CIBE Annual Conference

1. CIBE Annual Conference Corporate Responsibility and Consumer Rights October 26 and 27, 2007Beijing

2. Women as a Leading Indicator of Consumer Trends Dr. Ann Goodman Executive Director www.wnsf.org

3. Role of Women's Network for a Sustainable Future (WNSF) • Helping Women Put Their Values to Work

4. WNSF FAQs • *5 years old • *Nonprofit organization*Mobilizes businesswomen for social responsibility and sustainability • *Forum for education, convening, action • *Offers meetings, training, electronic tools • *Builds an international 'community' of businesswomen to work for social responsibility (China Dialogue) • *Prepares the next generation of women business leaders • *Strengthens business's ability to attract and retain women (employees, consumers, stockholders, stakeholders) • *Recent programs

5. Exploring the link • Women’s current buying habits • Likely future consumer trends

6. 7 Key points • women’s buying patterns • women's attitudes to business social responsibility • the "green" consumer • youth's attitudes • business responses (changes in product, labeling, sourcing and supply chain) • case: lessons in ‘responsible’ consumer strategy from H&M • implications for China, emerging markets and emerging consumer demand (with China Association of Women entrepreneurs/CAWE)

7. Question: What do women want?

8. Answer:  Everything, and lots of it! (over 80 percent of purchases are made by women)

9. The Flawed Cliché: Women want clothes, makeup---and diamonds!

10. What Women Really Buy?

11. MARKET INVESTMENTS • women represent nearly 50 percent of stock market investors, up 10 percentage points in the past 20 years • women participate in investment decisions in 60 percent of households • women will account for 94 percent of the increase in US private wealth by 2010

12. REAL ESTATE • women make 75 percent of the decisions about new home purchases

13. CARS • In the US, women influence car purchases in up to 70 percent of cases

14. ELECTRONICS • women outspend men on items like wireless phones and computers • 60 percent of online users are women

15. SPORTS • women buy nearly two thirds of apparel purchases from NFL (National Football League) and NBA (National Basketball Association).

16. Women Have Money to Spend: • 62 percent of workers are women • In the past 10 years, women-owned firms grew at nearly twice the rate of all US firms. (they now generate $1.9 trillion in sales and employ 13 million people)

17. Women Want Responsible BusinessStudies confirm women: • care that workers everywhere are paid a living wage • think it’s extremely important for companies to contribute to charity • believe business needs to do a better job on social responsibility • think it’s important that their companies make a difference in society • want companies to provide more opportunities for them to make a difference  (sources: U. of CA at Berkeley and WNSF)

18. Women Want to: • make a positive impact on society • pursue personal interests • earn a high income --in that order! (For men, the order is of priorities is just the reverse! )  (source: Aspen Institute )

19. Women Care More • Over 70 percent of women agree that the US is in as much danger from environmental hazards, such as air pollution and global warming, as it is from terrorists.  Just 56 percent of men agree. • Only 28 percent of women agree that "too much fuss is made about global warming," but 42 percent of men agree. • Finally, just 30% of women think the quality of the environment is getting better or staying abut the same.  But 42 percent of men think this. (source: Yale University)

20. The Light Green Woman • Green consumers are growing in numbers (hundreds of millions) • 62 percent of “light green” consumers are women • “Light greens” tend to “buy” their way to environmental responsibility • They’re confused (e.g.,may drive a gas-guzzling SUV to organic food store) • But they’re malleable, educable and want to do the right thing  (source: Ogilvie Mather)

21. Question: What do youth want?

22. Answer: What women want!

23. “Children listen to their mothers (sometimes)” Joyce La Valle, Sr. VP, Interface Inc.

24. “What’s Good for Women is Good for the Firm” — Deloitte & Touche Women pioneer business changes, especially social changes, later embraced by all employees

25. Next- Generation Employees Want: • flexible work conditions (e.g., working from home, which can also reduce GHG emissions from commuting to work) • life/work balance • a company with a cause

26. Young Consumers Want: • products made by “socially responsible” companies • “eco--friendly” products made by “eco-friendly” companies • university campuses to make responsible purchases (e.g., 2005 halt in Coca-Cola sales at US universities based on alleged labor and environmental infractions) • corporate awareness of global warming (e.g., UK student shoppers’ guide, 2007 Live Earth concerts) • “ethical” business behavior toward the environment ( 80 percent of teenagers)

27. “Mom, will polar bears have ice next year?” • Even 4-year-olds worry about the environment! — Wall Street Journal

28. Business Response • changes in product, labeling, sourcing, supply chain

29. Recent Examples • Interface: business purpose attracts young workers • Kraft: healthier products, health labels • GAP: donating a percentage of revenue to causes (RED) • Coca-Cola: new, healthier products, messages, labels • H&M: supplier monitoring, organic cotton sourcing and labeling

30. Fashion First Lessons in Consumer Strategy from H&M’s Organic Cotton Launch

31. Lessons from H&M’s Test: • One: processing, manufacture and marketing of new products must be in place. • Two: fashions must blend with the every day clothing most people wear.  • Three: there’s big a difference between fad and consumer demand that sustains the market. • Finally: timeworn strategic business lesson: consumer demand drives market success.

32. Lessons from H&M’s Organic Line • the right marketing (education vs advertising) • the right supply chain (6-weeks from sketch to store) • the right time

33. Implications for China? • recent alarm worldwide over product problems • buyer oversight, supplier vigilance • one domestic response: Wu Yi • CAWE presentation!

34. Thank You! WNSF www.wnsf.org