African American's Have More Spending Power Than Any Other Group
African Americans Projected To Spend $1.1 Trillion By 2015
African Americans’ spending power across various platforms continues to increase, making the group a key consumer for businesses, according to a new study.
The State of the African-American Consumer Report, conducted by Nielsen and the National Newspaper Publishers Association (NNPA), reports that African-Americans have more spending power than any other group and are projected to spend $1.1 trillion annually by 2015.
The number of African-American households earning $75,000 or more grew by 64% between 2000 and 2009—12% faster than the overall population’s earning growth, according to the report.
African-Americans women, in particular—though they tend to spend less on each shopping trip—make the most shopping trips annually than any other group.
African-Americans also tend to watch more television, use more than double the amount of mobile minutes and text message and are more active on the web, the report notes.
The report captures details that businesses, looking for opportunities to grow their companies and gain market share, could benefit from.
To address the growing needs of a diverse clientele, businesses should venture into untapped geographic areas, the authors suggest.
“African-American communities tend to shop often but under utilize some popular retail chains because they may not be easily accessible in their communities,” the authors write. “Companies investing in stores and locations that are more convenient will likely see higher volume usage.”
On the other hand, the authors suggest African-Americans utilize their spending power by expanding their horizons. “Consumers should consider looking for more deal opportunities and research different retail channels for expanded service offerings, potential savings opportunities and higher value or quality products.”
Other findings in the report:
- The percentage of African-Americans attending college or earning a degree has increased to 45% for men and 53% for women (adults 25+).
African-Americans in higher income brackets, spend 300% more in higher-end retail grocers, more than any other high income household.
- 12.5 million African-American households helped make this year’s Super Bowl XLV the most watched Super Bowl ever.
Top online purchases for African-Americans in the last six months included: