Women in China are set to drive global spending trends over the next decade.
As the whole country is forecast to consumer US$6 trillion worth of goods, over half of this will be a product of female empowerment and changes in household structures, according to UBS.
Women are increasingly more interested in investments, whether it’s assets management or insurance, and life’s pleasures such as luxury items, pets, healthy food and beer.
They are more independent when it comes to consumption, spending more money for themselves rather than their family.
That’s because millennials are the generation with the highest gender equality in education and the only female working age group anticipated to keep growing in the next decade.
“We believe China will remain a leading contributor of the global consumption market in the long term, as the Chinese economy is normalising to pre-COVID-19 levels. In particular, considering its leading labour force participation rate in the world and Chinese women's strong decision power in family spending… Chinese women should be crucial to supporting China's consumptions,” analysts commented.
“We believe the potential improvements in Chinese women's education, income and social standing could result in Chinese women becoming the key driving force of the consumption market in China and the world. Also, changes to China's family structures, such as attitudes towards marriage and having a family, should influence China's consumption demand.”
Among UK names, InterContinental Hotels Group PLC will be a winner thanks to its multi-brand strategy across mid-range and upscale offering, as China’s women seek travel experiences.
Burberry Group PLC (LSE:BRBY) remains a key name for Chinese luxury shoppers, however UBS noted it has weak brand turnaround and limited exposure to young consumers.
IHG rose 1% to 4,617p while Burberry shed 1% to 1,931p on Wednesday afternoon.