The Rise of SHE Economy

Today, March 8, is International Women's Day. The event is celebrated in many countries as the day to honor the GREAT achievement of all women and recognize that much remains to be done to promote women's rights and participation in the political and economic arenas worldwide. "SHE economy," a term coined in 2007 to refer to a new economy fueled by an increase in female consumers, is considered a current megatrend influencing the economy and society. This also creates growth opportunities that can let businesses grow much faster than in the past.

ACCELERATORS OF SHE ECONOMY

Women enter the labor force at higher levels and participate more actively as they gain more rights and abilities to access education. This correlates with their increased purchasing power and advanced skillset, accelerating businesses' workforce growth and highlighting them as promising retail consumers. China can be the model of this transformation; the proportion of women in the Chinese labor force has significantly increased. To cite a GREAT example, L'Oreal China's top management is now 63.9% made up of women, showing that the female-powered economy is more than just a major economic trend. At the same time, Chinese women's spending increased by 81%, primarily from online retail sales.

THE SHE ECONOMY IN THE FUTURE ECONOMY

Even after the pandemic, when recession and inflation made spending fall in recent years, SHE Economy is expected to become central in our global society in the next 15 years. The rise of female income—predicted to reach $29.3 trillion annually by 2026 (according to Frost & Sullivan, a market research firm)—and shift in consumption and spending patterns will benefit many sectors, such as online retail, large-format convenience stores, and doorstep services. Furthermore, seeing as 80 million women are expected to join the global labor force by 2030, females on corporate boards are likely to create a new wave of both corporate and retail consumers. Therefore, this outlook points to the need for organizations to have women-oriented business models to target them as professionals and customers. This can be by promoting equality and supporting diversity in organizations or allowing females to upskill in a field that not many females have a chance to pursue in some area.

Women are committed to rebuilding the economy with increased engagement in both the customer role and the labor force. SHE economy will play a crucial part now and into the future. Therefore, businesses should bare in mind to be inclusive and redouble their efforts to take into consideration female and all-gender stakeholders.

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