CIBE Annual Conference. Corporate Responsibility and Consumer Rights October 26 and 27, 2007 Beijing. Women as a Leading Indicator of Consumer Trends. Dr. Ann Goodman Executive Director www.wnsf.org. Role of Women's Network for a Sustainable Future (WNSF). - PowerPoint PPT Presentation
CIBE Annual ConferenceCorporate Responsibility and Consumer Rights
October 26 and 27, 2007 Beijing
Women as a Leading Indicator of Consumer Trends
Dr. Ann Goodman
Role of Women's Network for a Sustainable Future
(WNSF) Helping Women Put Their
Values to Work
WNSF FAQs *5 years old *Nonprofit organization*Mobilizes businesswomen for
social responsibility and sustainability *Forum for education, convening, action *Offers meetings, training, electronic tools *Builds an international 'community' of businesswomen to
work for social responsibility (China Dialogue) *Prepares the next generation of women business leaders *Strengthens business's ability to attract and retain women
(employees, consumers, stockholders, stakeholders) *Recent programs
Exploring the link
Women’s current buying habits
Likely future consumer trends
7 Key points
women’s buying patterns women's attitudes to business social responsibility the "green" consumer youth's attitudes business responses (changes in product, labeling, sourcing
and supply chain) case: lessons in ‘responsible’ consumer strategy from
H&M implications for China, emerging markets and emerging
consumer demand (with China Association of Women entrepreneurs/CAWE)
What do women want?
Everything, and lots of it!(over 80 percent of purchases are made by women)
The Flawed Cliché:
Women want clothes, makeup---and diamonds!
What Women Really Buy?
women represent nearly 50 percent of stock market investors, up 10 percentage points in the past 20 years
women participate in investment decisions in 60 percent of households
women will account for 94 percent of the increase in US private wealth by 2010
women make 75 percent of the decisions about new home purchases
In the US, women influence car purchases in up to 70 percent of cases
women outspend men on items like wireless phones and computers
60 percent of online users are women
women buy nearly two thirds of apparel purchases from NFL (National Football League) and NBA (National Basketball Association).
Women Have Money to Spend:
62 percent of workers are women
In the past 10 years, women-owned firms grew at nearly twice the rate of all US firms. (they now generate $1.9 trillion in sales and employ 13 million people)
Women Want Responsible BusinessStudies confirm women:
care that workers everywhere are paid a living wage think it’s extremely important for companies to contribute
to charity believe business needs to do a better job on social
responsibility think it’s important that their companies make a
difference in society want companies to provide more opportunities for them to
make a difference
(sources: U. of CA at Berkeley and WNSF)
Women Want to:
make a positive impact on society pursue personal interests earn a high income
--in that order!
(For men, the order is of priorities is just the reverse! )
(source: Aspen Institute )
Women Care More Over 70 percent of women agree that the US is in as much
danger from environmental hazards, such as air pollution and global warming, as it is from terrorists. Just 56 percent of men agree.
Only 28 percent of women agree that "too much fuss is made about global warming," but 42 percent of men agree.
Finally, just 30% of women think the quality of the environment is getting better or staying abut the same. But 42 percent of men think this.
(source: Yale University)
The Light Green Woman Green consumers are growing in numbers (hundreds of
millions) 62 percent of “light green” consumers are women “Light greens” tend to “buy” their way to environmental
responsibility They’re confused (e.g.,may drive a gas-guzzling SUV to
organic food store) But they’re malleable, educable and want to do the right
(source: Ogilvie Mather)
What do youth want?
What women want!
“ Children listen to their mothers (sometimes)”
Joyce La Valle, Sr. VP, Interface Inc.
“What’s Good for Women is Good for the Firm” — Deloitte & Touche
Women pioneer business changes, especially social changes,
later embraced by all employees
Next- Generation Employees Want:
flexible work conditions (e.g., working from home, which can also reduce GHG emissions from commuting to work)
a company with a cause
Young Consumers Want: products made by “socially responsible” companies “eco--friendly” products made by “eco-friendly”
companies university campuses to make responsible purchases (e.g.,
2005 halt in Coca-Cola sales at US universities based on alleged labor and environmental infractions)
corporate awareness of global warming (e.g., UK student shoppers’ guide, 2007 Live Earth concerts)
“ethical” business behavior toward the environment ( 80 percent of teenagers)
“Mom, will polar bears have ice next year?”
Even 4-year-olds worry about the environment!
— Wall Street Journal
changes in product, labeling, sourcing, supply chain
Recent Examples Interface: business purpose attracts young workers
Kraft: healthier products, health labels
GAP: donating a percentage of revenue to causes (RED)
Coca-Cola: new, healthier products, messages, labels
H&M: supplier monitoring, organic cotton sourcing and labeling
Lessons in Consumer Strategy
H&M’s Organic Cotton Launch
Lessons from H&M’s Test: One: processing, manufacture and marketing of new
products must be in place. Two: fashions must blend with the every day clothing
most people wear. Three: there’s big a difference between fad and consumer
demand that sustains the market. Finally: timeworn strategic business lesson: consumer
demand drives market success.
Lessons from H&M’s Organic Line
the right marketing (education vs advertising)
the right supply chain (6-weeks from sketch to store)
the right time
Implications for China?
recent alarm worldwide over product problems
buyer oversight, supplier vigilance
one domestic response: Wu Yi