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That’s Trillion with a T! According to the Nielsen study titled “Resilient, Receptive And Relevant.”
“African American buying power continues to increase, rising from 1 trillion dollar level to the forecasted $1.3 trillion in 2017. African American buying power has seen an 86 percent increase since 2000 and accounts for 8.7 percent of the nation’s total.
The growth in African American buying power stems in part from an increase in the number of African American-owned businesses as well as from an uptick in education among the African American population, which leads to higher incomes. Despite historically high unemployment rates, African Americans have shown resiliency in their ability to persevere as consumers.”
African Americans will continue to be significant consumers and heavy influencers of goods and services purchased in the United States. The challenge as an entrepreneur is determining how you can tap into this significant amount of purchasing power to provide value and make a profit.
Some additional interesting stats from the study that should be considered when targeting the African American community to tap into this buying power:
No group watches more television than African Americans (37% more) who lean heavily toward programming that includes diverse characters and casts. African American women watch more television than their male counterparts.
Of the $75 billion spent on television, magazine, internet, and radio advertising, only $2.24 billion of it was spent with media focused on African American audiences. African American businesses, agencies and media continue to wrestle with this disparity as it is not reflective of the overall, high consumption patterns and behavioral trends of the African American consumer.
Other demographic segments have identified African Americans as a driving force for popular culture, with 73% of European Americans and 67% of Hispanics who believe African Americans influence mainstream American culture.
The African American population grew 64% faster than the rest of the country since 2010, amassing a total of 43 million people; this includes individuals who are African American and another group.
The reverse migration continues as younger, college educated African American professionals head South. Entrepreneurs have an opportunity to develop a "southern strategy" to connect with the more than 10 million African Americans in 10 key southern markets.
Not surprisingly, the largest portion of non-edible-goods spending in the African American community went towards Ethnic Hair and Beauty Aids. This is a competitive industry, but an industry that also still holds opportunity due to the large amount of consumption.
Something to think about, what are some products or services that African American entrepreneurs can own and operate to directly tap into this significant amount of buying power?