Population metric: another source for your business insight
Writen by Ángela ·
Following the suite of the previous blog post, where we discussed about the importance of transactionality data to gain business insights, yet another indicator that stands powerful in the pipeline is the census population. You are an executive or an expansion manager planning to establish the next branch of your business in a new area; knowing who populates that area could be a standalone witness of predicting your future business success.
Not only the census population, but also the average age, the floating and foreign population, the touristy presence, marital status, educational level and sometimes election results could also be the intricacies that accumulate to a fine business plan. Hence, this blog post revolves around the most vital indicator “census population” and what it could do to your business decision.
Spain’s demographic status
Spain has only been showing an upward trajectory since the great recession hit the country in 2007. Its GDP in the second quarter of 2017 is $318,281 million. This is an increase of 0.8% compared to the previous quarter.
A few metrics of Spain:
- Total population as of November 6th 2017: 46,369,439
- Spain holds the 30th position in the list of countries ordered by population
- 81.9% of the population is urban
With that pointed out, let’s delve into the municipal region of Spain’s second largest city and tourist destination “Barcelona” to excavate the census metrics
The census population: 1,608,750 inhabitants
- The census population in Barcelona is approximately half of Madrid’s at 3,165,540. The figure however is only of the municipal region. Barcelona, however, has a much larger urban area which is home to 4.6 million inhabitants. This makes way for the city to hold the status of 6th most populous urban area in the European Union.
- Underpinning these statistics, comes the average age of the area which in this region is 44 years. Exploring the age could be a propelling factor for businesses in their decision making process because certain products/services can only be deployed in specific age groups.
Focusing deeper on the structure, it can be seen, for the age bracket between 20 and 45, the number of male inhabitants is 286,700 and the number of women under the same bracket falls shortly behind at 286,500. On a higher note, women from the age bracket 45 to 60 (172,650) outnumber men (158,310) from the same age category.
Similar to deciphering the average age of the population, decoding the number of inhabitants gender wise increases the agility of the location data.
Floating population – 1,269,120 inhabitants
This indicator however has several underlying categories such as the workers, non-registered students and other non-registered inhabitants from different domains. Stressing on the divisions, we can denounce from the application, the city has the highest number of workers. i.e., 82.38% (1,045,520). This is appreciable especially when the figure is higher than the province’s at 82% and the country’s at 69.49%. Businesses therefore can bet on this city citing a high working population.
Moreover, the region also has some percentage of non-registered students and inhabitants. This data though often overlooked, is becoming an increasingly vital indicator for businesses. The non-registered inhabitants could be people from outside the municipality of Barcelona or from other Spanish cities who come to the city for some educational or personal purposes and spend a considerable amount of time. Knowing this metric could be of help to businesses to manage the in-store stock in type and quantity.
Assessing the nationalities of a region also has similar business benefits as mentioned earlier. Likewise, the foreign population of the selected region is 16.6%. This somewhat is in tandem with the province’s figure at 12.4% and stands higher than the country’s at 9.9%.
Out of the total foreign population, surprisingly, Americans (31.33%) populate the selected area at a slightly greater number than the Europeans or the Spanish (30.78%). The international presence is further enhanced by other nationalities such as Asians (23.43%), African (7.33%) and Europeans outside the EU (6.97%).
The most vital component, tourists population
Total number of tourists: 7,721,490 tourists
The rapid growth of tourism especially in a popular destination such as Barcelona necessitates executives to make more informed and focused business decisions. The touristy presence in Barcelona is inclusive of the tourists residing and not residing in Spain. For example, in the selected region, 21% of the foreign tourists reside in Spain. Major portion is occupied by the EU members not residing in Spain (55.25%), i.e., 3,371,070 people.
The touristy population intervenes every business aspect from planning to marketing.
The other potential metrics that backs a census data analysis are marital status and educational level.
- The selected region has a single population of 45.30% (728,750 people), married at 41% (659,200) and divorced at 4.1% (67,130). The total number of singles in this region outnumbers the singles accumulated in the whole country which is at 43.40%.
- Percentage of inhabitants with college education are 31.84%, while the ones with no history of studies stand at 7%. The figure of the inhabitants with college degrees is substantially more than the country’s number at 19.23%.
What can we infer from the analysis of the powerful metric:
- For any public targeted business involving a product/service, knowing who populates your target area is pronounced critical for business decisions.
- Knowing the average age helps direct the right product/service to the specific age group.
- The touristy presence helps create bespoke marketing campaigns and forecast sales to manage the in-store resources accordingly
- The educational level gives an insight into the employment in the area which ultimately leads to the disposable income metrics and the spending capabilities of your target population.
Thus, unlocking the population figure is essential for drafting a business strategy, delving deep into the other metrics could only clear the hindrances and increase the lucidity of your business performance in the new location.