Written by Mihika Shukla
The expression “girl economy” has become a new buzzword, littering the titles of many recent articles. The phrase is being used to describe the goods and services that directly target women (Zhang, 2023). While this word seems like another frivolous and light-hearted joke, its social and economic ripples have been felt profoundly.
Goods and services that are specifically catered to and appeal to women have seen a sudden increase in the last two years, with women also now controlling or influencing more than 80% of consumer spending (Zhang, 2023). Starting with Taylor Swift, the artist’s current “Eras” world tour is estimated to add $5 billion to the US economy (O’Kane, 2023). This huge sum is not only composed of ticket sales but of various hotel and flight costs, merchandise, shuttle services to sold-out stadiums, and fan-spending in the many cities across the US in which Swift performs. Organizations that realized the power of the artist’s ardent fans have created goods specifically for Taylor Swift concertgoers. A restaurant in Cincinnati developed a special cocktail after Swift’s 2022 song, Lavender Haze, before her performance at Paycor Stadium, and reported the highest sales in those two days since its opening seven years ago. Swift’s performances in California also resulted in an estimated $320 million increase in Los Angeles’s gross domestic product (GDP), the creation of 3,300 jobs, and $160 million earned in local revenue for the city (Barnum Financial Group, 2023).
The musician’s impact has also filtered into the movie industry, where her highly-anticipated documentary already grossed over $100 million, breaking box office records (Cain, 2023). Fans dressed in custom-made Taylor Swift-themed outfits and created the viewing as a live concert. The Barbie movie’s release this summer has revived the trend of spending more money and turning watching a movie into a true consumer experience.
Audiences, especially women, wore perfectly curated pink outfits to make watching the movie into an event. Following the release of the movie, a resurgence in owning Barbie dolls, wearing pink clothing, and indulging in typically feminine products and services came about. In addition to the already $1 billion generated by ticket sales, various other industries also profited from this production. For example, paint supplies (Rosco, Sherwin-Williams, Benjamin Moore, etc) all reported seeing a run on the color pink and ramped up production to meet the overwhelming demand.
Another example of how female-driven projects are stimulating the economy can be seen through Beyonce’s Renaissance tour. Women are also Similar to Swift’s impact, Beyonce’s tour has helped bolster local companies in multiple cities across the country. While crossing over $1 billion through direct concert costs, the tour caused sales in LGBTQ+-owned retailers in Philadelphia to increase by 194%, 44% more traffic in women-owned hotels and travel spots in Chicago, as well as a 5% increase in revenue in Black-owned beauty and spa businesses in New York City. It is also estimated that by the end of the tour, it will have generated $2.1 billion in revenue (Barnum Financial Group, 2023).
While pop stars and movies have historically generated high profits, this proliferation of female-appealing goods and services highlights the changing social attitudes of the market. The term “gender contamination” coined by Harvard Business School Senior Lecturer Jill J. Avery, explains how many retailers and advertisers, specifically retailers who create products catered to men, shy away their products from women and female interest (Forbes 2013). Studies have found that products with a high male following face a decline in sales and interest when companies start to expand to include products perceived as feminine, (Forbes 2013) which explains why organizations distance themselves from women’s preferences.
However, companies have realized the impact of proudly catering their services and products to women. They are no longer following the phenomenon of gender contamination and acting on the current trends that show how much women are spending (Diaz, 2023). These movies and tours have widened the market and are just a few examples of how strongly women can affect the economy. The significant economic impact of these female-driven projects reflects a fundamental change in this market. Corporations have become aware that they need to embrace their female demographic and the profitability that comes with it.
References
Cain, S. (2023, October 19). The eras tour film has already grossed more than $100m. the Taylor Swift economy is unstoppable. BBC News. https://www.bbc.com/worklife/article/20231011-the-eras-tour-film-has-already-grossed-more-than-100m-the-taylor-swift-economy-is-unstoppable
Field, M. (2023, October 3). How Taylor Swift, Beyoncé, and the Barbie movie are helping the global economy. Barnum Financial Group. https://barnumfinancialgroup.com/how-taylor-swift-beyonce-and-the-barbie-movie-are-helping-the-global-economy/
Kevin Mazur. (2023, October 12). It’s Taylor Swift’s economy, and we’re all living in it. The Wall Street Journal. https://www.wsj.com/arts-culture/taylor-swift-taylornomics-concert-eras-tour-local-economy-9fa1d492
Knowledge, H. W. (2013, November 13). Gender contamination: Why men prefer products untouched by women. Forbes. https://www.forbes.com/sites/hbsworkingknowledge/2013/11/13/gender-contamination-why-men-prefer-products-untouched-by-women/
McIntyre, H. (2023, September 12). Taylor Swift’s the eras tour could generate $4.6 billion for local economies. Forbes. https://www.forbes.com/sites/hughmcintyre/2023/06/09/taylor-swifts-the-eras-tour-could-generate-46-billion-for-local-economies/
O’Kane, C. (2023, July 19). The Federal Reserve says Taylor Swift’s Eras Tour boosted the economy. One market research firm estimates she could add $5 billion. CBS News. https://www.cbsnews.com/news/taylor-swift-eras-tour-boosted-economy-tourism-federal-reserve-how-much-money-made/
Zhang, S. (2023, November 2). The comparative advantage of the “girl economy.” The Michigan Daily. https://www.michigandaily.com/opinion/the-comparative-advantage-of-the-girl-economy/#google_vignette