Latest report highlights Black consumer behavior
TRICE EDNEY NEWS WIRE
WASHINGTON – Nielsen, a global performance measurement company, released its latest report on the Black consumer market entitled, “Increasingly Affluent, Educated and Diverse – African-American Consumers: The Untold Story.”
The report was released at a press conference during last week’s Congressional Black Caucus Foundation, Inc.’s 45th Annual Legislative Conference.
The fifth installment of Nielsen’s Diverse Intelligence Series, the report includes insights about affluent Black consumers with annual household incomes of $75,000 and higher. It upends outdated stereotypes about African-Americans, from education and income to media consumption and social engagement. It explores the evolution of upper-income Black Americans as the population continues to grow and change rapidly.
“The size and influence of affluent African-Americans is growing faster than that of non-Hispanic Whites across all income segments, and the impact is being felt across industries,” said Senior Vice President of U.S. Strategic Community Alliances and Consumer Engagement Cheryl Pearson-McNeil.
“These larger incomes are attributed to a number of factors including youthfulness, immigration, historic educational attainment and constant, relevant dialogue across various social media channels that have an impact on African-Americans’ decisions as brand loyalists and ambassadors. Savvy marketers are taking notice.”
At 45.7 million strong, the nation’s Black population grew at 17.7 percent from 2000 to 2014 – 35 percent faster than the total population and double the 8.2 percent growth rate of the White population.
The growth rate of the Black population is partly attributed to the surge in Black immigration from the Caribbean, Africa and some European countries, making the overall population very diverse.
Highlights of the report:
• Black households with incomes of $70,000-plus top a number of consumption categories by percentage of their annual expenditures. These households spend substantial percentages of annual expenditures on personal insurance and pensions (14.7 percent); retirement, pensions, and Social Security payments (13.8 percent); home furnishings and equipment (12.5 percent); and cash gifts (7.6 percent).
• Black household consumption habits outpace other demographics. Each week, compared to all Americans, African-American adults spend 42 percent more time watching TV; 13 percent more time on a personal computer; and 15 percent more time on a smartphone than any other demographic.
• Black educational achievement is improving. The rate of Black high school graduates enrolled in college increased in 2014 to 70.9 percent, exceeding the rate of all high school graduates in the nation. Twenty-three percent of African-Americans with annual household incomes of more than $100,000 search for jobs online (compared to 14 percent of Whites). Eleven percent of African-Americans with annual household incomes of more than $100,000 take college courses online (compared to five percent of Whites).
• Income growth rates – African-American income growth rates outpaced those of non-Hispanic Whites at every annual household income level above $60,000. The largest increase for African-American households occurred in the number of households earning over $200,000, with an increase of 138 percent, compared with a total population increase of 74 percent.
• Media and technology use – The year 2015 represented a tipping point as avid media consumption, powerful cultural influence and burgeoning population statistics created an unprecedented African-American impact on a broad range of industries, particularly in television, music and social media, as well as on social issues.
• Purchasing power – The average dollar amount spent per household annually for African-Americans with household incomes of $100,000-plus surpasses that of other groups with regard to shopping in convenience stores (by 123 percent); toy stores (by 40 percent); bookstores (by 32 percent); automotive stores (by 15 percent); department stores (by 14 percent).
• Immigration impact – By 2060, one of out of every six U.S. Blacks will be an immigrant. Metropolitan areas that are home to some of the nation’s largest Black populations are where the impact of immigration is most apparent. In the Miami metro area, 34 percent of the Black population is immigrants. In New York, it’s 28 percent; in Washington, D.C., 15 percent.
To download the full report, go to http://www.nielsen.com/us/en/insights/reports.html.
This story is special to the Trice Edney News Wire from Target Market News.