Last week, we looked at segment B3, households where the chief wage earner is married, highly educated, in the middle years, with grown up, unmarried children. The similar educational profile as the last two weeks continues but the occupational focus shifts to professionals. Segment C1 comprises households whose chief wage earner is highly educated, employed as a professional and is either single or married, but without children.
With just a little over 300,000 people in these 97,000 households, the C1 segment forms a small consumer segment of families with young, professional chief wage earners without children. More than half the chief wage earners have never been married, and as most of them are between the age 25 and 34 years, this reflects on the increasing tendency to keep educational and professional priorities foremost before tying the knot and settling down. Almost a third of them have post-graduate degrees while more than half are graduates. The spirit of entrepreneurship is strong in these young professionals and 30% are self-employed. These would include a wide range of professions—doctors, chartered accountants, lawyers, architects, engineers, etc.
Also See | Indicus Analytics Research (Graphics)
Some 70% of the chief wage earners still play it safe through regular salaried jobs. In fact, among the companies, it is still the public sector and the government that draws more from this segment than private companies. One of the reasons for this dominance of the public sector is that most urban centres are state capitals or district headquarters.
The sector that draws the largest share of employment of these young professionals is interestingly, construction, real estate, renting and related business services. The boom in these activities in the past decade has given tremendous scope for professionals stepping into the job market. Second in importance come education, health and social work, a result of the high growth in private educational and health services across all major cities. The initial spurt of private higher education in the 1990s was related to medicine and engineering. However, the 2000s has seen a surge in so many sectors that call for specialized training—civil aviation, tourism, freight and logistics, hotels, etc.—leading to high demand for trainers and teachers. Private health care has also seen a rise with super-speciality hospitals now providing the all-in-one experience for medical tourists. Another growing force has been the link with technology and software in every field—in the health sector, at the lowest technical level, medical transcripts and at the highest level, tele-medicine—all of these, however, calling for specialized employees.
One sector that does not usually appear on the employment radar, social work has a large presence in this segment. This is in fact one sector that has been drawing many professionals as non-government organizations have moved into actively implementing programmes that require much technical expertise. Manufacturing and public administration take the third spot among the chosen careers of these young, highly qualified professionals.
C1 households are essentially young households—with just 40% having one or two seniors. In case of families with seniors, these would be the parents of the chief wage earner staying with him, to some extent dependent on him. While around 90% of the households have no minors, the remaining households have some children staying as this segment also includes joint families. The spouses also generally have high educational qualifications with a quarter holding post-graduate degrees. However, there is a smattering of spouses who have barely finished their schooling. Most of the spouses are homemakers, yet a quarter of the spouses are employed.
Also See | C1 Segment (Graphics)
The chief wage earner of these families is in the early years of his career and median household income is Rs338,000. As most of the segment stay in rented houses, rent forms a large share of close to 40% of their budgets as these upwardly mobile young professionals choose to live in well-to-do neighbourhoods. Services comprise the largest proportion, with expenditure on transport, both personal and public, taking up 19% of the household budgets. These young households are still to make their way up in asset ownership; their savings rate is currently low, less than 20%. However, they have potential to earn significantly higher incomes as they move up their career ladders. As their family size grows, their expenditures will change to accommodate education and entertainment in greater proportions.
Whereas 8.5% of C1 households earn Rs10 lakh per annum or more, 41.5% earn less than Rs3 lakh per annum.
This series is brought to you by research firm Indicus Analytics Pvt. Ltd
Graphics by Ahmed Raza Khan/Mint