How women's purchasing power is altering market dynamics

The changing competitive landscape in Bangladesh's marketing business can be directly attributed to the increasing purchasing power of Bangladesh's female consumers in recent years. 

As more and more women join the work field and gain financial independence, they have a more significant say in household spending decisions. Recognising the importance of women as consumers and tailoring marketing strategies to them is essential for companies to stay ahead of the competition.

The World Bank reports that the percentage of Bangladeshi women in the labour force has increased dramatically, from 26% in 2000 to 36.3% in 2021. Women's increasing purchasing power has far-reaching effects on tastes, shopping habits, and the country's overall development. 

The demand for products and services in the cosmetics market, the electronics sector, and the fashion business have increased dramatically in recent years due to women obtaining economic independence. For instance, in recent years, local Bangladeshi fashion labels like Aarong and Le Reve have become increasingly popular with female consumers, demonstrating the sector's expansion. 

According to a report, during the past few years, the number of people interested in heritage has increased, leading to a more than 20% increase in sales for Aarong, one of Bangladesh's top retail chains. The chief executive of the lifestyle brand stated that their sales turnover reached Tk850 crore in 2017 and expected it to surpass Tk1,000 crore in 2018.

Multinational corporations have caught on to the potential of the Bangladeshi market. As a result, companies like Unilever and L'Oréal have adjusted their product lines to suit the changing tastes of Bangladeshi women better. Mordor Intelligence predicts a 7.5% CAGR (compound annual growth rate) for Bangladesh's beauty and personal care sector between 2021 and 2026. 

This demonstrates how the rising purchasing power of women is impacting market developments. The changing tastes of consumers and the increased buying power of women in Bangladesh have prompted businesses to reevaluate and adjust their marketing strategies to stay competitive in the dynamic Bangladeshi market.

Similar changes have occurred in other countries, such as India and South Korea, where businesses have successfully adapted their marketing strategies to target female consumers. The growth of online shopping is a prime example of this pattern, because of its convenience to female shoppers. Bangladeshi e-commerce platforms like Daraz and AjkerDeal have proliferated, mirroring the success of Alibaba in China and Amazon in the United States. Alibaba is the leading e-commerce platform in China.

Successfully appealing to female consumers requires a marketing strategy prioritising storytelling and emotional appeal. Successful companies have adopted this tactic, and as a result, they have launched advertising campaigns that speak directly to women and their lived experiences. Furthermore, marketing to women via social media and influencers has proven effective in both the United States and South Korea.

As a result of women's increasing purchasing power in Bangladesh, businesses are shifting their advertising strategies. As more and more women join the work field and gain financial independence, they have a more significant say in household spending decisions. 

This change, however, poses numerous difficulties for businesses, such as the need to strike a balance between traditional and modern values, address the diversity of female consumers, overcome gender stereotypes in advertising, adapt to the ever-changing preferences of consumers, ensure sustainable and ethical marketing practices, and leverage digital platforms effectively.

Companies can overcome these challenges in a variety of ways by adopting a variety of tactics. They should start by creating advertising campaigns that respect long-standing cultural norms while promoting innovative ideas. 

For instance, Unilever announced diversity and inclusion by rebranding its Fair & Lovely product in India as Glow & Lovely. The goal was to capture interest from a larger audience of potential buyers. 

Second, to reach more women from different backgrounds and cultures, fast fashion brands like Zara and H&M need to increase the diversity of sizes and styles they provide.

Third, businesses could take a stand against sexist advertising like Audi did with their "Daughter" commercial airing during the 2017 Super Bowl. Because of this commercial, people discuss the importance of equal pay for equal work. 

Fourth, businesses must conduct market research and be receptive to new ideas if they want to anticipate and meet the needs of their customers as their tastes evolve. For instance, Nike has introduced a line of women's sports hijabs in response to the growing demand for athletic clothing designed especially for Muslim women.

Fifth, businesses should advertise their commitment to ethical and sustainable operations. Eco-friendly clothing lines include H&M's own Conscious Collection, for instance.

Sixth, connecting with female consumers requires expert use of digital platforms like social media and e-commerce. Like many other businesses, Sephora has discovered that engaging with their customers on social media increases revenue.

In sum, businesses that can keep up with the changing interests of Bangladeshi women consumers and adapt their marketing strategies accordingly would have a leg up on the competition in this dynamic country. 

The market becomes more competitive by rising up to these challenges, and a more progressive and inclusive culture is also fostered. Bangladesh's marketing scene must address the growing influence of women as buyers. 

Sketch: TBS

Dr Mohammad Shahidul Islam is Assistant Professor of Marketing at Brac Business School, Brac University.

He can be reached at [email protected]