What women want: CE gadgets - consumer electronics - Marketing Technology to the Female Consumer

DSN Retailing Today, Jan 5, 2004 by Laura Heller

At roughly half the U.S. population, women represent more than $55 billion worth of sales to the consumer electronics industry and influence roughly 75% of all purchases in the category. Yet, women have largely gone unnoticed when it comes to product development, marketing and retail initiatives--a fact that the Consumer Electronics Association (CEA) hopes to remedy.

For the second year running, the International Consumer Electronics Show (CES) will focus on this underserved demographic, hosting a technology show case of products aimed at women and a SuperSession titled "Shopping Consumer Electronics--Understanding the Female Perspective," which this reporter will moderate.

A centerpiece of the program is a new, ongoing consumer research track conducted by eBrain Market Research. Results from the tracking study, titled Buying & Using Technology, a Woman's Perspective, shed some much-needed light on how women use, view and shop for technology products.

It also bursts some commonly held myths. Think women aren't likely to be early adopters of technology? Think again. "Women are just as likely to early adopt technology as men, but do so for different reasons," said Todd Thibodeaux, president and ceo of eBrain. "Whereas men often see a product they like and find a reason to own it, the vast majority of women identify a need and then buy the latest and greatest product to fill that need."

And while it has often been said that women are simply not as interested in technology as men, that statement couldn't be farther from the truth, according to the research. In 2002, the CEA launched the Technology is a Girl's Best Friend program with an inaugural study that found women actually preferred technology over some seemingly more coveted items.

"Women said they'd rather have an HDTV than a 1-carat diamond ring," said Karen Chupka, the CEA's vp of events and conferences, including CES. "And 64% picked a digital camera over half-carat diamond stud earnings." (The survey was careful to equate products with similar price points.)

And while those statistics made for eye-catching headlines, the real purpose was to open the industry's eyes to this largely underserved market.

"Being a leading technology association with one of the leading technology trade shows, and given that there was a female at the head of the show and a female incoming head of the association, it was a shortcoming that we didn't really do much outreach to women," said Chupka. "This program is really meant to help educate our members and customers that women do have great buying power."

It is also targeting the women's consumer media, "to help women's publications to understand that their readership really needs a place to turn to for information, and they really don't have a source for that," said Chupka. It's a goal that has been met with some measure of success.

"Consumer electronics in 2001 and 2002 has been targeted in a soft way," said Katherine Rizzuto, vp and publisher of Marie Claire magazine and panelist for "Shopping Consumer Electronics--Understanding the Female Perspective." "But going into 2004, we are targeting it in a strong way. Our own consumer research reveals that women want information about CE products and can't find it where they expect to find it."

Marie Claire regularly offers free giveaways to readers who respond via mail or the Internet. A recent offer of a free laptop garnered 125,000 responses. "That's more than a lipstick or pair of jeans," said Rizzuto. "It made us realize we should be putting phones or laptops in the rest of our pages. A lot of CE product is starting to sneak in editorially."

"We've gone from seeing a plasma screen maybe in the background of a celebrity profile to being a feature product during the holidays [in 2003]," said Ann Taylor-Griffith, spokeswoman for the CEA's Technology is a Girl's Best Friend program. "The editors are paying attention and doing their homework. And from a manufacturer's standpoint, we're certainly seeing more advertising."

"There's been a lot of buzz in the last six to 12 months with CE manufacturers trying to reach out to the female consumer," said Denise Yohn, vp, corporate strategic marketing for Sony Electronics and a panelist. "Sony has these initiatives, and our research indicates they are responding."

But there are many missing pieces, according to eBrain.

Some manufacturers have been releasing product with design elements believed to be more in tune to female sensibilities, to mixed results. "Women don't like to be marketed down to," said Thibodeaux. "The idea of using 'female' colors to attract women is counterproductive and not welcome. Style and design are important, but not at the expense of good taste." Only 4% of eBrain respondents said design was important, while 71% ranked it the least important factor in product choice. Marie Claire readers said rather than hearing about whether a product is pretty or easy to use, they wanted reports on the technology itself.

But perhaps the most critical piece in this equation of better serving the fairer demographic is at the retail level. "The industry is doing a poor job of creating an environment where women feel confident and at ease," Thibodeaux said. Seventy-eight percent of women said they often felt confused, stupid or intimidated while shopping for electronics, compared with 71% of men who said they felt comfortable and confident. Women are so put off by the retail experience that nearly three-quarters of those surveyed said they receive better service when they shop with a man, and 40% typically only shop for electronics with a male companion.