'Sheconomy' Contributes over 70% of Consumption

May 16, 2018
Editor: Liu Xiaochen

A survey recently indicated that housewives dominate over 70 percent of China's consumption, which has led companies to believe that the ones who win the trust of women in their products will achieve great success.

Women are a powerful energy in shopping. According to the report of Guotai Jun'an Securities, nearly 75 percent of household consumption decisions are made by women and the contribution rate of female consumption to economic growth is 66.4 percent. In 2014, the size of the Chinese mainland women's economic market was nearly 2.5 trillion yuan, and by 2019, the number will grow to 4.5 trillion.

The vitality of the "Sheconomy" has become the focus of various industries in the field of consumption.    

Merchants have found that women will spend more on holidays and the transition period of seasons, so they plan promotions for days like Women's Day, Christmas Day, Valentine's Day, Mother's Day and Double Seventh Day.

From the perspective of consumption behavior in economics, women are more likely to be guided in consumption than men. Li Tiegang, Vice President of the School of Economics, Shandong University, has said that all kinds of preferential discounts issued by businesses are guided marketing.

A report made by Lexin indicates that in the first half of 2017, women accounted for over 60 percent of Chinese e-commerce users, and 75 percent of the family's total consumption after marriage being made by women.

While for many women, when they are buying goods for themselves, they will also buy something for their families. Some merchants will therefore make promotions accordingly.   

Despite the fast development and great contribution of "Sheconomy" to consumption, the supply of the market needs to be improved. Some consumers say that the goods they bought during promotions have quality-related problems, but it's hard for them to protect their consumption right as merchants' loyalty is low.  

The industry believes that many women lack a scientific, healthy and green consumption concept, and the market is short on efficiency and high-end supply.

Experts concluded that the government should conduct supply-side reform towards "Sheconomy" to reduce inefficiency and low-end supply and increase efficiency and middle and high-end supply.

(Source: Workers' Daily/Translated and edited by Women of China)

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