| Nearly 80% of all purchasing decisions are made by | | | | status and the sheer enjoyment of making money, |
| women. Women make the choice of which holiday | | | | come much further down the list. |
| 92% of the time, which bank account 89% of the | | | | Women want wealth to enjoy a better lifestyle. |
| time, in DIY 80%. Even the purchase of the family | | | | They spend their leisure time and disposable income |
| car is decided solely or mainly by women in 60% of | | | | on holidays and home improvements, just like men. |
| cases. Women's wealth continues to grow. Between | | | | The only significant difference in spending is that men |
| 1970 and 1998 men's median income rose by 0.6 | | | | are likely to spend a greater proportion of their |
| percent whilst women's rose by 63%. | | | | disposable income on cars and gadgets whilst women |
| The importance of developing products and services | | | | focus on clothes, jewellery and watches ' so far the |
| that meet women's needs cannot be overstated. | | | | cliché holds true. |
| When buying financial products and services, wealthy | | | | However, women do invest quite differently to men. |
| women have certain needs and concerns which are | | | | Women are far less likely to take risks with their |
| different to those of men. Understanding why and | | | | money, whether in their personal finance or business |
| how women create wealth, where they invest and | | | | affairs. Research suggests that more men than |
| why is critical to those who wish to sell financial | | | | women invest in financial products that are |
| service products to this potentially huge and poorly | | | | considered to be at the riskier end of the financial |
| catered for group. | | | | spectrum such as hedge funds, private equity, |
| In 1998 the average male millionaire in the UK was | | | | structured products and derivates. |
| worth £2.7 m (US$5.42m), while the average | | | | Women take longer to come to a decision about |
| female millionaire owned just £1.28 m | | | | what to invest in and are less likely to go to a third |
| (US$2.56m). By 2006, women had caught up | | | | party for advice than men. Men are more likely to |
| considerably, with the average female millionaire | | | | consult tax specialists, accountants, private banks, |
| worth £1.97 (US$3.94m) compared with | | | | brokers and the media. The only source of advice |
| £2.96 m (US$5.92m) for men. | | | | that is more widely used by women than men is the |
| The increase in female wealth has not been limited to | | | | high street bank. |
| developed countries. In 2006, the female paper | | | | This does not mean they are less successful or able |
| tycoon Zhang Yin was listed by the Hunan Report as | | | | investors than men. In Tom Peters book ReImagine! |
| the wealthiest person in China with an estimated | | | | he quotes the National Association of Investors on |
| US$3.4 bn. | | | | the returns of investment clubs. Whilst men only |
| So how are women creating this wealth? The | | | | clubs delivered 15.6 percent, women only clubs |
| traditional sources of wealth for women have been | | | | delivered 17 percent returns.9 percent. |
| inheritance from their parents or their deceased | | | | Wealthy men are more likely to use personal trainers, |
| husbands or financial gain from the divorce of a | | | | chauffeurs, chefs, alternative health practitioners, |
| wealthy husband. Whilst these methods for achieving | | | | property search agencies, lawyers and private banks |
| wealth are still evident, an increasing number of | | | | than women. However, wealthy women are more |
| women have created their wealth through their job | | | | likely to use what may be considered 'lifestyle' |
| or through the ownership of a business. | | | | services such as personal concierge and shopping |
| Whilst men's major motivation for starting a business | | | | services, life coaches, personal stylists, bodyguards |
| is financial gain, women tend to cite flexibility, | | | | and private doctors. |
| freedom (from corporate structures and politics) and | | | | Women tend to invest to reach a particular goal, for |
| financial gain as the main reasons for setting up on | | | | instance, a college fund, retirement, a major holiday. |
| their own. Holly Sargent, Senior Associate Dean for | | | | Once the investment goal has been reached, women |
| Advancement and Senior Director for University | | | | are more likely to 'protect' the fund rather than put it |
| Women's Studies at Harvard University points out | | | | at risk through further investment. |
| that when women start a business it often does not | | | | So what are the conclusions that can be drawn |
| have the sole purpose of generating wealth. "The | | | | about marketing financial products and services to |
| businesses are more likely to be family orientated, | | | | high net worth women: |
| less commercial and more socially or more 'gap in the | | | | 1. Whilst products do not have to be marketed as a |
| market based'....A lot of innovative products are | | | | 'women only' product, they do need to provide clear, |
| created around female-oriented gaps in the market." | | | | comprehensive information from which the individual |
| Income from investments has become an important | | | | can make an informed choice. As many of the |
| source of wealth for wealthy women. Up to 38% | | | | women will be making investment choices without |
| high net worth women in Asia cited income from | | | | the benefit of advice from independent advisors or |
| investments as one of their three most important | | | | tax specialists, everything produced must be jargon |
| sources of wealth. In Europe, this was lower at 24% | | | | free and in plain English. Provide well researched |
| with 64.6% stating income from their job as one of | | | | information and help via an on line help desk or |
| the three most important sources of income. | | | | information line. |
| Independent of their husband or family, women are | | | | 2. Build a relationship through education. Educate |
| creating their own wealth through investments, | | | | women about financial matters that may concern |
| ownership of a business or through a well paid job. | | | | them depending on their age or lifestyle. |
| Motivations for amassing and protecting wealth are | | | | 3. Develop products 'themed' around issues such as |
| almost identical for men and women. Financial security | | | | 'wedding', 'college fund', 'retirement' Encourage |
| in retirement is seen as the main priority followed by | | | | continuing investment in multiple closed end funds |
| a better personal lifestyle and enjoyment of the finer | | | | 4. Women do hire personal trainers and are prepared |
| things in life. In other words the goals appear to be | | | | to pay for the personal touch. A 'financial coach' may |
| neatly divided between spending on the present and | | | | be the incentive a woman needs to invest in a |
| saving for the future. More intangible factors such as | | | | particular product or organisation. |