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Women of Tomorrow: U.S. Multicultural Insights November 2011

Women of Tomorrow US Multicultural Final 110111

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This Nielsen report highlights the differences and similarities of American women across the four primary ethnic groups: Hispanic/Latino, African American, Asian American and Caucasian/White. More info: http://www.nielsen.com/us/en/insights.html

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Page 1: Women of Tomorrow US Multicultural Final 110111

Women of Tomorrow:U.S. Multicultural InsightsNovember 2011

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2Copyright © 2011 The Nielsen Company

Optimism reigns among America’s multicultural womenWomen are the world’s most powerful single demographic. They control the majority of household spending decisions, their influence is growing and they are increasingly exercising this new-found power in a variety of ways. It is only natural that marketers around the globe would take notice and seek ways to better reach women in terms of the media they watch and the products they buy.

Nielsen surveyed women across generations and from all corners of both developed and emerging economies. Reaching out to 21 countries representing 60 percent of the world’s population and 78 percent of GDP, this study provides insight into how current and future generations of female consumers shop and use media. While there are some surprising differences – especially between women from developed countries and those from emerging countries – there is one very positive commonality: women believe their roles are changing for the better.

With the face of the United States changing, the attitudes and behaviors of women across ethnicities is particularly important. Hispanics are now the fastest growing ethnic group, a trend that has tremendous ramifications on media, retail and manufacturers now and in the years ahead. As overall consumer demand shrinks and companies look for new segments of growth, the multicultural consumer represents a significant opportunity now and in the long term. This report highlights the differences and similarities of American women across the four primary ethnic groups: Hispanic/Latino, African American, Asian American and Caucasian/White.

Our roles are changing for the better:

94% of Hispanic women

90% of African American women

90% of Caucasian women

86% of Asian American women

Countries Represented in the Full Global Study

EMERGING MARKETSBrazil, China, India, Malaysia, Mexico, Nigeria, Russia, South Africa, Thailand, Turkey

DEVELOPED MARKETSAustralia, Canada, France, Germany, Italy, Japan, South Korea, Spain, Sweden, United States

Roles are changing for the betterIn developed countries, 80 percent of women surveyed said that the role of women is changing, with 90 percent of those saying it is changing for the better. In emerging countries, women are even more optimistic about the future. Women in the U.S. are no different, with vast majorities across ethnicities believing their roles are changing and improving.

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Optimism was highest among African American and Hispanic women, especially when it came to how they viewed the opportunities they have had compared with those of their mothers. The optimism does not stop with the women of today: they are extremely positive about the outlook for the women of tomorrow – their daughters – and expect them to have more opportunities available to them than they themselves have now.

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Not only is their optimism increasing but so too is their contribution to household income. African American and Hispanic women also said that increased earning power would enable them to contribute more to household income in the next five years, while a majority of Asian American and Caucasian women expected no change in how much they contribute.

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Increasingly stressedAs women around the world have taken on more roles outside of the home, they have become increasingly stressed juggling various responsibilities. American women are no different. Asian American women felt the highest levels of stress, with more than half (58%) saying they often felt pressured for time, 46 percent saying they have no time to relax and 48 percent saying they felt stressed or overworked “most of the time.” These rates were far higher than those for women of other ethnicities. Marketers looking to reach the women of tomorrow should take heed: conveying messages of ease, convenience and making lives simpler is going to be essential to success.

Despite these high levels of stress, taking time off for a vacation is lower on the list of things women choose to spend any extra money they may have after covering expenses. Given the uncertain economic conditions, multicultural women are focused on the basics: groceries and financial matters. Paying off debts was a high priority for all, coming in first for African American and Hispanic women, second for Caucasian women and third for Asian American women. General savings also ranked highly among all groups.

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Primary purchasing decision makersDespite women being major decision makers when it comes to the bulk of household spending, they actually want men to play a role. In fact, that while women view themselves as the primary decision makers across key household decisions and product purchases, they are increasingly expressing a desire for joint decision making and share responsibilities. Moreover, women and men across developed and emerging countries identified just one type of purchase where men were a more appropriate primary decision maker: cars.

In the U.S., however, there was no single category where women felt that men were the primary decision makers.

Multicultural women tend to see themselves as the primary decision makers for purchases across many of the categories associated with running a household, but increasingly view the role of men as equal in some of these. Interestingly, Asian American and Caucasian women are more likely to include men in the purchase decision about food than were African American and Hispanic women.

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Media technology enables women to be more connected, makes lives betterDespite the stereotype of men being the primary users of media and technology, the fact is today’s American women are just as big fans of media and technology as men, if not more. Women may not be early adopters of new technology, but they are heavy users of established technology. Women of all ethnicities use media in similar ways, with one key exception: smartphones. Just 33 percent of Caucasian women have a smartphone in their household, compared to penetration rates in the 60s for women of other ethnicities.

For the women of today, media technology is not simply about entertainment; it is about making life better. Solid majorities of women across ethnicities said that computers, cell phones and smartphones improve their lives in meaningful ways. In fact, multicultural women in the U.S. had the highest penetration of smartphones than women in other developed countries as well as those in emerging markets. With the increasing importance of smartphones being as a vehicle to conduct commerce along with overall contracting consumer demand in the U.S., reaching this important segment of consumers represents a tremendous opportunity for marketers.

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While TV may not be seen as “improving” their lives, American women tend to turn on the tube to get information about new products and services. African American, Hispanic and Caucasian women all said that TVs were their preferred media in that respect, while Asian American women turned to the Internet. Asian American women also preferred to get their information about new stores online, while Caucasian women used word of mouth. African American and Hispanic women again turned on the TV. All of this underscores the need to balance marketing between traditional and new media.

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Getting women into the store, and keep them coming backWith the current uncertainty in the economy, consumers across the country have cut back their spending and the number of shopping trips they make. So it was surprising to find that price was not the key driver of foot traffic, but rather “value.” Value is more than price; it is a product or service that satisfies multiple need states, sometimes at a premium to similar goods. However, once in the store, prices become the key factor in purchase decisions.

Part of the concept of value is a product’s quality. Indeed, it was the top driver of brand loyalty in 20 of the 21 countries surveyed across generations of women. In marketing the holy grail is consumer loyalty. Clearly the way to establish loyalty is quality.Once today’s woman finds a brand she likes, she tends to stick with it, reinforcing the need for manufacturers to win women’s trust early on in their roles as household buyers. Quality wins!

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Strategies for retailers, marketers for reaching today’s multicultural womenThe women of tomorrow clearly feel optimistic. But this optimism is tempered to some extent by concerns about their homes, their children and the future. Marketers who know how to help them manage those concerns and satisfy increasingly complex need states will likely succeed. How can they do that? First, they should think about creating opportunities for women to become more intimate with their brands, products and solutions through this web of interconnectivity. Take advantage of their use of media of all types. Anticipate demand. Create advertising that resonates with the themes important to women. Develop products that are specifically designed with women’s needs in mind. Due to so many varying factors, the playing field has become more complex than ever before, but the opportunities for those companies that succeed in reaching women are almost limitless.

Key Takeaways

• Today’s women in America are optimistic, with African Americans and Hispanics feeling more positive about their income.

• Stress is increasing as women struggle to juggle multiple roles, particularly among Asian American women. Marketers should highlight how products and services offer convenience, ease of use and time savings.

• Women are connected and believe media is making their lives better – an increasingly important consideration as new media in particular are changing how commerce is conducted. Take advantage of higher smartphone penetration to reach multicultural women more effectively.

• Balance the use of “traditional” and “new” media: different segments prefer different media.

• Value messaging drives all women into the store. Price and promotion play a factor in the store. Quality keeps them coming back.

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About the study

The Nielsen Women of Tomorrow U.S. Multicultural survey polled 760 women across the United States in varying multicultural groups—Hispanic/Latino, African American, Asian American and Caucasian/White. The survey was fielded online June 2011.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

Copyright © 2011 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. 11/3979

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