The SEC Classification the classification of Indian consumers on the basis of parameters. Traditionally the two parameters used to categorize consumers were: Occupation and Education of the chief wage earner (Head) of the households.The SEC classification,created in 1988, was ratified by Market Research Society of India (MRSI), is used by most media researchers and brand managers to understand the Indian consuming class.Originally developed by IMRB International as a way of understanding market segments, and consumer behavior it was standardized and adopted by the Market Research Society of India in the mid-1980s as a measure of socio-economic class and is now commonly used as a market segmentation tool in India.
The new version is available at http://www.mruc.net/new-demographic-map-of-india.pdf. Please refer this one.
In the older version,the SEC Classification consists of two grids- • The Urban SEC Grid, which uses Education levels and Occupational criteria of the Chief Wage Earner (CWE) of a household as measures to determine socio-economic classification, and segments urban India into 7 groups (A1 to E2) and • The Rural SEC Grid, which uses Education and Type of House (pucca, semi-pucca, and katcha) as measures of socio-economic class, and segments rural India into 4 groups (R1,R2,R3,R4)
This is based on the assumption that higher education leads to higher income thus higher consuming potential. But we know that this may not be true always. A trader or a retailer with no qualification can earn more income than a Post graduate executive, but SEC will categorize the traders/retailers not as SEC A1or A2.
So, in order to combat this problem, the Government came up with the new SEC system.
The new SEC system is based on two variables: 1. Education of the Chief Earner 2. The number of Consumer durables(pre-decided from a list) owned by the family.The list has 11 items ranging from "electricity and agricultural land" to cars and air