The views expressed by Entrepreneur contributors are their very own.
From the maximum 85% women When making home purchasing decisions in the U.S., the growth of the female economy is undeniable.
Women are the decision makers. Women are the backbone of conscious consumerism. Women are the driving forces of the economy.
Companies that recognize the economic power of women have the potential to achieve latest heights. Those that don’t risk being left behind. And it’s not only our purchasing power that’s growing. We’re growing in the workforce, too.
As the founder Creative Nogginan all-female promoting and marketing agency founded in 2008, I’ve enjoyed watching women take on more leadership roles, express their beliefs, and finally feel brave enough to take risks. Over the past decade, I’ve especially noticed women breaking into the business world independently.
Clearly, she-conomy is here to remain, and as business leaders, we’d like to adapt accordingly. Read on for more on she-conomy and suggestions on methods to navigate it!
How Women Influence Household Purchasing Decisions
According to Harvard Business Reviewwomen make purchasing decisions regarding:
- 94% of home furnishings
- 92% vacation
- 91% of houses
- 60% of cars
- 51% of consumer electronics
I can not say these statistics surprise me.
We women are natural consumers. In the times of hunter-gatherers, women were responsible for gathering.
Today, women are extremely demanding consumers. We research, gather all the facts, and make informed decisions about our purchases. Often, our partners also rely on us in their purchasing decisions.
For corporations, which means underestimating female consumers is one of the biggest mistakes they will make. Just think of the record-breaking Taylor Swift’s Eras Tour grossed $1 billion and how Barbie was the highest grossing film of 2023!
What she-conomy means for market trends
As a marketer running a female-led agency, I have noticed several trends emerging as a result of our growing purchasing power.
First of all, many brands that were once aimed at men have had to alter their approach. Home Depot is a great example of this.
In the Nineteen Eighties, Home Depot was the leading home improvement retailer in the U.S. The home improvement retailer targeted men who were either DIY enthusiasts or skilled contractors, and its stores reflected that. Little did they know that by the end of the millennium, Lowe’s would gain significant market share, largely because it could capitalize on the opportunity to market to women.
It’s no surprise then that Home Depot has recognized the purchasing power of women and taken steps to draw much more people.
Another trend I’ve noticed is the increased demand for diverse representation from women. A few years after Dove launched its Real Beauty campaign, which promoted self-acceptance by featuring on a regular basis women of all ages, ethnicities, sizes and body shapes, the company revenues increased by approx. 10% y/y.
For comparison, the share of the Victoria’s Secret brand in the American market dropped from 33% to 24% between 2016 and 2018. This may be partially attributed to criticism of the brand’s lack of diversity and inclusivity.
Business Tips for Navigating the She-Comony World
So how do we as entrepreneurs cope in a she-economy?
It’s quite easy: embrace this latest reality as a substitute of fighting it. Listen to what women are asking for and deliver. At Creative Noggin, we appeal to women through the brands we work with in three main ways:
1. We focus on authenticity
Whenever we work with a company, we discover its “why” and build our marketing around that. We also use original photography every time possible to make sure the authenticity of the brand is visible and that buyers can higher relate to it.
2. We make sure all the things is in line with the main brand message
Women value brands they will trust. One of the only ways to build that trust is to remain true to your brand’s core message in all of the marketing materials you produce.
3. We all the time use a consistent tone and voice
When a brand has a consistent tone and voice, women are more more likely to connect with and relate to it. You’ll never catch us using a corporate tone in one post and then switching to a humorous style in the next!
Looking to the future, I hope she-conomy continues to grow. As our purchasing power grows, I would love to see more women recognized as leaders, especially in the marketing space, where greater than half of creative directors in the US are men.
As entrepreneurs, I hope to draw more women into our businesses and implement initiatives to draw them. At Creative Noggin, we donate 5% of our profits to causes that empower women in our community – from first-hand experience, I can inform you there’s nothing like that!
Women now have significant purchasing power and contribute more to the workforce than ever before. And the better part is, we’re just getting began!