It is no secret that businesses have again and again failed to understand products demanded by women. From the “make it pink” mindset, to condescending stereotypes, or to products for women that fail in functionality (ex. jeans with small pockets), the market has left half the population undervalued.
Unfortunately, businesses still strive to target men as their main audience, despite the fact that women spend more time making consumer decisions and hold significantly more purchasing power—making up to 80% of all consumer spending. Yet, large businesses and corporations still fail to meet women’s demands.
To further prove the large effect women have on the economy, the “Becky” exchange-traded fund (ETF) is an experimental simulation of the spending habits for a typical, upper-middle-class white woman in America. The idea is to track the profits gained for companies that have a majority female audience—to ultimately see how brands that has met the women’s demand perform.
ETFs, in brief, are a collection of bonds that allows investors to buy multiple stocks at once in a certain market, with benefits including increased security and a more diverse portfolio. One popular example in the U.S. market is the S&P 500 which tracks the performance of the largest corporations. While there are only a few official ones investors can buy, the modern trader and online forum-browsers often discuss theoretical ones for certain industries, such as on the subreddit r/WallStreetBets.
The Becky ETF includes 10 companies such as Etsy, Lululemon, Netflix, and Pinterest. These specifically chosen businesses stem from the “Female Economy” idea published in the Harvard Business Review. They state, “women make the purchase decision for 94% of home furnishings, 92% of vacations, 91% of homes, 60% of automobiles and even 51% of consumer electronics,” again emphasizing on the grasp women have in controlling the economy.
With these big brands that are well-recognized with a majority female audience, how well does this ETF perform? Trackinsight, a private financial technology company, found that between January 2015 and December 2020, the ETF has gained 1,079% compared to the S&P 500 index’s 84%. While there is not much tracking done after December 2020, it is clear that the fund is still performing strongly as the overall market recovers post-pandemic.
The no-doubt stable and successful exchange fund only further proves the large role women have in the economy. With such a huge, profitable market — yet neglected at large — to cater to, firms are yet still failing to produce products that can appeal to both women and men. As the fund gains traction on Reddit and Twitter, businesses will hopefully soon listen to what this large corner of the market desires.
However, the ETF is not inclusive of all women. The “Female Economy” article describes 6 main categories of women in the market — with Becky falling into the “fast tracker” category of the educated, elite women that makes up 24% of the population and 34% of earned revenue. The other types are described as:
The Pressure Cooker: married women with kids, who feel ignored and stereotyped. They represent 22% of the population and 23% of earned income.
The Relationship-focused: content and optimistic, aren't pressed with time, and have ample discretionary income. They are also focused on experiences, not products. This segment represents 16% of the population and 13% of earned income.
Managing on her own: women who are single again (divorced or widowed) and looking to form connections. They represent 10% of the population and hold 9% of the buying power.
Fulfilled Empty Nester: women who are largely neglected by marketers. They tend to care more about age, health, traveling, exercise and leisure. They represent 15% of the population and 16% of the buying power.
Making Ends Meet: relatively poor women who mostly lack a college education. They have less money to spend on beauty or exercise and usually seek credit, value, and small luxuries.
With other groups of women even more underrepresented in the economy, there comes the bigger-picture question about the insights the Becky ETF provides in terms of representation. Is the fund a piece of worthwhile evidence for the clear need to offer products in support of women? Or merely something that further fuels harmful gender stereotypes and damaging to how women are viewed?
Read more at:
https://au.finance.yahoo.com/news/up-1000-it-pays-to-be-basic-with-becky-etf-234606512.html
https://uxdesign.cc/a-world-designed-for-men-with-a-just-make-it-pink-mentality-6e74077d43ca