How to win over women consumers

As women see their purchasing power and social status ascend, more businesses around the world are realizing that female consumers are breaking the mold in terms of shopping patterns and have become a lucrative market. In many countries, women are the chief decision-makers in families or have an equal voice in all purchases, including those traditionally linked to men such as automobiles and electronic goods.

Furthermore, studies have confirmed that women have a major influence on how their family members and friends spend their money. In short, their adept ability to describe a product and effectively communicate their likes or dislikes can elicit shared feelings from others. Thus, it behooves companies to make a good impression on female consumers to enhance sales as well as their brand name and reputation.

In Korea, women are playing a larger role in all of their household purchases. Also, the swelling ranks of young, single women with college degrees, careers and sound salaries should not be forgotten. The unmarried ones are more apt to buy cars and even homes than in their mothers’ generation.

Companies who cling to marketing geared to attract male shoppers, or who awkwardly perpetuate stereotypes in appealing to women shoppers, will handicap themselves. They will need to understand and respect the needs and thought processes of female consumers.

Shopping is a welcome experience for most women. They do not tend to consider it a chore, like men, but rather something closer to a hobby. As for choosing what to buy, they are also more practical-minded than many companies assume. Not only are product details noticed, but female shoppers are more acutely aware of the shopping environment, such as the cleanliness of a store and attitude of sales personnel. Also, interaction with a salesperson is valued much more than by the average male consumer.

Finally, women gravitate toward relationship-oriented advertising messages. Since they are happy to spend money on their family and friends, the advertising focus should be on appealing to their relationship-oriented buying patterns. According to several research studies, Korean women, regardless of age, income or where they live, value family above all else, including their own health, wealth and comfortable retirement.

There are several instructive examples of companies who have recognized the need to differentiate their product lineup according to gender. For example, U.S. consumer goods giant Procter & Gamble put a long, curving handle and pivotal head with gel on its Gillette Venus razor for women so it would be easy to handle, move across the skin more smoothly and at the same time moisturize. Swedish carmaker Volvo appointed a team of female engineers and designers to make its YCC (Your Concept Car) model aimed at women drivers.

The Canon EOS 550D released in Korea in early 2010 targeted women in their 20s and 30s. Its advertising focused on changing women’s perception of a digital single lens reflex camera as being too difficult to handle. Ads emphasized that the camera was as light as woman’s purse. They also appealed to relationship-oriented women by asking how they took pictures of their loved ones, stressing that the camera would save the happiest moments much better than a mobile phone or compact camera.

Companies can tap the female market only when they throw away long-held prejudices and misunderstandings. Defying many companies’ stereotypes, women do not buy a product only because of its flashy design. Functional practicality must be satisfied, too.

Companies in markets where women consumers only have a small presence have much to gain if they can figure out how products that appeal to women are marketed. For example, Home Depot, the U.S. do-it-yourself home improvement retailer, has boosted revenue by toning down its store atmosphere to make it less macho.

*The writer is a research fellow at the management strategy department at the Samsung Economic Research Institute. For more SERI reports, please visit www.seriworld.org.

By Lee Min-hoon