With a population of 40 million and buying power approaching $1 trillion in 2010, African Americans are a key segment in an American economy that increasingly depends upon the needs and preferences of multicultural consumers. The historic election of the country’s first African-American president created a feeling of pride and a sense of empowerment among black Americans. In the face of daunting economic difficulties, African-American consumers are more positive than other Americans about their own personal financial situation and are more optimistic about the future of the American economy.
The 8th edition of Packaged Facts' The African-American Market in the U.S. focuses on how African-American consumers are responding to the challenges of today’s economy as they shop in department stores, supermarkets, drug stores and other retail outlets as well as online and from catalogs. The report analyzes the forces shaping the purchase decisions of African-American shoppers and sheds light on key areas such as how black consumers decide where to shop and what influences them while they are shopping. The report pays particular attention to the attitudes and behavior of affluent African-American shoppers.
The report begins with an assessment of trends shaping the African-American market and identifies opportunities available to marketers interested in reaching out to African-American consumers. It continues with a forecast of the growth of the buying power of African Americans through 2014 and provides a detailed demographic profile of the African-American population. The next chapter provides an overview of the attitudes and behavior of African-American shoppers. Individual chapters provide an in-depth view of African-American consumers when they shop for food, clothes, drug-store items and home electronics and furnishings. The report concludes with a detailed analysis of the shopping behavior of African Americans with a household income of $100,000 or more.
Read an excerpt from this report below.
Market Insights: A Selection From The Report
Cents-Off Coupons Not as Interesting to African-American Shoppers
African-American households are less likely than other households to use cents-off coupons of all kinds. As is the case with other households, color leaflets inserted in newspapers are most likely to be used. African-American consumers are about as likely as other households to have ever used an on-shelf coupon machine in a store. They are most likely to redeem cents-off coupons in supermarkets and for food and grocery items. [Table 5-18]
Shopping Cart Ads More Likely to Engage Black Shoppers
When black consumers are in stores, they are more likely than other shoppers to notice advertising on shopping carts (18% vs. 13%) and video monitor displays (21% vs. 18%). They also are slightly more likely to notice radio and public address announcements (29% vs. 27%). They are much less likely to pay attention to signs on merchandise racks and shelves (42% vs. 50%), free-standing displays with products (38% vs. 48%) and promotions or displays at the end of aisles (35% vs. 45%). [Table 5-21]
African-American Moms Pay More Attention to In-Store Advertising in Supermarkets
Black women as a whole are less likely than other women to pay attention to various types of advertising and promotions used in supermarkets. However, both single and married African-American women with children are much more likely than their counterparts in other population segments to refer to a range of in-store advertising and promotional activities when they are shopping in a supermarket. For example, compared to other married women with children, married black moms are more likely to refer to advertising on the floor (59% vs. 53%), advertising on shopping carts (20% vs. 15%), in-store announcements (49% vs. 41%), radio/public address announcements (45% vs. 29%) and video monitor displays (32% vs. 17%). [Tables 6-10 and 6-11]In the News
Buying Power of African American Consumers Approaching $1 Trillion in 2010
New York, January 20, 2010 — With a population of 40 million and buying power approaching $1 trillion in 2010, African Americans are a key segment in an economy that increasingly depends upon the needs and preferences of multicultural consumers, according to The African American Market in the U.S., 8th Edition by leading market research publisher Packaged Facts.
“With such financial clout, marketing efforts to reach out to African Americans are likely to increase,” says Don Montuori, publisher of Packaged Facts. “Major consumer products marketers have begun to align their strategies with the multicultural majority emerging in the U.S. and some have even indicated that multicultural consumers have become their core focus as they strategize and set their sights on the next ten years.”
The African American population is smaller than the U.S. Hispanic market, but the disposable personal income of both African American and Latino consumers is projected to trend comparably over the next five years, with each experiencing cumulative growth of at least 28% from 2009-2014. Packaged Facts estimates that the buying power of black consumers in the U.S. will increase to $1.2 trillion by the end of the forecast period.
The African American consumer population has been hit especially hard by the recent recession, with unemployment rates for blacks exceeding that of any other major population group. Nevertheless, several sources cited in the report indicate that the sense of empowerment created by the election of Barack Obama has spurred blacks to adopt a more optimistic vision of the future than that held by other Americans. This includes greater optimism regarding their own personal finances and a general proclivity to agree that they are less likely to hold off making big-ticket purchases such as automobiles in the near future.
The African American Market in the U.S., 8th Edition focuses on how African American consumers are responding to the challenges of today’s economy as they shop in department stores, supermarkets, drug stores and other retail outlets as well as online and from catalogs. The report analyzes the forces shaping the purchase decisions of African American shoppers and sheds light on key areas such as how black consumers decide where to shop and what influences them while they are shopping. In addition, the report pays particular attention to the attitudes and behavior of affluent African American shoppers. Primary data on African American consumer behavior are drawn from the Summer 2009 Experian Simmons National Consumer Study (NCS).
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