Buying Power of African American Consumers Approaching $1 Trillion in 2010 : Urbanmecca.com

Buying Power of African American Consumers Approaching $1 Trillion in 2010

January 25, 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).

Written by staff · Filed Under Business

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