Posted on
August 27, 2009 by
Liz Rowell
with thanks to today’s B&T e-newsletter
Brands are failing women
Many brands are failing to meet the needs of increasingly cashed- up women eager to spend, and show a “lack of understanding” in their product design and female- focussed sales and marketing, a new report has found.
The survey, conducted by US- based Boston Consulting Group (BCG), included more than 12,000 women in 22 countries, including 480 from Australia. It revealed that Australian women’s high stress levels, which were greater than the global average, coupled with their high earning power, saw them willing to pay for products that could ease their time pressures. The report also showed that Australian women have more control over household spending than other markets.
“Australian women are more pressured and stressed, and they also have more control over house- hold spending – 72% compared to the global average of 64%,” said James Goth, partner at BCG. “This translates into more than $200 billion in discretionary spending every year.”
Women’s income in Australia is also expected to grow by almost half over the next fi ve years.
However the report suggested that Australian women were being misunderstood by many brands. Financial services companies ranked as number one, with 49% of respondents saying investment companies need to do a better job of understanding and meeting their needs and 47% saying they were “disappointed” with banks. Meanwhile 48% said they were disappointed with the auto industry and 42% with physicians.
“Companies are failing to meet the needs of women in fi ve key ways: poor product design and customisation for women, clumsy sales and marketing, inability to address the need for time-saving solutions, inability to provide a meaningful hook and differentiation, and failure to develop community,” said Michael Silverstein, a senior partner at BCG.
Kate Sayre, another BCG partner, added: “Companies can earn a privileged position by recognising this phenomenon and the outsized burden women shoulder – and by responding with power and certainty.”
According to the report, Australian women were most likely to “trade up” on bedding, food, restaurants, personal clothing and cosmetic products while look for cost savings on mobile phones, internet service providers, car rental and air travel.
The report was conducted as a forerunner to the launch of new book “Women Want More: How to Capture your Share of the World’s Largest, Fastest-Growing Market” next month.