Exploring the potential of the Sheconomy

The buying power, wealth, and overall influence of women in society have given rise to the Sheconomy, a segment of the overall economy where the financial autonomy and increasing levels of entrepreneurship of women, along with greater buying power, are the driving forces. 

Drivers of Sheconomy growth

Several factors are responsible for the growth of the Sheconomy and the increasing economic influence and participation of women. Women’s educational gains have enabled them to pursue careers across various industries, including traditionally male-dominated fields such as technology. As the presence of women continues to grow in the workplace, so does their involvement in the domain of entrepreneurship and business ownership. Furthermore, technological advancements have facilitated remote work and flexible arrangements, allowing more women to effectively balance career and family life.

Legal and policy reforms aimed at promoting gender equality, such as anti-discrimination laws, maternity leave policies and initiatives supporting female entrepreneurs, have created a more conducive environment for women’s economic participation. In addition to that, women are increasingly recognised as key decision-makers in household spending and consumer choices. Businesses are responding by targeting products and services specifically tailored to women’s needs and preferences, thereby driving economic growth.

Why the Sheconomy should be on the corporate agenda

A closer look at indicators such as the level of female entrepreneurship reveals that in 2023, in the US, there were 17 per cent more new women-owned businesses compared with 2022. Meanwhile, in the UK, the number of companies owned by women grew to over 151,000 in 2022 – up by nearly 170 per cent since 2018. 

Changes in women’s financial influence and decision-making are becoming increasingly apparent: in the US, women account for 85 per cent of all consumers, while China has become the third-largest consumer market for women.

Their growing purchasing power has expanded women’s participation in what are arguably some of the largest segments of the consumer economy, ranging from wellness and technology to lifestyle and financial services. For example, in the financial services domain, firms are recognising the importance of targeting women as investors, entrepreneurs and consumers of banking, insurance and investment products.

Businesses should incorporate the Sheconomy into their strategic planning

Many organisations have successfully adopted their sales approaches to accommodate the changing purchasing power and preferences of women. Inclusive marketing campaigns resonate with diverse audiences and empowering messaging help to connect with female consumers. Nike’s “Dream Crazier” campaign featured female athletes who chase their dreams and are celebrated for their strength, resilience and determination.

Companies are developing products and services that increasingly address the unique needs and preferences of women. This includes offering a wider range of sizes, styles and features to accommodate diverse tastes and requirements. For example, the new Apple Watch incorporates innovative technology for temperature-sensing capabilities for women.

According to UNICEF’s guidelines on promoting diversity and inclusion in advertising, inclusive product offerings and marketing strategies have the power to promote social change and equality. By challenging stereotypes, breaking down barriers and promoting positive representations of women in advertising and media, organisations can contribute to a more inclusive and equitable society. This not only benefits women as consumers but also fosters a culture of respect, acceptance and equality for all individuals.

Companies are prioritising gender diversity and inclusion by promoting female leadership, fostering inclusive work environments and supporting women’s career advancement. By empowering female employees and leaders, organisations can gain valuable insights into the female consumer mindset and develop sales strategies that reflect their perspectives and priorities.

The potential of the Sheconomy is not just about evolving consumer demographics. It’s a wider reflection of the role women play across all facets of the economy. It’s also a trend that will continue to grow, powered by the continued success of female entrepreneurship and more women stepping into leadership and board roles. This will ensure the Sheconomy brings equality to the way money is made and spent the world over for decades to come in the years ahead. At Intellias, we are committed to equality, diversity and inclusion – they are not just words for us. Almost 48 per cent of our management positions are held by women, which is higher than the industry average. We recognise the power women in tech hold, and help those of Intellias realise their full potential by offering a supportive community, as well as opportunities for learning and growth within the company.  

To find out more about the work we do at Intellias, please visit intellias.com