According to consulting firm BCG, one billion of them now participate in the workforce globally and control 50 per cent of the wealth in the US. In addition to the increasing purchasing power, women make or influence between 60 – 80 per cent of all consumption decisions, depending on the category of product or service, reports say.
Besides their penchant for watching daily soaps on television, the above data makes "women" the largest addressable market globally.
According to an October 10, 2012 global thematic report by José Martins Soares and Inês Duarte Silva, analysts at Espirito Santo Investment Bank, regardless of differences in culture, religion, geographical position, economic development leads to increased female participation in the workforce and higher 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 says.
Based on a study of 13 Emerging Markets (EMs) – Brazil, China, Czech Republic, Hungary, India, Indonesia, Republic of Korea, Mexico, Poland, Russia, South Africa, Turkey and the Ukraine – analysts suggest that investors should be able to play this convergence and structural change in their economies via the equity markets.
In the Indian context, women are emerging both as consumers and decision-makers. In addition, this is happening at various socio-economic strata. It is not just the rising incomes that are effecting change, but also the changing socioeconomic environment as urban women are now more independent, the report says.
Given the higher ambitions, increasing disposable income and participation, analysts at Espirito Santo suggest that there are three companies in the Indian context – Marico (increased discretionary spending power), TTK Prestige (kitchen appliances and other related products) and SKS Microfinance (women's empowerment through lending) – that are best positioned to take advantage of this change. (See table below: Global Equity Plays)
Till then we can convince them to watch football or cricket instead, should we follow the herd mentality?
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| 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 86.8 | SELL | |||
| LPP | PLN 3,750.0 | BUY | |||
| Marico | Rs 214.49 | NEUTRAL | |||
| Mothercare | 145 p | 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 3,000* | NEUTRAL | |||
| Unilever NV | Eur 28.5 | NEUTRAL | |||
| *priced as at 12/10/12 | |||||
| Source: Espirito Santo Investment Bank Research | |||||
