New metros emerging in India and the household income significantly expected to increase by 2018. Two new metros, Jaipur and Surat, will see a significant rise by 2018, having a household income of over Rs 80,000 crore, according to an EY report.

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These cities are projected to record real GDP growth of 8.7% and 10.3% respectively from 2015-20, relative to metros’ 8.3%, according to an Ernest & Young (EY) report. As a result, both cities will cross the Rs 80,000 crore threshold within one to two years, with total consumption levels to reach 75%-80% of metros like Pune and Ahmedabad.

The report also notes the rise of 8 new half metros, with household income exceeding Rs 40,000 crore 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.

As a result of these emerging markets and the household income increasing the demands are expected to also increase. To fuel these demands sectors such as the FMCG, retail, fashion and durables, automobile, telecom and DTH, ecommerce and education are expected to spend significantly in these emerging metros.

The report says that FMCG sectors ad spends in 2016 was expected to be Rs 14,600 crore. While retail, fashion and durables was Rs 5,600 crore. The automobile sectors ad spends was Rs 4,900 crore, telecom and DTH ad spends Rs 4,400 crore, e-commerce ad spends Rs 4,000 crore and education ad spends in 2016 at Rs 2,400 crore.

“We find that the greatest gaps between consumption and supply-side penetration lie in smaller new wave cities, and these disparities highlight the opportunities for businesses to expand beyond the major centres and plug this gap,” said the report.

The steady rise of modern trade channels and disposable incomes provide a strong platform for India’s FMCG industry, projected to grow 6%-8% annually till 2020.

Out of the Rs 14,600 crore FMCG ad spends in 2016, a large majority 74% of the ad spends went towards TV, while 19% went to print and 1% to radio. The report identified 10 untapped markets for FMCG brands to increase consumption which include Chandigarh, Dehradun, Jabalpur, Jamshedpur, Kolkata, Kota, Kozhikode, Trivandrum, Vijayawada and Vizag.

In the retail, fashion and durables segment 50% of the Rs 5,600 crore ad spends went towards print in 2016, followed by 31% on TV and 4% on radio.

“Fashion (apparel and footwear) is the largest segment in Indian organised retail and this market is projected to grow at a healthy CAGR of about 13% during 2015-2020 from about Rs 4 lakh crore in 2015. While organised retail’s share of the national market is projected to rise from about 10% today to about 16% by 2020, many new wave cities remain under-penetrated and hybrid offline/online distribution models are becoming increasingly popular,” said the EY report.

The untapped markets for retail include Jaipur, Jamshedpur, Kota, Mysore, Nagpur, Raipur, Trivandrum, Vadodara, Vijayawada and Vizag.

Out of the Rs 4,900 crore automobile sector ad spends in 2016 51% went for print, 34% went towards TV and 3% to radio.

Domestic passenger vehicle sales in India are expected to grow robustly at 9%-11% annually from 2015-20 to reach 4.0-4.5million units by 2020, said the report. Growth will be nearly as strong in the two-wheeler segment, which will grow at 8%–10% annually from 2015-2020 to reach about 25million units by 2020. With auto makers looking to tap into these growth opportunities, several new wave cities are particularly under penetrated. Some of these untapped market for automobile to advertise include Indore, Jodhpur, Kanpur, Kota, Mysore, Pune, Raipur, Vijayawada, Vizag and Warangal.