working in a joint family
TRANSCRIPT
8/9/2019 Working in a Joint Family
http://slidepdf.com/reader/full/working-in-a-joint-family 1/5
Working in a joint family
Published: Mint dated 10th May 2010
This week we take a
look at F3--households
whose chief wage
earner is a school-
educated skilledworker who is married,
has children, and lives
in a joint family
Indicus Consumer Segment
8/9/2019 Working in a Joint Family
http://slidepdf.com/reader/full/working-in-a-joint-family 2/5
Indicus Consumer Segment
This week, the urban consumer segment in the spotlight is F3, households whose
chief wage earner is a school-educated skilled worker who is married, has children,
and lives in a joint family. It is contrasted with last week¶s segment E5, which
comprises chief wage earners with similar educational and life-stage profiles, but areskilled workers who live in nuclear families or businessmen in joint or nuclear
families.
The family set up that distinguishes skilled workers in F3 and E5 segments is the
characteristic that defines the income, expenditure and asset ownership patterns in
these two segments.
F2
8/9/2019 Working in a Joint Family
http://slidepdf.com/reader/full/working-in-a-joint-family 3/5
Indicus Consumer Segment
F3 households are large in size²81% are of five members or more and
31% have more than two children. More than half the households have
two or more earning members, joint families also comprise relatives and
friends who have come to the city to earn. There is a significantgeographical variation here²districts in the north in general have larger
household sizes than in the south.
In fact, urban districts where F3 households have more than seven
members in their households are Kanpur Nagar, Alwar, Udham Singh
Nagar, Gwalior, Purbi Singbhum, Ambala, Indore, Bhavnagar, Allahabad
and Jabalpur.
The F3 consumer segment comprises 2.5% of the total urbanhouseholds, 11th in size with more than 1.8 million households. However,
with a large household size supporting more people, this segment ranks
seventh largest in population among all urban consumer segments.
More than half the chief wage earners in this segment have completed
higher secondary school and there is a relatively larger proportion of
chief wage earners who are in regular salaried jobs in this segment,
compared to the E5, which even includes businessmen.
8/9/2019 Working in a Joint Family
http://slidepdf.com/reader/full/working-in-a-joint-family 4/5
Indicus Consumer Segment
The sector that offers maximum scope for those with low education is that
of wholesale and retail trade; 27% of the chief wage earners work in this
sector. Manufacturing with 23%, transport with 13% and public
administration with 10% are the other top-ranking sectors. As before, those with low skills work at the lowest rung of government
jobs, but in service sectors there is significant potential to rise higher as
experience becomes key to earning. Though household incomes are
relatively low²the median household income is Rs136,000 and there are
almost 80% of the households earning less than Rs3 lakh²2.6% of
households in this segment do earn more than Rs10 lakh a year.
Clearly, even with low education levels and skills, there is still considerable
scope for making it big in the cities, as these numbers show.In fact, 63% of these families stay in their own homes, a higher proportion
than in the E5 segment. These consumer segments have been created
due to the distinctive patterns seen in asset-income expenditure profiles of
the groups. One of the reasons behind higher home ownership in F3
compared to E5 is that in joint families that characterize F3 households,
there is significant family support and it is easier to raise money.
Moreover, the E5 segment includes businessmen and it is well known that
small businesses run on their own resources, with little access to bankcredit or government support of any kind. So in the E5 segment,
businessmen who stay in joint families would be using such family
resources support also to invest in their own businesses; home ownership
waits for later years when savings build up.
8/9/2019 Working in a Joint Family
http://slidepdf.com/reader/full/working-in-a-joint-family 5/5
Indicus Consumer Segment
Looking at consumer segments through this prism, other
insights come into light. For instance, financial inclusion
that will bring such E5 segment businessmen into the
formal credit system will have a tremendous positive spin-
off, releasing resources that households can use for the
family, maybe be able to own homes at an earlier age.Maharashtra, Tamil Nadu and Uttar Pradesh rank the top
three states in the F3 segment with more than 150,000
households.
Districts with the highest population in the F3 segment are
obviously the big cities of the country²Mumbai, Delhi,
Bangalore, Thane, Pune, Ahmedabad, Chennai, Kolkata,
North 24 Parganas and Surat.