Asia marketers and brand owners are under estimating the value of female shoppers, according to Oliver Rust, managing director at Nielsen Hong Kong.
Speaking at the GS1 Hong Kong Supply China Management Excellence Summit last week, Rust noted the global female income is expected to accelerate from USD13 trillion in 2012 to USD18 trillion by 2015.
“That USD5trillion is more than the GDP of India and China put together,” he said. “It gives you an idea how big of a potential this is.”
Rust added the purchasing power among women is particularly strong in Asia Pacific, as Asian women is estimated to control 65pc of purchase decisions in consumer goods in the region.
“That’s only going to grow with the acceleration of employment prospect and income among women in Asia. And this is particularly the case in developing world,” said Rust.
Another transformation happening in the retail market is the influence of smartphones. He noted the smartphones are creating an open communication channel to tremendously increase marketing spend and brand value.
“You cannot live without your phone,” he said. “It’s an attachment to a human being and the beauty of the smartphone is that [marketing message] is directed to each and everyone of you. It’s no longer mass content; it is specifically targeted towards you.”
But the use of smartphone and technologies to provide customized offers remain limited in Asia. He explained the adoption also depends on product categories. Cosmetics and fresh food are particularly challenging, where customers like to try and touch them.
Nevertheless, he noted technology is playing an increasingly important role among Asia retailers to streamline operations and enhance customer engagement.
“CRM is just a database, it is how you use it that differentiates yourself,” he said. “The success depends on how well the retailers are able to streamline the process and pass the cost efficiency to customers.”