I read this week that despite women’s strong spending power and their increasing potential to contribute significantly to the revenues of certain brands, most companies still fail to respond adequately to their needs when it comes to value, time saving and emotions.
These findings come from a new global research from the Boston Consulting Group (BCG), which suggests that by tailoring offerings to the requirements of female consumers, brands are given a golden opportunity to take advantage of their growing economic influence and enjoy sales growth and greater loyalty.
According to BCG, the world’s combined female spending power will surge by $6 trillion in the coming five years. This means that working women will increase their annual incomes by an average of $8,000 by 2018, with a total of earned income reaching $18.5 trillion globally.
However, a poll among 7,800 women across 13 countries revealed that women remain broadly displeased with many product and service categories, with many blaming their dissatisfaction on the failure of companies to understand and respond to their needs. Female consumers across the globe believe that companies are not doing enough to address their biggest disappointments, which currently are in home services, work clothing and health care, according to BCG.
Taking into account the fact that time-management is the top concern for women, companies are advised to come up with measures that can “trade money for time savings,” BCG senior partner Michael Silverstein says. Women are becoming increasingly affluent and their willingness to spend more on products and services that comply with their needs is on the rise. Companies that have paid closer attention to what women want are now enjoying higher sales, increased loyalty and category dominance, Silverstein adds.