What Is SHEconomy?

Even though the term “SHEconomy” has been more than a decade old it proved itself to be a necessity rather than a trend in 2023. With Greta Gerwig’s Barbie’s massive success and Taylor Swift shaping the American economy in her recent Eras Tour we saw how much the industry needs to acknowledge the growing women’s impact on the economy. Before we get into why and how we should take action on this, let’s learn what SHEconomy actually means.

SHEconomy is a term referring to the increasing influence and participation of women in the economy. Understanding SHEconomy is crucial in today’s business landscape as women increasingly shape the global economy. This concept refers to the powerful impact women have as consumers, entrepreneurs, and economic drivers. The economy now is based on common patriarchal grounds. While this doesn’t necessarily mean they disregard any female impact, it mostly means they are not accommodating or considerate enough about the influence of women.

The Impact of SHEconomy

SHEconomy reflects the shifting economic paradigm where women’s roles and contributions are no longer peripheral, but central to both market dynamics and growth strategies. It is emblematic of a world where gender-related economic disparities are progressively being narrowed and where the economic choices made by women carry substantial weight.

2023 was touted as the Year of the Girl and Yelp data shows women were at the core of major consumer behavior trends last year. Whether you attended a women-led stadium tour, adopted a new wellness routine, picked up a new bestselling book, or updated your wardrobe, SHEconomy dominated cultural trends and ultimately drove economic growth. As women invest in their own business ventures and set new trends, we anticipate our contributions will continue to propel economic activity as both consumers and business owners.

Tara Lewis, Yelp’s Trend Expert

Factors Fueling SHEconomy

SHEconomy is gaining momentum due to a multitude of intertwined factors that reflect changes in both demography and societal attitudes. One of the most influential factors is the extension of life expectancy for women, which results in a longer period of economic activity and financial planning. In addition to living longer, women have achieved greater access to higher education. This advancement has led to increased earning potential and a more substantial presence in the workforce. Higher education also equips women with the skills necessary to make informed financial decisions and manage wealth.

Evolution in social norms has resulted in a shift in household dynamics, with women now playing a more central role in financial management. As a result, businesses must consider women’s preferences and needs in their financial products and services. The labor market has also seen a remarkable shift, with more women in leadership and entrepreneurial roles. This change not only brings diversity in business perspectives but also means that more women are in control of business finances and investments.

Females’ consumer behavior has evolved as well. Women are more frequently the primary decision-makers for household purchases, and their spending choices have a significant ripple effect on the economy. Technology has empowered women to engage more actively in the financial sector, with online banking and investment platforms becoming more user-friendly and accessible. This democratization of financial tools has enabled more women to build their wealth independently.

The rise of social media and digital influence has also played a role in shaping SHEconomy. Women use these platforms to share experiences, reviews, and recommendations, thus influencing the purchasing decisions of their networks. Another factor is the growing commitment of governments and institutions to gender equality, which has led to supportive policies such as equal pay and parental leave. These policies empower women to participate more fully in the economy. Dual-income households have become more common, providing women with more financial independence and the ability to influence larger economic sectors, such as real estate and investment markets.

Lastly, the global push for sustainable and ethical products resonates with female consumers, who are often more concerned with corporate social responsibility. This concern influences companies to adapt to more sustainable practices to cater to the values of this considerable market segment.

Why Should We Care About SHEconomy?

Recognizing SHEconomy means appreciating that women are becoming more influential in all economic sectors, not just as workers but as decision-makers and purchasers. Their preferences and needs are becoming a primary focus for businesses that wish to remain competitive. The significance of SHEconomy is multi-dimensional, impacting labor markets, product innovation, financial services, and global economic policies. Women are starting businesses at a faster rate than ever, contributing to a surge in innovation and employment opportunities in various industries. The term SHEconomy also highlights the necessity for inclusive economic policies that ensure women’s participation is not just acknowledged but actively encouraged and facilitated. This shift is vital for sustainable economic growth and social development on a global scale.

According to McKinsey research, by 2030, women of America are expected to have control over most of the $30 trillion in wealth that baby boomers will possess. The next step is for the financial professionals to take. The conversations surrounding SHEconomy are not just about acknowledging a market segment but about redefining business models and strategies to cater to an empowered and influential demographic. It demands a responsive and thoughtful approach to product development, branding, and service delivery. They will have to make adjustments to their practices to accommodate the female clientele better or at all. These adjustments include:

Strengthen Your Grasp

To be a new financial professional also means to be able to analyze the society’s needs. Professionals need to have a better understanding to reshape their investments accordingly. As women’s purchasing power increases, businesses are adapting their market research to better understand this demographic. Insights into female consumer behavior, preferences, and values are shaping product lines and marketing campaigns targeted at women.

SHEconomy is also leading businesses to reassess their brand messaging. This involves a reevaluation of how to communicate brand values in ways that resonate with women, ensuring inclusivity and empowerment are at the forefront. The trend is witnessing a shift in hiring practices as well, where businesses are looking to balance their workforce gender ratio and establish a more diverse leadership to better represent their customer base. With the rise of SHEconomy, corporate social responsibility (CSR) initiatives are increasingly focusing on issues of gender equality and women’s education, understanding that these efforts can deeply influence brand loyalty among women.

Develop New Tools

Innovation in product development is receiving a boost as businesses become conscious of the different ways in which women might use a product or service. This leads to the creation of new offerings that might appeal specifically to the female market. Furthermore, businesses are actively seeking to create partnerships and collaborations with women-led companies, influencers, and brands that have a strong. Companies are implementing training programs to help employees understand the nuances of marketing to women and why it is vital for success in the current SHEconomy environment. resonance with female audiences.

Favor Flexibility in Platforms

In this busy age, platforms and tools that offer flexible and accessible services that can accommodate women’s busy schedules are favored. SHEconomy is also leading businesses to reassess their brand messaging. This involves a reevaluation of how to communicate brand values in ways that resonate with women, ensuring inclusivity and empowerment are at the forefront. Supply chain and operational adjustments are also being made to align with the ethical and sustainability concerns that tend to be more pronounced among women consumers. Finally, investment in technology and e-commerce is becoming essential for businesses as they optimize their online platforms to be more accessible and appealing to women, who are a growing force in digital shopping trends.

Address Concerns

Addressing top financial concerns of women is crucial. According to the National Council on Aging’s surveys, these concerns consisted of the cost of housing, not having enough savings to retire, outliving savings in retirement, Social Security and Medicare being cut.

Examples of SHEconomy in Action

One of the most observable examples of SHEconomy in action is when companies rebrand their products to cater to a female audience. This not only involves changing the aesthetic elements such as color schemes and design but also adjusting features and functionalities to meet the unique needs and preferences of women consumers.

Financial services industry too has identified the shift and is developing investment tools that resonate with women. This initiative includes creating educational content that is relevant to women’s lives, offering advisory services that address their financial goals, and crafting retirement plans that take into consideration women’s longer life expectancy and career breaks for caregiving. Not only that but retailers are also revamping the shopping experience to align with women’s preferences by offering a more personalized approach. From the layout of the store to the customer service protocols, businesses are working to create environments where women feel understood and valued. This might involve more consultative selling, the organization of products based on use case rather than brand or type, or creating spaces within stores where women can gather and share experiences.

Moreover, corporations are increasingly leveraging women-centric marketing campaigns that highlight empowerment, resilience, and success stories of real women. Such campaigns resonate emotionally with female consumers, fostering a sense of community and brand loyalty. Venture capital firms and investors are beginning to prioritize startups and companies with products and services designed for the female market. Understanding the purchasing power women hold, these financial players are keen to invest in businesses that are part of SHEconomy ecosystem.

In the world of technology, apps and platforms are being designed with women in mind – think health trackers, safety apps, and online communities that support women’s interests. Tech companies that once overlooked the female market are now keen on innovation that appeals directly to women’s lifestyles and needs.

Travel and leisure industries are not left behind; they are tailoring experiences to suit the tastes of their increasingly female clientele. Whether it’s solo travel packages, wellness retreats, or adventure experiences, the offerings are diverse and growing. Beauty and fashion businesses, historically focused on women, are intensifying their efforts with a new emphasis on diversity in body size, shape, and skin tone, as well as sustainability and ethical production, which often align with female consumer values. Furthermore, the education and childcare sectors are innovating with programs that support working mothers, such as flexible scheduling and on-site childcare facilities, recognizing the dual roles many women fulfill.

Lastly, the real estate market is seeing a surge in female buyers interested in home ownership and sustainable living solutions. Real estate agents and developers are hence creating communities that offer amenities like security, daycare, and eco-friendly living options.

Future of SHEconomy

The future of SHEconomy speaks to a world where the gender gap in economic power continues to narrow. As women grow in financial independence and control more capital, the face of the consumer base will evolve, necessitating businesses to adapt and innovate. As women’s earnings and investing potential rise, industries that have been traditionally male-dominated are likely to see a shift. The automotive, financial services, technology, and engineering sectors are among those that may be transformed by the increasing influence of women’s preferences and decision-making power.

Education and professional development opportunities for women will further strengthen SHEconomy. The increased presence of women in higher education, particularly in STEM fields, predicts a future where their contributions to the economy are both substantial and diverse. Entrepreneurship is also a key aspect of the future SHEconomy. With more women starting and leading successful businesses, the landscape of workplace dynamics and company leadership will see significant changes. This trend may also stimulate innovation, as diverse leadership can lead to a range of new products and services entering the market.

Digital platforms and social media are empowering women to network, learn, and grow their businesses. The rise of female digital influencers and entrepreneurs showcases the potential of SHEconomy in the world of e-commerce and digital marketing. Looking at the global picture, the impact of SHEconomy will likely be profound on emerging economies. As women in these regions gain better access to education and financial resources, their economic participation can lead to accelerated development and prosperity in their communities.

Corporate governance is another area SHEconomy is sure to influence. We can expect to see an increase in the number of women in boardrooms and executive positions, leading to more balanced and potentially more ethical decision-making at the top levels of business. Public policy and government initiatives in support of women’s economic empowerment will play a vital role in shaping the future SHEconomy. Measures to ensure fair pay, work-life balance, and anti-discrimination can propel the growth of women’s economic participation even further.

Finally, SHEconomy has the potential to change societal norms and expectations surrounding gender roles. As women continue to break barriers in various sectors, the traditional narrative of gendered economic roles may be rewritten, leading to greater balance and equity in both the workplace and home.

Source: Mickinsey, Ncoa, Yelp.