L.I.V.E: Serving the Low-Income Value Explorer
By Adrian Terron, Executive Director, Retail & Shopper Practice, Nielsen India, and Manoj Kulkarni, Director, Retail & Shopper Practice, Nielsen India
An estimated 10 million low-income households live in urban India, earning an income of less than Rs. 72,000 annually. This segment – the low-income value explorer or L.I.V.E., is typically constrained for resources and seeks to maximise value in every purchase across categories.
Corresponding to the socio-economic classification ‘E’ or the bottom quintile, estimates show that the segment spends USD$2.4 billion on branded fast-moving consumer goods (FMCG) alone and the figure is expected to increase to USD$3.5 billion by 2015.