New Migrants to the Cities

8/9/2019 New Migrants to the Cities

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Independent and Individualistic

Published: Mint dated 26th

April 2010

This is the 19th 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 E4

segment--married without

children and living in a

nuclear family.

Indicus Consumer Segment


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This week we take up the E4 urban consumer segment, formed by

households where the chief wage earners are married without children

and living in a nuclear family.The chief wage earners in this segment are school-educated

businessmen or skilled workers. This is a much larger segment than

the three segments discussed in recent weeks. Comprising 2.08% of

urban households in India, this is the 13th largest consumer segment.

However, since these households are young, without children, and are

nuclear families with no seniors, the household size is small and this

segment forms just 0.72% of the urban population, 20th in size among

the 33 segments.

E4


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Around 238,000 people fall in the E4 segment of nearly 150,000

households; 43% are one-member households with men living alone,

their wives residing with their families in other towns or villages. The rest

are two-member households, i.e. the couple alone, without any children.As pointed out last week, the E segments (that correspond to the SEC

C/D in the traditional SEC) have the highest heterogeneity, resulting in the

highest number of consumer segments. Unlike the last three segments

discussed, where the chief wage earners were school-educated

businessmen, the E4 segment includes those with similar education

levels but who are skilled workers. Also unlike the previous segments

where chief wage earners were overwhelmingly self-employed, 60% ofthem in E4 have regular salaried jobs.

As mentioned in previous segments, this becomes a defining

characteristic of the mindset and aspirational levels of the household.

With such low levels of education (only 53% of the chief wage earners

have finished higher secondary schooling) and with mostly just one

earning member in these small households (just 9% of spouses are

employed), household income is low, and 94% earn < Rs 3 lakh pa.


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Such low-skilled, low-income households reflect new

migrants to a city, with roots and connections running deep

in smaller towns and villages. They use some connectionsfrom their family network at home to find work in the city.

Around 29% of the chief wage earners work in

manufacturing, predominantly in small manufacturing

firms, and mostly proprietorship in various industries.

Wholesale and retail trade is the second most important

sector of employment, while public administration and the

transport sector each account for 12% of jobs.

Public administration shows up as a dominant sector when

regular salaried employment is taken into account. With

low education, those earning in this segment would be at

the lowest rungs of government jobs. Thirty-two per cent of

the chief wage earners in this segment are self-

employedrunning small shops or kiosks, driving

autorickshaws or taxis, etc..

Spending


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Delhia city with a large migrant

populationranks first among all districts in

the E4 segment. The 2001 census showed

that in terms of proportion of immigrants to

total population, Delhi was at the top of theurban agglomerations, with immigrants

constituting 16.4% of the total population of

Delhi, while Greater Mumbai came in second

with 15.1%.

Urban districts that have more than 20,000

households in the E4 segment are Delhi,

Mumbai, Bangalore, Pune, Ahmedabad,Chennai, Thane, Coimbatore, Hyderabad,

North 24 Parganas, Kolkata and Surat. There

is heterogeneity in household characteristics

in these cities, making an impact on the

income, expenditure and asset ownership

patterns.

For example, among these cities, the topthree with the highest share of one-member

households are Kolkata (77%), Mumbai

(67%) and Surat (59%), while Coimbatore,

Bangalore and Hyderabad have the highest

share of two-member households, at 85%,

83% and 81%, respectively.

New Migrants to the Cities

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