‘What do women want?’ is a question that has tormented generations of men. Even renowned psychologist Sigmund Freud, who spent thirty years of his life researching and delving into the ‘feminine soul’, was unable to find an answer to this generations old complicated question. This thought was not pursued earlier with companies citing ‘a not-so-strong female economy’ as the reason. Today however, since the world market is already saturated with products backed by tried-and-tested marketing gimmicks exclusively targeted towards men, companies are on the constant look out for new avenues and uncharted territories to boost the sale of their products. One such uncharted territory consists of women or the ‘Female Economy’. Companies today, increasingly are looking at targeting women for their products and therefore are investing huge amounts in trying to find an answer to ‘What women want?’
A recent study conducted by Boston Consulting Group (BCG) states that women control or substantially influence 65 percent of the world's annual consumer spending of about USD 18.4 trillion, – this is around USD 12 trillion (about INR 550 trillion), or about 10 times India's GDP. The study also found that with the pay difference narrowing, women’s USD 13 trillion yearly earnings could reach USD 18 trillion in 2009-10. The incremental USD 5 trillion is almost twice the growth in GDP expected from China (USD 4.4-6.6 trillion) and India (USD 1.2-1.8 trillion) combined. Even former journalist and co-author of ‘Women Want More’, Michael Silverstein, is of the opinion that the ‘Female Economy’ would have a global economic impact greater than Brazil, Russia, India and China and it would be extremely foolish for corporate around the globe to ignore or underestimate the female consumer.
Globally companies are slowly waking up to this fact, and they are manufacturing women-specific products, complementing them with suitable marketing gimmicks. For instance, Haier, the fourth largest white goods manufacturer, has successfully transitioned into the female economy with products redesigned for women taking into consideration the average height difference of 5 inches between men and women. What is more interesting is that companies that were exclusively dealing with men’s products are also looking towards women as the new target audience. For instance, Harley-Davidson, the motor-cycle manufacturer who has long been a symbol of masculinity, has added a ‘Women Riders’ section to its website. This section features riding gear and apparel for women along with advice on riding safely and personal rider stories. This step has been taken by the motor-cycle major in response to the growing popularity of motorcycles amongst women, who now buy 10 percent of all Harleys sold, compared to just two percent in 1985.
However, the question here arises whether these companies are formulating adequate and proper strategies to target the female economy. Unfortunately, companies who approached this opportunity with one business model targeting both men and women failed miserably since they assumed that men and women display the same buying behaviour. The indispensible fact still remains that men and women display different buying behaviours when deciding upon their purchase options. The objective of selling to women might seem simple to the company but it is in-fact far from the basic truth. There are many instances where companies launched products that were tweaked to target the 'pink' segment but were immediately thrashed by women. One classic example is Dell’s short-lived effort to market notebooks specifically to women. The company fell into the classic ‘make it pink’ mindset with the May 2009 launch of its Della website. The site emphasized colours, computer accessories, and tips for counting calories and finding recipes. But, it created uproar among women, who described it as ‘slick but disconcerting’ and ‘condescending’. Within weeks of the launch, Dell was compelled to change its website and focus.
As per Silverstein, women have repeatedly been underserved and ignored by companies in male-dominated sectors, which run the risk of alienating the world’s largest and fastest growing economic force. These sectors include the car industry, consumer electronics and financial services, offering countless examples of poor service to women, primarily due to confusion about their wants and inability to speak the language of the ‘fairer sex’. Thus, while the main opportunity for companies lies in addressing the dissatisfaction of women in these sectors. Companies also face the challenge of understanding the complexities involved in selling to a woman as compared to doing business with a man. Companies have to face the tough road of identifying what a woman wants and creating products that would be an adequate fit for the numerous different profiles held by her, while keeping in mind that time is her biggest constraint.
A recent study conducted by Boston Consulting Group (BCG) states that women control or substantially influence 65 percent of the world's annual consumer spending of about USD 18.4 trillion, – this is around USD 12 trillion (about INR 550 trillion), or about 10 times India's GDP. The study also found that with the pay difference narrowing, women’s USD 13 trillion yearly earnings could reach USD 18 trillion in 2009-10. The incremental USD 5 trillion is almost twice the growth in GDP expected from China (USD 4.4-6.6 trillion) and India (USD 1.2-1.8 trillion) combined. Even former journalist and co-author of ‘Women Want More’, Michael Silverstein, is of the opinion that the ‘Female Economy’ would have a global economic impact greater than Brazil, Russia, India and China and it would be extremely foolish for corporate around the globe to ignore or underestimate the female consumer.
Globally companies are slowly waking up to this fact, and they are manufacturing women-specific products, complementing them with suitable marketing gimmicks. For instance, Haier, the fourth largest white goods manufacturer, has successfully transitioned into the female economy with products redesigned for women taking into consideration the average height difference of 5 inches between men and women. What is more interesting is that companies that were exclusively dealing with men’s products are also looking towards women as the new target audience. For instance, Harley-Davidson, the motor-cycle manufacturer who has long been a symbol of masculinity, has added a ‘Women Riders’ section to its website. This section features riding gear and apparel for women along with advice on riding safely and personal rider stories. This step has been taken by the motor-cycle major in response to the growing popularity of motorcycles amongst women, who now buy 10 percent of all Harleys sold, compared to just two percent in 1985.
However, the question here arises whether these companies are formulating adequate and proper strategies to target the female economy. Unfortunately, companies who approached this opportunity with one business model targeting both men and women failed miserably since they assumed that men and women display the same buying behaviour. The indispensible fact still remains that men and women display different buying behaviours when deciding upon their purchase options. The objective of selling to women might seem simple to the company but it is in-fact far from the basic truth. There are many instances where companies launched products that were tweaked to target the 'pink' segment but were immediately thrashed by women. One classic example is Dell’s short-lived effort to market notebooks specifically to women. The company fell into the classic ‘make it pink’ mindset with the May 2009 launch of its Della website. The site emphasized colours, computer accessories, and tips for counting calories and finding recipes. But, it created uproar among women, who described it as ‘slick but disconcerting’ and ‘condescending’. Within weeks of the launch, Dell was compelled to change its website and focus.
As per Silverstein, women have repeatedly been underserved and ignored by companies in male-dominated sectors, which run the risk of alienating the world’s largest and fastest growing economic force. These sectors include the car industry, consumer electronics and financial services, offering countless examples of poor service to women, primarily due to confusion about their wants and inability to speak the language of the ‘fairer sex’. Thus, while the main opportunity for companies lies in addressing the dissatisfaction of women in these sectors. Companies also face the challenge of understanding the complexities involved in selling to a woman as compared to doing business with a man. Companies have to face the tough road of identifying what a woman wants and creating products that would be an adequate fit for the numerous different profiles held by her, while keeping in mind that time is her biggest constraint.
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