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1Copyright © 2018 The Nielsen Company

WEALTHY SINGLE URBANITES GO PREMIUMEXPLORING THE RISE OF A NEW PREMIUM CONSUMER CLASS IN INDIA• Wealthy single urbanites comprise 1% of India’s 1.3 billion

people.

• These digitally forward consumers have more disposable income than other consumer segments, and are shaping market dynamics with their evolved priorities and needs.

• This segment of super consumers includes early adopters and influencers, making them a key focus for companies that want to enter the market with revolutionary ideas and offerings.

India’s 440 million Millennial and 390 million Gen Z population1 are a young and digitally forward segment that is evolving into a new consumer class with more disposable income than other cohorts. 1% of the country’s 1.3 billion population comprises wealthy single urbanites. These are salaried individuals earning upwards of INR 50,000 a month, who stay alone, with friends, or are in live-in relationships. They are in the age group of 28 to 45 years and may be unmarried, divorced, widowed or separated.

NIELSEN FEATURED INSIGHTS

1https://economictimes.indiatimes.com/jobs/here-is-how-companies-are-learning-from-millennials-mistakes/articleshow

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WEALTHY SINGLE URBANITES ARE THE NEW SUPERCONSUMERS Upwardly mobile urban youngsters are quickly changing their priorities from relationships to education and career, leading to the rise of one-person households. The proliferation of technology, easy connectivity among friends and a wider array of entertainment options is also contributing to this lifestyle. Consequently, marriage has taken a back seat, with both men and women delaying marriage until they are older.

THE PROFILE OF WEALTHY URBAN INDIAN SINGLES

1,320,200,000TOTAL POPULATION

URBAN

28-45

SINGLE

>50K

RURAL

<28, >45

MARRIED

<50K

341,000,000BETWEEN 28-45 YEARS

32,907,000SINGLE/UNMARRIED/

WIDOWED/SEPARATED

6,698,000EARNING >50K

PER MONTH

32%

26%

10%

20%

68%

74%

90%

80%

Source: Nielsen

2001


2011

Wealthy, single urbanites most often base their consumption decisions on lifestyle considerations rather than functional needs. They’re also early adopters and super consumers across all categories, which is shifting consumption dynamics in urban India. A more granular look at who these emerging consumers are and how they behave, reveal the scope of change. The average monthly income of wealthy, single urbanites is between INR 65,000 to INR 70,000, while their average disposable income ranges from INR 25,000 to INR 30,000. Interestingly, these consumers use about 35% of their monthly income for savings and food.

MEDIAN AGE FOR MARRIAGE

UPWARDLY MOBILE URBAN YOUNGSTERS ARE FAST CHANGING PRIORITIES FROM RELATIONSHIPS TO EDUCATION AND CAREER, LEADING TO THE RISE OF ONE-PERSON HOUSEHOLDS. THE PROLIFERATION OF TECHNOLOGY, EASY CONNECTIVITY AMONG FRIENDS AND A WIDER ARRAY OF ENTERTAINMENT OPTIONS ALSO CONTRIBUTE TO THIS LIFESTYLE.

WHAT WEALTHY SINGLE URBANITES DO WITH THEIR

MONTHLY INCOME

Source: Nielsen

RENT10-14%

ENTERTAINMENT9-13%

TRANSPORTATION7-11%

DRINKS7-11%

UTILITIES8-12%

LOANS5-9%

MISCELLANEOUS6-10%

Source: The Hindu

22.6

23.5 19.2

18.22001

SAVINGS18-22%

FOOD12-16%

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Some life choices and priorities mark this new breed of wealthy single urbanites.

A. Appliances and gadgets are an extension of personality: Gadgets are now intensely personal and are reflective of who they are as people. Single urbanites look beyond conventional appliances and aspire to buy lifestyle products that come with bold and innovative concepts that help them stand out in a crowd.

B. Staying away from family does not necessarily mean a compromise on food: This cohort spends about 25% of their monthly income on food and drinks. Even though they stay away from their families, their kitchens are well-stocked with fruits, vegetables, dairy products, dry fruits and beverages.

C. There are clothes for every occasion: While formal wear and casual wear comprise 30% of their wardrobe, wealthy single urbanites have different clothes for all occasions like party wear, daily essentials, blazers, lingerie, gym wear and scarves. Also, in an indication of rising awareness, almost all their clothes are branded and these consumers display a keen concern for fabric-care. About 40% Indian and party wear clothes are washed separately from regular clothes, and blazers alongside party wear clothes are mostly dry cleaned.

UNCONVENTIONAL APPLIANCES AND GADGETS THAT ARE GAINING FAVOUR WITH SINGLE URBANITES

INCREASING CONSCIOUSNESS ABOUT FABRIC CARE

Source: Nielsen

COFFEE MAKER BLUETOOTH SPEAKER HOME THEATRE AIR PURIFIER PROJECTOR AR/ VR DEVICE

80-90%Wash clothes usingwashing machine

60-70%Have fully automatic

washing machine

50-55%Do their laundry

themselves

30-40%Wash their clothes

everyday


D. Being single without compromising their way of life: While household comforts and a high standard of living have traditionally been associated with marriage, things are now changing. Whether they stay alone, with friends or live-in partners, these consumers live life on their own terms.

HOUSEHOLD COMPOSITION OF SINGLE URBANITES

PREFERENCE OF STAYING

1 IN 3Staying with friends

1 IN 2stay in a furnished(rented) apartment

1 IN 4stay in a selfowned house

1 IN 10stay in semi furnished(rented apartment)

1 IN 4Staying alone

1 IN 4Live-in

1 IN 10Single parents with kids OR

Married-Long Distance

E. Work-life (im)balance fits right in: Priorities have evolved, and urbanites are no longer as keen on a work-life balance as they were a decade or so ago. Now, one in every two urbanites wants a job that motivates them to work harder every day even if it means spending long hours over it. Several adjustments are prevalent to accommodate these extended hours and pursue growth. Three of every four wealthy single urbanites work from home at least two days a week. Also, importantly, though urbanites give their current jobs everything they have, they don’t hesitate switching between jobs. Among the top reasons for these switches are better pay and promotions.

PRIORITIES HAVE EVOLVED, AND URBANITES ARE NO LONGER AS KEEN ON A WORK-LIFE BALANCE AS THEY WERE A DECADE OR SO AGO. NOW, ONE IN EVERY TWO URBANITES WANTS A JOB THAT MOTIVATES THEM TO WORK HARDER EVERY DAY EVEN IF IT MEANS SPENDING LONG HOURS OVER IT.

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Source: Nielsen

Working harder and socialising with a zeal prompts this cohort to be perennially connected. So, expectedly, smartphones are keeping urbanites glued. The average wealthy single urbanite spends 20 hours a week on smartphones with male users being marginally more engaged than females.

28-30 YEARS OLD

MORE THAN 30 YEARS OLD

SHOPPING

SOCIALISING COOKING PHOTOGRAPHY INDOOR SPORTS

READING TRAVELLING

WHERE WEALTHY SINGLE URBANITES OF DIFFERENT AGE-GROUPS SPEND THEIR TIME

F. After the age of 31, wealthy urban singles want to work hard and party harder: Wealthy single urbanites within the age bracket of 28 and 30 years, are more traditional than their older counterparts. They largely continue to prioritise marriage over career and desire a work-life balance. They are also more comfortable walking the well-trodden path and like to hang out in small groups. On the other hand, wealthy single urbanites over the age of 30 place career and money matters on the top of their priority list. They devote more time to work, are excited to meet new people and pursue unconventional options because it gives them a thrill.


Source: Nielsen

G. Gender is less of a divide: Gender differences are gradually fading among wealthy single urbanites. More men have now started shopping for clothes online, while a lot more women are travelling or indulging in adventure sports.

OWNERSHIP OF DIGITAL DEVICES

HOBBIES ARE BECOMING GENDER-NEUTRAL

100%

SMARTPHONE* LED TV + LCD TV LAPTOP TABLET KINDLE

50-60%

15-20%

>90%

*This data was collected only from Smartphone owners

SHOPPING

0 100

MALES FEMALES

TRAVELLING

READING

OUTDOOR/ADVENTURESPORTS

H. Even with fewer responsibilities, financial planning is important: While these urbanites spend a fair share of their monthly income on leisure activities, they are also adept at managing their finances. Respondents claimed that they save 15%-25% of their monthly income, of which 75%-85% goes into safe investment options.

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I. Food means more than filling the stomach: 22%-28% of monthly income for this segment is spent on food and drinks. So understandably, food is not just a rational decision; it is also about culture, habit, cravings and identity.

When asked what they would do with the money if they won a lottery or got an additional source of income, more than 55% said they would save the extra money, while more than 60% said they would invest in an asset. Older single urbanites seem to have higher disposable incomes, increasing their willingness to take financial risks. Research shows that 15%-20% of wealthy single urbanites between 28 and 30 years invest in risky propositions, while the figure rises to 23%-28% in the age bracket of 31-35 years.

WEALTHY SINGLE URBANITES ARE CONSCIOUS ABOUT FINANCIAL PLANNING DESPITE FEWER RESPONSIBILITIES

Source: Nielsen

OLDER SINGLE URBANITES SEEM TO HAVE HIGHER DISPOSABLE INCOMES, INCREASING THEIR WILLINGNESS TO TAKE FINANCIAL RISKS. RESEARCH SHOWS THAT 15% - 20% OF WEALTHY SINGLE URBANITES BETWEEN 28 AND 30 YEARS INVEST IN RISKY PROPOSITIONS, WHILE THE FIGURE RISES TO 23% - 28% IN THE AGE BRACKET OF 31-35 YEARS.

SAVINGS

FOOD

RENT

ENTERTAINMENT/SHOPPING

EVERYTHINGELSE

LOANS

FUEL/TRANSPORT

DRINKS

UTILITIES

AVERAGE SINGLE PREMIUM’S PAY-CHECK


J. While fun is important, health is even more so: Fun and health aren’t mutually exclusive anymore as these urbanites make a conscious effort to maintain their health and fitness levels.

THE IMPORTANCE OF FOOD IN THE LIVES OF WEALTHY SINGLE URBANITES

HEALTH AND FITNESS TAKE CENTRE STAGE

Source: Nielsen

Source: Nielsen

ITEMS STOCKED IN FRIDGE

75% PREFER SALADS/ FINGER FOOD FOR HOUSE PARTIES,

>50% OF WHICH IS PREPARED AT HOME

71% females and

44% males cook food themselves

50% cook and

31% actively take an interest in cooking

Top concerns while COOKING• Washing and chopping

vegetables• Having fresh vegetables• Avaliability of ingredients

25%of the monthly

earnings are spent on food and

drinks and 91% first take care of

food when having a house party

EVEN WHEN HAVING A PARTY INDOORS,75% DON’T MIND HAVING SALADS

70% HAVE EITHER GYM OR SPORTS CLUB MEMBERSHIPS

22% PLAY AN OUTDOOR SPORT AS A HOBBY 35% OTHER FITNESS

44% EXERCISE

44% YOGA

44% CYCLE

60% RUN

67% WALK

43% FEEL THEY ARE OVERWEIGHT

K. Travel is a good reason to take a break from work: The harder they work, the more acutely they feel the need to de-stress. For about 50% of Millennials, a break from work is the primary reason for leisure travel. 48% of respondents cited the need for more excitement in life to be the reason for travel, while 46% said it was to reduce stress. Whatever the reason for the break, this segment is united in the need to stay connected through social media. More than 50% agree that holiday photographs posted by their contacts on social media influence where they decide to go for their own vacations.

87 82 7762 61

10

SOCIAL MEDIA IS A BIG INFLUENCER

59% 17%

18%

18%

57%

64%

Agree Disagree

Holiday photos posted by my contacts on social media influence where I decide to go on holiday

I have posted a photo/video of my holiday on a social network while I’m away

It’s important to me that people comment on the holiday photos I post on social media

THE OPPORTUNITIES THAT WEALTHY SINGLE URBAN CONSUMERS PRESENTThese super consumers are set to shape the future of our markets. Their high spending power makes them immediately valuable for brands across categories. This is particularly true for new-age brands and products. For instance, since these consumers are conscious about their health, we see that 25% have air purifiers in their households; a product category that is fairly new in India.

Another important insight is the evolved definition of “fun,” which earlier involved things like parties, dining out and movies. Increasingly, these urbanites now derive fun from spending quality time at home. This means that they are open to more entertainment options within homes, an aspect that is reflected in the ownership of durables. While the Indian market has recently moved on from cathode ray tube cathode ray tube (CRT) television sets to liquid crystal display (LCD) and light-emitting diode (LED) ones, wealthy single urbanites already own projector screens and augmented reality (AR) / virtual reality (VR) devices for enhanced experiences. Apart from durables, the same principles hold for other categories including automobile, finance etc.

Being early adopters, this segment is a trial market for companies keen to test revolutionary designs and ideas which simplify lives while simultaneously helping consumers reflect their personalities.

Source: Hindu Business Line


SANDEEP PANDE DIRECTOR, DURABLES AND AUTOMOTIVE PRACTICE

ABOUT NIELSENNielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

ABOUT THE AUTHORS

APEKSHA JAIN SENIOR MANAGER, DURABLES AND AUTOMOTIVE PRACTICE

NIMISHA SRIVASTAVA SENIOR RESEARCH EXECUTIVE, DURABLES AND AUTOMOTIVE PRACTICE


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