A report by The Boston Consulting Group has said a billion women are participants in the global workforce. It added in the US, they controlled half the country's wealth. In addition to their increasing purchasing power, women make or influence 60-80 per cent of all consumption decisions, depending on the category of product or service. These factors made women the largest addressable market globally, the report said.
According to an October 10 global thematic report by José Martins Soares and Inês Duarte Silva, analysts at Espirito Santo Investment Bank, irrespective of the differences in culture, religion and geographies, economic development led to increased participation of women in the workforce, as well as more wealth being ‘owned’ by women everywhere.
“As in many cases, the key to this is ambition---and women in these growth economies are aiming higher, in our view. As a group, they already represent one of the highest growth opportunities for investment globally; in emerging markets, this opportunity is growing even faster,” the report said. Based on a study of 13 emerging markets---Brazil, China, Czech Republic, Hungary, India, Indonesia, Republic of Korea, Mexico, Poland, Russia, South Africa, Turkey and the Ukraine---analysts suggest investors play this structural change in their economies through equity markets.
In India, women are emerging both as consumers, as well as decision-makers across various socio-economic strata. And, rising incomes isn’t the only factor effecting the change; the socioeconomic environment, too, is changing. Now, urban women are more independent, the report says.
Given the higher ambitions, increasing disposable incomes and participation, analysts at Espirito Santo say three companies in India---Marico (increased discretionary spending power), TTK Prestige (kitchen appliances and other related products) and SKS Microfinance (women's empowerment through lending)---are best positioned to avail of this change.
| GLOBAL EQUITY PLAYS | ||
| Company / Stock | Fair Value | Recommendation |
| BRMALLS | R$ 32.0 | BUY |
| Casino Guichard | Eur 74.0 | NEUTRAL |
| Inditex | Eur 116.0 | BUY |
| Klabin | R$ 12.2 | BUY |
| L'Oreal | Eur 86.6 | SELL |
| LPP | PLN 3570.0 | BUY |
| Marico | Rs 214.49 | NEUTRAL |
| Mothercare | 145p | SELL |
| Porto Seguro | R$ 23.70 | BUY |
| PZU | PLN 415.0 | BUY |
| SKS Microfinance | Rs 143.87 | BUY |
| Telenor | NOK 140 | BUY |
| TeliaSonera | SEK 35.0 | SELL |
| TTK Prestige | Rs 3000* | NEUTRAL |
| Unilever NV | Eur 28.5 | NEUTRAL |
| *priced as at 12/10/12 Source: Espirito Santo Investment Bank Research | ||