Women control more than $20 trillion in annual consumer spending globally, and that number could be more than $28 trillion by 2020, according to some economists. Women earn $13 trillion a year, and by 2020 that figure will be more than $18 trillion. When you consider those numbers, women represent a consumer spending market bigger than India and China combined. In fact, it is twice as big. The female consumer can’t be underestimated, but many corporation do just that. Most companies think they have a winning strategy when it comes to attracting women buyers, but they usually miss the mark by a long shot.
Most companies have a lot to learn when it comes to selling to women according to economists like Christian Broda. Broda is the managing director of Duquesne Capital Management. Christian Broda is responsible for managing and diversifying men and women portfolios. His hedge fund designed a very successful strategy, which include international investments tactics. In order to do that a comprehensive study of how women felt about investments, work and their lives, in general, had to be conducted. The study also wanted to know how they were served by businesses.
The answers were not surprising. Women feel underserved. Even though women have made remarkable strides in social positions and market power, they are still undervalued in the marketplace. Plus they are underestimated in the workplace, and that has a direct effect on the economy. Companies don’t respond to their needs, and they don’t create services and products that are designed for their everyday needs. Their needs are a combination of conflicting priorities and time constraints.
Women outspend men in most consumer goods categories, but businesses still think they have no say in purchasing decisions. That lack of sensitivity has a major impact on the country’s GDP. Automobiles like the SUV are built for sport and speed. Those features attract men. They don’t entice women to buy one. Economists say women must be recognized as economic leaders in order for the economy to continue to grow the way it should be growing. Women represent an incredible growth opportunity, and it’s time company men think with their feminine side, and give women the room they need to set the country on a positive course again.