a joint family.This is a very small segment, 27th in size among urban consumer segments, with just 300,000

households spread across India. As nearly three-quarters of the chief wage earners are below the age

of 35, the D1 segment represents those people who are on the first rungs of their career. Around 45%

of them are married and 80% of the households have no minors, yet the household size is not that

small, and one-third of the households have four or more members.

The D1 segment does not include single people who are living alone or married couples in nuclear

families²this is a segment with a joint family set-up, households where the son is bringing in the

largest share of income, but either has not moved out of his father¶s home yet or has brought hisparents to stay with him in the city. It is typically the son who is the chief wage earner in this case.

D1




Eighty-five per cent of the spouses are in fact

homemakers; this would reflect their lower educational qualifications as in C1

households, in which they have a better

education profile and more are employed,

adding to the household kitty.

Note that though this segment has relatively

well-educated chief wage earners, as they are

not professionals, their incomes are wellbelow that of C1 households, where they are

at a similar life stage but are professionals.




As much as 69% of D1 households earn less than Rs3 lakh per year,

compared with 41% in the C1 segment. The median household income is also

relatively low at Rs1,65,900 per annum. There is a small proportion²around7% of the households²earning more than Rs10 lakh per annum; these would

be among those where the chief wage earners have postgraduate

qualifications or other adult earning members are also well educated.

Half the D1 households own the home they live in; lower-income households

would in all probability be living in homes bought by the earlier generation.

One of the reasons the sons do not move out even after marriage is the cost

of purchasing another house. This changes over the course time as earnings

go up, of course, and children appear on the scene.




The top ranking states in this segment are Maharashtra

(Mumbai, Thane, Pune, Nagpur and Nashik rank in the

top 20 districts), Tamil Nadu (Chennai, Coimbatore and

Kancheepuram), West Bengal (Kolkata, North 24

Parganas and Bardhaman), Karnataka (Bangalore) andGujarat (Ahmedabad and Surat). While Delhi ranks

second among the districts, as a state it ranks just below

Gujarat in the concentration of households in the D1

segment.

The sector garnering the largest share of employment

for the chief wage earner is education, health and social

work; followed by wholesale and retail trade;manufacturing and public administration. These sectors

take up a sizeable chunk of those with basic college

education, while industries such as textiles, auto and

ancillaries (in Pune, Coimbatore, Kancheepuram, etc.)

employ those with suitable vocational training.

At the Beginning of Their Careers

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