Pink tax: How women fight back

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Sanlam’s recent survey of over 400 participants found pink tax – gender-based pricing discrepancies for similar products and services – remains pervasive. 53% of women respondents said they encounter pink tax sometimes, and 19% said they see it often.

Farzana Botha, senior communications manager at Sanlam, says now’s the moment for women to use their significant purchasing might to fight pink tax for parity.

Botha says, “Pink tax permeates most industries and has a profound impact. Women, who already face a gender pay gap, must allocate a larger portion of their income to higher-priced goods and services. This disparity is exacerbated by the fact that women often head households and have longer life expectancies.

"Consequently, the pink tax contributes to a cycle of financial strain that affects not only individual women but also their families and future generations.

“However, women wield immense power to axe the tax. Maps data found that 58% of women make their household’s daily purchasing decisions, with particular weight when it comes to child- and medical-related products.

"Additionally, 65% of South Africa’s single-parent homes are headed by women. By raising awareness of pink tax and using our purchasing might to push for parity, we can and will create change.”

Key findings from Sanlam’s Pink Tax survey:

• Out of 446 survey participants, 335 (75%) were unaware of pink tax. Just 20% of men had heard of it, and 30% of women.


• 37% of women said they’d noticed they were paying more for a product or service due to pink tax.


• Just 24% of men said the influence of pink tax had impacted their decision to purchase a product or service compared to 54% of women.


• 22% of the total sample had seen a difference in fees for financial products based on gender.
  
• 24% of women said pink tax influenced their decisions regarding which financial products, services and providers to pursue. This was especially true for car insurance, where 14% of women said pink tax was an influencing factor. 9% of women also believed there were disparities for general insurance, and 6% of women perceived differences in loan interest rates.
• 52% of men vs 75% of women thought it was very unfair for companies to charge more for products and services marketed to women. 6% of men thought it was somewhat fair.
• 78% of men vs 91% of women were in favour of regulation to prevent gender-based pricing disparities.


• 39% of the total sample were willing to pay more for a product or service to secure fair pricing for all; 37% said they’d maybe be willing, and 24% said no. 31% of men said no vs 17% of women.

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Botha says, “Most women, including myself, have personal experiences with pink tax. For instance, when it comes to vitamins and specialist consultations, we often seem to pay more than men, highlighting a disparity even for essential healthcare. Not to mention that women usually pay more for contraception, and continue to pay Vat for tampons, menstrual cups and more.

“Pink tax is a broader, systemic issue that is often particularly harmful to women in marginalised communities, who frequently have less access to competitive shopping options and discounts.”

The strain of higher-priced necessities can perpetuate cycles of poverty and inequality, impacting women’s financial wellbeing. The ‘tax’ makes it even more challenging to save, invest and build financial security for the future.

How women can fight back

In the survey, 21% of women said pink tax influenced them to switch to men’s/ unisex products, 9% said they did price comparisons and shopped around, and 11% avoided gender-specific products. Women were also more likely (5%) to reject products or services based on a moral stance against pink tax.

Botha says, “Positively, we’re already seeing women notice pink tax and fight back through their purchasing power. We need to leverage this and talk about the tax, so everyone has the chance to choose fairness. We must share our experiences to empower others. If there’s blatant pink tax at play, we should raise awareness around it and challenge that provider. Men can be our allies in this by also ‘calling out’ gender-based price differences.

“Similarly, we can actively choose to support brands and companies that promote gender-neutral pricing. Plus, we can do the work of shopping around to make price comparisons and choose the products and services that are the best value – even if these seem marketed to men.

“Women can also protect themselves through fairly-priced policies that align with their unique needs. For example, we know many single households in South Africa are headed by women. That’s where income-, disability- and severe-illness cover could be invaluable, should you be rendered unable to earn an income.

“It can also be helpful to have the right team on-side. For example, an intermediary who understands pink tax, and the other unique challenges women face, can help you navigate these and build wealth for yourself and your family, for the long-term.

“While the pink tax presents a significant challenge, we have the power to drive change. It’s time for a shift from awareness to action, ensuring that future generations do not face the same financial inequities. Sanlam is committed to championing women’s rights and pushing for parity. We know that empowering women changes nations.”