Companies profit from women’s swelling paychecks
When Ms. Lee, a 38-year-old single woman, recently took a trip to Thailand with her mother, she was not
interested in sightseeing. Instead, she chose a package tour that focused on massages and spas. Lee
picked the tour because of its focus on relaxation instead of sightseeing, which could be physically tiring.
“I went for this travel package as soon as I saw it because I liked the itinerary, which was designed to appeal
to females,” Lee said. “My mother also liked the package a lot.” Lee’s trip is part of a global economic trend
dubbed the “sheconomy,” a portmanteau that refers to rising consumption by women. Women’s purchasing
patterns used to center on specific business segments, such as fashion and cosmetics. Recently, they have
expanded to various segments, such as overseas trips and sports tickets. Industry experts say women’s rising
incomes are behind their higher spending. According to Korea’s Ministry of Labor, women made an average of
1.94 million won a month last year. This is 37.7 percentage points more than they did in 2008, when women made
an average of just 1.41 million won a month. Now, Korean women make over 80 percent of what men do. Women
living alone between the ages of 25 and 39 spent an average of 1.25 million won a month last year, outpacing men
in the same demographic, who spent 1.1 million won. “The influence of women who exchange information through social networking services has gotten stronger,” said Kim Si-wol, a Konkuk University professor who teaches
consumer information-related classes.
“This might have contributed to the trend of women spending more than before.” In Korea, the sheconomy
trend is most notable in the travel industry. According to the Korea Association of Travel Agents, the number
of women who traveled to foreign countries last year was 12.45 million, surpassing men at 12.38 million for the
first time. Among 20-somethings, the 2.79 million women who traveled abroad made up 60 percent of the total.
“Even if it is a family tour, most of the purchasing decisions are made by women, so we are trying to come up
with packages that reflect female preferences,” said Jo Il-sang, a PR manager at Hana Tour, Korea’s biggest
travel agency. It is not just travel agencies that are looking to take advantage of the sheconomy. Whiskey brand
Johnnie Walker launched a Jane Walker edition, which is meant to appeal to female drinkers. Start-ups targeted
at women are also growing in numbers. Prelude provides comprehensive fertility services for women, regardless
of whether they want to become pregnant. Glow also helps women manage their reproductive health. Women are
also spending less on stereotypically female purchases. According to U.S. market researching company NPD
Group, sneaker sales rose by 37 percent last year over 2016, while sales of high heels dropped by 11 percent.
“Feminism was only an issue among academic circles and a few activists in the past,” said Lee Na-young, a
sociology professor at Chung-Ang University. “Now it has become a broader interest, this shift is becoming
apparent in the economy, as well.”