Women earning more in cities in 10 years

Mumbai, July 26: Reinforcing the growing financial independence of women in India, a survey says the income level of urban Indian women has doubled in the last decade. This increase has also led to the average urban household income doubling, according to a study by market research firm IMRB.

The urban Indian woman who earned Rs 4,492 per month in 2001 was taking home as much as Rs 9,457 as of 2010. The rise in her income is directly reflected in the average monthly household income of urban India going up from Rs 8,242 to Rs 16,509 in 2010, says the IMRB survey.

While these figures appear impressive, they suggest that urban incomes have on average gone up significantly less than those of the average Indian over this decade. According to official data, India’s per capita income rose from Rs 16,688 in 2000-01 to Rs 54,835 in 2010-11, a 228% rise. The IMRB figures suggest that urban incomes in the same period rose by 100% and incomes of urban women by 111%.

“We have aligned our strategy, communication and products to women. And with the growing aspirations and financial independence of women not only in urban India but in tier II and tier III cities, women are at the core of our business.

The woman today is buying for herself and for her family,” said Kishore Biyani, founder, Future Group. The country’s largest retailer, which runs stores like Pantaloon and Big Bazaar, has seen the contribution of women’s wear to overall sales more than double from 22% when it started operations to 55% currently. What is significant in the survey is that with the woman’s personal income doubling, she is increasingly outsourcing household work.

From 91% women saying they did household work themselves, the number has dropped to 71% in 2010, according to the survey. “With the average income of women and of urban households increasing over the years the propensity to spend has also gone up significantly. Although, there is a strong sense of deriving value for money out of all purchases made, the thought of putting all of the household income into savings is slowly diminishing,” said Ashish Karnad, group business director, IMRB International.

Brand experts say the changes over the last decade where more of the buying power is moving into the hands of woman has led to her influence in purchases even in categories predominantly of male consumption. “There remain very few areas of consumption in which the female does not increasingly participate today. Most household purchase decisions are either joint or exclusively female. Like in the West, marketing approaches and brand experiences in India will increasingly need to be designed around these insights,” said Tanya Dubash, executive director & president marketing, Godrej Industries.

And this trend is reflected in the survey which says while 34% of women participated in the actual buying process in 2003, by 2010 that number had gone up to 43%. “Is the recent explosion in male grooming only because of male consumers or is it also triggered by the subtle influence and desire of the female to have her man well groomed?” asked Dubash.

The survey, which interviewed 9,000 urban women above 25 years says as an impact of increasing financial independence, there has been a 33% jump in the number of women who have a savings bank account in the last decade. Also, from only 4% of women owning their own credit card back in 2001, there has been a 150% growth as 10% of women in 2010 possessed a credit card.

“With rising incomes and education there is a profound impact on consumption. The rates of growth of several discretionary categories are nothing short of dramatic as a result,” says Gopal Vittal, executive director, home and personal care products, HUL, the country’s largest consumer goods maker.

Given that one-third of the estimated 480 million jobs in the country are being performed by women, more than half of the advertising is targeted towards the homemaker.