india’s tier-3 cities

8/8/2019 Indias tier-3 cities

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Classification of the cities

The Status of Indian cities comprises two

ranking systems used by the Government of

India.

1. Compensatory City Allowance (CCA):

2. House Rent Allowance (HRA): This classificationwas initially based on the recommendations of the Fifth Pay

Commission of India (1997)


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CCA CLASSIFICATION

On This Basis, Following Cities Come Under

Tier-3 Category:

Kochi,Patna,Indore, Bhopal,Guntur,Vadodara,Ludhiana,Agra, Nashik,Kakinada,Raipur,

Madurai,Varanasi,Rajkot,Rajahmundry

Jabalpur,Jamshedpur,Allahabad

Amritsar,Asansol, Dhanbad


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HRA CLASSIFICATION

According to HRA following cities come under tier

3 category.

Kochi, Patna, Indore, Bhopal, Guntur, Vadodara,

Ludhiana, Agra, Nashik, Kakinada,Raipur

These classification is important because indian

small cities are comprised with service class

people, those are in turn will be the prospect ofmodern retail development in these cities.


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LaSalle-Meghraj survey(2007)

LaSalle-Meghraj is a firm which works for retail location development.

According to this India's tier-3 cities can be categorized into two following

categories:-

Emerging cities:

These cities are having the presence of national and international retailer.

Mall developer companies are selectively focusing on these cities because

of:

Growing income.

Scarcity of branded product

KOCHI,INDORE,LUDHIANA,AGRA,NASHIK,COIMBATORE,MYSORE,BHUBNES

WER,JALANDHAR,MANGLORE,VIZAG,THIRUVANANTHPURAM,MEERUT,JA

MSHEDPUR,ALLAHABAD AMRITSAR,NAGPUR,GOA,KANPUR


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Nascent cities

LaSalle-Meghraj SURVEY has named these citiesas Nascent Cities because of:-

Population being between 1-1.5 million.

Low per capita income

Limited corporate activity

Cities are:Jodhpur, Patna,Varansi,Meerut,Rajkot,

Aurangabad, Bhopal,sonipat,vijaywada, Madurai,Ranchi, Gauhati, Jabalpur, Asansol, Dhanbad,Panipat, Kolhapur,srinagar,solapur


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Top 20 tier-3 cities of india

On the basis of CCA, HRA and LaSalle-Meghraj

survey we can select top 20 tier-3 cites which are:

KOCHI,INDORE,LUDHIANA,AGRA,NASHIK,COIMBA

TORE,MYSORE,BHUBNESWER,JALANDHAR,MANG

LORE,VIZAG,THIRUVANANTHPURAM,MEERUT,JA

MSHEDPUR,ALLAHABAD, VIJAYWADA,AMRITSAR,NAGPUR,GOA,KANPUR,

PATNA,SONIPAT, AURANGABAD,


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Modern retail development in tier-3

cities of India.

In emerging cities 13% national organized

retailing has taken place by 2009

No. of malls in these cities are 2-5 by 2008. In nascent cities there is 3% modern retailing

has taken place and 1-2 mall are there by

2008.


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Opportunities for the formats.

Mixed use malls

Branded store

Supermarket/hypermarket

First mover advantage

Department stores.


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International retailing in tier-3 cities

Some of the tier-3 cities are having presence

of franchise owned retail stores.

Some fast developing cities such asKOCHI,INDORE,LUDHIANA,AGRA,NASHIK have

the presence of international retailer like

Levies, Addidas, Reebok,Nike etc.


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Refrences

http://finmin.nic.in/the_ministry/dept_expen

diture/miscellaneous/hracca.pdf

Jones lang lasalle-meghraj research


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THANK YOU

india’s tier-3 cities

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