Report Says Brands Have to Win Back Black Consumers
Special to the Trice Edney News Wire from Target Market News
(TriceEdneyWire.com) — Now may be the most opportune time ever for businesses to increase their share of the African-American market, according to a new report, “The Buying Power of Black America.” With the nation slowly recovering from recession, black consumers represent the margin of profitability in most consumer-product categories.
“What the recession did to Black America’s buying habits is to give them a reason to re-evaluate how they spent the billions of dollars they earned collectively,” said Ken Smikle, president of Target Market News and editor of the report. “Before tight economic times, companies felt they could afford to take their loyalty — especially to top brands — for granted. That changed during the downturn. Price was a bigger factor driving purchasing decisions. Now brands have to earn the loyalty of Black consumers all over again. Black consumers are asking brands, ‘what have you done for me lately?’ “
For the past 17 years, Target Market News has published the only report that breaks down in dollars the impact of the black consumer market. Now approaching a trillion dollars in spending, the earned income of Black America is already the 16th-largest market in the world, and is on the verge of surpassing the gross national income of Mexico.
This 105-page report breaks down how much of black consumers’ $836 billion in income was spent during 2011 on clothing, entertainment, food, beverages, toys, consumer technology, cosmetics, autos, travel and dozens of other categories.