A recent survey reveals that about 60 percent of the ‘real rich’ population in India lives in small cities. This has in turn tempted consumer companies to target these people during the coming festival season.

According the latest National Council of Applied Economic Research survey the ‘nouveau rich’ stay in small cities and not in cities as projected.

Companies like LG, Samsung, Maruti and Hyundai, among others have changed their distribution and marketing strategies to lure new affluent, upwardly mobile consumers, in smaller cities. In fact by targeting these small city consumers many companies expect their revenues to increase this year.

The survey reveals that about 75 percent of India’s ‘sheer rich’, 64 percent of ‘clear rich’ and 58 percent of the ‘near rich’ live in these 67 smaller cities representing about seven percent of the population and contributing 13 percent to the nation’s GDP.

Despite the main metros remaining the richest, small cities have witnessed more growth, the NCAER survey said. Based on this report, consumer companies are refining their strategies to market products. People in these small cities are no longer averse to buying high end products like plasma TVs, premium cars and bikes, which hitherto were available in cities only.