Young India

An Opportunity That Can Change Your

Life?

Muder Chiba

Youth

State of being young, that part of life between childhood and adulthood

Age group: 13 to 24

13-18 dependent, have pester power

19-24 aware, strong opinions, earning or will begin to earn shortly

Is it a large enough market…

Muder Chiba 2

Source:Institute of Southeast Asian Studies

80+

0 10 20 30 40 50 60

0 - 45 - 9

10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79India 2000

0102030405060

186 m

3 million earners added every year.

Millions of people.

Youth TodayYouth Today…And TomorrowAn Asian TigerAn Asian Tiger

MaleFemale

25% of world youth reside in India

0 10 20 30 40 50 60

0 - 45 - 9

10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79

80+

India 2020

0102030405060

224 m

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An Asian Tiger

Source:Institute of Southeast Asian Studies

0 10 20 30 40 50 60

0 - 45 - 9

10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79

80+

India 2020

0102030405060

224 m0 10 20 30 40 50 60 70

0 - 45 - 9

10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79

80+China 2020,

010203040506070

China

184 million

8Source:Institute of Southeast Asian Studies

Japan

0 1 2 3 4 5 6 7

0 - 45 - 9

012345678

10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79

80+

Japan 2020,

11 million

Millions of people.

MaleFemale

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(,000 no of ppl)

0

20000

40000

60000

80000

100000

120000

140000

160000

Age (years)

Rural ( rest)

Town ( pop > 50k)

Metros ( 8 metros)

(,000 pop)

Geographically Diverse

Non-Metro Youth The Largest Segment-Are the segments disparate ?

RealityRural has a healthy mix of 60:40( Agriculture: Others)

MythRural is only agrarian

RealityThe number of middle and high income households in rural India to grow from 80 million to 111 million by 2007. In urban India, the same is expected to grow from 46 million to 59 million. (Source:NCAER)

MythRural Market is not attractive

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STUDY TIME UPTO 17 YRS

ENJOY TIME17 – 22 YRS

RESPONSIBILITIES22-25 YRS

SETTLED IN BUSINESS25 – 28YRS

Mother

Teacher

Friends

Friends Friends

Father

• ProtectorProtector• GuidanceGuidance

• Youngest – most loved by all in family•Close to teachers & friends

•Got 1Got 1stst rank rank

in 7in 7thth std std•Came 3rd in long Jump in Mumbai State..awarded by Alexander at age 16

•Bunk classBunk class

• Guidance•Closest to Closest to friendsfriends• Got my first salary at 20 yrs• Was promised a bike if I got more than a 1st class in B. Com•First visit First visit to the disc to the disc with my with my girlfriendgirlfriend

• Support

• Got a bike• Started business• Closest to my father

The Metro Youth

ResponsibilityResponsibility

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Metro YouthAspiration Get RichActivities in Spare Time

Hangout, Splurge, Friends

Purchases Wants Branded. occasionally buys from sales or settles for an imitation

Nature Fickle,shifting brandsInfluencers Word of mouthTravel Wants quick transportSocial Awareness

Uninterested unless direct Impact

What would he do if he won a lottery

Spend on car,technology, durables etc

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SCHOOL LIFECOLLEGE

17 - 20 YEARSMY DREAM JOB20 - 25 YRS

ParentsParentsFriends

KidsWifeParents FriendsOffice colleagues/boss /business contacts

• Protector• Guidance

•Study timeStudy time•Ambition to become a cricketer

• Guidance•Planning stage•Thinking Thinking about a about a solid future, solid future, started started dreaming dreaming about about achieving achieving big things big things in lifein life

• Support• Started spending freely

on myself • Focus on Focus on

career career

developmendevelopmen

tt•Enjoy life

MARRIED25-28 YRS

The Town Youth

ResponsibilityResponsibility

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Town YouthAspiration Get a Job, StabilityActivities in Spare Time

TV, Media

Purchases Value, Utility

Nature Loyal to BrandInfluencers Advertisements, Trial,

ExperienceTravel Meticulously Planned

Social Awareness

Interested & Aware, High Threshold

What would he do if he won a lottery

Invest, spend part of itMuder Chiba 9

10 YRS 15 YRS

SisterParentsFriends

• Used to go Used to go

to the schoolto the school

• I played

cricket even in

school

MotherFatherSister

KidsWife & SisterBrotherBrother in law

• Was

pressurized by

uncle &

grandfather to

get married

• Got Got

marriedmarried

17 YRS

• Working & living Working & living

happily with happily with

family & friendsfamily & friends

22 YRS

The Rural Youth

• CinemasCinemas• Loafing

•Was naughty

• Flirting with

girls

• Picked up

smoking bidi &

cigarette

•I helped my I helped my

mother for mother for

field & cattlefield & cattle

•Wanted to Wanted to

give some give some

money to my money to my

mothermother

ResponsibilityResponsibility

28YRS

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Rural YouthAspiration Change his lifeActivities in Spare Time

Cinema & Friends

Purchases Idolized ProductsNature Trend FollowersInfluencers Stars Local &

MediaTravel Seeking OpportunitySocial Awareness

Actionable Politics

What would he do if he won a lottery

Travel, move elsewhere.

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Key DifferencesRural Segments vs. Urban segments:

• Life cycle stages crunched to smaller periodsMost settle into their adult roles by 16-18 yearsFewer stages

• A very brief childhood phase• Followed by a tentative adolescence• Then adulthood

• ImplicationsBehavior constrained by lack of money, confidence or knowledgeBy the time confidence and preference sets in, context brings constraints

• Family.• Repression of personal indulgence

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The Common Thread

• Ambitious, Passionate• Pester Power• Early Adopters• Willingness to work for reward• Believe in A BETTER FUTURE

And …

REMIX MUSIC: From The Pubs to The DhabasMuder Chiba 13

And, of course Mobile Telephony…

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Locomotion (over a million years)

Evolution

IncreasedSocial Distance

1890’s 2005

Land Lines

Communication ( for 115 years)

TV & RadioTV & Radio

Mobile

Internet

1960’s

Global Village

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Unlimited Reach Selectivity EmpowermentMuder Chiba 16

Spotting The Opportunity…

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Telecom Opportunity Prism

Usa

ge

Inte

nsi

ty

Usage Breadth

Usage

Varie

ty

Amount of time spent

Variety of Applications No of

Contacts

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Telecom Opportunity Prism

Usa

ge

Inte

nsi

ty

Usage Breadth

Usage

Varie

ty Opp

ort

un

ity

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Usage Intensity

Need for mobility

How often the product is used regardless of the different applications for which the product is used

Op

port

un

ity

• Safety & Security

• Personalization

• Co-ordination

• Information: Delhi Life

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Usage Breadth

Stronger Social NetworkNumber of partners to whom calls are directed and from whom calls are received

• Increasing Customer Base

• Expansion of Contacts: Global SMS,

Increase size of phone book Area phone

directory downloads (cinema,

restaurants…)

• Interconnectivity

Op

port

un

ity

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Usage Variety

Different applications for which a product is used, regardless of frequency of use

Op

port

un

ity

Perpetually in ‘Inner Circle’

•Virtual Emigration: GPRS,

•Breaking Chains:

Techno Savvy :moving away from personal space

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The Opportunity

• An Opportunity at every touch point with

the consumer and retailer

Three-Pronged Telecom Opportunity

Prism

Op

port

un

ity•Usage Intensity

•Usage Breadth

•Usage Variety

YOUNG INDIA: An Opportunity that can change your Life .

Muder Chiba 23