'Pink' Tax?

The countdown has begun...

8th March this year, on International Women's Day, we shall celebrate gender equality.

But, why this equality is not reflected in the pricing of products, and instead women are subjected to gender-based price discrimination?

Welcome to the world of pink tax - where worldwide Ms. pays more than Mr. for products designed and marketed specifically to them, while a gender-neutral version of the same product costs less.

From Cradle to Cane: The Cost of Being a Female Consumer - a 2015 study conducted by the New York City Department of Consumer Affairs compared prices of nearly 800 products and found that "on average, women pay approximately 7% more than men for similar products" and "personal care products cost 13% more for women than men". Why the special mention of 'personal care'? Because "the “adult” stage of a consumer’s life is longer than any other lifecycle stage. Additionally, the frequency at which adults consume personal care products is higher than any other category of the consumer goods."

In India too, women face pink tax on a wide range of products and services marketed specifically to them. A study by IIM-Amritsar compared the prices of 64 products from 25 categories for men and women and discovered the same disturbing pattern of gender discrimination - women customers shell out more, from few hundreds to few thousand rupees, than their male counterparts whereas women in India earn 19% less them men.

So, why does a famous brand of disposable razors for men cost roughly ₹20 while the cheapest disposable razors for women from the same company is priced at approximately ₹55 though except for the packaging, the female version is barely different from the male one?

There are many reasons. First, marketers take refuge in low 'economies of scale' and high 'inventory cost' arguments claiming sales volume of 'pink' products are less. Additionally, they claim to invest more in the supply chain (e.g. in the case of razors: kirana store for male vs. chemist shop for female) and due to higher product placement costs. Finally, probably due to societal conditioning since childhood, women are more aware of their appearance, less price-sensitive, and are willing to be charged more.

So, this Women's Day, will women pay more for a product packaged with a pretty shade of pink, or will they buy the gender-neutral version of the same product at a lower price?