Saturday, June 21, 2008

Why Women Have More Purchasing Power Than Men?

Reasons:

  1. Number of women participating into the labour market is increasing over the years. Some are climbing the corporate ladder faster than men & thus have greater earning capacity. Some conventional profession once hold by men such as Engineering & IT are starting to be filled by more female workers

  2. Most women buy things on impulse unlike men. As such, effective branding & advertisement is crucial to attract women buyers

  3. Women are key decision makers in household

  4. The market for goods & services for women is much larger than men. Things that the women desire can range from as sophisticated such as luxury handbags, ear rings, shoes, clothing & other accessories to expensive haircuts, cars & mortgages. There is no statistical evidence for this claim, but I believe that in a period of a year, frequency of changing handbags will be much greater than wallets. Applicable onto shoe too

Evidence of how much have women contribute to the economy (US data, 2007)

  1. Women accounted for 85% of consumer purchases including everything from auto to healthcare: new home (91%), new PC (66%), vacations (92%), healthcare (80%), new cars (65%), food (93%)

  2. American women spend about $5 trillion annually, & that is more than half of US GDP

  3. Women represent majority of online market

  4. As much as 70% of new businesses are started by women

  5. Women are willing to pay up to 28% or more for a product, if she believes & trusts the salesperson

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