The views expressed by the business participants are their own.
With up to 85% of women making decisions about purchasing homes in the US, its economic growth is undeniable.
Women are the decision makers. Women are the backbone of conscious shopping. Women are the drivers of the economy.
Companies that recognize the economic power of women have the potential to reach higher levels. Those who don’t risk being left behind. And it’s not just our purchasing power that is rising. We are going up with the workers.
As the founder of Creative Noggin, an all-female advertising and marketing agency founded in 2008, I’ve enjoyed seeing women step into more leadership roles, voice their beliefs, and finally feel the courage to take risks. Over the past decade, I have noticed in particular that women are entering the business world independently.
Clearly, the world economy is here to stay, and as business leaders, we need to adapt accordingly. Read on for more information on the she-conomy and tips on how to navigate it!
Related: Why Respecting Women as Consumers Is Key to Business Growth
How women influence purchasing decisions at home
According to the Harvard Business Review, women make purchasing decisions:
- 94% of household goods
- 92% of holidays
- 91% homes.
- 60% of cars
- 51% consumer electronics
I can’t say that I am surprised by these statistics.
We women are natural consumers. Back in the hunter-gatherer days, women were responsible for gathering.
Today, women are very conscious consumers. We research, gather all the facts and make informed decisions about our purchases. Oftentimes, our partners listen to us in their purchasing decisions, too.
For businesses, this means that underestimating the female consumer is one of the biggest mistakes they can make. Just imagine the record breaking Taylor Swift’s record breaking Eras Tour produced and how much Barbie was the highest grossing movie in 2023!
Related: How to Launch a Successful Women-Owned Business
What does the she-conomy mean for market trends
As a marketer who runs a women’s agency, I’ve seen a few trends emerge as a result of our growing purchasing power.
First and foremost, many brands that once catered to men have had to change their ways. Home Depot is a good example of this.
In the ’80s, Home Depot was the leading chain in the US. The home improvement retailer was targeting mostly male shoppers who liked DIY or professional contractors, and their stores reflected that. Little did they know that by the turn of the millennium, Lowe’s would gain significant market share primarily because it seized the opportunity to market to women.
Surprisingly, Home Depot has recognized the purchasing power of women and is making an effort to attract more people.
Another trend I have noticed is the increasing demand of women for diverse representation. A few years after the launch of Dove’s Real Beauty campaign, which promoted self-acceptance by featuring ordinary women of different ages, ethnicities, sizes, and body shapes, the company’s revenue increased by nearly 10% OVERALL.
In contrast, Victoria’s Secret’s US market share fell from 33% to 24% between 2016 and 2018. This can be attributed, in part, to criticism of the product’s lack of diversity and size integration.
Related: 12 Insights 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 very simple: lean into this new reality instead of fighting it. Listen to what female buyers are asking for and deliver on it. At Creative Noggin, we appeal to female consumers with our products in three main ways:
1. We prioritize authenticity
Whenever we work with a company, we find out why and build our marketing efforts around it. We also use real photography as much as possible so that the authenticity of the product comes through and female consumers can better relate to it.
2. We make sure everything is in line with the core messaging of the brand
Women appreciate brands they can trust. One of the most effective ways to build that trust is to stay true to the core brand messages in all the marketing materials we produce.
3. We always use a consistent tone and voice
If a brand has a consistent tone and voice, women can connect and relate to it. You won’t catch us using a business tone in one post and switch to a funky style in the next!
Looking ahead, I hope the country’s economy will continue to go from strength to strength. With our growing purchasing power, I would like to see more women recognized as leaders, especially in the marketing space, where more than half of creative directors in the US are men.
As an entrepreneur, I hope we appeal to women more in our business endeavors and make efforts to attract them. At Creative Noggin, we donate 5% of our profits to causes that empower women in our community—from personal experience, let me tell you, there’s nothing better than that!
Women now have greater purchasing power and contribute to the labor market more effectively than ever before. Best of all, we’re just getting started!
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