THE $20 TRILLION FEMALE ECONOMY IS AN UNTAPPED POTENTIAL
Women now drive the world economy.
According to Harvard Business Review, globally, they control about $20 trillion in annual consumer spending, with a $13 trillion in total yearly earnings. In aggregate, women represent a growth market bigger than China and India combined.
Women control 85% of overall consumer spending in the US alone. They own 40% of America’s privately-owned businesses and hold half of America’s wealth.
The greatest market potential lies in six industries. Four are businesses where women are most likely to spend more or trade up: food, fitness – US health club industry is $14 billion – beauty, and apparel – “athleisure” clothing estimated at $35 billion or 17% of the US clothing market in 2016. The other two are businesses with which women have made their dissatisfaction very clear: financial services and health care.
Women over 50 – the ‘elastic generation’ – have a significant buying power that is still ignored today, and women of color also represent a growth opportunity.
WOMEN STILL FEEL VASTLY UNDERSERVED
Indeed, according to Forbes, most businesses fall short with female consumers, new study reveals. According to MBLM, most companies are not maximizing their emotional bond with female consumers. They should, as top ranking intimate brands have outperformed the S&P and Fortune 500 indices in revenue and profit for the past 10 years.
Products are still designed by men, or at least by people using their masculine side. For instance in Beauty, male senior managers at cosmetic companies often seem to miss the mark with what they offer women.
On the other hand, using our feminine side to create for women brings to the table the advantages of empathy, insights, business acumen and emotional connectivity. This is witnessed by brands like Curves in the health club industry, or Hope Fashion that was created out of empathy for women with changing body shape.
The key is to innovate from emotions…