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Digital Trends - Black Consumers - US - July 2015

Digital Trends - Black Consumers - US - July 2015

Despite having lower household incomes on average, Black consumers’ strong desire to keep up with the latest in technology suggest they are willing to sacrifice in other areas so that they can have the same products that higher income earners have. This consumer group loves being among the first to own the latest gadgets – both for the entertainment value and the image it projects – smart, tech savvy, successful, etc.Blacks also value technology that adds both entertainment and fun to their lives.

This report looks at the following areas:

Technology not for the sake of it – It’s about talk value, image and entertainment
Blacks aren’t ready to cut the cord – The bigger the screen the better
Blacks more confident in their tech savvy, but that’s not always a good thing
Blacks want smart devices, even if it means owning multiple products


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Blacks spent $10.2 billion on select electronics, TVs and computers largest chunk
Figure 1: Estimated Black consumer spending on select electronic equipment, 2014
The issues
Figure 2: Household ownership of televisions, Black versus all, April 2015
Figure 3: Black consumers’ perceptions of their tech-savvy and adoption, Black versus all, April 2015
The opportunities
What it means
THE MARKET
What you need to know
Buying power growth expected to impact electronics, already at over $10 billion
Blacks are a bigger fish in this small pond than one may think
Expenditures on select electronic equipment
Blacks splurge in areas where they get most entertainment
Figure 4: Spending on selected electronic equipment, by all consumers and Black consumers, 2014
Blacks’ spending on entertainment forecast to grow 41% from 2014-19
Market perspective
Black buying power likely to reach $1.4 trillion by 2019
Figure 5: Buying power trends among Black consumers, 1990-2019 (projections)
Black buying power growing at a faster rate than that of White consumers
Figure 6: Changes in buying power, by race/Hispanic origin, June 2014
Market factors
Blacks households outnumber other multicultural groups
Figure 7: Number of households in US, by race/Hispanic origin, January 2015
iGeneration and Millennials represent nearly half of Black population
Figure 8: Population of generations, by race/Hispanic origin, 2015
Figure 9: Distribution of population by race and generation, 2015
Blacks have lower household incomes, several factors besides occupation to consider
Figure 10: Median household income, Blacks versus all, 2013
Average incomes up 17% in a 10-year period
Figure 11: Median household income for households headed by Blacks, in inflation-adjusted dollars, 2003-13
KEY PLAYERS
What you need to know
Don’t sleep – Beats by Dre, Apple and Comcast are revolutionizing the industry
Down, but not out – Wearable tech and portable gaming devices
What’s working?
Beats by Dre – Live out Loud
Figure 12: BEATS BY DRE PRESENTS: LEBRON JAMES IN RE-ESTABLISHED 2014 – POWERBEATS2 WIRELESS, OCTOBER 2014
Ethnically diverse emojis – Adding color to the conversation
Comcast – Bringing your world to life via the big screen
Figure 13: "LIP SYNC" -- XFINITY SHARE APP, MAY 2015
What’s struggling?
Wearable tech and portable gaming devices – Down but not out
What’s next?
Can you speak emoji?
THE CONSUMER
What you need to know
Blacks are tech-savvy – First to have gadgets, they provide entertainment and escape
Where there’s a will there’s a way, Blacks turn TVs into smart(er) TV
Limited space, portability and convenience drive laptop and tablet sales
Smartphones win big among Blacks, Samsung is the leader
Digital gap is closed, Blacks spend more time online than others
Technology products overview
Small devices are nice, but Blacks must have big screens, highest picture clarity
Figure 14: Black household ownership of consumer electronics hardware, April 2015
Vast majority of Blacks own a smartphone, tablets also prevalent
Figure 15: Black personal ownership of consumer electronics hardware, April 2015
Television ownership
Three quarters of Black households own an HD TV
Figure 16: Household ownership of televisions, Black versus all, April 2015
Availability of brands at mass merchandisers may be driving sales
Figure 17: Brand of television(s) owned by household, Asian versus all, April 2014-December 2014
Blacks have more TVs in their household than others
Figure 18: Number of televisions owned, Black versus all, April 2015
Television behaviors and attitudes
Watching TV is an integral part of Blacks’ lives
Figure 19: Television watching behaviors, Black versus all, April 2015
Family TV is important, but children have less influence on Black parents
Figure 20: Attitudes toward watching television, Black versus all, April 2015
One third of Blacks build their schedule and events around TV programs
Figure 21: Attitudes toward TV and advertising – Any agree, Black versus all, Fall 2014
Physical and digital playback
One in five Black households turn their TV into smart(er) TVs
Figure 22: Household ownership of media playback devices, Black versus all, April 2015
Magnavox over indexes for DVD/Blu-ray players among Blacks
Figure 23: Brand of DVD/Blu-ray player(s) owned by household, Blacks versus all, April 2014-December 2014
Gaming consoles
Black consumers more likely than others to have a gaming device
Figure 24: Gaming console ownership, Black versus all, April 2015
PlayStation is a winner among Blacks, more so than the total population
Figure 25: Brand summary of video game systems owned or played, Black versus all, April 2014-December 2014
Blacks seek games that are action packed or sports-related
Figure 26: Genre of video games owned or played, Black versus all, April 2014-December 2014
PCs and tablets
More than half of Black households have a tablet, on par with total population
Figure 27: Household and personal ownership of PCs, Black versus all, April 2015
Dell is #1, but more Blacks buy Toshibas compared to the average
Figure 28: Brand of PC(s) owned by household, Black versus all, April 2014-December 2014
Mobile phones and wearables
Three out of 4 Blacks own a smartphone, Samsung is the leader
Figure 29: Personal ownership of mobile phones, Black versus all, April 2015
Figure 30: Brand of cell phone/smartphone owned, Black versus all, April 2014-December 2014
Ownership of wearable devices low…for now
Figure 31: Personal ownership of wearable devices, Black versus all, April 2015
Other portable electronics hardware
Smartphones impacting sales of other portable devices
Figure 32: Black household/personal ownership of other portable electronics hardware – Type, trended, April 2010-December 2014
Figure 33: Other portable electronic hardware ownership, Black versus all, April 2015
One quarter use smartphone to read e-books, opportunity for larger screen
Figure 34: Devices used to read an e-book in the last 12 months, Black versus all, April 2014-December 2014
Figure 35: Brand of GPS owned, Black versus all, April 2014-December 2014
Internet usage
The digital divide has closed
Figure 36: Blacks’ incidence of internet use, April 2012-December 2014, and by age, April 2014-December 2014
One in five households access internet through their TV or gaming device
Figure 37: Methods used to access the internet in the last three months, Black versus all, April 2015
Online activities
Blacks more likely to check product reviews, do price comparisons online
Figure 38: Online activities in past three months, Black versus All, April 2015
Social media
Facebook and YouTube are most popular, Blacks over index on Twitter and Instagram
Figure 39: Social media sites visited, Black versus all, April 2015
Attitudes toward technology and electronics
Blacks significantly more likely to be “almost always online”
Figure 40: Attitudes toward technology, Black versus all, April 2015
Blacks are tech geeks and trendsetters when it comes to technology
Figure 41: Attitudes toward electronics – ANY agree, Black versus all, April 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
Appendix – Consumer
Figure 42: Black household ownership of televisions – Type, trended, Fall 2010-14
49
Figure 43: Blacks’ attitudes toward TV and advertising – Any agree, trended, Fall 2010-14
49
Figure 44: Black household ownership of DVD/Blu-ray player, trended, Fall 2010-14
Figure 45: Blacks and video games – Owns or plays, trended, Fall 2010-14
Figure 46: Black household ownership of PCs – Type, trended, Fall 2010-14
Figure 47: Black cellphone/smartphone ownership – Type, trended, Fall 2012-14
Figure 48: Black household/personal ownership of other portable electronic hardware – Type, trended, Fall 2010-14
Figure 49: Black internet usage, trended, Fall 2012-14
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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