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This report covers: men and women's buying habits, car market, white goods, market, brown goods, mobile telephone, holiday market, luxury goods, shopping habits, gender, and, in-store restaurants, the supermarket, home shopping, internet shopping, e-retail sector, UK, security, internet access, shopping, as a social activity, solo shopping, car use, 24 hour shopping, telephone shopping, browsing the internet, buying, groceries, on the internet, supermarket home delivery services, high value items,
companies covered include: Tesco, Sainsbury,
EXECUTIVE SUMMARY
| Executive Summary |
| The beginning of 2003 brought with it unsettled economic circumstances, which were forecast in Key Note's last Market Assessment on Men and Women's Buying Habits published in 2002. Economic growth was at its lowest for 10 years and consumer confidence was falling in the face of an uncertain political and economic situation. By the year end, however, brighter forecasts had restored consumer confidence and created a mini-boom in pre-Christmas shopping. However, high consumer debt levels and government warnings of further interest rate rises are dampening expectations of a continued spending boom in 2004. The consumer survey commissioned by Key Note shows that men are more likely than women to have high levels of debt and, therefore, to be more adversely affected in the event of an interest rate rise. |
| A recent comprehensive review of statistics on women's and men's position in Britain finds that the differences between men and women are getting narrower in many areas, including employment. Nevertheless, some fundamental differences in income and employment status reported in Key Note's last review of the sector remain unchanged. Women continue to earn on average 82% of men's wages. Differences in earnings between men and women under the age of 34 are far less pronounced. However, age and professional status, as well as gender difference, are key factors in economic power. Young women are more likely to be in full-time employment and, therefore, enjoy higher disposable income. Older women, often with children, continue to see their earning power reduced through part-time employment and, as a result, lower wages. However, domesticity and its attendant duties is not just confined to women. A rise in households occupied by younger single men is ensuring that grocery shopping and household service markets are increasingly popular for men as well as for women. |
| Although consumer expenditure remains high in the UK, key markets for consumer durables have experienced low growth in the last 2 years as a result of deregulation, price competition and changes in distribution, notably in the rise of Internet retailing and direct sales. The car market, while buoyant, has suffered along with other 'big-ticket' items from the economic uncertainty following the attacks of 11th September 2001. Government action against overpriced cartels has pressured the main suppliers to continue to drive down prices. Cars retain the 'boys toy' tag and women are still likely to allow men to have the last say in car purchase. However, the rise in women licence holders represent a growth sector in the market and women are increasingly targeted directly by many manufacturers. |
| In the white goods sector, growth in volume sales has been similarly modest. Price erosion and competitive pricing has affected this market also. Although 'big-ticket' items moved less quickly in 2001, there is some evidence of low market growth in 2002. The market is led by replacement cycles rather than innovation, but a rise in consumer demand for convenience goods, such as dishwashers, has created growth in niche areas. There has been, to date, little difference between the genders in purchasing patterns of white goods, but there has been a transformation in both white and brown goods distribution, which has implications for purchasing patterns in relation to gender. |
| Internet sales of electrical goods increased exponentially between 2002 and 2003 as specialist e-retailers have gained ground and consumer credibility. The supermarket chains have also rapidly expanded their provision of electrical goods. However, Key Note research indicates that specialised electrical retailers are more popular with male customers. |
| Key Note research also shows that the rising strength of e-retailers and discount stores is bringing about major changes in the shopping environment, particularly in department stores. As there is more competition, particularly for bargain goods, many stores, such as Selfridges, now place a premium on the quality of the shopping environment as a destination. The role of leisure facilities, geared towards men, in out-of-town shopping centres remains an important feature of these centres. However, planning regulations do not allow for future expansion of out-of-town facilities and a key challenge for retailers remains in creating similar gender-led facilities in the revived high street. Interestingly, although some variations remain in shopping patterns between the sexes, Key Note research on marketing tactics reveals growing public weariness, particularly among women, for marketing campaigns which perpetuate gender stereotypes. |
| 2003 was the year of a quiet revolution for women. Twice as many women shopped online than in the previous year and parity in Internet usage between the sexes is forecast to be a reality within 3 years. This trend has seen home shopping come of age rapidly and it is expected to be overtaken by e-retailing in the near future. |
| Key Note consumer research for this report also indicates that the retail environment is becoming increasingly important in capturing customer loyalty but developments to cater for gender specific trends are less common in the new revitalised high street. Any transformation in the retail environment, particularly in the in-store restaurant, has a long way to go to attract more affluent consumers. |
| Generally, women remain more cautious than men in their spending habits. Women are more mindful of both convenience and value more likely than men to visit an in-store restaurant, and far less likely to have taken out credit or loans during the last 12 months. Women are also less confident than men in their ability to spend in the future. Nevertheless, the trend is towards greater parity in shopping patterns. Although men are far more likely than women to browse the Internet to compare prices, there is parity between the patterns of men and women buying groceries on the Internet and in booking holidays online. This data and continued growth in Internet use suggests that retailers may not need a differentiated approach along gender lines. |
| However, there are significant opportunities for retailers to exploit existing gender differences. For example, women's preference for one-stop shopping and distrust of specialist electrical retailers offers scope for the major outlets to create a more sophisticated and bespoke service for women. Similarly, high street locations could adopt a contemporary German solution 'Männergarten' the male equivalent of a kindergarten, complete with bars and sports facilities, where women can leave their men while they go and shop. |
TABLE OF CONTENTS
| Executive Summary |
| 1. Introduction |
| oVERVIEW |
| RESEARCH |
| DEFINITION |
| 2. Strategic Overview |
| THE ECONOMY IN 2003 AND 2004 |
| Retail Sales Growth |
| Consumer Confidence |
| Optimistic Economic Outlook |
| Table 1: Forecast of UK Gross Domestic Product (%), 2003-2007 |
| Consumer Debt |
| CONSUMER EXPENDITURE |
| Table 2: UK Household Expenditure (index 1971=100 and £bn), 1971, 1981, 1991, 2001 and 2002 |
| Table 3: UK Household Expenditure by Economic Activity Status of Household Reference Person (£ per week), 2001/2002 |
| THE CONSUMER KEY FACTORS |
| Demographic Trends |
| Table 4: UK Population by Age and Gender (000), 1976, 1996, 1998-2002 |
| Table 5: UK Resident Population Projections by Gender (000), 2003-2007 |
| Employment Trends |
| Table 6: Current and Forecast Number of Unemployed Persons in the UK (million), 2003-2007 |
| Employment and Gender |
| Table 7: UK Population of Working Age by Employment Status and Gender (million), 1988 and 2003 |
| Table 8: Types of Flexible Working Patterns for UK Employees by Gender (%), Spring Quarters 2000 and 2003 |
| Earnings and Gender |
| Table 9: Average Weekly Earnings of UK Employees by Gender and Type of Work (£), April 2002 |
| Table 10: Women and Men's Earnings by Age Group (£ per hour and % ratio), 2003 |
| The Changing Household |
| Table 11: Households in Great Britain by Size (%, million and number), 1971, 1981, 1991, 2001 and 2003 |
| Table 12: One-Person Households as a Percentage of All Households by Gender and Age (%), 1971, 1981, 1991, 1996, 2006 and 2016 |
| 3. Key Markets |
| THE CAR MARKET |
| Table 13: Car Ownership by Households in Great Britain (million, %, and number of cars per household), 1996-2003 |
| Table 14: Sales of New Cars by Value and Volume (£bn and million), 1998-2003 |
| Figure 1: Sales of New Cars by Value and Volume (£bn and million), 1998-2003 |
| THE WHITE GOODS MARKET |
| Table 15: The Total UK White Goods Market by Value and Volume (£bn and million units), 1996, 2001, 2002 and 2006 |
| Figure 2: The Total UK White Goods Market by Value and Volume (£bn and million units), 1996, 2001, 2002 and 2006 |
| THE BROWN GOODS MARKET |
| Table 16: UK Retail Sales Through Electrical Retailers (£bn, index 1998=100 and %), 1998-2003 |
| Table 17: The Total UK Brown Goods Market by Value (£bn), 1998-2003 |
| Figure 3: The Total UK Brown Goods Market by Value (£bn), 1998-2003 |
| THE MOBILE TELEPHONE MARKET |
| Table 18: The Total UK Cellular Telecommunications Market by Value (£bn), 1997/1998-2002/2003 |
| THE HOLIDAY MARKET |
| Table 19: The Total UK Holiday Market by Sector by Volume (million trips), 1998-2003 |
| The Holiday Market and the Internet |
| The Holiday Market and Gender |
| 4. Buying Habits |
| RETAIL TRENDS |
| Growth in the Luxury Goods Market |
| Table 20: Advertising Expenditure on Luxury Goods by Country ($), July 2002-June 2003 |
| SHOPPING HABITS AND GENDER |
| MARKETING AND GENDER |
| IN-STORE RESTAURANTS |
| THE SUPERMARKET |
| Table 21: Supermarkets by Market Share (%), 2002/2003 |
| Table 22: Leading UK Supermarkets by Number of Employees, Number of Stores and Turnover (£bn), 2002/2003 |
| Tesco PLC |
| J Sainsbury PLC |
| THE OUT-OF-TOWN SHOPPING CENTRE |
| HOME SHOPPING |
| Table 23: The Total UK Home Shopping Market by Value (£bn), 1999-2003 |
| Figure 4: The Total UK Home Shopping Market by Value (£bn), 1999-2003 |
| INTERNET SHOPPING |
| The UK E-Retail Sector |
| Electrical Goods |
| Security |
| Internet Access |
| 5. Consumer Dynamics |
| SHOPPING AS A SOCIAL ACTIVITY |
| Solo Shopping (S1) |
| Combining Shopping with a Meal Out (S2) |
| Table 24: Solo Shopping and Combining Shopping With a Meal Out (% of respondents), 2003 |
| DECISION-MAKING ON DURABLE GOODS |
| Buying Electrical or Household Goods (S3) |
| Car Purchase (S4) |
| Table 25: Buying Electrical or Household Goods and Buying a Car (% of respondents), 2003 |
| CAR USE AND 24-HOUR SHOPPING |
| Using a Car for Shopping (S5) |
| 24-Hour Shopping (S6) |
| Table 26: Using a Car for Shopping and 24-Hour Shopping (% of respondents), 2003 |
| TELEPHONE SHOPPING AND BROWSING THE INTERNET |
| Telephone Shopping (S7) |
| Browsing the Internet Before Buying (S8) |
| Table 27: Telephone Shopping and Browsing the Internet (% of respondents), 2003 |
| BUYING GROCERIES AND HOLIDAYS ON THE INTERNET |
| Supermarket Home Delivery Services (S9) |
| Buying Holidays Through the Internet (S10) |
| Table 28: Buying Groceries and Holidays on the Internet (% of respondents), 2003 |
| CONSUMER CONFIDENCE IN FUTURE SPENDING |
| Table 29: Consumer Confidence in Future Spending (% of respondents), 2003 |
| BUYING NEW FINANCIAL PRODUCTS AND APPLYING FOR MORE CREDIT |
| Table 30: Buying New Financial Products and Applying for More Credit (% of respondents), 2003 |
| 6. The Future |
| KEY FUTURE TRENDS |
| Economic Factors |
| Table 31: Forecast of UK Gross Domestic Product (%), 2004-2007 |
| Demographic Factors |
| Table 32: UK Resident Population Projections by Gender (000), 2004-2007 |
| Retail Environment |
| High-Value Items |
| White Goods and Brown Goods |
| Mobile Telephones |
| Holiday Market |
| GENDER AND SPENDING |
| 8. Further Sources |
| Associations |
| Publications |
| General Sources |
| Government and Official Sources |
| Other Sources |
| Websites |
| Bonnier Information Sources |
Text © 2004 Key Note
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Last updated by Amanda Porteous September
2004