Understanding ‘female spending power’ in business

As such, women control a growing share of household purchasing and other spending decisions. Therefore, companies that leverage on the ‘female power’ can gain a competitive advantage by successfully connecting with female buyers. PHOTO | FILE

What you need to know:

  • The consumer-oriented companies have to tailor their sales approaches accordingly to suit what women want because ‘women know what men want’.
  • Financial institutions, insurance firms, motor dealers, real estate developers, clothing retail stores and the fast moving consumer goods market have leveraged on this secret through carefully crafted innovative products that target mainly women to eventually reach the male buyer.
  • An increasing number of business organisations are silently observing the two-thirds gender rule, as they know how powerful it can be in the positive transformation of their businesses.

In Kenya and globally, women are increasingly becoming key decision-makers in major one-off family purchases (such as cars, homes, property). As such, women control a growing share of household purchasing and other spending decisions. Therefore, companies that leverage on the ‘female power’ can gain a competitive advantage by successfully connecting with female buyers.

The just concluded ‘Top40 under40 women’ survey by Business Daily has recognised women not only as business leaders, but a powerful tool that has impacted the growth of markets. To change the culture of business and the internal working in their companies, many organisations are head-hunting for women candidates to fill some senior management levels.

In 2010, The Economist wrote that “Women’s Economic Empowerment is arguably the biggest social change of our time.” In the same year, the UK government and Lord Mervyn Davies revealed a focused plan to address the lack of women in company boardrooms and re-address the balance over the coming two years. Women across the globe account for up to 80 per cent of purchasing decisions and according to the World Bank, women control a GDP that is bigger than that of India and China combined. That said, women drive the world economy.

Against this backdrop of what are clearly changing social dynamics as more women rise to the top of professions, companies have to take conscious decisions to think more deeply about how best to meet the needs of this expanding market. 

Women and not men, know what men want

The consumer-oriented companies have to tailor their sales approaches accordingly to suit what women want because ‘women know what men want’. Financial institutions, insurance firms, motor dealers, real estate developers, clothing retail stores and the fast moving consumer goods market have leveraged on this secret through carefully crafted innovative products that target mainly women to eventually reach the male buyer.

The female economy recognises women as consumers of goods and services, social networkers to influence buying decision, entrepreneurs, and experts in business and market knowledge.

In addition to this, women and not men, know what men want. This is the sharp irony that has driven the numbers over the years. It is convincing that ignoring the role of women as decision-makers in the modern business world would be a big mistake.

Significantly, more women than men use social media networking sites. Hashtags.com confirms that significantly more women than men use Instagram, Facebook and Pinterest. In Kenya, and the East African region, a growing trend is that women are increasingly becoming entrepreneurs using mobile internet marketing technology as the basis for a global business built around family commitments. Even more is the fact that women business leaders and decision makers have different backgrounds and interests to men, as they mainly prioritise the social and the economic impact of purchasing decisions.

How companies can tackle the Female Economy

Corporate inclusion of women

An increasing number of business organisations are silently observing the two-thirds gender rule, as they know how powerful it can be in the positive transformation of their businesses. Even without regulation, companies are increasingly adopting inclusion policies to make the workplace more gender-balanced and sustain women in senior leadership. Such companies are better equipped to meet the demands of an increasingly diverse customer base.

Tailored sales and delivery approach

An increasing number of companies are shifting the emphasis of sales training programmes from product knowledge to relationship-building and behavioural analysis. This trend, in the manufacturing, engineering, and professional services sectors, is sure to lead to higher awareness and better roles for female leaders.

Outreach

Successful companies strive to deepen relationships with women by reaching out and by organising external events with female buyers, female influencers, and opinion leaders of either gender.

Workforce diversity

It is vital for companies today to diversifying the workforce to address the multiplicity of groups - including women - that increasingly make up the universe of buyers.

There you have it. It is a female economy and there is more to heels and dresses in business.