Black Spending Power Exceeds $1Trillion

... And we spend our money mainly on trivial self-satisfying stuff... and rarely save. BUT, we do spend more on education than whitefolks.... We also do not buy Black. This has led to a devastating effect within our communities: disappearing small Black businesses and, subsequently, a decrease in property value. As we have more ability to spend money via credit cards, we have amassed massive life-long debts, obesity and other poor health issues (because we spend more money on junk food than any other race or nationality).

This report is important to study for those of us who are trying to organize Blackfolk around issues keeping us ill-informed, oppressed and exploited. We can pull from this certain trends that can be very helpful in educating and mobilizing our Sisters & Brothers. 

For example, we use smartfones more than whitefolks. But, as the report reveals, we use them more for social media and entertainment than anything else. The key thing here is a smartfone is a computer that happens to be a fone. Hence, it has access to everything a laptop or desktop has access to. So... as we organize around, say education issues, we encourage parents and students to check out key websites and education social media sites that will inform, aid and advance their particular struggle.

I'm sure the Sisters & Brothers among us who are organizers can come up with other useful findings in this report.

Lastly, this report is also useful for those of us who studying Black social class dynamics within the context of creating a contemporary class analysis for North America.- SEA

Nielsen’s third report (see PDF below) on African-American consumers reveals that Blacks’ purchasing behaviors and viewing patterns are indeed different from the total market population. companies and marketers seeking to establish meaningful connections with this important consumer group can further enhance a brand’s ability to grow by understanding these unique differentiating demographic, shopping, buying, viewing, digital, and mobile trends.1 further understanding of the various generations and gender dynamics within the population is also essential for marketers who want to maximize business opportunities. 

Despite historically high unemployment rates, Blacks have shown resiliency in their ability to persevere as consumers. Black buying power continues to increase, rising from its current $1 trillion level to a forecasted $1.3 trillion by 2017.2 The ongoing population growth and increases in educational attainment are key factors in the increase of african-americans’ consumer power. notable highlights from the report include the following:

• While Black men continue to dominate as the economic leaders in the Black community, Black women yield a tremendous amount of power as they have attained impressive gains in education, employment, and business ownership. 
  
  
• The reverse migration continues as younger, college-educated Black professionals head South. marketers have an opportunity to develop a “southern strategy” to connect with the more than 10 million african-americans in 10 key southern markets. 
  
  
• While being receptive to trying new products, Blacks commit 18% of their annual retail dollars to store brands and continue to show resiliency in specific non-edible categories such as ethnic hair and Beauty aids, where they are more likely to spend nine times more than other groups. 
  
  
• From facebook, instagram, and twitter to education and career websites, BibleBylifechurch.tv, and glam media network, cyberspace provides a critical outlet for companies to engage Blacks of all ages. 
  
  
• No group watches more television than african-americans (37% more) who lean heavily toward programming that includes diverse characters and casts. Black 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 Black audiences. Black 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 Black consumer.
  
  Nielsen African American Consumer Report -Sept 2013