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Business News/ Industry / Advertising/  Indian advertisers to adopt a new consumer classification system
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Indian advertisers to adopt a new consumer classification system

Unlike the earlier system, which only factored in the education of the chief earner and the presence of certain consumer durables in the household, ISEC will factor in the occupation of chief earner, and the education levels of the most highly educated adult male and adult female.

Socioeconomic classification helps brands and agencies better understand their target audience’s profile and behaviour, and launch products, innovations and ad campaigns accordingly. Photo: iStockPremium
Socioeconomic classification helps brands and agencies better understand their target audience’s profile and behaviour, and launch products, innovations and ad campaigns accordingly. Photo: iStock

New Delhi: The Market Research Society of India (MRSI) has announced the implementation of its latest socioeconomic classification (SEC) system. Called ISEC, the new system is in line with the changing contours of the Indian household, which is more educated and has greater female participation in the workforce, the MRSI said on Wednesday.

Unlike the earlier new consumer classification system (NCCS), which only factored in the education of the chief earner and the presence of certain consumer durables in the household, ISEC (Indian Socio Economic Classification) will factor in the occupation of the chief earner, and the education levels of the most highly educated adult male and adult female.

Since GDP, income levels, penetration of consumer durables, and ownership of vehicles have increased significantly, the earlier classification system has become less useful. The need to redefine key variables led to the formation of a more stable and robust construct, MRSI said.

Socioeconomic classification helps brands and agencies better understand their target audience’s profile and behaviour, and launch products, innovations and ad campaigns accordingly. Such data is especially critical in a diverse, populous market such as India. ISEC is "representative of India’s socioeconomic strata" and captures both urban and rural household data, MRSI said.

Sunil Kataria, CEO of Raymond Lifestyle, India and international, and chairman of The Indian Society of Advertisers, said, “The economy is developing at a rapid pace. At such a pace it is even more important for us as advertisers to understand our consumers and their behaviour. ISEC is representative, relevant and robust. It gives us a holistic view of our audience segment and how they are equipped to make decisions."

Industry stakeholders that are on track to adopt ISEC include The Indian Society of Advertisers, researchers at various organisations such as ITC, Hindustan Unilever Limited, Marico and Dabur India, research agencies including Kantar and IPSOS, and media agencies.

Amit Adarkar, CEO, Ipsos India, said, “Socioeconomic classification is the starting point for any planning or decision-making, and impacts almost all industries. NCCS was introduced at the time when digitisation was gaining momentum and women’s representation in household decisions was marginal. Our country has evolved greatly since then and it’s essential that we have an SEC that is equally evolved."

The new classification system has been created by experts from across the research and insights industry and allows for "improved distribution" and sharper and more refined targeting of consumer cohorts.

“A better and deeper understanding of consumer cohorts is always appreciated. It gives brands the opportunity to identify and target consumers in a sharper manner and opens up avenues for sharper communications," said Shashi Sinha, CEO, IPG Mediabrands India.

 

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 21 Feb 2024, 07:23 PM IST
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