9 november 2006 the power of the purse: women consumers in asia georgette tan vice president,...
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9 November 2006
The Power of the Purse: Women Consumers in Asia The Power of the Purse: Women Consumers in Asia
Georgette Tan Vice President, Communications Asia Pacific, Middle-East & AfricaMasterCard Worldwide
Georgette Tan Vice President, Communications Asia Pacific, Middle-East & AfricaMasterCard Worldwide
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Significant Demographic ChangesSignificant Demographic Changes
– Women emerging as a force to reckon with in almost every sphere
– A number of sociological and demographic changes responsible for these significant shifts:
1. Better life expectancy for women as compared to men
2. Women’s advancement on a rise:
Higher education
Better integration of women in the economically active workforce
Hold on managerial positions
Earning above median income
3Source: Book entitled ‘The Glittering Silver Market: The Rise of the Elderly Consumers in Asia’ by Dr. Yuwa Hedrick-Wong
Better Life Expectancy Better Life Expectancy
Ratio of women/men in the 65+ population in 2015
Japan 1.7
Korea 1.4
Hong Kong 1.3
Australia 1.2
Singapore 1.1
China1.1
(in spite of having more men than women overall)
Women will dominate the elderly population in 2015
4MiWa : MasterIndex of Women’s AdvancementSource: MasterIndex of Women’s Advancement 2006
Women’s Advancement Women’s Advancement
Asia Pacific 2005 2006
Labor Force 74.37 74.56
Tertiary Education
86.21 86.94
Managerial Positions
61.04 70.68
Above Median Income
53.81 70.33
MiWA Index 68.86 75.66
5MiWa : MasterIndex of Women’s AdvancementSource: MasterIndex of Women’s Advancement 2006
Women’s Advancement Women’s Advancement
MiWA Index 2005 2006
Australia 67.57 89.07
New Zealand 70.34 74.68
China 75.38 83.55
Hong Kong 65.07 72.99
Taiwan 72.05 71.81
Japan 54.45 46.08
Korea 45.44 65.02
Malaysia 84.10 79.68
Indonesia 55.75 67.93
Philippines 73.66 90.90
Singapore 61.27 84.02
Thailand 92.32 85.56
Vietnam 75.80 70.57
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…And Their Implications …And Their Implications
1. Women travel more for business and pleasure
2. Emergence of the unique Traveler-Shopper
segment
3. Women are increasingly in command of a higher discretionary spend
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The Rise of Women Travelers The Rise of Women Travelers
– Ratio of male to female travelers in A/P has shifted from 90:10 thirty years ago to around 60:40 today
– About 56 million of the 139 million travelers in the region are women
– Figure expected to increase with women travelers matching male travelers by 2011 and exceeding them in the long term
Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong
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Growing Trend of Women Travelers: An Evolutionary Pattern
Growing Trend of Women Travelers: An Evolutionary Pattern
(MasterCard Estimates)
* At 40% of total, there were 56 million women travelers in A/P in 2002
90%
60%
50%
10%
40%
50%
1970 Aisa/Pacific 2002 Asia/Pacifc 2003 US & Europe
Male Travelers Female Travelers
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Growing Trend of Women Travelers: An Evolutionary Pattern
Growing Trend of Women Travelers: An Evolutionary Pattern
89%
58% 56% 55%
11%
42% 44% 45%
1975 Korea 2001 Korea 2002Singapore
2003 Japan
Male Travelers Female Travelers
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Women Travelers – A Generational Perspective
The Silent Generation:
born 1925 – 1945
Aged 59–79, retired, many with high disposable net worth, Japanese women in this group are adventurous travelers
The Baby Boomers:
born 1946 – 1964
Aged 40-58, settled in careers & marriages, many are busy mothers, many started traveling in their 20s, seasoned shoppers
Generation X:
born 1965 – 1980
Aged 24-39, “me” generation, many have married, then divorced, and are re-married or single; many travel with family & peers; avid shoppers
Generation Y:
born 1981 - 2000
Aged 4-23, many are more education focused than their elders, many have traveled with parents when younger, technology savvy
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Travel as a Way of Life for WomenTravel as a Way of Life for Women
77.5%
36.7%
Word of Mouth
Internet
Travel Agents
Travelimportant formy lifestyle
Have takenat least oneinternationaltrip in past 12
months
MostImportant
Second MostImportant
Third MostImportant
Source of Information for Travel Planning for
WomanAsian Lifestyles
Survey
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Women as Traveler-Shoppers: An Unique A/P Phenomenon
Ranking of Reasons for Personal Travel
Women Men
Rank # 1 Shopping Beach Resorts
Rank # 2 Cultural Interests Cultural Interests
Rank # 3 Beach Resorts Shopping
Rank # 4Nature
AdventureNature
Adventure
Rank # 5 Family Outing Family Outing
(Asian Lifestyles Survey by MasterCard Worldwide)
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Women Travelers’ Spending Power
US$20 billion
Women will command some US$13 billion of spending power in these four cities alone
Estimated retail spending by tourist shoppers in 2011 in
Hong Kong, Singapore, Bangkok, Seoul
Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong
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Demographic Segment to Watch
Young SinglesWorking Empty Nesters & the Elderly-Focus on themselves- Big Discretionary
spenders
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Affluent Asia
Discretionary spending by women in affluent Asia
$ billion 2004 2014Australia 22 27
Hong Kong 6 9
Japan 203 228
Korea 30 44
Singapore 3 4
Taiwan 19 23
TOTAL 283 335
Average annual rate of growth 1.7%
Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong
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Emerging Asia
Discretionary spending by women in emerging Asia
$ billion 2004 2014China 66 119
India 27 46
Malaysia 3 5
Philippines 3 5
Thailand 4 6
TOTAL 103 181
Average annual rate of growth 5.9%
Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong
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Discretionary Spending Power Discretionary Spending Power
By 2014, women consumers in Asia will command an estimated
US$516 billion in discretionary spending power
Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong