The female economy globally controls about $20trillion in annual consumer spending, a figure that is expected to rise to $28trillion in the next five years. The figure is based on the expected rise in annual earnings in the same period which could reach $18trillion. Despite the high figures women control, many companies have failed to make products and services that fully satisfy them. Many women have been left unsatisfied with these products with many feeling undeserved - they feel undervalued and underestimated- choosing to snub the products.
However, despite the complete disregard of women by companies, they represent a huge market compared to men because of their spending power. There are many opportunities women offer to companies with areas of interest including food, fitness, beauty, apparel, financial services, and healthcare. Although many companies have taken off the advantage of these opportunities to tap into the female market, many have ended up producing substandard products that have either been disregarded by women or performed poorly in the market, for example, fitness companies have failed to understand the segmentation of women which define their spending power. These companies have provided a blanket service that they expect to serve all women regardless of social standing. Those that manufacture women products e.g. perfume, on the other hand, have failed to differentiate their products from men products making them perform miserably in the market.
As mentioned above, women represent a huge market for the opportunities they provide. These opportunities, although some have been tapped, continue to grow on a daily basis with many organizations seeking to tap into the female economy. The fitness industry is important for women as many look to work towards the set symbols of a perfect body. The booming fitness industry continues to grow annually with many companies developing new products to feed the ever-demanding customer. Statistics have revealed that over 54 million Americans paid for a gym membership in 2014, a figure that rose in 2015 to exceed five billion. However, many fitness clubs have focused on men despite women being their main customers. Other companies send out some negative messages about women through their adverts. These companies have thus justified the stereotypes about women which have in turn affected them immensely. Equipment in many fitness companies in the US are meant for men with only a few dedicated to women. The US Fitness & Recreation which prides itself for being the Carolinas' largest fitness retailer and service provider since 1991, for instance, supply mainly male perceived brands e.g. Intenza.
Some companies have used women negatively while portraying their messages. Although there is a need to push for a healthy lifestyle which many women yearn for, the messages these companies use have been deemed offensive by women, for instance, the Save the Whales ad which was used by the People for the Ethical Treatment of Animals (PETA) aiming to push people to be vegetarians was deemed offensive. The controversial ad which showed a woman whose "blubber" was spilling out of her swimsuit, demeaned women. While the need to push for people to lead healthy lifestyles is important, organizations should tailor their messages properly so as to attract women rather than echo the already existing stereotypes.
The fashion industry is another opportunity that women accord many companies. Women, being homeowners, provide a huge market for apparel companies. Their desire to look good and the need to buy their families clothes show how they dictate this industry. It's a no-brainer that many women across the globe run the biggest fashion industries in their capacities. Many Fashion companies have elevated women to top positions in their companies an example being Sharen Jester Turney, who was promoted to be the CEO of Victoria's Secret in 2006 and is still serving in the same capacity. Others include Vera Wang, Michele Huiban who heads Lanvin and Paula Schneider who heads American Apparel. The picture, however, isn't rosy, many men have occupied top positions at fashion companies. A company like LVMH has only one woman who heads the Human Resource department - Chantal Gaemperle - of the 12 people on the executive committee.
Despite beauty products and services providing a sense of well-being, women are dissatisfied with the beauty offerings and the way the industry is evolving which has, in turn, barred them from spending more. The beauty industry is male-dominated owing to the fact that men occupy the top positions in these organizations. It is thus hard to make products that satisfy women which explain the rapid evolution of beauty products. For instance, the group President in charge of Global fabrics & home care and global baby & feminine care at Proctor & Gamble is a man (Giovanni Ciserani). The backfiring of P&G on premium products including women beauty products in India, which led to the loss of market share, explains why the male-dominated field is affecting women beauty products.
In conclusion, the female economy is expected to be the biggest in the next five years. Although many companies have not yet realized the potential women present to their companies due to the immense opportunities, the trend will probably change in future. Women are expected to become powerful and influential which will see them hold key positions in organizations. They will thus become wealthy, thereby increasing their spending power. Companies which intend to invest in them should thus realize women potential and work towards satisfying them in order to have a cake of their rising economy.
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The Female Economy. (2022, May 05). Retrieved from https://speedypaper.com/essays/the-female-economy
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