In recent years female spending power has rocketed as professional women have climbed the ranks and made their presence known in the boardroom.
According to UK-based consultancy GenAnalytics, women now own $27 trillion of the world’s wealth which amounts to about 27%. In the US research suggests that women are responsible for some $7 trillion in spending and 85% of all consumer purchases.
This growing spending power is also seen in other countries like China according to multilingual marketing agency Digital Crew which predicts that “female earnings in China are set to grow from $1.3trn in 2010 to a whopping $4trn by 2020”.
“They have their own disposable income and they are not ashamed of splashing out on themselves from time to time,” explained Lisa Perrotti-Brown MW, editor-in-chief for The Wine Advocate, when talking about the profile of the modern professional woman.
Those at the peak of their spending powers tend to be those in middle age, roughly between the ages of 45 to 60 years old, according to Women & Home magazine. These women are reaching the peak of their careers and have the most disposable income of any age group of women.
Luxury brands have started waking up to this exciting opportunity with new products designed with women in mind like the Bentley Continental GT Cabriolet which comes with a price tag of $250,000. De Beers have also joined this trend with their 2003 ad campaign entitled “Raise your right hand” encouraging women to purchase diamonds for themselves with their own earnings.
Female spending power is also being recognised by the wine industry who are keen to reach what Kristi Faulkner, president of New York’s Womenk!nd brand agency, describes as an affluent “untapped market”.
Faulkner also believes that these high-earning professional women are keen to purchase fine wines because they are interested in learning more about wine and participating in wine culture. In China and Hong Kong, for example, there is a growing trend of wealthy women becoming wine collectors.
This rapidly-growing spending power of professional women is exciting for luxury wine brands. Those who respond by crafting innovative new products to entice this audience will be at the forefront of wealthy women’s expansion into the fine wine world.