A new BCG report reveals that despite women controlling a significant portion of global spending, many businesses are failing to adequately meet their unique needs. The study highlights the untapped potential for growth in sectors like healthcare, finance, and consumer goods by addressing the specific requirements of female consumers.
Despite the fact that women manage nearly $32 trillion in global spending and, according to Nielsen, are projected to control 75% of discretionary spending worldwide within five years, companies are falling short of meeting their unique needs. A report by Boston Consulting Group (BCG) highlights that businesses that fail to develop products and services explicitly tailored for women are leaving significant revenue opportunities untapped.
The research, based on a global survey by BCG X, supported by BCG’s Center for Customer Insights, encompassed approximately 15,000 people across 12 countries, including South Africa. Three-quarters of the survey participants were women, with 1,230 local respondents comprising 915 women and 314 men. The survey revealed that in key sectors such as consumer goods, healthcare, and financial services, women perceive that the available products and services do not effectively cater to their needs. “This serves as a wake-up call for businesses operating in healthcare, financial services, and consumer goods,” states Beth Viner, a BCG X Managing Director and Partner, and co-author of the report. “Women drive the majority of household spending, yet their needs remain significantly underserved. “While it might come as a surprise that many women express dissatisfaction with the products and services available to them, companies that take proactive steps to address these gaps have a unique opportunity to expand their business and cultivate stronger consumer loyalty.” While women globally report being responsible for a majority of household healthcare decisions (73% in South Africa), just over half of the women respondents in South Africa (61%) agree that sufficient services address their specific health needs. Although this figure is 20 percentage points higher than the global average (41%), it still falls short. Ratings for medical treatment or interactions with health insurers are similarly low: at 44% and 37% respectively globally. “To enhance these areas, it is crucial to comprehend the attributes of care that women in South Africa prioritize. Our survey indicates that women in South Africa prioritize quality care (cited by 94% of SA respondents), timely appointments (89%), and affordability (91%),” explains Regina Osih, Associate Director: Global Health at BCG Johannesburg. Other attributes of care that South African women prioritize include convenient locations for service (87%) and bias-free, fair, and impartial care (84%). Even though women are adding $5 trillion to the wealth pool annually worldwide, they encounter significant gaps in how well the available products and services meet their needs. On average, South African women express greater concern than men regarding the financial impact of life events such as eldercare (a difference of 11 percentage points), childcare costs (10 points), and unemployment (8 points). The global study reveals that these concerns evolve with life stages: Gen Z and millennial women rank unemployment as their primary concern, while planning for retirement holds a higher position for Gen X women, and baby boomers cite elder care costs as their biggest worry. However, across most stages, women are more preoccupied with financial issues than men. Locally, women also report less confidence compared to men when it comes to financial skills. Among boomer respondents, women are 6 percentage points less likely than men to agree that they possess the skills and knowledge to effectively manage their finances, while Gen X respondents demonstrate a substantial 19-point gap, and Gen Z respondents a 7-point gap between men and women. Interestingly, millennial women exhibit slightly more confidence (1 point) than men in effectively managing their finances. Globally, consumer products garnered a more positive response in the survey. Surprisingly, locally, there isn't a best-in-class consumer category currently meeting women's needs; for example, the grocery sector received only a 66% favorable rating among women compared to a 68% favorable rating among men – the business opportunity for improvement is evident. In South Africa, the automobile category saw a discrepancy, with only 45% of men feeling their needs were met while 62% of women believed they were. The study unveils intriguing insights into the top brands that resonate similarly with both men and women across various categories. According to the survey, South African men and women exhibit a strong preference for the same automobile brands when it comes to fulfilling their needs. Men highlighted Toyota, BMW, and Volkswagen as their top three choices, while Toyota, BMW, and Audi resonated with women. Additionally, in electronics and appliances, sports and fitness, and finance and banking, both genders show a preference for similar brands in terms of satisfying their needs, with Samsung, LG, and Defy; Nike, Adidas, and Virgin Active; and FNB, Capitec, and Absa being highlighted as the top three brands across these categories. Defy garnered a stronger resonance with women (25% rating) than men (21% rating), and the same trend applies to Virgin Active (32% rating from women versus 24% from men).
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