The She-conomy’s Rise: Women as Key Drivers of Economic Growth

Contributed by Tracy Marlowe, an EO Sacramento member

Women have long been responsible for household decisions but with women now controlling or influencing a staggering 85% of consumer spending globally, the rise of the “she-conomy” is certainly upon us.

Women are savvy decision-makers. Women are the backbone of conscious consumerism. Women are the drivers of the global economy.

Companies that recognize and embrace the impact of female consumers, and their US$31.7 trillion in buying power, have the potential to connect their businesses with this powerful force and reach new heights. Those that don’t risk being left behind.

And it’s not simply female purchasing power that’s on the rise. We’re also rising in the workforce. 

As the founder of Creative Noggin, an all-women advertising and marketing agency I began building in 2008, I’ve enjoyed witnessing the rise of women over the past two decades. I’ve seen more women step into leadership roles, voice their beliefs, and feel brave enough to take risks. The past few years, especially, I’ve seen more women coming into their own as entrepreneurs and leaders within the business world.

It’s abundantly clear the she-conomy is here to stay, and as business leaders, we need to adapt accordingly.

Read on for more insights into the she-conomy and tips on how to navigate it.

How Women Influence Purchasing Decisions

Studies have shown that women control significant purchasing decisions, including:

• 91% of home purchases

• 92% of vacations

• 80% of healthcare

• 93% of food and over-the-counter pharmaceuticals

• 65% of new automobiles

• 89% of bank accounts

I can’t say I’m surprised by these stats.

Women are biologically natural consumers. Back in the hunter-gatherer days, women were the ones responsible for doing the gathering. Women knew which plants were harvestable and from which to steer clear.

Today, women are still educated and discerning consumers. We do our research, collect facts, and make informed decisions about our purchases. Our partners often include us or defer to us for their own purchasing decisions, too. 

For businesses, this means underestimating the female consumer or assuming that the person whose name is on the credit card was the only person responsible for the decisions to make the purchase can be one of the biggest mistakes they can make. 

What the She-conomy Means for Market Trends

As a marketer running a woman-empowered advertising agency, I’ve observed the struggles of brands in connecting with the female consumer. Yet others have smartly capitalized on women’s influence on purchasing. 

Brands that once catered exclusively to men have learned this lesson the hard way and have had to update their business and marketing tactics. The Home Depot is a great example of this. 

In the 1980s, The Home Depot was a leading retailer in the United States. The home improvement giant primarily targeted male consumers who were DIY enthusiasts or professional contractors, and their store designs reflected that with a man cave aesthetic. Little did they know that by the end of the millennium, Lowe’s would gain significant market share largely because they recognized that Home Depot was leaving money on the table by not addressing the critical female market. 

It turns out that women are responsible for initiating 80% of home improvement projects and will spend 50% more than men at home improvement stores. Thus, Lowes designed its stores to seize upon this opportunity with brighter lighting, higher-end merchandizing, better signage and proactive, friendly customer service that was never patronizing.

Unsurprisingly, The Home Depot has since recognized the missed opportunity and updated their stores to better appeal to the female demographic.

It’s clear the she-conomy is here to stay, and as business leaders, we need to adapt accordingly.

Despite business success stories like this, corporations have still been slow to adapt their marketing to engage women. In fact, 91% of women say they feel that advertisers don’t understand them, according to Yankelovich Monitor and Greenfield Online. Researchers have reported that despite their buying power, women are commonly misrepresented and stereotyped in advertising. Perhaps that is because 71% of advertising creative directors in the U.S. are male.  

Women are also increasing demand for more diverse and inclusive representation in marketing. Brands that champion authenticity and inclusivity in their marketing have seen positive impacts to their bottom line. 

In 2004, Dove released its Campaign for Real Beauty. The campaign was inspired by the release of a global study which found that only 2% of women would use the word “beautiful” to describe themselves. The campaign promoted self-acceptance by featuring regular women of different ages, ethnicities, sizes, and body shapes. The company saw a huge leap in revenue with a 600% increase in sales of the products being promoted within the ads in the U.S.

By contrast, U.S. market share of Victoria’s Secret dropped from 33% to 24% between 2016 and 2018. Many attribute this decline, in part, to criticism about the brand’s lack of representation of realistic women, to include diversity and size inclusivity.

Business Tips for Navigating the She-conomy

So, how should we as entrepreneurs and business leaders navigate the she-conomy? 

It’s pretty simple: Listen to what female consumers are asking for and deliver on it. 

At Creative Noggin, we help our clients’ brands appeal to female consumers in three primary ways:

1. We prioritize authenticity. 

When we work with a company, we figure out their “why.” Why do their products or services truly benefit the lives of their consumers? Why should consumers engage with their brand over their competitors? We develop our campaign messaging with that “why” at the core.

2. We show real women. 

We use original photography as much as possible to reinforce the authenticity of the marketing and help the essence of the brand come through. Original, versus stock photography, helps female consumers relate more with marketing. Especially when the subjects in the advertising look more like real people versus models. 

3. We use consistent, values-centric messaging.

Women buy from, and are loyal to, brands they trust. One of the most effective ways to build trust with women is to be transparent about the values your organization holds true. We find that purpose-driven, values-centric organizations more easily develop life-long customers who are less likely to jump ship to another brand simply to save a few dollars. 

As entrepreneurs and business leaders, my hope is that we not only appeal to women more in our business efforts but also put initiatives in place to lift them up. At Creative Noggin, we donate at least 5% of our annual profits to causes that empower women within our communities. From firsthand experience, let me tell you nothing feels better than using your business to make the world in which we live a better place.

Women now hold the dominant share of global purchasing power and are contributing to the labor market in more meaningful ways than ever before. But I truly believe, we’re just getting started!