The Power of the Purse

I’m just finishing a good read looking at retail and the power of the women consumer market.

“Power of the Purse� by Fara Warner (get it at Amazon.com or Kalahari.net).
The book looks at the power shifts in gender roles statically, and combines this with practical application taken from some of the biggest world brands, ie McDonalds and Nike. They work through the thought process and research that these companies used to get the competitive edge. Although the stats are all USA based. I think in South Africa we are moving into a similar situation at an alarming rate.

In dealing with generational and gender issues, this is a must read for anyone in retail, marketing or even product development, for insight into connecting or tapping into this growing market.

Women, power and money.
80% of consumer decisions are made by women!
91% of house purchases, 60% of trucks and cars and 50% of business travel.

Companies need to focus on the bigger social and environmental developments of women. Women historical started with being partners with their male partners. In the hunter / gatherer era, male and female had distinctly different but complimentary roles, they shared important economical and relationship duties. Women controlled the home, kids and cooking, while men controlled outside the home, hunting and defending the family.
Over time rules and laws were created that women became more an acquisition or owned property, rather than a partner.
Women were limited economically and kept from controlling money and using it for their own means.
The Industrial Revolution and WW2 created cracks in this structure, and women slowly but surely became work replacements for males.

In the 2000 USA censes – 50% of the American population lived in a non traditional family structure – where the heads of the household weren’t married.

In 1960 women couldn’t open a bank account alone or sign a mortgage without a male co-signing. In 1980 this trend is unthinkable. 20years = a major shift. Single women in the 21C will be the second biggest purchaser of homes.

1940 – 27% of women worked outside the home
1970 – 46% and in 2000 this group had grown to 60%.

Women’s working roles have also gone from secretarial type positions to managers and business executives. As women have gained even more power in their professional lives this has split over into their private lives.

30% of working women out earn their husbands. This stat has huge influence on married couples and retirement. 10.9% of married men 55years or older hadn’t worked in a year, but their wife’s had, according to the 2000 US stats. This is the first generation to deal with stay at home dads and working moms.

The circle is becoming complete – women have shifted from obedient housewife to equal and powerful partners.

Women are changing and transforming business and society – ignore this at your peril.

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