Nearly 80% of all purchasing decisions are produced by women. Women make the option of which vacation 92% on the time, which bank account 89% from the time, in DIY 80%. Even the purchase of your household car is decided solely or mostly by women in 60% of instances. Women’s wealth continues to grow. Amongst 1970 and 1998 men’s median revenue rose by 0.6 % whilst women’s rose by 63%.
The significance of building goods and services that meet women’s demands cannot be overstated. When getting financial items and services, wealthy women have particular demands and concerns which are distinct to these of men. Understanding why and how women generate wealth, where they invest, and why is important to people that want to sell financial service items to this potentially large and poorly catered the group.
In 1998 the typical male millionaire in the UK was worth £2.7 m (US$5.42m) when the average female millionaire owned just £1.28 m (US$2.56m). By 2006, women had caught up significantly, using the average female millionaire worth £1.97 (US$3.94m) compared with £2.96 m (US$5.92m) for men.
The increase in female wealth has not been limited to developed countries. In 2006, the female paper tycoon Zhang Yin was listed by the Hunan Report as the wealthiest individual in China with an estimated US$3.4 bn.
So how are women generating this wealth? The traditional sources of wealth for women have been an inheritance from their parents or their deceased husbands or financial achieve in the divorce of a wealthy husband. Whilst these approaches for achieving wealth is nevertheless evident, an increasing quantity of women have made their wealth by way of their job or by way of the ownership of a company.
Whilst men’s key motivation for starting a small business is financial acquire, women tend to cite flexibility, freedom (from corporate structures and politics) and financial acquire as the most important factors for establishing on their very own. Holly Sargent, Senior Associate Dean for Advancement and Senior Director for University Women’s Studies at Harvard University points out that when women commence a business it often will not have the sole goal of producing wealth. “The organizations are extra likely to be household orientated, significantly less commercial and much more socially or more ‘gap in the market based’…A lot of innovative merchandise are developed about female-oriented gaps in the industry.”
Income from investments has to turn out to be an important supply of wealth for wealthy women. Up to 38% of high net worth women in Asia cited Revenue from investments as one of their three most significant sources of wealth. In Europe, this was reduced by 24% with 64.6% stating income from their job as among the 3 most significant sources of earnings. Independent of their husband or household, women are generating their wealth through investments, ownership of a business enterprise, or via a well-paid job.
Women tend to invest to attain a specific goal, for example, a college fund, retirement, a major vacation. After the investment objective has been reached, women are more likely to ‘protect’ the fund rather than place it at risk utilizing additional investment.
So what would be the conclusions that will be drawn about advertising and marketing financial merchandise and services to higher net worth women:
- Whilst products don’t have to be marketed as a ‘women-only’ product, they should deliver clear, comprehensive data from which the person could make an informed selection. As numerous of your women are going to be producing investment options without having the advantage of suggestions from independent advisors or tax specialists, all the things created will have to be jargon cost-free and in plain English. Present nicely-researched data and assist utilizing an online enable desk or facts line.
- Build a partnership via education. Educate women about financial matters that may perhaps concern them based on their age or lifestyle.
- Develop solutions ‘themed’ around troubles for example ‘wedding’, ‘college fund’, ‘retirement’ Encourage continuing investment in many closed finish funds
- Women do hire personal trainers and are prepared to pay for the personal touch. A ‘financial coach’ could be the incentive a woman needs to invest within a unique product or organization.