The Buying Power Of Women

With Women’s History Month mere days away, it’s a good time to consider their economic importance.

Women today control about a third of all household financial assets. That works out to more than $10 trillion, according to Ted Jenkin, CEO/founder of oXYGen Financial.

“Women are gaining power, when it comes to money,” Jenkin recently wrote. “Here’s why that’s a big deal.”

In another seven years, he said, the female economy will reach $30 trillion. According to writer Kimberly Blaker, these statistics reveal the crucial role women play in keeping the economy afloat, in both good times and bad. As a result, many businesses have taken heed. But plenty of industries and companies remain behind the times when it comes to treating women as major consumers. They fail to see the power of this demographic.

For example, as Blaker recently noted, most women can attest to occasions when their gender has negatively affected the service and attention they received. Women are still taken advantage of because of their lack of or perceived lack of knowledge in certain industries. But women have become increasingly educated consumers. Businesses that don’t recognize this are learning the hard way. Many women, offended by these biases, walk away from purchases and go elsewhere, demanding respect.

Advertising and marketing specialists are also learning. Advertising that stereotypes women and marketing explicitly geared to male audiences don’t sit well with women. Stereotyping and the absence of recognizing women as potential consumers for traditionally male products are off-target and offensive, failing to serve this large demographic.

Women account for well more than half the spending on household goods and personal items. Women control most of the expenditures not only on décor, linens and kitchen gadgets but also furniture, cabinetry, carpeting, lighting and more. And they play significant roles in real estate.

When buying a home, men and women tend to look for different features, Blaker added. Women are most concerned with floor plans, designs, closets, overall space needs and comfort. Men focus mainly on technology, energy efficiency and garage functionality.

Probably one of the most under-recognized areas of women’s buying power is in the tool and home improvement industry. With the surge in do-it-yourself remodeling, women have fast become one of the big spenders in tool departments and home improvement aisles, according to Kimberly Stevens of The Wall Street Journal:

“We’re talking buzz saws, routers and power sanders.”

The growth of female tool shoppers isn’t minimal, Stevens points out. A survey by the Home Improvement Research Institute found women have been outpacing men in their involvement in DIY projects for 23 years. According to a female industrial designer at Porter-Cable of Jackson, Tenn., as reported by The Daily Gist:

“Women are using these tools on a regular basis.”

Then there’s the automotive industry.

“Women,” according to a report by the National Institute of Automotive Service Excellence, “are not only becoming more influential in deciding what car to buy, but they’re also taking over the traditionally male-dominated responsibility of maintenance and repair.”

Women make up between 65 and 80 percent of automotive repair and service shop customers. They’re responsible for almost half of new car sales and more than half of the used car sales, according to Art Spinella of CNW Research. What women want from this industry, experts say, is not to be treated differently, just respectfully, says Diane Hohman, an automotive after-market consultant in Herndon, Va.

“Women ask more questions, inquire about details and are more willing to look under the hood or check out parts,” Hohman observed.

Women are gaining the upper hand in the way businesses treat them. They aren’t demanding preferential treatment, but they do expect equal treatment and respect.