Why women are the main drivers of economic growth

Opinions expressed by Entrepreneur contributors are their own.

With up to 85% of women making purchasing decisions for US households, the growth of its economy is undeniable.

Women are decision makers. Women are the backbone of consciousness consumerism. Women are the drivers of the economy.

Companies that recognize the economic power of women have the potential to reach new heights. Those who don't risk being left behind. And it's not just our purchasing power that's on the rise. We are also growing in the workforce.

As the founder of Creative nogginan all-women advertising and marketing agency founded in 2008, I've loved seeing women step into more leadership roles, voice their convictions, and finally feel brave enough to take risks. In the last decade, I have especially noticed women entering the business world independently.

Clearly, its economy is here to stay, and as business leaders, we must adapt accordingly. Read on for more insight into its economy and tips on how to navigate it!

How women influence family purchasing decisions

According to Harvard Business Reviewwomen make purchasing decisions about:

94% of home furnishings
92% of holidays
91% of houses
60% of cars
51% of consumer electronics

I can't say I'm surprised by these statistics.

We women are natural consumers. In hunter-gatherer days, women were the ones in charge of gathering.

Today, women are extremely discerning consumers. We research, gather all the facts and make informed decisions about our purchases. More often than not, our partners push us in their purchasing decisions as well.

For businesses, this means that underestimating the female consumer is one of the biggest mistakes they can make. Just think about breaking the record Taylor Swift's Tour Era generated $1 billion and what was barbie like The highest grossing film of 2023!

What its economics mean for market trends

As a marketer running a women-powered agency, I've noticed several trends emerge due to our growing buying power.

First of all, many brands that once catered to men have had to change their tune. Home Depot is a great example of this.

In the 80s, Home Depot was a major 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 turn of the millennium, Lowe's would gain significant market share largely because it seized an opportunity to market to women.

No wonder, Home depot has recognized the purchasing power of women and has made efforts to attract even more people.

Another trend I've noticed is women's increased demand for diverse representation. A few years after launching Dove's Real Beauty Campaign, which promoted self-acceptance by featuring regular women of different ages, ethnicities, sizes and body shapes, the company revenues grew by approximately 10% per year.

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 brand's lack of diversity and inclusiveness.

Business tips for navigating the she-comony

So how do we as entrepreneurs navigate its economy?

It's very simple: lean into this new reality instead of fighting against it. Listen to what female consumers are looking for and deliver it. At Creative Noggin, we appeal to female consumers through the brands we work with in three main ways:

1. We prioritize authenticity

Whenever we work with a company, we understand their why and build our marketing efforts around it. We also use original photography as much as possible so that the authenticity of the brand comes across and female consumers can better relate to it.

2. We make sure everything aligns with a brand's core messaging

Women appreciate brands they can trust. One of the most effective ways to build this trust is by staying true to a brand's core messages 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 relate to it 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 its economy continues 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 take initiatives to attract them. At Creative Noggin, we donate 5% of our profits to causes that empower women within our community—from first-hand experience, let me tell you, nothing feels better than that!

Women now have significant purchasing power and contribute to the labor market more meaningfully than ever before. Best of all, we're just getting started!

Source link