The female economy is booming in China, and most of its growth over the next decade will be driven by Alpha female consumers.
- Over 44 percent of female respondents living in Chinese cities aged 18 to 26 do not intend to marry, so they are more likely to spend on themselves in categories like watches and jewelry.
- Luxury brands need to avoid gender stereotyping to ensure authenticity with Alpha women since gender-free collections in categories like fashion, fragrances, and watches have become popular in this segment.
- Luxury brands can use virtual characters to represent aspirational attributes for a younger demographic like Burberry did with the two exclusive skins it created for Yao, the heroine of the Honor of Kings video game.
The female economy is booming in China. According to the most optimistic scenario presented by UBS Global Research, China’s $5.3 trillion household growth over the current decade will be 80-percent driven by booming female income. Currently, China has one of the highest women’s labor force participation and full-time employment rates in the Asia Pacific.
In fact, female graduates from tertiary education centers outnumber their male peers. However, as Chinese women still earn 25-percent less than men on average, gender pay inequality is holding back what could potentially be a massive boost to the so-called “she economy.”
According to the PwC report Women in Work Index 2019, closing the gender gap would generate $2 trillion in female earnings. Yet, a sense of self-belief has helped women meet their professional and personal goals, regardless of the pay gap. China dominates the world in self-made female billionaires, proven by how Mainland China climbed the rankings of the 2020 Mastercard Index of Women Entrepreneurs. A “can-do” attitude is a precursor for so-called “alpha women,” who prefer to take destiny into their own hands. This consumer segment has transformed rapidly over recent years, but the luxury market has been slow to keep up with them. Will luxury brands adapt or get left behind?
Today, Chinese women are more often searching for social independence in which they prefer not to be in a relationship or delay marriage. A recent poll proved this concept, reporting that 44 percent of female respondents living in Chinese cities aged 18 to 26 do not intend to marry. Spending power combined with an independent lifestyle means Chinese women are more likely to spend on themselves in categories like watches and jewelry. Continue to read the full article here