Who runs the world? Girls! Well, maybe not entirely, but the statistics on purchasing power, including wealth and income, suggest that women run a lot more than many give them credit for. According to Bloomberg magazine, women are the world’s most powerful consumers, and their impact on the economy is growing every year. For context, the impact of women on the global economy will be that of China and India over the next decade. It should not be surprising that marketers in many sectors are increasingly targeting women.
The purchasing power of women in the U.S. ranges from $5 trillion to $15 trillion annually, and global spending by women was estimated to be a whopping $18 trillion in 2018 alone.
For reference, the total national debt in the United States was $20 trillion on the last business day of fiscal year 2017 This surge in women spending is partly driven by millennial women, who don’t appear to be afraid of putting that purchasing power to use, as they are not only more apt to make purchases during a given time frame, but also more likely to spend more than the average adult X.
The national conversation tends to highlight gender wealth and income inequality unfavorable to women, and rightfully so. However, much progress is being made on the wealth front, as a growing number of women are controlling a significant portion of the nation’s wealth X. Between 2010 and 2015 private wealth held by women grew from $34 trillion to $51 trillion X. In May 2017, Market Watch projected that women would control two-thirds of private wealth in the United States in 2020 X. Financial advising firms and advisors should be tailoring their services to and targeting women!
While the trend of men out-earning women for similar work persists, there are certain groups of women and a small number of geographic regions within the United States for which the trend is reversed. Women in their early 20’s, for example, are out-earning men X. In what may come as a surprise to many, nearly 40 percent of American wives make more money than their husbands X. Geographically speaking, women earn more than men in Lake Worth, Fla.; Plainfield and Trenton, N.J.; Inglewood, Calif.; Hempstead, N.Y.; Chamblee, Ga.; and Prince George’s County, Md X. This by no means makes the research finding that women will not reach pay parity until 2059 any less distasteful X.
It must be noted that women make or influence 85 percent of all purchasing decisions, and purchase over 50 percent of traditional male products, including automobiles, home improvement products and consumer electronics X.
Needless to say, whatever industry you may be in, it is advisable to prioritize women just as much, if not more than men, assuming you want to make more money or stay in business. They have increasing purchase power, their wealth and income profiles are improving, and they’re making the purchase decisions!