ISEC is a potential gamechanger for Indian marketers: Shashi Sinha

In the bustling landscape of the Indian market, understanding the diverse and dynamic consumer base has always been a challenge for businesses. However, a new framework proposed by the Market Research Society of India (MRSI) called the Indian Socio Economic Classification (ISEC) is poised to change the game.

ISEC represents a significant departure from traditional classification systems by incorporating a broader range of variables, including the educational attainment of the highest educated female in households. This move recognizes the evolving dynamics within Indian households, particularly the growing influence of women in decision-making processes related to finances and consumption choices.

Shashi Sinha, CEO, IPG Mediabrands India, and Chairperson, Broadcast Audience Research Council (BARC), highlights the importance of ISEC in providing a more nuanced understanding of Indian consumers. Pointing out the limitations of the current National Consumer Classification System (NCCS), Sinha stresses on the need for a more granular classification system like ISEC to cater to the diverse needs and aspirations of different consumer segments. “Today, the NCCS structure is light on the top and bloated in the middle, while below there is nothing,” he points out.

Sinha emphasises on the need for a more differentiated system, and says that ISEC aims to address this gap by offering a more granular classification, allowing businesses to tailor their strategies to specific consumer groups.

BARC, consisting of constituents like AAAI, ISA, and IBDF, plays a crucial role in evaluating the ISEC framework. Sinha explains the process, stating, “IBDF is a larger constituent, 60%, and that is where the proposal on which ISEC is. AAAI has said yes, they want ISEC.”

He further says, “Once we get approval of all the stakeholders, only then will we move forward, and then BARC will see how to implement it. But first we will need to get an alignment, which is the most critical part.”

While the timeline for implementation may be uncertain, the adoption of this framework holds the key to unlocking deeper insights into Indian consumers’ behaviour, ultimately benefiting businesses across various sectors.

Expressing optimism about ISEC’s potential, Sinha asserts, “ISEC is a good thing. I’ve been saying it for some time, because it sharply differentiates the audiences.” He believes that ISEC will empower advertisers and agencies to make informed decisions tailored to their target segments. Despite acknowledging the early stage of the process, Sinha remains hopeful about ISEC’s impact on the Indian marketing landscape.

The inclusion of factors such as female education in ISEC is hailed as a gamechanger by Sinha. He acknowledges its significance, stating, “ISEC’s inclusion of the highest educated female’s educational attainment is a gamechanger.” Recognising the growing influence of women in household decision-making, this nuanced approach enables businesses to better understand and cater to the diverse needs and aspirations of Indian consumers.