Why Women Are the New Key Drivers of Economic Growth Companies that recognize women's economic power have the potential to reach new heights.
By Tracy Marlowe Edited by Micah Zimmerman
Key Takeaways
- Women are key drivers of economic growth and consumer trends.
- Authenticity and representation are crucial for appealing to female consumers.
Opinions expressed by Entrepreneur contributors are their own.
With up to 85% of women making household purchasing decisions in the US, the rise of the she-conomy is undeniable.
Women are the decision-makers. Women are the backbone of conscious consumerism. Women are the drivers of the economy.
Companies that recognize women's economic power have the potential to reach new heights. Those that don't risk getting left behind. And it's not just our 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 established in 2008, I've enjoyed witnessing women step into more leadership roles, voice their beliefs, and finally feel brave enough to take risks. In the past decade, I've especially noticed women entering the business world independently.
Clearly, 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!
Related: Why Respecting Women as Purchasers is Key to Business Growth
How women influence household purchasing decisions
According to Harvard Business Review, women make the purchasing decisions for:
- 94% of home furnishings
- 92% of vacations
- 91% of homes
- 60% of automobiles
- 51% of consumer electronics
I can't say I'm surprised by these stats.
We women are natural consumers. Back in the hunter-gatherer days, women were the ones responsible for doing the gathering.
Today, women are extremely discerning consumers. We research, collect all the facts and make informed decisions about our purchases. More often than not, our partners defer 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 think about the record-breaking $1 billion Taylor Swift's Eras Tour generated and how Barbie was the highest-grossing film of 2023!
Related: How to Unlock Success for Women-Owned Businesses
What the she-conomy means for market trends
As a marketer running a woman-empowered agency, I've observed several trends emerge due to our increasing purchasing power.
First and foremost, many brands that once catered to men have had to change their tune. The Home Depot is a great example of this.
In the '80s, Home Depot was a leading chain in the US. The home improvement retailer primarily targeted male consumers who were DIY enthusiasts or professional contractors, and its stores reflected that. Little did they know that by the end of the millennium, Lowe's would gain a significant market share largely because it seized an opportunity to market to females.
Unsurprisingly, Home Depot has recognized women's purchasing power and made an effort to appeal to even more people.
Another trend I've noticed is women's increased demand for diverse representation. A few years after Dove's Campaign for Real Beauty launched, which promoted self-acceptance by featuring regular women of different ages, ethnicities, sizes, and body shapes, the company's revenues increased by roughly 10% YoY.
By contrast, Victoria's Secret's US market share dropped from 33% to 24% between 2016 and 2018. This can be attributed, in part, to criticism about the brand's lack of diversity and size inclusivity.
Related: 12 Insights From A Decade Of Investing In Female Entrepreneurs
Business tips for navigating the she-comony
So, how do we as entrepreneurs go about navigating the she-conomy?
It's pretty simple: lean into this new reality instead of fighting against it. Listen to what female consumers are asking for and deliver on it. At Creative Noggin, we appeal to female consumers through the brands we work with in three primary ways:
1. We prioritize authenticity
Whenever we work with a company, we figure out their why and build our marketing efforts around it. We also use original photography as much as possible so the authenticity of the brand comes through and female consumers can better relate to it.
2. We ensure everything aligns with a brand's core messaging
Women value brands they can trust. One of the most effective ways to build that trust is by staying true to a brand's core messaging in all the marketing materials we produce.
3. We always use a consistent tone and voice
When a brand has a consistent tone and voice, women are more easily able 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 ahead, I hope the she-conomy continues to go from strength to strength. With our increasing purchasing power, I'd love 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 entrepreneurs, I hope that we appeal to women more in our business efforts and put initiatives in place to attract them. At Creative Noggin, we donate 5% of our profits to causes that empower women within our community—from firsthand experience, let me tell you, nothing feels better than that!
Women now hold significant purchasing power and contribute to the labor market more meaningfully than ever before. Best of all, we're just getting started!
