The Rise of Nuclear Family

Published: Mint dated 8th March2010

This is the 12th in a 33-

part series on distinct
consumer segments,
based on a categorization
of stage of life and
occupation, expenditure
and savings propensity,
family structure and
psychographics. This
week we take a look at the
C5 segment—middle-
aged, married with young
children, living in a nuclear
family

Indicus Consumer Segment

The segment this week is C5, with all characteristics identical to last
week’s C4 households—the chief wage earner has a graduate or
postgraduate degree, or a diploma or certificate after schooling, is
either a skilled worker or a professional, is in the middle years,
married and has young children. But C5 households are nuclear
families while the C4 households discussed last week involve a joint
family set-up.

The C5 segment is the eighth largest among the 33 urban consumer

segments and comprises nearly 250,000 households. This is a very
interesting segment as it highlights several important emerging
trends in urban India.

C5 Indicus Consumer Segment

Reflecting the rise of the nuclear family in
urban India, these households are small in
size—88% have 3-4 members and there are
no senior citizens in these households. Just
11% have more than two children—again a
pointer to how well entrenched the small
family norm has become in the urban
landscape.

In Indian cities, families aspire to an improved

lifestyle, which they recognize is possible with
fewer children. They would like to provide the
best in basics such as food and education,
and at the same time, are looking to upgrade
their vehicles, home entertainment gadgets,
cellphones, etc. This segment, therefore,
forms a market for all aspirational products,
especially those for children. These are the
families that would be seen in cinema halls
and malls on Sundays and eating out as well.

Indicus Consumer Segment

Since these are nuclear families, most households run solely on the earnings of the chief wage
earner—just 15% of the spouses are employed. Yet, these small households are relatively well
off—the median household income is Rs2.24 lakh per year and a little more than a quarter of
the households in this segment earn at least Rs5 lakh annually. So while nearly half the
households in the C5 segment own the houses they live in, the rest stay in rented houses and
are in the market for an “ownership flat”. These families are also looking for appropriate long-
term financial products for housing, children’s education, insurance, etc.

The educational qualifications of the

chief wage earner are quite good,
similar to the previous C segments, with
a slightly higher proportion of graduates.
A look at the industry of employment
shows the diversity across the board
with ‘education, health and social work’
leading with a 21% share and public
administration coming in second,
followed by manufacturing, and
wholesale and retail trade.

Indicus Consumer Segment

 While Delhi tops the urban districts in this segment,
Mumbai, Thane, Bangalore and Chennai follow in the
highest number of C5 households. As the chief wage
earners come from varied educational backgrounds, the
profile of these households would be different in
different cities. Delhi, for example, would have a larger
share of those employed in the government (public
administration sector) while Bangalore would see more
information technology-related professionals in this
segment. Mumbai would see those in financial
intermediation and trade-related jobs in larger numbers.
There would, of course, also be professionals in
medicine, law, accountancy, etc., among these
households in all the cities.

As far as consumption baskets go, the

shares of various components are similar to
those of C4 households. However, with a
different mix of ages in the households in
the two segments, the type of goods and
services consumed differs slightly. For
instance, in the services category, the
proportion spent on medical expenses is
less in C5 households with no senior
citizens.
Indicus Consumer Segment