9 November 2006

The Power of the Purse: Women Consumers in Asia The Power of the Purse: Women Consumers in Asia

Georgette Tan Vice President, Communications Asia Pacific, Middle-East & AfricaMasterCard Worldwide

Georgette Tan Vice President, Communications Asia Pacific, Middle-East & AfricaMasterCard Worldwide

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Significant Demographic ChangesSignificant Demographic Changes

– Women emerging as a force to reckon with in almost every sphere

– A number of sociological and demographic changes responsible for these significant shifts:

1. Better life expectancy for women as compared to men

2. Women’s advancement on a rise:

Higher education

Better integration of women in the economically active workforce

Hold on managerial positions

Earning above median income

3Source: Book entitled ‘The Glittering Silver Market: The Rise of the Elderly Consumers in Asia’ by Dr. Yuwa Hedrick-Wong

Better Life Expectancy Better Life Expectancy

Ratio of women/men in the 65+ population in 2015

Japan 1.7

Korea 1.4

Hong Kong 1.3

Australia 1.2

Singapore 1.1

China1.1

(in spite of having more men than women overall)

Women will dominate the elderly population in 2015

4MiWa : MasterIndex of Women’s AdvancementSource: MasterIndex of Women’s Advancement 2006

Women’s Advancement Women’s Advancement

Asia Pacific 2005 2006

Labor Force 74.37 74.56

Tertiary Education

86.21 86.94

Managerial Positions

61.04 70.68

Above Median Income

53.81 70.33

MiWA Index 68.86 75.66

5MiWa : MasterIndex of Women’s AdvancementSource: MasterIndex of Women’s Advancement 2006

Women’s Advancement Women’s Advancement

MiWA Index 2005 2006

Australia 67.57 89.07

New Zealand 70.34 74.68

China 75.38 83.55

Hong Kong 65.07 72.99

Taiwan 72.05 71.81

Japan 54.45 46.08

Korea 45.44 65.02

Malaysia 84.10 79.68

Indonesia 55.75 67.93

Philippines 73.66 90.90

Singapore 61.27 84.02

Thailand 92.32 85.56

Vietnam 75.80 70.57

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…And Their Implications …And Their Implications

1. Women travel more for business and pleasure

2. Emergence of the unique Traveler-Shopper

segment

3. Women are increasingly in command of a higher discretionary spend

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The Rise of Women Travelers The Rise of Women Travelers

– Ratio of male to female travelers in A/P has shifted from 90:10 thirty years ago to around 60:40 today

– About 56 million of the 139 million travelers in the region are women

– Figure expected to increase with women travelers matching male travelers by 2011 and exceeding them in the long term

Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong

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Growing Trend of Women Travelers: An Evolutionary Pattern

Growing Trend of Women Travelers: An Evolutionary Pattern

(MasterCard Estimates)

* At 40% of total, there were 56 million women travelers in A/P in 2002

90%

60%

50%

10%

40%

50%

1970 Aisa/Pacific 2002 Asia/Pacifc 2003 US & Europe

Male Travelers Female Travelers

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Growing Trend of Women Travelers: An Evolutionary Pattern

Growing Trend of Women Travelers: An Evolutionary Pattern

89%

58% 56% 55%

11%

42% 44% 45%

1975 Korea 2001 Korea 2002Singapore

2003 Japan

Male Travelers Female Travelers

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Women Travelers – A Generational Perspective

The Silent Generation:

born 1925 – 1945

Aged 59–79, retired, many with high disposable net worth, Japanese women in this group are adventurous travelers

The Baby Boomers:

born 1946 – 1964

Aged 40-58, settled in careers & marriages, many are busy mothers, many started traveling in their 20s, seasoned shoppers

Generation X:

born 1965 – 1980

Aged 24-39, “me” generation, many have married, then divorced, and are re-married or single; many travel with family & peers; avid shoppers

Generation Y:

born 1981 - 2000

Aged 4-23, many are more education focused than their elders, many have traveled with parents when younger, technology savvy

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Travel as a Way of Life for WomenTravel as a Way of Life for Women

77.5%

36.7%

Word of Mouth

Internet

Travel Agents

Travelimportant formy lifestyle

Have takenat least oneinternationaltrip in past 12

months

MostImportant

Second MostImportant

Third MostImportant

Source of Information for Travel Planning for

WomanAsian Lifestyles

Survey

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Women as Traveler-Shoppers: An Unique A/P Phenomenon

Ranking of Reasons for Personal Travel

Women Men

Rank # 1 Shopping Beach Resorts

Rank # 2 Cultural Interests Cultural Interests

Rank # 3 Beach Resorts Shopping

Rank # 4Nature

AdventureNature

Adventure

Rank # 5 Family Outing Family Outing

(Asian Lifestyles Survey by MasterCard Worldwide)

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Women Travelers’ Spending Power

US$20 billion

Women will command some US$13 billion of spending power in these four cities alone

Estimated retail spending by tourist shoppers in 2011 in

Hong Kong, Singapore, Bangkok, Seoul

Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong

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Demographic Segment to Watch

Young SinglesWorking Empty Nesters & the Elderly-Focus on themselves- Big Discretionary

spenders

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Affluent Asia

Discretionary spending by women in affluent Asia

$ billion 2004 2014Australia 22 27

Hong Kong 6 9

Japan 203 228

Korea 30 44

Singapore 3 4

Taiwan 19 23

TOTAL 283 335

Average annual rate of growth 1.7%

Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong

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Emerging Asia

Discretionary spending by women in emerging Asia

$ billion 2004 2014China 66 119

India 27 46

Malaysia 3 5

Philippines 3 5

Thailand 4 6

TOTAL 103 181

Average annual rate of growth 5.9%

Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong

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Discretionary Spending Power Discretionary Spending Power

By 2014, women consumers in Asia will command an estimated

US$516 billion in discretionary spending power

Source: Book entitled ‘Holding Up Half of the Sky: The New Women Consumers of Asia’ by Dr. Yuwa Hedrick-Wong

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Thank you.