Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
The opinions expressed by Entrepreneur contributors are their own.
In the US, up to 85% of women are responsible for purchasing decisions in the household; the rise of the she-conomy is therefore undeniable.
Women are the decision makers. Women are the backbone of conscious consumption. Women are the driving force of the economy.
Companies that recognize women's economic power have the potential to reach new heights. Those that don't risk being left behind. And it's not just our purchasing power that's increasing. Our workforce is growing, too.
As the founder of Creative Noggin, an all-female advertising and marketing agency founded in 2008, I've seen women increasingly take on leadership roles, speak up about their beliefs, and finally feel brave enough to take risks. Over the last decade, I've especially seen a lot of women venturing into the business world on their own.
It's clear that the She-Conomy is here to stay, and as business leaders, we need to adapt accordingly. Read on to learn more about the She-Conomy and get tips on how to navigate it!
Related: Why respecting women as buyers is key to business growth
How women influence household purchasing decisions
According to Harvard Business Review, women make purchasing decisions for:
- 94% of residential facilities
- 92% of holidays
- 91% of households
- 60% of cars
- 51% of consumer electronics
I can't say I'm surprised by these statistics.
We women are consumers by nature. In the hunter-gatherer era, women were responsible for gathering.
Today, women are extremely demanding consumers. We research, gather all the facts and make informed purchasing decisions. And often our partners follow us in their purchasing decisions.
For companies, this means that underestimating female consumers is one of the biggest mistakes they can make. Just think of the record-breaking billion dollars that Taylor Swift's Eras Tour grossed and that Barbie was the highest-grossing movie of 2023!
Related: How women-owned businesses can succeed
What the She-Conomy means for market trends
As a marketer who runs an agency dedicated to empowering women, I've observed several trends emerging as a result of our increasing purchasing power.
First, many brands that once targeted men have had to change course. The Home Depot is a good example of this.
In the 1980s, Home Depot was one of the leading chains in the United States. The home improvement store primarily targeted male customers who were do-it-yourselfers or professional tradesmen, and this was reflected in its stores. Little did they know that by the turn of the millennium, Lowe's would gain a significant market share, largely because it took the opportunity to appeal to women.
Not surprisingly, Home Depot has recognized women's purchasing power and has made efforts to reach even more people.
Another trend I've noticed is women's increasing demand for diverse representation. A few years after Dove launched its Real Beauty campaign, which promoted self-acceptance by showcasing regular women of different ages, ethnicities, sizes, and body shapes, the company's sales increased by about 10% year over year.
In contrast, Victoria's Secret's market share in the U.S. fell from 33% to 24% between 2016 and 2018, partly due to criticism of the brand's lack of diversity and size inclusivity.
Related: 12 lessons from a decade of investing in women entrepreneurs
Business Tips for Navigating the She-Comony
So how do we as entrepreneurs navigate the She-Conomy?
It's simple: embrace this new reality instead of fighting it. Listen to what female consumers want and fulfill those desires. At Creative Noggin, we engage female consumers through the brands we work with in three ways:
1. We value authenticity
Whenever we work with a company, we find out why they do what they do and build our marketing efforts around that. We also use original photos whenever possible to convey the authenticity of the brand and help female consumers identify with it.
2. We make sure everything is consistent with a brand’s core message
Women value brands they can trust, and one of the most effective ways to build that trust is to stay true to a brand's core message in all the marketing materials we create.
3. We always use a consistent tone and voice
When a brand has a consistent tone and voice, women can more easily connect and identify with 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 the she-economy continues to go from strength to strength. Given our increasing purchasing power, I would love to see more women in leadership roles, especially in marketing, where more than half of creative directors in the US are men.
As an entrepreneur, I hope we target women more in our business endeavors and take initiatives to attract them. At Creative Noggin, we donate 5% of our profits to causes that empower women in our community – from personal experience, I can tell you nothing feels better than that!
Women today have significant purchasing power and are making a greater contribution to the labor market than ever before. And the best part is: we are only just getting started!
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
