Jaipur, Surat to join metro club by 2018: EY
According to EY, the two metros will have a household income of Rs 80,000 crore each by 2018. Additionally, EY says that 8 new ‘half metros’ will emerge by 2020 with a household income of Rs 40,000 crore each.
Published - Mar 15, 2017 8:13 AM Updated: Mar 15, 2017 8:13 AM
A new EY report states that Jaipur and Surat will emerge as new metros with a combined household income of over Rs 80,000 crore each by 2018. The report states that this provides significant opportunities to marketers. Furthermore, EY says that eight new ‘half metros’ will emerge by 2020 with a household income of Rs 40,000 crore each. The report also states that emerging new-wave markets are driving increased media penetration, surpassing metros in certain mediums.
Jaipur and Surat are projected to record real GDP growth of 8.7 per cent and 10.3 per cent respectively from 2015-20, relative to metros’ 8.3 per cent. Both cities will see total consumption levels reaching 75-80 per cent of metros like Pune and Ahmedabad. The report further identifies 42 new-wave markets, which are expected to grow at 8.9 per cent.
“Non-metro growth is out-stripping that of metros in India. There are clear cases of unmet demand in India’s top 50 cities in certain sectors. This provides a huge opportunity for various sectors to both widen and deepen marketing strategies, and effectively tap into one of the world’s largest earning populations,” said Ashish Pherwani, Media and Entertainment Advisory Leader, EY India.
The report also notes the rise of eight new ‘half metros’, with household income exceeding Rs 400 bn by 2020. It also highlights 13 new-wave cities that represent a high-growth opportunity, but are largely untapped. These include Patna, Raipur, Warangal, Gwalior, Dehradun, Allahabad, Rajkot, Vishakhapatnam, Jodhpur, Vijaywada, Ranchi, Kota, and Jabalpur.
Speaking to exchange4media, Pherwani said that among media, the main growth that will be seen in Surat and Jaipur will be of non-English TV and radio while print will see the highest growth in the new-wave cities. “These two cities have a very high youth ratio. We will see more Hindi channels coming up in the coming years in new categories. Digital will be more of an incremental growth,” he said.
However, he pointed out that digital ad spends should reach around Rs 20,000 crore by 2020. “The real uptake (in digital ad spends) will come by 2021-2022,” he commented.
Despite the new metros and the new-wave cities showing a higher GDP than metros, Pherwani said that there would be no cannibalization of ad revenues. The media spends in these cities will be new money that will be pumped in by marketers.
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