Pink tax is not a tax in the traditional sense. Consumer products marketed to women are sometimes more expensive than comparable products marketed to men, according to the World Economic Forum (WEF). This difference is referred to as a pink tax or pink premium.
How it works
A government study conducted in the US that examined 800 gender-specific products found that personal care products marketed to women were 13 per cent more expensive than similar men's products. Adult clothing and accessories were 7 per cent and 8 per cent more expensive, respectively.
A study in the UK discovered that women's deodorant was 8.9 per cent more expensive than men’s. Women's facial moisturiser cost 34.28 per cent more.
While there is no official study of the brands charging pink tax in India, disparities were discovered by comparing similar products for men and women sold on e-commerce platforms. According to top searches, a regular razor for men with at least 3 blades and 2 cartridges costs Rs 240-250, while a similar quality razor for women costs Rs 250-260 and comes with no extra blade or cartridge. Facewash for men starts around Rs 150/100ml, while the average for women is not less than Rs 190/100ml. For women, a deodorant roll-on, which costs Rs 119/50ml for men, is priced at Rs 195/50ml.
It was also discovered that in some cases, even if the product was not labelled as "for women", the branding and packaging were done in such a way that it was perceived as "for women" and demanded a premium. Skincare and body care giants, such as Gillette and Ponds, and perfume brand Engage, declined to comment on Business Standard's queries.
Why it works
"The differential pricing strategy is based on the assumption that when it comes to categories like cosmetics, personal care, and fashion products, they tend to be, generally speaking, of significantly higher involvement for women than men, which is why marketers can get away with charging a premium for 'for women' products," says Samit Sinha, founder & managing partner, Alchemist Brand Consulting. However, he adds that if customers realise they are being charged more for the same product, they will be unhappy, to say the least. Nobody wants to be duped.
The first step in branding is to research consumer behaviour. "The idea behind pricing a feminine cosmetic higher than a male variant is to ensure a special premium peg. Women prefer not to use the same product as men -- this goes for from a skin whitening cream to an under-eye wrinkle-removal serum. Pricing sets a different standard," says Harish Bijoor, a brand-strategy specialist.
Consumer India President Jayashree Gupta highlights the stereotypes that allow these techniques to work. "It is assumed that women are more concerned about personal care and also, using costlier products help in image building. Brands are catching these weaknesses. Furthermore, the men's personal care market is still expanding, whereas the women's market is well established, which makes price variation easier for brands" she says.
Echoing a similar view, Kashmira Talati, personal care brand and marketing expert, says: “Today, women have multiple options in benefits, ingredients, and formats for something as common as skin brightening creams; there are serums/ sprays/ balms with ingredients like hyaluronic acid, alpha arbutin, niacinamide and technologies that prove their efficacy. These targeted benefits help brands to charge more. For men, targeted benefit market has not yet boomed."
Reality check
Even as brands market gender-specific products by using selective adjectives, Delhi-based Dermatologist Dr Anupama Bisaria, who is working in skin care for more than 17 years, says: “Essentially anatomy wise, male & female skins are the same and so are their requirements. There is no gender-specific skincare ingredient. If we are dealing with a specific skin type, we may need to use ingredients in varying strengths." She continues: "These distinctions are only being launched by cosmeceutical companies that drive marketing and create a need among clients, then provide solutions without any dermatological studies or dermatologist approval."
While having a product selection at various prices is a right of every consumer, it cannot be done without clear justification. Professor Bejon Kumar Misra, a visiting professor at National Law University in Odisha, emphasises the importance of ethical business. "Choice is essential," he says, "but every value addition that makes a product premium should be very clearly mentioned." He goes on to say that while strict regulations may not be necessary at this point, the Central Consumer Protection Authority (CCPA) should treat this as a false claim. Consumer India's Gupta also emphasises the role of the CCPA in regulating brands that charge exorbitant prices for gender-specific products.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in