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The African-American Market in the U.S. February 2010

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THE AFRICAN-AMERICAN MARKET IN THE U.S.

FEBRUARY 2010

The African-American Market in the U.S. has been prepared by Packaged Facts. We serve consumer products companies and allied businesses in the United States and abroad with a complete line of research publications. Packaged Facts market intelligence reports are specifically designed to aid the actionoriented executive by providing a thorough presentation of essential data and concise analysis.

Vice President of Publishing

Don Montuori

Publisher

Don Montuori

Author

Robert Brown and Ruth Washton

Research Director

David Sprinkle

Marketing Manager

Jenn Tekin

Communications Associate

Daniel Granderson

Publication Date

February 2010

LA2514909

1-59814-310-7

All rights reserved. No part of this report may be reproduced without permission of the publisher. Copyright Š 2010 Packaged Facts


The African-American Market in the U.S.

Table of Contents

Table of Contents The African-American Market in the U.S. Chapter 1

Executive Summary ..................................................................1

Introduction....................................................................................................1 Background ......................................................................................................... 1 Overview of the Report........................................................................................ 1

Scope and Methodology ...............................................................................2 Market Definition ................................................................................................. 2 Methodology ........................................................................................................ 2

Trends and Opportunities.............................................................................3 Sense of Empowerment Leads to Greater Optimism among Black Consumers ................................................................................................ 3 African Americans Maintain Key Role in Multicultural America ........................... 3 African-American Market Affected by Growing Corporate Focus on Emergence of Multicultural Majority .......................................................... 3 Social Media Provide New Outlets for Marketing to Black Consumers ............... 4 Television Continues to Have Strong Payoff for Advertisers............................... 4 Affluent African Americans Represent Growing Opportunity............................... 4 Black Shoppers Generate Opportunities for Multiple Retailers ........................... 4

Looking Ahead: Size of the African-American Market in 2010 and Beyond........................................................................................5 Black Population Reaches 39 Million .................................................................. 5 African-American Population Will Approach 42 Million in 2014........................... 5 Measuring the Size of the African-American Market ........................................... 5 African-American Buying Power Will Reach $1.2 Trillion in 2014 ....................... 5

Demographic Profile of the African-American Population.........................6 Women Play Larger Role in Black Population..................................................... 6 Blacks a Major Force in Urban America .............................................................. 6 South Remains Home to 55% of African Americans ........................................... 6 Household Structure Differs ................................................................................ 6 Unemployment Hits Hard in African-American Community................................. 6

Overview of African-American Shoppers ....................................................7 Black Women More Likely to Be Primary Shopper in Household........................ 7 African-American Kids Have Major Impact on Their Moms When Shopping ...... 7 Shopping Trips Cover Multiple Stores ................................................................. 7 African Americans More Receptive to Advertising .............................................. 7 Ads on Public Transit Catch Black Consumers’ Attention ................................... 7 Incentive Offers Fail to Persuade Black Consumers ........................................... 8 Shopping Cart Ads More Likely to Engage Black Shoppers ............................... 8 African Americans Less Likely to Shop Online but Catalog Shopping More Popular ...................................................................................................... 8 Black Consumers More Likely to Watch TV Shopping Channels........................ 8 February 2010

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Table of Contents

Chapter 1

The African-American Market in the U.S.

Executive Summary [Cont.]

African-American Food Shoppers............................................................... 9 Black Shoppers Look for Organic Foods............................................................. 9 Home Cooking Less of a Centerpiece................................................................. 9 Single Moms Less Interested in Cooking ............................................................ 9 Fast Food Competes with Home-Cooked Meals................................................. 9 Black Consumers Enjoy Grocery Shopping ........................................................ 9 Married Black Moms Spend More Time in Supermarkets ................................. 10 African-American Moms Pay More Attention to In-Store Advertising in Supermarkets .......................................................................................... 10 Black Shoppers Spend More on Laundry and Cleaning Products .................... 10 Food Expenditures Analyzed ............................................................................ 10

When Black Shoppers Buy Clothes .......................................................... 11 Fashion Drives African-American Shoppers, Both Men and Women................ 11 Blacks Spend More Than Other Consumers for Apparel .................................. 11 Children’s Clothing Especially Important........................................................... 11 Black Shoppers More Likely to Buy Dress Clothes ........................................... 11

Black Shoppers in Drug Stores ................................................................. 12 Black Consumers Place Higher Value on Brand-Name Over-the-Counter Drugs ....................................................................................................... 12 Black Consumers Less Likely to Buy Over-the-Counter Medications for Routine Aches and Pains ........................................................................ 12 Brand-Name Prescription Drugs More Popular................................................. 12 Vitamins Less Important.................................................................................... 12 Many Differences in Use of Personal-Care Products........................................ 12 Oral Care Products Have High Priority.............................................................. 13 Black Shoppers Visit Drug Stores More Often .................................................. 13 Blacks Less Likely to Redeem Cents-Off Coupons for Drug Products ............. 13 Black Consumers Allocate More to Personal-Care Products............................ 13

Shopping for Home Electronics and Home Furnishings......................... 14 Black Consumers Place High Priority on Home Electronics ............................. 14 Multiple Televisions More Common in Black Households................................. 14 More African Americans Plan to Buy MP3 Players ........................................... 14 Four in Five Black Households Own Computer ................................................ 14 Home Electronics Stores Popular Destination for Black Computer Buyers ...... 15 African-American Consumers Major Customers for Music Industry.................. 15 Black Consumers Depend More on Cellphones ............................................... 15 African Americans Spend More on Furniture .................................................... 15

Affluent African-American Shoppers ........................................................ 16 Affluent Black Households Total 1.5 Million ...................................................... 16 New York Metro Area Has Largest Population of Affluent Blacks..................... 16 Affluent Blacks Less Financially Secure............................................................ 16 Affluent Blacks Interested in Financial Services but Distrust Banks ................. 16 Credit Cards less Common among Affluent African Americans........................ 17 Life Insurance Important to Affluent Blacks....................................................... 17 Half of Affluent Blacks Have Investments ......................................................... 17 Affluent Black Consumers Are Early Adopters.................................................. 17

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Chapter 1

Table of Contents

Executive Summary [Cont.]

Digital Divide Narrows among Affluent Consumers........................................... 17 Cellphones Vital Part of Affluent Black Lifestyle................................................ 18 Books Also Key in Entertainment Choices of Affluent Blacks ........................... 18 Multiple Vehicles a Hallmark of Affluent Black Households .............................. 18 New Cars Favored ............................................................................................ 18 One in Four Affluent Blacks Plans to Buy Car in Next 12 Months..................... 18 Cruise Ship Vacations More Popular ................................................................ 18

Chapter 2

Trends and Opportunities ......................................................19

Market Trends ..............................................................................................20 Blacks Empowered by Election of First African-American President ................ 20 Table 2-1: Impact of Additional Black Voters on Obama Victory Margin in Selected States ....................................................................................... 20 Sense of Empowerment Leads to Greater Optimism among Black Consumers .............................................................................................. 20 Table 2-2: Personal Financial Status, African-American vs. Other Consumers .............................................................................................. 22 Table 2-3: Outlook on the U.S. Economy, African-American vs. Other Consumers .............................................................................................. 22 Table 2-4: Purchasing Plans, African-American vs. Other Consumers............ 22 African Americans Maintain Key Role in Multicultural America ......................... 23 Table 2-5: Key Economic and Demographic Indicators, African Americans vs. Hispanics ........................................................................................... 23 African-American Market Affected by Growing Corporate Focus on Emergence of Multicultural Majority ........................................................ 23 Market Researchers Continue to Mine for Segments in African-American Consumer Base....................................................................................... 24 Social Media Provide New Outlets for Marketing to Black Consumers ............. 25 Interest in Small-Screen Media Grows .............................................................. 25 Television Continues to Have Strong Payoff for Advertisers............................. 26 Competition for Black Viewer Segments Increases........................................... 26 Black Newspapers and Magazines Navigate Rough Economic Waters ........... 27

Market Opportunities ..................................................................................29 Affluent African Americans Represent Growing Opportunity............................. 29 Table 2-6: Selected Opportunities Related to Affluent African-American Consumers .............................................................................................. 29 Black Shoppers Generate Opportunities for Multiple Retailers ......................... 30 Table 2-7: Selected Opportunities Related to Shopping Habits of African Americans................................................................................................ 31 Black Shoppers Key Segment for Food Retailers ............................................. 31 Table 2-8: Selected Opportunities Related to Food Shopping Habits of African Americans ................................................................................... 32 Entertainment Habits Generate Unique Opportunities ...................................... 32 Table 2-9: Selected Opportunities Related to Home Electronics and Home Entertainment Patterns of African Americans.......................................... 33 African Americans Major Customers of Apparel Retailers ................................ 33

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Chapter 2

The African-American Market in the U.S.

Trends and Opportunities [Cont.]

Table 2-10: Selected Opportunities Related to Apparel Purchases of African Americans ................................................................................... 34 Blacks Represent Significant Possibilities for Drug Store Chains ..................... 34 Table 2-11: Selected Opportunities Related to African-American Drug Store Shoppers ................................................................................................. 35

Chapter 3 Looking Ahead: Size of the African-American Market in 2010 and Beyond ........................................................................ 37 Size and Growth of the African-American Consumer Base .................... 38 Black Population Reaches 39 Million ................................................................ 38 Table 3-1: U.S. Population by Race and Hispanic Origin, 2008 ...................... 38 Table 3-2: Population Growth, African Americans vs. Other Population Groups, 2000-2008 ................................................................................. 38 African-American Population Will Approach 42 Million in 2014......................... 39 Table 3-3: Projected Population Growth, African Americans vs. Other Population Groups, 2010 vs. 2015 .......................................................... 39 Table 3-4: Projected Growth in the African-American Population by Single Year, 2009-2014...................................................................................... 39

African-American Buying Power ............................................................... 40 Defining the African-American Market............................................................... 40 Measuring the Size of the African-American Market ......................................... 40 African-American Buying Power Will Reach $1.2 Trillion in 2014 ..................... 41 Table 3-5: Projected Growth in African-American Buying Power, 2009-2014 ............................................................................................... 41

Aggregate Spending by African-American Consumer Units .................. 42 Consumer Units Defined ................................................................................... 42 Black Consumer Units a Significant Force ........................................................ 42 African-American Consumers Have Disproportionate Influence in Numerous Areas ....................................................................................................... 42 Table 3-6: Aggregate Annual Expenditures by African-American Consumer Units for Food at Home, 2008 ................................................................. 44 Table 3-7: Aggregate Annual Expenditures by African-American Consumer Units for Apparel and Footwear, 2008..................................................... 45 Table 3-8: Aggregate Annual Expenditures by African-American Consumer Units for Vehicle Purchases and Related Expenses, 2008 ..................... 45 Table 3-9: Aggregate Annual Expenditures by African-American Consumer Units for Entertainment, 2008.................................................................. 46 Table 3-10: Aggregate Annual Expenditures by African-American Consumer Units for Household Furnishings and Equipment, 2008 .......................... 46 Table 3-11: Aggregate Annual Expenditures by African-American Consumers for Miscellaneous Products and Services, 2008 .................. 46

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Chapter 4

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Demographic Profile of the African-American Population ..47

Demographic Highlights .............................................................................48 Foreign-Born Blacks Increasingly Important...................................................... 48 Table 4-1: Foreign-Born U.S. Population by Race and Hispanic Origin, 2008......................................................................................................... 48 Table 4-2: Region of Birth of Foreign-Born Blacks, 2008 ................................. 49 Table 4-3: Number of Foreign-Born African Americans, 2000 vs. 2008........... 49 African Americans Influential Part of Youth Population ..................................... 49 Table 4-4: Population by Selected Age Group, African Americans vs. Other Population Groups, 2008......................................................................... 50 Table 4-5: African Americans as Percent of Total Population by Selected Age Group, 2008 ..................................................................................... 50 Women Play Larger Role in Black Population................................................... 51 Table 4-6: Population of Males and Females, African Americans vs. Other Population Groups, 2008......................................................................... 51

Where African Americans Live...................................................................52 Blacks a Major Force in Urban America ............................................................ 52 Table 4-7: Percent of Residents in Urban and Rural Areas, African-Americans vs. Others.................................................................. 52 South Remains Home to 55% of African Americans ......................................... 52 Table 4-8: Distribution of African-American Population.................................... 53 Table 4-9: States with Highest Percentage of African Americans, 2008 .......... 53 Table 4-10: Counties with Highest Percentage of African Americans, 2008 .... 54 Table 4-11: States with Largest African-American Populations, 2008 ............. 54 Florida Registers Largest Growth in Black Population ...................................... 55 Table 4-12: States with Largest African-American Population Growth, 2000-2008 ............................................................................................... 56 New York, Atlanta and Chicago Top List of Metro Areas with Large Black Populations.............................................................................................. 56 Table 4-13: Metropolitan Areas with Largest African-American Populations ... 57

Marriage and Family....................................................................................58 Marriage Less Common .................................................................................... 58 Table 4-14: Marital Status of Men 18 Years Old and Over by Race and Hispanic Origin, 2008 .............................................................................. 58 Table 4-15: Marital Status of Women 18 Years Old and Over by Race and Hispanic Origin, 2008 .............................................................................. 58 Table 4-16: Median Age at First Marriage, African Americans vs. Other Population Groups, 2008......................................................................... 59 Household Structure Differs .............................................................................. 59 Table 4-17: Household Types, African-American vs. Other, 2008 ................... 59 Table 4-18: Mean Size of Households and Families by Race and Hispanic Origin, 2008 ............................................................................................. 60 Grandparents Play Especially Important Role in Black Families....................... 60 Table 4-19: Grandparents Living with Own Grandchildren by Responsibility for Grandchildren, African Americans vs. Other Population Groups, 2008......................................................................................................... 61

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Chapter 4

The African-American Market in the U.S.

Demographic Profile of the African-American Population [Cont.]

Education, Employment and Income ........................................................ 62 Black Women Educational Strivers ................................................................... 62 Table 4-20: College Enrollment of the Population Age 18 and Over by Gender, African Americans vs. Others, 2008 .......................................... 62 Table 4-21: Educational Attainment of People Age 25 and Over by Race and Hispanic Origin and Gender ............................................................. 62 Unemployment Hits Hard in African-American Community............................... 63 Table 4-22: Unemployment Rate for the Population Age 20 and Over by Race and Hispanic Origin, November 2009 ............................................ 63 One in Three Black Women Works as Manager or Professional ...................... 64 Table 4-23: Occupations of Males Age 16 and Over by Gender, 2008............ 64 Table 4-24: Occupations of Females Age 16 and Over by Gender, 2008 ....... 64 Income Patterns Analyzed ................................................................................ 65 Table 4-25: Mean Income of People Age 15 and Over, African Americans vs. Other Population Groups, 2008 ......................................................... 65 Table 4-26: Mean Household and Family Income, African Americans vs. Other Population Groups, 2008............................................................... 66 Table 4-27: Mean Income of Families by Type, African Americans vs. Other Population Groups, 2008......................................................................... 66 Table 4-28: Distribution of Income of People Age 15 and Over, African Americans vs. Other Population Groups, 2008 ....................................... 66 Table 4-29: Distribution of Income of Families, African Americans vs. Other Population Groups, 2008......................................................................... 67 Table 4-30: Distribution of Income of Households, African Americans vs. Other Population Groups, 2008............................................................... 67 Homeownership below Average........................................................................ 67 Table 4-31: Percent Owner-Occupied Housing Units, African Americans vs. Other Population Groups, 2008............................................................... 68

Chapter 5

Overview of African-American Shoppers............................. 69

Overview

.................................................................................................. 70

Blacks Spend Less Time Shopping but Enjoy It More ...................................... 70 Table 5-1: Number of Hours per Week Spent Purchasing Goods and Services, African-American vs. Other Consumers .................................. 70 Table 5-2: Attitudes toward Shopping, African-American vs. Other Consumers by Gender ............................................................................ 70 Black Women More Likely to Be Primary Shopper in Household ..................... 71 Table 5-3: Gender of Primary Shopper, African-American vs. Other Consumers .............................................................................................. 71 Shopping a Social Event for Black Women....................................................... 71 Table 5-4: Shopping as a Social Event, African-American vs. Other Consumers by Gender ............................................................................ 71 Single Black Moms Like to Shop with Their Kids .............................................. 71 Figure 5-1: Percent of Women with Children Who “Enjoy Shopping with My Children,” African-American vs. Other by Marital Status ......................... 72 African-American Kids Have Major Impact on Their Moms When Shopping .... 72

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Chapter 5

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Overview of African-American Shoppers [Cont.]

Figure 5-2: Percent of Women with Children Whose Children “Have Significant Impact on Brands I Buy,” African-American vs. Other by Marital Status........................................................................................... 73 Black Consumers Spend Less .......................................................................... 73 Table 5-5: Average Annual Expenditures of Consumer Units, African-American vs. Other ..................................................................... 74 Table 5-6: Purchases Made in Last 12 Months, African-American vs. Other Consumers .............................................................................................. 74

Deciding Where to Shop .............................................................................75 Shopping Trips Cover Multiple Stores ............................................................... 75 Figure 5-3: Percent Visiting a Variety of Stores When They Shop, AfricanAmerican vs. Other Consumers by Gender............................................. 75 African-American Consumers Will Travel to Shop at Favorite Store................. 75 Table 5-7: Reasons for Picking Stores, African-American vs. Other Consumers by Gender ............................................................................ 76 New Stores Attract Black Shoppers .................................................................. 76 Table 5-8: Attitudes toward New Stores, African-American vs. Other Consumers by Gender ............................................................................ 77 Black Shoppers Shop Specialty Stores for Brand Names................................. 77 Table 5-9: Attitudes toward Specialty Stores, African-American vs. Other Consumers by Gender ............................................................................ 77 African-American Consumer Base Includes Frequent Mall Visitors .................. 78 Table 5-10: Visits to Malls in Last Four Weeks, African-American vs. Other Consumers .............................................................................................. 78 Black Women Frequent Users of Convenient Stores ........................................ 78 Table 5-11: Number of Times Shopped Convenience Stores in Last Four Weeks, African-American vs. Other Consumers by Gender ................... 79 Table 5-12: Convenience Stores Shopped in Last Four Weeks, AfricanAmerican vs. Other Consumers .............................................................. 79

Factors Driving Purchase Decisions of Black Shoppers .........................80 African Americans More Receptive to Advertising ............................................ 80 Table 5-13: Attitudes toward Advertising, African-American vs. Other Consumers by Gender ............................................................................ 80 Product Placement Works Well with African-American Consumers.................. 81 Table 5-14: Impact of Product Placement, African-American vs. Other Consumers by Gender ............................................................................ 81 Ads on Public Transit Catch Black Consumers’ Attention ................................. 81 Figure 5-4: Percent Taking Public Transportation (Excluding Taxicabs) to Work, African Americans vs. Others........................................................ 82 Table 5-15: Effectiveness of Out-of-Home Advertising, African-American vs. Other Adults by Gender........................................................................... 82 Sales, Specials and Bargains Less Likely to Draw Black Shoppers ................. 83 Table 5-16: Attitudes toward Sales and Bargains, African-American vs. Other Consumers by Gender .................................................................. 83 Incentive Offers Fail to Persuade Black Consumers ......................................... 83

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Table of Contents

Chapter 5

The African-American Market in the U.S.

Overview of African-American Shoppers [Cont.]

Table 5-17: Response to Incentive Offers, African-American vs. Other Consumers by Gender ............................................................................ 84 Cents-Off Coupons Not as Interesting to African-American Shoppers ............. 84 Table 5-18: Use of Cents-Off Coupons, African-American vs. Other Consumers .............................................................................................. 85 African-American Shoppers More Aware of Brands.......................................... 86 Table 5-19: Brand Awareness, African-American vs. Other Consumers by Gender .................................................................................................... 86 Environmental Concerns Have Lower Priority................................................... 86 Table 5-20: Attitudes toward Green Products, African-American vs. Other Consumers by Gender ............................................................................ 86

In-Store Behavior ........................................................................................ 87 Shopping Cart Ads More Likely to Engage Black Shoppers ............................. 87 Table 5-21: Impact of In-Store (excluding Food Stores) Advertising and Promotions on Shoppers, African-American vs. Other............................ 87

Online and Catalog Shopping.................................................................... 88 African Americans Less Likely to Shop Online.................................................. 88 Table 5-22: Attitudes toward Online Shopping, African-American vs. Other Consumers by Gender ............................................................................ 88 Table 5-23: Online Shopping, African-American vs. Other Consumers ........... 89 Catalog Shopping More Popular ....................................................................... 89 Table 5-24: Catalog Shopping, African-American vs. Other Consumers ......... 90 Black Consumers More Likely to Watch TV Shopping Channels...................... 90 Figure 5-5: Percent Watching Television Home Shopping Channel, African Americans vs. Others by Gender ................................................ 91

Paying for What They Buy ......................................................................... 92 Black Consumers Less Likely to Have Bank Accounts and Credit Cards......... 92 Table 5-25: Banking Profile, African-American vs. Other Consumers by Gender .................................................................................................... 92 Paying Bills by Phone More Popular among Black Women.............................. 93 Table 5-26: Paying Bills, African-American vs. Other Consumers by Gender . 93

Chapter 6

African-American Food Shoppers ........................................ 95

Eating at Home vs. Going Out ................................................................... 96 Black Shoppers Look for Organic Foods........................................................... 96 Table 6-1: Attitudes toward Food, African-American vs. Other Consumers by Gender................................................................................................ 96 Home Cooking Less of a Centerpiece............................................................... 96 Table 6-2: Home Cooking vs. Fast Food and Prepared Foods, AfricanAmerican vs. Other Consumers by Gender............................................. 97 Single Moms Less Interested in Cooking .......................................................... 98 Table 6-3: Attitudes Toward Food and Cooking of Women with Children by Marital Status, African-American vs. Other Consumers .......................... 98 Fast Food Competes with Home-Cooked Meals............................................... 98

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Chapter 6

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African-American Food Shoppers [Cont.]

Table 6-4 Going Out to Family and Fast Food Restaurants, African-American vs. Other Consumers by Gender............................................................. 99 Table 6-5: Going Out to Family and Fast Food Restaurants by Women with Children by Marital Status, African-American vs. Other Consumers ..... 101 Table 6-6: Family Restaurants Visited Most, African-American vs. Other Consumers ............................................................................................ 101 Table 6-7: Fast Food Restaurants Visited Most, African-American vs. Other Consumers ............................................................................................ 102

Shopping for Food ....................................................................................103 Black Consumers Enjoy Grocery Shopping .................................................... 103 Figure 6-1: Percent Agreeing “Shopping for Groceries is a Bore,” AfricanAmerican vs Other Consumers. ............................................................ 103 Married Black Moms Spend the Most at Supermarkets .................................. 103 Table 6-8: Profile of Food Shoppers, African-American vs. Other Consumers by Gender.............................................................................................. 104 Table 6-9: Profile of Female Food Shoppers with Children by Marital Status, African-American vs. Other Consumers ................................................ 105 African-American Moms Pay More Attention to In-Store Advertising in Supermarkets ........................................................................................ 105 Table 6-10: Impact of In-Store Advertising and Promotions on Food Shoppers, African-American vs. Other Consumers by Gender............. 106 Table 6-11: Impact of In-Store Advertising and Promotions on Female Food Shoppers with Children by Marital Status, African-American vs. Other Consumers ............................................................................................ 107 Favorite Supermarkets Differ........................................................................... 107 Table 6-12: Supermarkets Shopped in Last Four Weeks, African-American vs. Other Consumers............................................................................. 108

Spending Patterns in Supermarkets........................................................109 Black Shoppers Spend More on Laundry and Cleaning Products .................. 109 Table 6-13: Average Annual Expenditures for Housekeeping Supplies, African-American vs. Other Consumer Units 2008................................ 109 Food Expenditures Analyzed .......................................................................... 109 Table 6-14: Average Annual Expenditures for Food and Beverages, AfricanAmerican vs. Other Consumer Units 2008 ............................................ 110

Chapter 7

When Black Shoppers Buy Clothes ....................................111

Shopping for Clothes ................................................................................112 Fashion Drives African-American Shoppers, Both Men and Women.............. 112 Figure 7-1: Percent of Consumers Who “Keep up with the Latest Fashions,” African-American vs. Other ................................................................... 112 Table 7-1: Attitudes toward Fashion, African-American vs. Other Consumers by Gender.............................................................................................. 113 More African Americans Enjoy Clothes Shopping........................................... 113 Figure 7-2: Percent of Consumers Who “Really Enjoy Clothes Shopping,” African-American vs. Other ................................................................... 114 Table 7-2: Attitudes toward Shopping for and Buying Clothes, African-American vs. Other Consumers by Gender .............................. 114 February 2010

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Chapter 7

The African-American Market in the U.S.

When Black Shoppers Buy Clothes [Cont.]

Buying Clothes.......................................................................................... 115 Blacks Spend More Than Other Consumers for Apparel ................................ 115 Table 7-3: Average Annual Expenditures for Apparel and Footwear, African-American vs. Other Consumer Units 2008................................ 115 Children’s Clothing Especially Important......................................................... 115 Figure 7-3: Percent of Women with Children Spending $400 or More on Children’s Clothing in Past 12 Months by Marital Status, African-American vs. Other Consumers ................................................ 116 Black Shoppers More Likely to Buy Dress Clothes ......................................... 116 Table 7-4: Men’s Apparel and Accessories Purchased by Men in Last 12 Months, African-American vs. Other...................................................... 117 Table 7-5: Women’s Apparel and Accessories Purchased by Women in Last 12 Months, African-American vs. Other......................................... 118 Watches Important Fashion Accessory for Black Consumers ........................ 119 Figure 7-4: Percent of Consumers Who Bought a Watch for Themselves or Others in the Past 12 Months, African-American vs. Other................... 119

Favorite Department and Discount Stores ............................................. 120 Discount Stores Attract African-American Clothes Shoppers ......................... 120 Figure 7-5: Percent Agreeing “Clothes at Discount Store Just as Good as Department Store,” African-American vs. Other Consumers by Gender .................................................................................................. 120 Family Dollar Store Near Top of List for Black Shoppers................................ 120 Table 7-6: Department/Discount Stores Shopped in Last Three Months by Consumers, African-American vs. Other ............................................... 121 Table 7-7: Department/Discount Stores Shopped in Last Three Months by Women Not Married with Children, African-American vs. Other ........... 122 Table 7-8: Department/Discount Stores Shopped in Last Three Months by Women Married with Children, African-American vs. Other .................. 122

Chapter 8

Black Shoppers in Drug Stores........................................... 123

Factors Shaping Purchase Decisions in Drug Stores ........................... 124 Black Consumers Place Higher Value on Brand-Name Over-the-Counter Drugs ..................................................................................................... 124 Table 8-1: Attitudes toward Over-the-Counter Drugs, African-American vs. Other Consumers by Gender ................................................................ 124 Black Consumers Less Likely to Buy Over-the-Counter Medications for Routine Aches and Pains ...................................................................... 124 Table 8-2: Use of Headache/Pain Relievers and Heartburn/Indigestion Aids, African-American vs. Other Consumers by Gender .............................. 125 Brand-Name Prescription Drugs More Popular............................................... 125 Table 8-3: Attitudes toward Brand Name Drugs, African-American vs. Other Consumers by Gender .......................................................................... 125 Vitamins Less Important.................................................................................. 126 Table 8-4: Attitudes toward Vitamins, African-American vs. Other Consumers by Gender .......................................................................... 126 Figure 8-1: Percent of Consumers Using Vitamins, African-American vs. Other ..................................................................................................... 126

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Chapter 8

Table of Contents

Black Shoppers in Drug Stores [Cont.]

Use of Personal-Care Products................................................................127 Many Differences in Use of Personal-Care Products ...................................... 127 Table 8-5: Use of Personal-Care Products, African-American vs. Other Women .................................................................................................. 127 Table 8-6: Use of Personal-Care Products, African-American vs. Other Men........................................................................................................ 128 Oral Care Products Have High Priority............................................................ 129 Table 8-7: Use of Oral Care Products, African-American vs. Other Consumers by Gender .......................................................................... 129

Drug Store Shopping Patterns .................................................................130 Black Shoppers Visit Drug Stores More Often ................................................ 130 Table 8-8: Percent Shopping at Drug Stores in Last Four Weeks by Name of Store and Frequency of Shopping, African-American vs. Other Consumers ............................................................................................ 130 Blacks Less Likely to Redeem Cents-Off Coupons for Drug Products............ 130 Table 8-9: Use of Cents-Off Coupons in Drug Stores, African-American vs. Other Consumers .................................................................................. 131 Black Consumers Allocate More to Personal-Care Products .......................... 131 Table 8-10: Average Annual Expenditures for Selected Categories of DrugStore Purchases, African-American vs. Other Consumer Units 2008 ... 131

Chapter 9

Shopping for Home Electronics and Home Furnishings...133

Home Electronics and Home Entertainment ...........................................134 Black Consumers Place High Priority on Home Electronics............................ 134 Table 9-1: Attitudes toward Consumer Electronics, African American vs. Other Consumers by Gender ................................................................ 134 Figure 9-1: Percent of Annual Consumer Expenditures Allocated to Audio and Visual Equipment, African-American vs. Other Consumer Units.... 135 Multiple Televisions More Common in Black Households............................... 135 Table 9-2: Subscription to Cable Television, African-American vs. Other Consumers ............................................................................................ 136 Table 9-3: Ownership of Home Entertainment Equipment, African-American vs. Other Consumers............................................................................. 136 More African Americans Plan to Buy MP3 Players ......................................... 137 Table 9-4: Ownership of Consumer Electronics, African-American vs. Other Consumers ............................................................................................ 137 Four in Five Black Households Own Computer............................................... 137 Table 9-5: Ownership of Computers African-American vs. Other Consumers ............................................................................................ 138 Home Electronics Stores Popular Destination for Black Computer Buyers..... 138 Table 9-6: Purchases of Computers and Software, African-American vs. Other Consumers .................................................................................. 138 Table 9-7: Percent Shopping at Home Electronics and Office Supply/Computer Stores in Last Three Months, African-American vs. Other Consumers .................................................................................. 139 African-American Consumers Major Customers for Music Industry................ 139 Table 9-8: Music Purchases, African-American vs. Other Consumers .......... 140

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Shopping for Home Electronics and Home Furnishings [Cont.]

Black Consumers Depend More on Cellphones ............................................. 140 Table 9-9: Importance of Cellphones, African-American vs. Other Consumers ............................................................................................ 141 Table 9-10: Ownership of Cellphones, African American vs. Other Consumers by Gender .......................................................................... 141

Shopping for Home Furnishings and Home Improvements.................. 143 African Americans Spend More on Furniture .................................................. 143 Table 9-11: Aggregate Annual Expenditures by African-American Consumer Units for Household Furnishings and Equipment, 2008 ........................ 143 Most Popular Home Furnishing Retailers Listed ............................................. 143 Table 9-12: Shopping at Home Furnishings Stores, African-American vs. Other Consumers .................................................................................. 144 Fewer African Americans Shop at Home Improvement Stores....................... 144 Table 9-13: Shopping at Home Improvement Stores, African-American vs. Other Consumers .................................................................................. 145

Chapter 10 Overview

Affluent African-American Shoppers................................ 147 ................................................................................................ 148

Affluent Black Households Total 1.5 Million .................................................... 148 Table 10-1: African-American Households with Incomes of $100,000 or More by Income Level, 2008 ................................................................. 148 Table 10-2: Aggregate Income of African-American Households, Affluent vs. Other Households, 2008 .................................................................. 149 New York Metro Area Has Largest Population of Affluent Blacks................... 149 Table 10-3: Metropolitan Areas Ranked by Number of African-American Households with Income of $100,000 or More ...................................... 150

Profile of Affluent Black Shoppers.......................................................... 151 Affluent Blacks Shop More Often .................................................................... 151 Table 10-4: Shopping Behavior of Affluent Consumers, African-American vs. Other ................................................................................................ 151 Affluent Blacks Highly Brand-Conscious ......................................................... 152 Table 10-5: Attitudes toward Brands of Affluent Consumers, AfricanAmerican vs. Other................................................................................ 152 Affluent Black Shoppers Analyzed .................................................................. 152 Table 10-6: Profile of Affluent Shoppers, African-American vs. Other ........... 153 Coupons and Incentives Less Enticing to Affluent Black Shoppers ................ 153 Table 10-7: Use of Cents-Off Coupons by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 154 Table 10-8: Impact of Incentive Offers from Product Manufacturers on Affluent Consumers, African-American vs. Other.................................. 154 Affluent Black Food Shoppers Alert to In-Store Announcements.................... 155 Table 10-9: Impact of In-Store Advertising and Promotions on Affluent Food Shoppers, African-American vs. Other .................................................. 155

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Personal Finances.....................................................................................156 Affluent Blacks Less Financially Secure.......................................................... 156 Table 10-10: Attitudes toward Money of Affluent Consumers, African-American vs. Other ................................................................... 156 Affluent Blacks Interested in Financial Services but Distrust Banks................ 156 Table 10-11: Attitudes toward Financial Services, African-American vs. Other Affluent Consumers ..................................................................... 157 Figure 10-1: Percent of Affluent Consumers Who Are “Uncomfortable Entrusting Money to a Bank,” Affluent vs. Other ................................... 157 Table 10-12: Ownership of Bank Accounts by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 158 Credit Cards less Common among Affluent African Americans ...................... 158 Table 10-13: Use of Credit and Debit Cards, African-American vs. Other Affluent Consumers ............................................................................... 158 Life Insurance Important to Affluent Blacks ..................................................... 158 Figure 10-2: Percent Believing It Important to Be Well Insured with Life Insurance, African-American vs. Other Affluent Consumers ................. 159 Table 10-14: Ownership or Health and Life Insurance by Affluent Consumers, African-American vs. Other ................................................................... 159 Table 10-15: Ownership of Automotive and Homeowner’s Insurance by Affluent Consumers, African-American vs. Other.................................. 160 Education Loans More Common among Affluent Blacks ................................ 160 Table 10-16: Loans Held by Affluent Consumers, African-American vs. Other...................................................................................................... 161 Half of Affluent Blacks Have Investments........................................................ 161 Table 10-17: Investments Owned by Affluent Consumers, African-American vs. Other ................................................................................................ 161 Online Bill Paying Popular ............................................................................... 161 Table 10-18: Method of Paying Bills by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 162

Shopping for Clothes ................................................................................163 Affluent African Americans Like Shopping for Clothes .................................... 163 Table 10-19: Attitudes toward Fashion of Affluent Consumers, AfricanAmerican vs. Other................................................................................ 163 Affluent Blacks Spend More for Children’s Clothing........................................ 163 Table 10-20: Purchase of Children’s Clothing in Last 12 Months by Affluent Consumers, African-American vs. Other ............................................... 164 Affluent Black Women Buy More Dress Clothes ............................................. 164 Table 10-21: Purchase of Women’s Apparel and Accessories by Affluent Women, African-American vs. Other ..................................................... 164 Department/Discount Store Preferences Differ ............................................... 165 Table 10-22: Department/Discount Stores Shopped in Last Three Months by Affluent Consumers, African-American vs. Other ............................. 165

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Affluent African-American Shoppers [Cont.]

Consumer Electronics and Home Entertainment................................... 166 Affluent Black Consumers Are Early Adopters................................................ 166 Table 10-23: Attitudes toward Consumer Electronics by Affluent Consumers, African-American vs. Other ................................................................... 166 Digital Divide Narrows among Affluent Consumers ........................................ 166 Table 10-24: Use of Computers and the Internet by Affluent Consumers, African-American vs. Other ................................................................... 166 Television Important in Affluent Black Households ......................................... 167 Table 10-25: Ownership of Consumer Electronics by Affluent Consumers, African-American vs. Other ................................................................... 167 Cellphones Vital Part of Affluent Black Lifestyle.............................................. 168 Table 10-26: Ownership of Cell Phones by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 168 Books Also Key in Entertainment Choices of Affluent Blacks ......................... 169 Table 10-27: Purchase of Books by Affluent Consumers, African-American vs. Other ................................................................................................ 169

Automotive ................................................................................................ 170 Multiple Vehicles a Hallmark of Affluent Black Households ............................ 170 Table 10-28: Ownership of Vehicles by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 170 New Cars Favored .......................................................................................... 170 Table 10-29: Profile of Most Recently Acquired Cars by Affluent Consumers, African-American vs. Other ................................................................... 171 Affluent Blacks More Drawn to Luxury Cars.................................................... 171 Table 10-30: Automotive Purchases Made in Last 12 Months, AfricanAmerican vs. Other................................................................................ 172 Table 10-31: Amount Spent on Most Recent Vehicle Purchase/Lease by Affluent Consumers, African-American vs. Other.................................. 172 One in Four Affluent Blacks Plans to Buy Car in Next 12 Months................... 172 Table 10-32: Next Vehicle Purchase by Affluent Consumers, AfricanAmerican vs. Other................................................................................ 173

The Affluent Black Traveler ..................................................................... 174 Cruise Ship Vacations More Popular .............................................................. 174 Figure 10-3: Percent of Affluent Travelers Taking Cruise Ship Vacation in Last Three Years, African-American vs. Other...................................... 174 Figure 10-4: Percent of Affluent Travelers Planning to Take Cruise Ship Vacation in Next 12 Months African-American vs. Other ...................... 175 Affluent Black Travelers Analyzed................................................................... 175 Table 10-33: Profile of Affluent Travelers, African-American vs. Other.......... 176

Appendix: Addresses of Selected African-American Market Resources ..................................................................................... 1

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Executive Summary

Introduction Background With a population of 40 million and buying power approaching $1 trillion in 2010, African Americans are a key segment in an American economy that increasingly depends upon the needs and preferences of multicultural consumers. The historic election of the country’s first African-American president created a feeling of pride and a sense of empowerment among black Americans. In the face of daunting economic difficulties, African-American consumers are more positive than other Americans about their own personal financial situation and are more optimistic about the future of the American economy. The 8th edition of Packaged Facts The African-American Market in the U.S. 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 AfricanAmerican shoppers and sheds light on key areas such as how black consumers decide where to shop and what influences them while they are shopping. The report pays particular attention to the attitudes and behavior of affluent African-American shoppers.

Overview of the Report The report begins with an assessment of trends shaping the African-American market and identifies opportunities available to marketers interested in reaching out to African-American consumers. It continues with a forecast of the growth of the buying power of African Americans through 2014 and provides a detailed demographic profile of the AfricanAmerican population. The next chapter provides an overview of the attitudes and behavior of African-American shoppers.

Individual chapters provide an in-depth view of African-

American consumers when they shop for food, clothes, drug-store items and home electronics and furnishings. The report concludes with a detailed analysis of the shopping behavior of African Americans with a household income of $100,000 or more. February 2010

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Scope and Methodology Market Definition Packaged Facts has defined the African-American market as including the buying power of individuals who identify in Census Bureau data as black or African American alone, regardless of whether they also identify as Hispanics. This definition is consistent with the data categories used by forecasting groups such as the Selig Center for Economic Growth at the University of Georgia.

The terms “black” and “African American” are used

interchangeably in this report.

Methodology This report is based on information collected directly from firms active in the African American market as well as a thorough analysis of relevant industry and trade publications. Primary data on African-American consumer behavior are drawn from the Summer 2009 Experian Simmons National Consumer Study (NCS). The report also cites data compiled by Washington, D.C.-based Pew Research Center as well as surveys of African Americans conducted by a number of media organizations. Census Bureau data used in the report include the March 2009 Current Population Survey and 2008 American Community Survey as well as a number of updated estimates and analyses of the African-American population released by the Census Bureau in 2009. Other U.S. Government sources include the Consumer Expenditure Survey of the Bureau of Labor Statistics (BLS) and economic data from the U.S. Department of Commerce.

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Trends and Opportunities Sense of Empowerment Leads to Greater Optimism among Black Consumers Survey research from several sources suggests that the sense of empowerment created by the election of Barack Obama has led blacks to adopt a more optimistic vision of the future than that held by other Americans. For example, a study released by Washington, D.C.-based Pew Research Center in January 2010 found that nearly twice as many blacks now than in 2007 (39% vs. 20%) say that “the situation of black people in this country” is better than it was five years earlier. Experian Simmons NCS data reveal that only 10% of blacks expect to be worse off financially 12 months from now, compared to 23% of other Americans.

African Americans Maintain Key Role in Multicultural America African Americans will continue to be a significant economic and political force in an increasingly multicultural American society. Although the Hispanic population is larger, there are more black households than Latino households (14.6 million vs. 13.4 million). While aggregate income is greater among Latinos, per capita income is 17% higher among blacks ($18,406 vs. $15,674), and the black population includes more people with a bachelor’s degree or more (4 million vs. 3.3 million).

African-American Market Affected by Growing Corporate Focus on Emergence of Multicultural Majority As major consumer products marketers have begun to align their strategies with the multicultural majority emerging in the United States, marketing efforts to reach out to African Americans are likely to increase. For example, in the words of the chief financial officer of Procter & Gamble, “Very much on our radar screen is what will happen between now and 2050 in terms of the demographics of the U.S. population, where minorities move to a majority.

We need to ensure we have products and messages and connections with

Hispanic consumers, with African-American consumers” (Mediapost, November 18, 2009).

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Social Media Provide New Outlets for Marketing to Black Consumers An October 2009 study by Washington, D.C.-based Pew Internet and American Life Project found that online blacks are more likely than any other online population segment to use Twitter or a status update service. Facebook participation by African Americans is also on the rise. The increasing involvement by African Americans in social networking sites has created new avenues for marketers.

Television Continues to Have Strong Payoff for Advertisers Although involvement in digital media is strong and computer ownership is trending upward, television continues to be a centerpiece of home entertainment in African-American households. According to Nielsen data published in Target Market News (December 10, 2009), while overall spending on advertising dropped 11.5% in the first three quarters of 2009 compared to the same period in 2008, African-American TV (including network, cable, syndicated and local programs) enjoyed a 31% increase in ad spending.

Affluent African Americans Represent Growing Opportunity There are 1.5 million black households with an income of $100,000 or more. These affluent households make up only 10% of all black households but control around one-third of the aggregate income of black consumers. According to Experian Simmons NCS data, there are around 3.9 million African Americans in the affluent category, and they comprise around 7% of all affluent Americans.

Black Shoppers Generate Opportunities for Multiple Retailers Experian Simmons NCS data show that nearly 12 million African Americans visited a shopping mall in the previous four weeks. Home electronics stores received 8 million African-American visitors, while 5.5 million blacks shopped at home furnishings stores and 9.5 million visited home improvement stores. Online purchases were made by 7.5 million blacks in the previous year, and 9.4 million African Americans bought merchandise from a catalog.

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Looking Ahead: Size of the African-American Market in 2010 and Beyond Black Population Reaches 39 Million According to the latest available population estimates from the Census Bureau, the population of African Americans reached 39 million in 2008.

Blacks comprise 13% of the U.S.

population.

African-American Population Will Approach 42 Million in 2014 Census Bureau projections indicate that the population of African Americans will grow to 39.9 million in 2010 and 42.1 million in 2015. Based on these projections, Packaged Facts estimates that the black population totaled 39.5 million in 2009 and will reach 41.7 million in 2014, representing cumulative growth of 5.6% during the forecast period.

Measuring the Size of the African-American Market This Packaged Facts report uses “buying power” (or “purchasing power”) to measure the size of the African-American market. Buying power is another term for “disposable personal income” (DPI), which is defined as the total after-tax income available to an individual to spend on personal consumption, personal interest payments and savings.

African-American Buying Power Will Reach $1.2 Trillion in 2014 Packaged Facts estimates that the buying power of black consumers in the United States totaled $936 billion in 2009. African-American buying power is expected to increase to $1.2 trillion by 2014, representing cumulative growth of 28.1%.

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Demographic Profile of the African-American Population Women Play Larger Role in Black Population African-American females account for 52.3% of the black population. The proportion of women in the black population is higher than that of non-Hispanic whites (51.5%), Hispanics (48.3%) and Asians (50.9%).

Blacks a Major Force in Urban America The 2008 American Community Survey of the Census Bureau found that blacks make up 12.4% of the population as a whole but 19.2% of Americans living in the principal cities of metropolitan areas. African Americans account for only 6.5% of those living in rural areas.

South Remains Home to 55% of African Americans The South has retained its historical role as the predominant region for the African-American population. More than half (55%) of blacks live in the South.

Household Structure Differs African-American households are about as likely as non-Hispanic white households to fall into the family category (63% vs. 65%). However, black family households are more likely to be households headed by unmarried women with children. Another characteristic of black households is that they are more likely to take the form of women living alone.

Unemployment Hits Hard in African-American Community The Bureau of Labor Statistics reported a November 2009 unemployment rate of 15.6% among black adults, compared to 9.3% for whites. The unemployment rate for black men was 16.9%, substantially higher than the 9.8 % experienced by white men.

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Overview of African-American Shoppers Black Women More Likely to Be Primary Shopper in Household Women are the primary shopper in 80% of black households. In other households, women are slightly less likely to be the primary shopper (76%).

African-American Kids Have Major Impact on Their Moms When Shopping African-American kids have a significant impact on the choices made by their moms when they go shopping together. Single black moms are much more likely than their counterparts in other population groups to agree that their kids have a significant impact on the brands they buy (49% vs. 31%).

Shopping Trips Cover Multiple Stores When African Americans go shopping, they tend to visit numerous stores. According to Experian Simmons NCS data, they are more likely than other consumers to report that they visit a variety of stores when they shop.

African Americans More Receptive to Advertising Black consumers are much less likely than other consumers to view advertising as a waste of time and are more likely to remember advertised products when shopping. They are more positive about watching commercials on TV and reading ads in magazines.

Ads on Public Transit Catch Black Consumers’ Attention Census Bureau data show that African Americans are more likely than other population groups to take public transportation to work. Consequently, they are more likely than other

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consumers to notice out-of-home ads in venues such as bus stops, subway trains or platforms and buses.

Incentive Offers Fail to Persuade Black Consumers In general, black households are less likely to respond to incentive offers (49% vs. 58%). African-American households also are less likely than other households to use cents-off coupons of all kinds.

Shopping Cart Ads More Likely to Engage Black Shoppers When black consumers are in stores, they are more likely than other shoppers to notice advertising on shopping carts and video monitor displays. They are much less likely to pay attention to signs on merchandise racks and shelves, free-standing displays with products and promotions or displays at the end of aisles.

African Americans Less Likely to Shop Online but Catalog Shopping More Popular African Americans remain much less likely to shop online. Only 31% of black consumers report placing an online order in the past 12 months, compared to 50% of other consumers. There is much less of a disparity between black and other consumers when it comes to catalog shopping. Around four in ten (39%) African Americans bought merchandise from a catalog in the past 12 months, compared to 43% of other consumers.

Black Consumers More Likely to Watch TV Shopping Channels Although less likely to shop online, black consumers are much more likely to watch a television home shopping channel. This holds for both black men (15% vs. 8%) and black women (25% vs. 16%).

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African-American Food Shoppers Black Shoppers Look for Organic Foods African-American consumers as a whole are about as likely as other consumers to look for organic and natural foods when they are in supermarkets. Black men are more likely and black women are less likely than their counterparts in other consumer segments to shop for organic and natural food items.

Home Cooking Less of a Centerpiece Black women are less likely to say that they really enjoy cooking. When they do cook, they are less likely to refer to recipes or try new ones.

Single Moms Less Interested in Cooking Compared to other single moms, black single mothers are less likely to enjoy cooking and try new recipes. They are more likely to eat store-made and frozen dinners and to claim that they prefer fast food to home cooking.

Fast Food Competes with Home-Cooked Meals Black consumers include a core group of extremely frequent users of fast food restaurants. More than half (55%) of black consumers report going to fast food restaurants 14 or more times in the past 30 days, compared to 45% of other consumers.

Black Consumers Enjoy Grocery Shopping Experian Simmons NCS data suggest that black consumers enjoy grocery shopping more than their counterparts in other consumer segments. For example, only 23% of black women agree with the statement that “shopping for groceries is a bore,” compared to 34% of other women.

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Married Black Moms Spend More Time in Supermarkets There are significant differences between the grocery shopping behavior of married black women with children and that of other mothers. Nearly four in 10 (37%) married AfricanAmerican moms shopped 10 or more times in a supermarket in the previous four weeks, compared to only 29% of their counterparts in other population groups.

African-American Moms Pay More Attention to In-Store Advertising in Supermarkets Both single and married African-American women with children are much more likely than their counterparts in other population segments to refer to a range of in-store advertising and promotional activities when they are shopping in a supermarket. For example, compared to other married women with children, married black moms are more likely to refer to advertising on the floor (59% vs. 53%), advertising on shopping carts (20% vs. 15%), in-store announcements (49% vs. 41%), radio/public address announcements (45% vs. 29%) and video monitor displays (32% vs. 17%).

Black Shoppers Spend More on Laundry and Cleaning Products Among products sold in supermarkets, laundry and cleaning products are a high-priority item for African-American shoppers. According to Bureau of Labor Statistics (BLS) data, black consumers spend an average of $153 annually, or 0.4% of their total expenditures, on laundry and cleaning products, compared to $147 (0.3% of total expenditures) spent by other consumers.

Food Expenditures Analyzed Compared to other consumer units, African-American consumer units allocate a greater percentage of their annual expenditures on food to cereal and cereal products, pork, fish and seafood and processed fruits.

Categories for which black consumers spend a smaller

proportion of their budgets include fresh fruits and sugar and other sweets.

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When Black Shoppers Buy Clothes Fashion Drives African-American Shoppers, Both Men and Women African Americans are much more likely than other consumers to keep up with the latest fashions (38% vs. 23%). While African-American women are more likely than other women to keep up with the latest fashions (43% vs. 31%), the fashion gap between black men and other men is even wider (32% vs. 15%).

Blacks Spend More Than Other Consumers for Apparel African-American consumer units dedicate a significantly higher portion of their annual expenditures to apparel (5.4% vs. 3.4%). Although the average income of black consumers is lower than that of other consumers, they still spend more in absolute terms ($1,983 vs. $1,776).

Children’s Clothing Especially Important African-American consumer units spend more than others on clothing for children under 16. Both married and single black moms are more likely than their counterparts in other population groups to have spent $400 or more on children’s clothing in the past 12 months.

Black Shoppers More Likely to Buy Dress Clothes African-American men are more likely to purchase dress clothes such as suits and neckties when they shop. A similar pattern holds in the case of African-American women. Compared to other women, black women are more likely to buy a suit (21% vs. 6%), dress (35% vs. 27%) and blazer (10% vs. 8%).

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Black Shoppers in Drug Stores Black Consumers Place Higher Value on Brand-Name Over-theCounter Drugs Compared to other consumers, African Americans are less likely to concur that over-thecounter (OTC) store brand drugs work like advertised brands. Although they are more likely to believe that OTC medications are safer than prescription drugs, they also have a higher likelihood of believing that non-prescription medications are not effective.

Black Consumers Less Likely to Buy Over-the-Counter Medications for Routine Aches and Pains This skeptical attitude toward OTC medications affects the behavior of black consumers. They are less likely to take headache and pain relievers (73% vs. 83%) as well as heartburn and indigestion aids.

Brand-Name Prescription Drugs More Popular Black consumers are more likely to believe that it is worth paying more for brand prescription medications. They also are more likely to look for the most advertised medications available.

Vitamins Less Important Compared to other adults, African Americans, especially African-American men, are less likely to believe that people need more vitamins when they get older. Black consumers are significantly less likely to report that they use vitamins.

Many Differences in Use of Personal-Care Products Compared to other women, African-American women are less likely to use foundation makeup, eye shadow and eye liner and mascara and are more likely to use perfume and cologne. Hair products less likely to be used by African-American women include hair spray, hair styling creams and shampoo.

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African-American men are more likely to use after shave/cologne, facial cleansing products, moisturizers and hair conditioners. They are less likely to use shampoo, hair spray, hair styling creams and lotions, shaving cream and razor blades for non-disposable razors.

Oral Care Products Have High Priority African-American consumers are much more likely to use mouthwash. Tooth whiteners are also used more often by African Americans, especially African-American men (15% vs. 8%).

Black Shoppers Visit Drug Stores More Often Experian Simmons NCS data show that black consumers visit drug stores more often than their counterparts in other consumer segments. For example, 43% of African Americans shopped at Walgreen’s in the last four weeks, compared to 39% of other consumers. Similar disparities can be seen in the case of the next most popular drug store chains: CVS (39% vs. 30%) and Rite-Aid (23% vs. 17%).

Blacks Less Likely to Redeem Cents-Off Coupons for Drug Products African-American consumers are about as likely to report that they redeem cents-off coupons in drug stores. However, they are less likely to use them for drug products (18% vs. 23%) or beauty/grooming products (25% vs. 34%).

Black Consumers Allocate More to Personal-Care Products In both absolute and relative terms, African-American consumers spend significantly less than other consumers for drugs and medical supplies. However, personal-care products have a higher priority for black consumers than they do for other consumers. While spending less in absolute terms for personal-care products and services ($528 vs. $628), African Americans allocate a higher proportion of their budgets to this consumer expenditure category (1.4% vs. 1.2%).

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Shopping for Home Electronics and Home Furnishings Black Consumers Place High Priority on Home Electronics African Americans are more likely than other consumers to claim to be the first to have new electronic equipment (17% vs. 9%). They also are more likely to say they love to buy new gadgets and appliances (32% vs. 26%).

Multiple Televisions More Common in Black Households African-American households are more likely to subscribe to cable TV, including premium channels. They also are more likely to own three or more TV sets (49% vs. 45%) and two or more DVD players (70% vs. 61%).

More African Americans Plan to Buy MP3 Players Ownership of electronic equipment is widespread among African Americans. For example, one in three (34%) owns a camcorder, while more than half (52%) own a camera. Black consumers are about as likely as other consumers to own an MP3 player (30% vs. 32%), and they are more likely (16% vs. 12%) to be planning to buy an MP3 player.

Four in Five Black Households Own Computer The gap in computer ownership between blacks and other population segments has declined significantly. According to Experian Simmons NCS data, 78% of black households have a computer, compared to 84% of other households. Around 30% of black households have two or more computers.

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Home Electronics Stores Popular Destination for Black Computer Buyers When African Americans buy computers, they are most likely to head to stores in the audio/video electronics store category. Computer stores are the next most popular choice for African-American computer buyers. When they buy software, black consumers are most likely to look for it in a computer store.

African-American Consumers Major Customers for Music Industry Black consumers are more likely to have bought 10 or more CDs in the past 12 months. They are about as likely as other consumers to have purchased 10 or more downloads. When African-American consumers buy music, they are most likely to purchase it at department stores.

Black Consumers Depend More on Cellphones Black consumers are much more likely than other consumers to view their cellphone as a platform to be used for information and commerce as well as voice communications. For example, they are more likely to see value in accepting ads on their cellphone and to purchase products advertised on a cellphone.

African Americans Spend More on Furniture Although spending less in absolute terms than other consumers, black consumers allocate relatively more of their annual budgets for furniture (0.9% vs. 0.8%). Black consumer units spend approximately $1,100 annually on household furnishings and equipment.

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Affluent African-American Shoppers Affluent Black Households Total 1.5 Million There are 1.5 million African-American households with an income of $100,000 or more. With a mean income of $152,000, affluent black households generate an aggregate income of $223 billion.

New York Metro Area Has Largest Population of Affluent Blacks The New York metropolitan area has the largest number of affluent black households— 183,000, or 13% of all affluent African-American households. The Washington, D.C. metro area has the second-largest concentration of affluent black households (135,000), followed by Atlanta (78,000) and Chicago (70,000).

Affluent Blacks Less Financially Secure Compared to other affluent Americans, affluent blacks are less likely to feel financially secure (27% vs. 37%) or to be happy with their standard of living (51% vs. 59%). They also are much more likely to consider money to be the best measure of success (29% vs. 19%).

Affluent Blacks Interested in Financial Services but Distrust Banks Affluent blacks are much more likely than their counterparts in other population segments to find ads for financial services interesting (32% vs. 11%). However, while more interested in exploring financial services, affluent blacks are wary of financial institutions. They are more likely than other affluent consumers to be uncomfortable entrusting their money to a bank.

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Credit Cards less Common among Affluent African Americans According to Experian Simmons NCS data, only 60% of affluent blacks have or use credit cards, compared to 81% of other affluent consumers. Visa is the most popular card among affluent black cardholders.

Life Insurance Important to Affluent Blacks Affluent African Americans are more likely to believe that it is important to be well insured for life insurance (67% vs. 62%). Although they are substantially less likely than other affluent Americans to have health insurance (68% vs. 85%), the gap is much narrower in the case of life insurance (61% vs. 64%).

Half of Affluent Blacks Have Investments Around half (48%) of affluent African Americans have investments of any kind. The most commonly held investment is a 401k (34%), followed by mutual fund/brokerage accounts (17%) and IRAs (16%).

Affluent Black Consumers Are Early Adopters Compared to other affluent consumers, affluent blacks are much more likely to claim to be the first among their friends to have new electronics equipment (24% vs. 13%). They also have a much higher likelihood of saying they will pay anything for an electronics product they want (23% vs. 11%).

Digital Divide Narrows among Affluent Consumers Although Internet usage is lower, affluent African-American households are nearly as likely as other households to own a computer (90% vs. 95%). They have about the same likelihood of owning four or more computers and are more likely to be planning to purchase a computer in the future.

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Cellphones Vital Part of Affluent Black Lifestyle Affluent African Americans are slightly more likely than other affluent consumers to own cellphones. They are about as likely to have a cellphone bill of $150 or more.

Books Key in Entertainment Choices of Affluent Blacks A substantial majority (59%) of affluent African Americans report purchasing books in the previous 12 months. Nearly one in three (31%) bought hardback books.

Multiple Vehicles a Hallmark of Affluent Black Households Because they are more likely to live in urban areas, affluent blacks are less likely than other affluent consumers to own a vehicle. However, a majority (65%) own two vehicles or more, with 37% owning three or more vehicles.

New Cars Favored Like other affluent consumers, affluent African Americans are more likely to buy a new vehicle than a used one. When buying or leasing a car, affluent African-Americans are more likely to acquire a vehicle worth $40,000 or more (14% vs. 9%).

One in Four Affluent Blacks Plans to Buy Car in Next 12 Months Around one in four (26%) affluent African Americans plans to buy a car in the next 12 months, the same proportion as other affluent consumers. The percentage of black and other affluent consumers planning to buy a new car is also the same (54%).

Cruise Ship Vacations More Popular Compared to other affluent consumers, affluent blacks are more likely to have taken a cruise ship vacation in the last three years (21% vs. 15%). They are even more likely to be planning to get on a cruise ship in the next 12 months (27% vs. 15%).

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Chapter 2: Trends and Opportunities

Chapter 2 Trends and Opportunities •

A study released by Washington, D.C.-based Pew Research Center in January 2010 found that nearly twice as many blacks now than in 2007 (39% vs. 20%) say that “the situation of black people in this country” is better than it was five years earlier.

Experian Simmons National Consumer Study (NCS) data reveal that only 10% of blacks expect to be worse off financially 12 months from now, compared to 23% of other Americans.

As major consumer products marketers have begun to align their strategies with the multicultural majority emerging in the United States, marketing efforts to reach out to African Americans are likely to increase.

While overall spending on advertising dropped 11.5% in the first three quarters of 2009 compared to the same period in 2008, African-American TV (including network, cable, syndicated and local programs) enjoyed a 31% increase in ad spending.

Experian Simmons NCS data show that nearly 12 million African Americans visited a shopping mall in the previous four weeks.

Home electronics stores received 8 million African-American visitors, while 5.5 million blacks shopped at home furnishings stores and 9.5 million visited home improvement stores.

Online purchases were made by 7.5 million blacks in the previous year, and 9.4 million African Americans bought merchandise from a catalog.

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Market Trends Blacks Empowered by Election of First African-American President

C

ensus Bureau data released in July 2009 reveal the critical importance of black voters in the 2008 presidential election. More than 16 million African Americans voted in November 2008, two million more than had voted in the 2004 presidential

election. Voting participation among black citizens of voting age was only slightly exceeded by that of non-Hispanic whites (65% vs. 66%). While increased turnout by African Americans was national in scope, it had its most significant impact in several battleground states. As seen in Table 2-1, higher turnout by black voters made a material difference in the results of the election in key states such as Florida, Indiana, Virginia and, especially, North Carolina, where Barack Obama no doubt would have lost without the addition of 135,000 black voters to the voting rolls.

Table 2-1 Impact of Additional Black Voters on Obama Victory Margin in Selected States (in thousands)

State

No. of Additional Black Voters 2004 vs. 2008

Margin of Obama Victory

Additional Black Voters as % of Victory Margin

Florida.................................

190

236

81%

Indiana ................................

21

28

75

North Carolina.....................

135

14

Virginia................................

209

235

89

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

Sense of Empowerment Leads to Greater Optimism among Black Consumers Black consumers have been especially hard hit by the Great Recession. Between 2007 and 2008, the average income of black households declined by 3.7% in real terms. As seen in Chapter 4, “Demographic Profile of the African-American Population,” the unemployment

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rate for African Americans, especially for black men, exceeds that of any other major population group. Yet, in the face of these daunting economic facts, survey research from several sources suggests that the sense of empowerment created by the election of Barack Obama has led blacks to adopt a more optimistic vision of the future than that held by other Americans. •

A poll sponsored by commentator Tavis Smiley and Nationwide Group and released in February 2009 found that only 16% of African Americans expected their financial situation to worsen in the coming year, compared to 29% of the general population.

In October 2009 an online survey conducted by ESSENCE.com found that 87% of black men agree that “now that there is a black president, African-American men can attain the American dream.”

Survey research released by Washington, D.C.-based Pew Research Center in January 2010 found that nearly twice as many blacks now than in 2007 (39% vs. 20%) say that “the situation of black people in this country” is better than it was five years earlier. More than half (53%) of blacks now say that life for blacks in the future will be better than it is now, compared to 44% in 2007.

The Pew Research Center survey also found that the number of blacks who rate their personal finances as excellent or good was up from 2007 (32% vs. 27%). In sharp contrast, the ratings among whites dropped substantially, from 52% to 35%. Experian Simmons National Consumer Study (NCS) data confirm that African Americans have translated a sense of uplift about their overall condition into more optimistic views about their own personal finances and the state of the American economy. Only 10% of blacks expect to be worse off financially 12 months from now, compared to 23% of other Americans. While 40% of African Americans believe they will be better off in the coming year, only 29% of other adults feel the same way. [Table 2-2] African Americans also are less likely to think the economy will be worse off and more likely to expect it to be better off in the coming year. Furthermore, African Americans are less likely to say they are holding off on a big-ticket purchase in the near future. [Tables 2-3 and 2-4]

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Table 2-2 Personal Financial Status, African-American vs. Other Consumers All Consumers

View of personal financial status

African-

Men

Women

African-

African-

American

Other

American

Other

American

Other

Worse off than 12 months ago...

30%

45%

29%

45%

30%

46%

Better off than 12 months ago....

16

15

17

16

15

15

Expect to be worse off in next 12 months ..................................

10

23

12

23

9

24

Expect to be better off in next 12 months ..................................

40

29

41

31

39

28

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 2-3 Outlook on the U.S. Economy, African-American vs. Other Consumers All Consumers African-

Outlook on U.S. economy

Men

Women

African-

African-

American

Other

American

Other

American

Other

Expect American economy to be worse in next 12 months .......

21%

41%

23%

40%

19%

42%

Expect American economy to be better in next 12 months .......

38

25

36

27

39

23

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 2-4 Purchasing Plans, African-American vs. Other Consumers All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

Big-ticket item ..........................

71%

86%

68%

86%

74%

86%

Medium-ticket item...................

68

80

64

80

71

81

Less .........................................

18

20

18

19

17

20

More.........................................

17

16

15

15

19

16

Not at all likely to buy in next 30 days ......................................

Amount expect to spend on household essentials .................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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African Americans Maintain Key Role in Multicultural America In 2010 the Census Bureau projects that there will be approximately 10 million more Latinos than blacks. Depending on immigration levels, the Hispanic population is projected to range between 64 million and 69 million in 2020, significantly outpacing the growth of the black population. However, African Americans will continue to be a significant economic and political force in American society. Although aggregate income is greater among Latinos, there are more black households than Latino households (14.6 million vs. 13.4 million). Per capita income is 17% higher among blacks ($18,406 vs. $15,674), and the black population includes more people with a bachelor’s degree or more (4 million vs. 3.3 million). Because a significant proportion of Latinos are not U.S. citizens, the number of African-American voters remains far greater (16.1 million vs. 9.7 million). [Table 2-5] Table 2-5 Key Economic and Demographic Indicators, African Americans vs. Hispanics African Americans

Latinos

2010 ......................................................................................

39.9 million

49.7 million

2020.......................................................................................

44.4 million

66.4 million

Number of households—2009 .................................................

14.6 million

13.4 million

Aggregate income—2008 ........................................................

$700.8 billion

692.4 billion

Per capita income—2008 ........................................................

$18,406

$15, 674

No. of people with bachelor’s degree or more .........................

4.0 million

3.3 million

No. voting in 2008 presidential election ...................................

16.1 million

9.7 million

Category Size of population ....................................................................

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

African-American Market Affected by Growing Corporate Focus on Emergence of Multicultural Majority As major consumer products marketers have begun to align their strategies with the multicultural majority emerging in the United States, marketing efforts to reach out to African Americans are likely to increase. In the words of the chief financial officer of Procter & Gamble, “Very much on our radar screen is what will happen between now and 2050 in terms of the demographics of the U.S. population, where minorities move to a majority. We

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need to ensure we have products and messages and connections with Hispanic consumers, with African-American consumers.” The chief marketing officer of Coca-Cola has noted that “multicultural consumers are our core focus” as the company sets its sights on 2020. Multicultural consumers are expected to account for 40% of Coca-Cola’s North American sales in 2020 (Mediapost, November 18 and November 20, 2009).

Market Researchers Continue to Mine for Segments in AfricanAmerican Consumer Base Marketers interested in the African-American market have increasingly realized that successful marketing programs need to reflect the fact that black consumers are not monolithic and above all need to avoid stereotyping.

Marketing firms have continued

research efforts to segment the African-American consumer base along psychographic and demographic lines that reflect their underlying diversity. •

A 2008 survey sponsored by Radio One, based in Lanham, Maryland, and released in the form of a study entitled “Black America Today” identified 11 distinct segments among 13- to 74-year-old blacks ranging from “Connected Black Teens” and “Digital Networkers” to “New Middle Class” and “Boomer Blacks.” A Radio One executive commented, "While people are less inclined these days to think that all Blacks are the same, they really do not understand the diversity within the African American community.”

A study released by Atlanta, Georgia-based Lattimer Communications found six segments within the population of African-American women that it labeled “Achievers,” “Fledglings,” “Tag-A-Longs,” “Self-Sufficients,” “Traditionals,” and “Cynics.” As noted by Lattimer Communications, “When it comes to Black women, one size does not fit all. In fact, we determined that there are six types of Black women—six very distinctive personas—who all view and react very differently to the world around them.

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Social Media Provide New Outlets for Marketing to Black Consumers An October 2009 study by Washington, D.C.-based Pew Internet and American Life Project found that online blacks are more likely than any other online population segment to use Twitter or a status update service. The Pew study determined that 26% of online African Americans use Twitter or another service, compared to 19% of whites, 18% of Hispanics and 19% of online Americans as a whole. Facebook participation by African Americans is also on the rise. A 2009 study released by Facebook reported that African Americans now comprise 11% of all Facebook members, a percentage that is up sharply from the 7% reported in late 2005. The increasing involvement by African Americans in social networking sites has created new avenues for marketers.

For example, in October 2009 American Airlines launched

BlackAtlas.com, which the company described as aiming to “combine the best features of a travel site with the power of social networking to create a dynamic online community for travelers to share experiences unique to the black community.”

By using blogs and

discussion boards on the site, users can share travel stories, videos and photos and provide travel tips as well as share content across social networks, create profiles, rate content and create other forms of content. In September 2009 Pepsi announced the launch of Pepsiweinspire.com, a digital community aimed specifically at African-American women. As noted in Brandweek (September 19, 2009), “Brand-specific women-targeted social networking and blogs are becoming fairly common as advertisers race to woo so-called ‘mommy’ bloggers. . . .However, Pepsi’s push is one of the first that’s focused expressly at African-American mothers. . . .”

Interest in Small-Screen Media Grows As noted in Chapter 9, “Shopping for Home Electronics and Home Furnishings,” African Americans are much more likely than other consumers to be interested in receiving commercial content on their cellphones and are more likely to be planning to purchase MP3 players. The above-average interest of black consumers in small-screen platforms has created opportunities for marketers.

For example, in October 2009 State Farm, a long-time

participant in efforts to focus on black consumers, began to sponsor a series of animated digital shorts featuring Steve Harvey, host of the nationally syndicated “Steve Harvey

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Morning Show.” The series will include 48 digital shorts on HarveyKnowsBest.com that can be seen on smartphones and MP3 players as well as computers.

Television Continues to Have Strong Payoff for Advertisers As seen in Chapter 9, black consumers are much more likely to own multiple TV sets. Although involvement in digital media is strong and computer ownership is trending upward, television continues to be a centerpiece of home entertainment in African-American households. Nielsen data published in Target Market News (December 10, 2009) highlight the continuing importance of television in the African-American market. Overall spending on advertising dropped 11.5% in the first three quarters of 2009 compared to the same period in 2008. However, according to this source, “One of the brightest spots in an otherwise dismal trend was African-American TV (including network, cable, syndicated and local programs) which enjoyed a 31% increase in spending.” Ad spending on African-American TV represented the second-largest increase of any category.

Competition for Black Viewer Segments Increases December 2009 saw the launch of Black Broadcasting Network (BBN) on Verizon ViOS TV Video on Demand. BBN describes its target audience as “an underserved urban 18-34 demographic” and plans to deliver a mix of movies, sports and original programming “appealing to a hipper, younger audience while delivering current and modern entertainment they crave.” In September 2009 Viacom, the owner of BET Networks, formed Centric, a new cable television channel geared toward another audience deemed to be “underserved” by the new channel’s founders: 25- to 54-year-old African Americans. According to a BET executive, in considering the target demographic for the new cable outlet, it came to the conclusion that “a perfect example would be” Barack and Michelle Obama (The New York Times, April 23, 2009). Viacom’s move was seen as a direct response to TV One, which is owned by Comcast and Radio One and targets a similar audience.

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Black Newspapers and Magazines Navigate Rough Economic Waters Black print media, including local weekly newspapers and nationally distributed magazines such as Jet and Ebony, have long held an iconic place in the black community. The 2008 “Black America Today” study sponsored by Radio One found that African Americans are twice as likely to trust black media as they are to trust mainstream media. While the economic slump hit all print media hard, African-American magazines were especially affected by hard economic times in 2009. •

Numerous reports in the black press as well as in mainstream media such as Newsweek (September 25, 2009) and McClatchy-Tribune Business News (October 23, 2009) pointed to the possibility of the sale of Ebony and Jet by Chicago, Illinoisbased Johnson Publishing Company. A 38% drop in advertising in both publications as well as changing media usage habits on the part of younger generations of black consumers were two factors behind the potential change of ownership.

A 40% decrease in ad pages in the first half of the year led to the July 2009 demise of the print version of Vibe magazine, one of the driving forces in the creation of hiphop culture and an important media presence In mid-August 2009 a new group of investors announced the launch of Vibe.com, a Web-based version of the publication, as well as plans to publish a print version on a quarterly rather than monthly basis. According to Vibe’s new owners, the new publication would be redesigned to cover a broader spectrum of musical genres and entertainers, including athletes (The Wall Street Journal, August 13, 2009).

In 2007 Radio One acquired GIANT magazine in order to create an upscale lifestyle magazine for African Americans. In November 2009 Radio One announced the suspension of the print version of the magazine, citing the “tremendous impact on print media” of the economic downturn. As it ended the print edition of GIANT, Radio One launched GIANTLife.com, which is intended to “super-serve a highly underserved audience,” affluent African Americans in the 21- to 34-year-old age group.

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Black newspapers also faced difficult economic conditions, with some publishers reporting a 40% drop in advertising revenues. However, the smaller size of black newspapers enabled some of them to be agile enough to respond to the recessionary environment. For example, the New Journal and Guide in Norfolk, Virginia, formed a partnership with a local gospel radio station to give advertisers an opportunity to place ads in multiple media (Sacramento Observer, July 9-July 15, 2009).

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Market Opportunities Affluent African Americans Represent Growing Opportunity As noted in Chapter 10, “Affluent African-American Shoppers,” there are 1.5 million black households with an income of $100,000 or more. These affluent households make up only 10% of all black households but control around one-third of the aggregate income of black consumers. According to Experian Simmons NCS data, there are around 3.9 million African Americans in the affluent category, and they comprise around 7% of all affluent Americans. There are 2 million affluent blacks who placed an Internet order in the last 12 months. Around 1.9 million affluent African Americans have investments and 2.4 million have life insurance policies. Affluent blacks are an especially attractive consumer segment for the automotive industry. Around one million affluent African Americans plan to buy a new car within the next year. Experian Simmons NCS data indicate that they are attractive targets for luxury-car marketers, as 1.3 million affluent blacks spent $30,000 or more on their last vehicle purchase. [Table 26] Table 2-6 Selected Opportunities Related to Affluent African-American Consumers No. of Affluent AfricanAmerican Consumers (in thousands)

Category

African Americans as % of All Affluent Consumers

Shopping and buying habits ................................................ Placed a mail/phone order in last 12 months ...........................

1,560

7.5%

Placed an Internet order in last 12 months ..............................

2,060

5.0

Bought merchandise from a catalog in last 12 months ............

1,729

6.0

Visited shopping mall last four weeks ......................................

2,196

6.1

Made purchase in department/discount/clothing store.............

2,994

6.0

Spent $400 or more on children’s clothing...............................

1,054

8.7

Bought dress in last 12 months (women only) .........................

944

7.8

Bought watch in last 12 months ...............................................

1,384

9.0

—continued—

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Table 2-6 Selected Opportunities Related to Affluent African-American Consumers [Cont.] No. of Affluent AfricanAmerican Consumers (in thousands)

Category

African Americans as % of All Affluent Consumers

Financial services .................................................................. Have life insurance ..................................................................

2,411

6.4%

Have or use credit card............................................................

2,341

4.9

Have any loans ........................................................................

2,277

5.7

Have any investments..............................................................

1,883

5.0

Plan to buy computer in future .................................................

1,838

8.1

Own cellphone .........................................................................

3,816

6.7

Bought books in last 12 months...............................................

2,313

5.7

Bought vehicle in last 12 months .............................................

1,288

6.4

Spent $30,000 or more on last vehicle purchase.....................

1,251

8.2

Plan to buy vehicle one year or less from now.........................

1,016

6.6

Plan to buy new vehicle next vehicle purchase........................

2,117

6.6

Took cruise-ship vacation last 3 years .....................................

815

8.9

Plan to take cruise ship vacation in next 12 months ................

1,070

11.7

Foreign travel in last 3 years....................................................

1,710

5.4

Stayed at hotel/motel in U.S. in last 12 months .......................

2,750

5.9

Member of hotel frequent guest program.................................

703

5.0

Rented vehicle in last 12 months .............................................

1,567

6.0

Home electronics and home entertainment ........................

Automotive .............................................................................

Travel ......................................................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Shoppers Generate Opportunities for Multiple Retailers Experian Simmons NCS data show that nearly 12 million African Americans visited a shopping mall in the previous four weeks. Home electronics stores received 8 million African-American visitors, while 5.5 million blacks shopped at home furnishings stores and 9.5 million visited home improvement stores. Online purchases were made by 7.5 million

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blacks in the previous year, and 9.4 million African Americans bought merchandise from a catalog. [Table 2-7] Table 2-7 Selected Opportunities Related to Shopping Habits of African Americans No. of African American Consumers (in thousands)

Category

African Americans as % of All Consumers

Visited shopping malls last 4 weeks ................................................

11,944

10.3%

Visited strip malls last 4 weeks ........................................................

6,803

7.4

Home electronics ...........................................................................

7,982

9.3

Home furnishings and housewares................................................

5,511

8.6

Home improvement .......................................................................

9,467

7.0

Office supply/computer store .........................................................

2,444

7.3

Placed Internet order last 12 months ...............................................

7,462

7.0

Bought merchandise from catalog ...................................................

9,350

9.9

Stores shopped in last three months ...............................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Shoppers Key Segment for Food Retailers As shown in Chapter 6, “African-American Food Shoppers,” Experian Simmons NCS data reveal that black consumers are frequent supermarket shoppers.

More than 10 million

African Americans shopped at a supermarket 10 or more times in the past four weeks, while 4.5 million spend $150 or more on groceries every week. When African Americans are in a supermarket, they are highly likely to look for organic foods. Nearly six million black consumers report that they look for organic foods when they shop. According to Natural Foods Merchandiser (March 2009), this finding is in line with a wide range of other research sources.

For example, a 2008 organics consumer survey

conducted by Bellevue, Washington-based The Hartman Group found that 61% of African Americans are “core” or “midlevel” organics consumers, compared to 60% of whites. The study found that 37% of blacks buy organics daily, weekly or monthly, compared to 38% of whites.

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African Americans make up a high proportion of vegetarians. Experian Simmons NCS data reveal that there are 2.2 million blacks who identify as vegetarians, or 15.4% of all those who fall into this category. [Table 2-8] Table 2-8 Selected Opportunities Related to Food Shopping Habits of African Americans No. of African American Consumers (in thousands)

Category

African Americans as % of All Consumers

Spend $150 or more weekly on groceries.......................................

4,488

10.8%

Shopped supermarket 10 or more times last four weeks ................

10,072

10.5

When shopping for food, look for organic/natural products.............

5,852

10.9

Often eat store-made, pre-cooked meals........................................

5,179

11.9

Look for the freshest ingredients when cooking..............................

13,241

10.8

Identify as vegetarian......................................................................

2,152

15.4

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Entertainment Habits Generate Unique Opportunities Nearly one million African Americans bought an audiobook in the previous year. Blacks represent around 12% of all audiobook buyers. Other high-profile opportunities offered by the entertainment and leisure habits of African Americans include the following: •

Blacks account for 35% of all consumers who say they are likely to subscribe to video-on-demand.

There are 8.7 million African Americans who plan to purchase a personal computer and 3.9 million who expect to buy an MP3 player. An additional 1.7 million black consumers plan to purchase a DVR.

While 21 million African Americans own a cellphone, a substantial minority do not have long-term service contracts. The six million African Americans who rely on prepaid and other non-contract forms of service represent a significant opportunity for wireless service providers. [Table 2-9]

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Table 2-9 Selected Opportunities Related to Home Electronics and Home Entertainment Patterns of African Americans No. of African American Consumers (in thousands)

Category

African Americans as % of All Consumers

Purchased books in last 12 months .................................................

11,499

Audiobooks ....................................................................................

968

11.5

Likely to subscribe to video-on-demand ..........................................

2,310

34.7

Cinemax ........................................................................................

4,230

16.8

HBO...............................................................................................

6,295

13.8

Own cellphone .................................................................................

21,059

10.8

Prepaid plan ..................................................................................

2,992

15.5

No contract (not prepaid) ...............................................................

3,067

13.9

Plan to purchase personal computer in future .................................

8,656

12.4

Plan to purchase MP3 player...........................................................

3,896

14.3

Plan to purchase DVR .....................................................................

1,743

17.3

9.1%

Subscribe to premium cable channels .............................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

African Americans Major Customers of Apparel Retailers Black consumers represent 14% of all consumers who spent $400 or more on children’s apparel in the past year. They also are a significant force in purchases of clothes for adults. For example, black women are responsible for 17% of all those purchasing a raincoat and 30% of those buying a women’s suit. African-American men account for around 20% of all men buying suits. [Table 2-10]

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Table 2-10 Selected Opportunities Related to Apparel Purchases of African Americans No. of African American Consumers (in thousands)

Category Spent $400 or more on children’s apparel last 12 months ..............

African Americans as % of All Consumers

5,052

14.1%

Overcoat/jacket .............................................................................

3,038

11.4

Blazer or jacket .............................................................................

1,442

13.9

Raincoat or all-weather coat .........................................................

1,433

16.6

Leather jacket ...............................................................................

1,508

25.9

Suit................................................................................................

3,143

30.0

Skirt...............................................................................................

3,804

14.0

Dress ............................................................................................

5,196

15.2

Overcoat/topcoat ..........................................................................

1,747

15.2

Leather jacket ...............................................................................

1,898

21.6

Suit................................................................................................

2,670

19.5

Women’s apparel purchased last 12 months ..................................

Men’s apparel purchased last 12 months .......................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Blacks Represent Significant Possibilities for Drug Store Chains African Americans account for one in seven shoppers at Rite-Aid, 13% at CVS and 12% of shoppers at Walgreen’s. Black consumers comprise a major share of the market for a wide range of products sold in drug stores, including greeting cards, oral care products and personal-care products. [Table 2-11]

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The African-American Market in the U.S.

Chapter 2: Trends and Opportunities

Table 2-11 Selected Opportunities Related to African-American Drug Store Shoppers No. of AfricanAmerican Consumers (in thousands)

Category

African Americans as % of All Consumers

Shopped last four weeks ...................................................... Walgreen’s..........................................................................

10,203

11.7%

CVS ....................................................................................

9,166

13.4

Rite-Aid...............................................................................

5,550

14.0

Bought greeting cards last three months ..............................

10,842

9.0

Headache/pain relievers .....................................................

17,416

9.6

Heartburn/indigestion aids ..................................................

9,573

9.3

Vitamin/mineral tabs/caps...................................................

12,167

9.7

Dental floss .........................................................................

13,373

9.9

Mouthwash .........................................................................

17,633

13.2

Toothbrushes—manual ......................................................

20,266

10.8

Toothbrushes—power ........................................................

8,768

12.3

Toothpaste..........................................................................

21,611

10.5

Tooth whiteners ..................................................................

3,897

14.4

After shave/cologne ............................................................

7,042

11.7

Deodorants .........................................................................

9,199

9.5

Hair styling products ...........................................................

2,304

8.6

Moisturizers/creams/lotions ................................................

6,797

16.6

Over-the-counter medicines used.........................................

Oral care products used .......................................................

Men only ...............................................................................

—continued—

February 2010

© Packaged Facts

35


Chapter 2: Trends and Opportunities

The African-American Market in the U.S.

Table 2-11 Selected Opportunities Related to African-American Drug Store Shoppers [Cont.] No. of AfricanAmerican Consumers (in thousands)

Category

African Americans as % of All Consumers

Women only.......................................................................... Deodorants .........................................................................

12,563

11.8%

Eye shadow/ .......................................................................

4,639

7.4

Facial cleansing products ...................................................

7,088

10.5

Foundation makeup ............................................................

5,540

7.6

Hair coloring products (use at home) ..................................

3,736

10.3

Hair conditioner/treatment (use at home)............................

9,637

11.5

Hair styling creams/gels/lotions ..........................................

5,945

10.3

Home permanents and relaxers..........................................

7,010

64.8

Lipstick & lip gloss ..............................................................

10,341

11.7

Mascara ..............................................................................

5,883

7.9

Moisturizers/creams/lotions ................................................

10,686

10.9

Perfume/cologne/toilet water ..............................................

10,826

12.7

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

36

ŠPackaged Facts

February 2010


The African-American Market in the U.S.

Chapter 3: Size and Growth of the Market

Chapter 3 Looking Ahead: Size of the African-American Market in 2010 and Beyond

According to the latest available population estimates from the Census Bureau, the population of African Americans reached 39 million in 2008.

Packaged Facts estimates that the black population totaled 39.5 million in 2009 and will reach 41.7 million in 2014, representing cumulative growth of 5.6% during the forecast period.

Packaged Facts estimates that the buying power of black consumers in the United States totaled $936 billion in 2009.

African-American buying power is expected to increase to $1.2 trillion by 2014, representing cumulative growth of 28.1%.

February 2010

© Packaged Facts

37


Chapter 3: Size and Growth of the Market

The African-American Market in the U.S.

Size and Growth of the African-American Consumer Base Black Population Reaches 39 Million

A

ccording to the latest available population estimates from the Census Bureau, the population of African Americans reached 39 million in 2008. Blacks comprise 13% of the U.S. population. [Table 3-1]

Between 2000 and 2008 the black population increased by 3.3 million, or 9%. African Americans accounted for 15% of total population growth during this period. [Table 3-2] Table 3-1 U.S. Population by Race and Hispanic Origin, 2008 (in thousands) Category

No.

% of Total

Black or African American......................................

39,059

Non-Hispanic White ...............................................

199,491

65.6

Hispanic .................................................................

46,944

15.4

Asian......................................................................

13,549

4.5

All people..............................................................

304,060

100.0%

12.8%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

Table 3-2 Population Growth, African Americans vs. Other Population Groups, 2000-2008 No. (in thousands)

Cumulative Growth

% of Total Growth

Black or African American.......

3,252

9.1%

14.9%

Non-Hispanic white .................

3,728

1.9

17.0

Hispanic ..................................

11,300

31.7

51.6

Asian.......................................

2,862

26.8

13.1

All people...............................

21,888

7.8

100.0%

Category

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

38

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February 2010


The African-American Market in the U.S.

Chapter 3: Size and Growth of the Market

African-American Population Will Approach 42 Million in 2014 Census Bureau projections indicate that the population of African Americans will grow to 39.9 million in 2010 and 42.1 million in 2015. Based on these projections, Packaged Facts estimates that the black population totaled 39.5 million in 2009 and will reach 41.7 million in 2014, representing cumulative growth of 5.6% during the forecast period. [Tables 3-3 and 34] Table 3-3 Projected Population Growth, African Americans vs. Other Population Groups, 2010 vs. 2015 (in thousands) Cumulative Growth

% of Total Growth

2,228

5.6%

14.6%

203,208

2,355

1.2

15.4

49,726

57,711

7,985

16.1

52.2

Asian.........................

14,415

16,527

2,112

14.7

13.8

All people ................

310,233

325,540

15,307

4.9

100.0%

Category

2010

2015

Black.........................

39,909

42,137

Non-Hispanic white...

200,853

Hispanic....................

Population Increase

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

Table 3-4 Projected Growth in the African-American Population by Single Year, 2009-2014

Year

Population (in thousands)

Cumulative Growth

2014 ..............................................

41,694

5.6%

2013 ..............................................

41,241

4.4

2012 ..............................................

40,792

3.3

2011 ..............................................

40,348

2.2

2010 ..............................................

39,909

1.1

2009 ..............................................

39,489

—

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

February 2010

Š Packaged Facts

39


Chapter 3: Size and Growth of the Market

The African-American Market in the U.S.

African-American Buying Power Defining the African-American Market Packaged Facts defines the African-American market as consisting of the buying power of individuals who identify in Census Bureau surveys as black or African American alone, regardless of whether they also identify as Hispanic. This definition is consistent with the data categories used by forecasting groups such as the Selig Center for Economic Growth at the University of Georgia.

Measuring the Size of the African-American Market This Packaged Facts report uses “buying power” (or “purchasing power”) to measure the size of the African-American market. Buying power is another term for “disposable personal income” (DPI), which is defined as the total after-tax income available to an individual to spend on personal consumption, personal interest payments and savings. Packaged Facts has based growth projections for the African-American market on the following framework. •

Between 2000 and 2008 DPI in the United States grew at an annual rate of around 5%. However, data compiled through the third quarter of 2009 by the Bureau of Economic Analysis of the U.S. Department of Commerce indicate that DPI was on track to show an annual increase of only 1.8% between 2008 and 2009.

Packaged Facts estimates that African Americans were responsible for 8.6% of all disposable personal income in the United States in 2008. This represents a slight decline from 8.7% in 2006 and 2007 and from 8.8% in 2008 and likely is due to the fact that black Americans have been especially hard hit by unemployment during the economic downturn.

Packaged Facts projects that DPI will increase at a faster rate starting in 2010 and that African Americans’ share of DPI will gradually increase during the forecast period as economic conditions improve.

40

© Packaged Facts

February 2010


The African-American Market in the U.S.

Chapter 3: Size and Growth of the Market

African-American Buying Power Will Reach $1.2 Trillion in 2014 Based on these assumptions, Packaged Facts estimates that the buying power of black consumers in the United States totaled $936 billion in 2009. African-American buying power is expected to increase to $1.2 trillion by 2014, representing cumulative growth of 28.1%. [Table 3-5] Table 3-5 Projected Growth in African-American Buying Power, 2009-2014

Year

Population (in thousands)

Per Capita Buying Power

Aggregate Buying Power (in billion $)

Cumulative Growth

2014 .......................

41,694

$28,760

1,199.1

28.1%

2013 .......................

41,241

27,691

1,142.0

22.0

2012 .......................

40,792

26,662

1,087.6

16.2

2011 .......................

40,348

25,382

1,024.1

9.4

2010 .......................

39,909

24,556

980.0

4.7

2009 .......................

39,489

23,700

935.9

—

Source: Packaged Facts

February 2010

Š Packaged Facts

41


Chapter 3: Size and Growth of the Market

The African-American Market in the U.S.

Aggregate Spending by African-American Consumer Units Consumer Units Defined Consumer expenditure data contained in this and other chapters of the report are compiled by the Consumer Expenditures Survey (CES) of the U.S. Bureau of Labor Statistics (BLS). A consumer unit is defined by BLS as one of the following: •

All members of a particular household who are related by blood, marriage, adoption, or other legal arrangements;

A person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or

Two or more persons living together who pool their income to make joint expenditure decisions.

Financial independence is determined by the three major expense categories: housing, food and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent.

Black Consumer Units a Significant Force In 2008 African-American consumer units spent a total of $542 billion.

They were

responsible for 8.9% of all consumer expenditures in the United States.

African-American Consumers Have Disproportionate Influence in Numerous Areas While African Americans account for 8.9% of consumer expenditures as a whole, they are responsible for a higher proportion of aggregate expenditures in a number of key areas.

42

© Packaged Facts

February 2010


The African-American Market in the U.S.

Chapter 3: Size and Growth of the Market

The $40.2 billion allocated by African Americans to buying food at home includes $2.7 billion for poultry, or 14.1% of all consumer expenditures in this category, $2.1 billion for fish and seafood (13.3%), $2.5 billion for pork products (12.6%), $2.1 billion for cereal and cereal products (10.3%), $3 billion for beef (10.3%) and $1.3 billion for processed vegetables (10.1%). [Table 3-6]

African Americans are especially important to retailers in the apparel and footwear industries, where they spend $28.5 billion or 13.1% of the total. They are responsible for a disproportionate share of expenditures on footwear ($6.8 billion or 18% of the total) and clothes for boys ($1.6 billion or 15.8% of the total). [Table 3-7]

In the category of expenditures for vehicle purchases and related expenses, African Americans are responsible for 10.2% of expenditures for used vehicles and gasoline and motor oil, 11.2% of expenditures for vehicle finance charges and 11% of expenditures for vehicle insurance. [Table 3-8]

African-American consumer units spend $13.1 billion annually on audio and visual equipment and services, or 10.5% of the total. [Table 3-9]

Other consumer expenditure categories heavily influenced by African-American consumers include furniture ($5 billion, or 10.7% of the total), household textiles ($1.7 billion, or 10.9%), personal-care products and services ($7.7 billion, or 10.4%), telephone services ($17.2 billion, or 12.7%) and laundry and cleaning supplies ($2.2 billion, or 12.3%). [Tables 3-10 and 3-11]

February 2010

© Packaged Facts

43


Chapter 3: Size and Growth of the Market

The African-American Market in the U.S.

Table 3-6 Aggregate Annual Expenditures by African-American Consumer Units for Food at Home, 2008 Amount (in million $)

% of All Consumer Expenditures

Cereals and bakery products.....................................

5,440

8.9%

Cereals and cereal products....................................

2,106

10.3

Bakery products........................................................

3,335

8.2

Meats, poultry, fish, and eggs....................................

12,142

11.9

Beef ..........................................................................

2,966

10.3

Pork ..........................................................................

2,476

12.6

Other meats..............................................................

1,220

9.5

Poultry ......................................................................

2,704

14.1

Fish and seafood ......................................................

2,050

13.3

Eggs .........................................................................

671

10.9

Dairy products ............................................................

3,729

7.2

Fresh milk and cream ...............................................

1,662

8.2

Other dairy products .................................................

2,080

6.6

Fruits and vegetables .................................................

6,415

8.1

Fresh fruits..............................................................

1,819

6.8

Fresh vegetables ....................................................

1,865

7.3

Processed fruits ......................................................

1,389

9.9

Processed vegetables ............................................

1,299

10.1

Other food at home.....................................................

12,586

8.0

Sugar and other sweets...........................................

1,153

7.4

Fats and oils .............................................................

1,171

9.3

Miscellaneous foods .................................................

6,393

7.8

Nonalcoholic beverages ...........................................

3,716

9.0

Food prepared on out of-town trips...........................

206

3.5

Total ............................................. .............. ..............

$40,179

Item

8.9%

Note: Subtotals do not add to totals due to rounding. Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

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February 2010


The African-American Market in the U.S.

Chapter 3: Size and Growth of the Market

Table 3-7 Aggregate Annual Expenditures by African-American Consumer Units for Apparel and Footwear, 2008 Amount (in million $)

Item

% of All Consumer Expenditures

Men and boys ...........................................................

$5,972

11.6%

Men, 16 and over....................................................

4,358

10.5

Boys, 2 to 15 ..........................................................

1,577

15.8

Women and girls.......................................................

11,171

12.9

Women, 16 and over ..............................................

9,211

12.8

Girls, 2 to 15 ...........................................................

1,903

13.0

Children under 2 .......................................................

1,454

13.0

Footwear ..................................................................

6,824

18.0

Other apparel products and services........................

3,180

10.6

Total.........................................................................

$28,450

13.1%

Note: Subtotals do not add to totals due to rounding. Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Table 3-8 Aggregate Annual Expenditures by African-American Consumer Units for Vehicle Purchases and Related Expenses, 2008 Amount (in million $)

Item

% of All Consumer Expenditures

Vehicle purchases (net outlay) .................................

$29,277

8.8%

Cars and trucks, new..............................................

11,662

7.4

Cars and trucks, used.............................................

16,205

10.2

Other vehicles ........................................................

1,444

Gasoline and motor oil..............................................

33,443

10.2

Other vehicle expenses ............................................

29,414

9.3

Vehicle finance charges .........................................

4,224

11.2

Maintenance and repairs ........................................

7,057

8.0

Vehicle insurance ...................................................

14,765

11.0

Vehicle rental, leases, licenses, other charges.......

3,479

6.2

8.9*

Note: Subtotals do not add to totals due to rounding. Asterisk indicates data are likely to have large sampling errors. Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

February 2010

Š Packaged Facts

45


Chapter 3: Size and Growth of the Market

The African-American Market in the U.S.

Table 3-9 Aggregate Annual Expenditures by African-American Consumer Units for Entertainment, 2008 Amount (in million $)

Item

% of All Consumer Expenditures

Fees & admissions ..................................................

$3,122

4.2%

Audio and visual equipment and services................

13,137

10.5

Pets, toys, and playground equipment ....................

3,480

4.1

Other entertainment, supplies, equipment and services ...................................................................

1,910

3.3

Total ........................................................................

$21,558

6.3%

Note: Subtotals do not add to totals due to rounding. Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Table 3-10 Aggregate Annual Expenditures by African-American Consumer Units for Household Furnishings and Equipment, 2008 Amount (in million $)

Item

% of All Consumer Expenditures

Household textiles ................................................

$1,661

10.9%

Furniture ...............................................................

5,009

10.7

Floor coverings .....................................................

318

5.9

Major appliances ..................................................

1,800

7.3

Small appliances/miscellaneous housewares.......

871

6.4

Miscellaneous household equipment....................

6,594

7.3

Total .....................................................................

$16,270

8.3%

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Table 3-11 Aggregate Annual Expenditures by African-American Consumers for Miscellaneous Products and Services, 2008 Amount (in million $)

Item

% of All Consumer Expenditures

Personal-care products and services ......................

$7,727

10.4%

Telephone services .................................................

17,283

12.7

Laundry and cleaning supplies ..............................

2,192

12.3

Education.................................................................

7,577

6.0

Reading materials....................................................

702

5.0

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

46

Š Packaged Facts

February 2010


The African-American Market in the U.S.

Chapter 4: Demographic Profile

Chapter 4 Demographic Profile of the African-American Population

There are 3.1 million foreign-born blacks, who account for around 8% of the AfricanAmerican population.

Blacks make up 12.4% of the population as a whole but 19.2% of Americans living in the principal cities of metropolitan areas.

More than half (55%) of blacks live in the South.

With 3.4 million African-American residents, the New York metropolitan area is by far the most significant black population center.

Only 34% of black men and 26% of black women are married. These percentages are significantly lower than those for non-Hispanic whites (55% and 52% respectively), Hispanics (48% and 45%) and Asians (60% and 59%).

Black households are more likely to be households headed by unmarried women with children and women living alone.

In November 2009 the unemployment rate reached 15.6% among black adults, compared to 9.3% for whites.

Both black men and women are more likely than their Hispanic counterparts to be employed in management and professional jobs.

February 2010

© Packaged Facts

47


Chapter 4: Demographic Profile

The African-American Market in the U.S.

Demographic Highlights Foreign-Born Blacks Increasingly Important

T

here are 3.1 million foreign-born blacks. They account for around 8% of the African-American population and 8% of the entire foreign-born population in the United States. [Table 4-1]

As seen in Table 4-2, most foreign-born blacks (63%) are from Latin America.

The

preponderance of blacks from the Latin American region are from Haiti, the Dominican Republic, Jamaica and other English-speaking countries in the Caribbean Basin. Around one-third of foreign-born blacks are from Africa. Foreign-born blacks are responsible for a significant portion of growth in the AfricanAmerican population. Between 2000 and 2008 the number of foreign-born blacks increased by 982,000. Blacks born outside the United States accounted for 30% of the growth in the black population during this period. [Table 4-3] Foreign-born blacks are most likely to live in or near popular ports of entry such as New York and Miami. Thus, the states with the largest populations of foreign-born blacks are New York (857,000) and Florida (548,000). Table 4-1 Foreign-Born U.S. Population by Race and Hispanic Origin, 2008

Category

No. (in thousands)

% of Population Segment

% of Foreign-Born Population

Black alone .....................

3,082

8.2%

8.1%

Non-Hispanic White ........

7,730

3.9

20.4

Asian...............................

9,012

67.2

23.7

Two or more races ..........

563

8.0

1.5

Hispanic ..........................

17,811

38.0

46.9

All people.......................

37,961

12.5%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

48

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February 2010


The African-American Market in the U.S.

Chapter 4: Demographic Profile

Table 4-2 Region of Birth of Foreign-Born Blacks, 2008 (in thousands) Region

No.

%

Africa ............................................

1,048

34.0%

Latin America................................

1,943

63.0

Other.............................................

92

3.0

Total .............................................

3,082

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

Table 4-3 Number of Foreign-Born African Americans, 2000 vs. 2008 (in thousands) Growth 2000-2008 Category

2008

2000

Foreign-born ....................

3,082

2,100

982

46.8

Native-born ......................

35,976

33,707

2,269

6.7

Total population.............

39,059

35,807

3,252

9.1%

No.

%

% of Total Growth 30.2% 69.8 100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

African Americans Influential Part of Youth Population On average, African Americans are younger than non-Hispanic whites. Around 40% of blacks are under the age of 25, compared to only 30% of non-Hispanic whites. [Table 4-4] One result of this demographic characteristic of the African-American population is that blacks have a disproportionate influence on the youth population. While African Americans represent 13% of the population as a whole, they account for 16% of 14- to 17-year-olds and 15% of 18- to 24-year-olds. [Table 4-5]

February 2010

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49


Chapter 4: Demographic Profile

The African-American Market in the U.S.

Table 4-4 Population by Selected Age Group, African Americans vs. Other Population Groups, 2008

Age Group Under 5 years .......

AfricanAmerican

Non-Hispanic White

8.0%

Hispanic

Asian

11.3%

6.9%

5.5%

5 to 14...................

15.4

11.4

18.0

12.2

15 to 24.................

16.9

13.0

16.0

12.5

25 to 34.................

14.5

12.1

17.4

16.7

35 to 44.................

14.1

13.6

14.9

17.8

45 to 54.................

13.6

15.8

10.7

14.3

55 to 64.................

8.9

12.9

6.1

10.0

65+........................

8.5

15.7

5.6

9.6

All ages ................

100.0%

100.0%

100.0%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

Table 4-5 African Americans as Percent of Total Population by Selected Age Group, 2008 African Americans Age Group

Total Population (in thousands)

No. (in thousands)

% of Total Population in Age Group

Under 25 ......................

103,699

15,753

15.2%

Under 5 ......................

21,006

3,150

15.0

5 to 13........................

36,005

5,358

14.9

14 to 17......................

16,931

2,714

16.0

18 to 24......................

29,757

4,531

15.2

25 to 44........................

83,433

11,188

13.4

45 to 64........................

73,058

8,802

12.0

65+...............................

38,870

3,315

8.5

All ages .......................

304,060

39,059

12.8%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

50

Š Packaged Facts

February 2010


The African-American Market in the U.S.

Chapter 4: Demographic Profile

Women Play Larger Role in Black Population African-American females account for 52.3% of the black population. The proportion of women in the black population is higher than that of non-Hispanic whites (51.5%), Hispanics (48.3%) and Asians (50.9%). [Table 4-6] Table 4-6 Population of Males and Females, African Americans vs. Other Population Groups, 2008

Gender

Non-Hispanic Black

Non-Hispanic White

Hispanic

Asian

Male......................

47.7%

48.5%

51.7%

49.1%

Female..................

52.3

51.5

48.3

50.9

Total .....................

100.0%

100.0%

100.0%

100.0%

Source: U.S. Census Bureau; Packaged Facts

February 2010

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51


Chapter 4: Demographic Profile

The African-American Market in the U.S.

Where African Americans Live Blacks a Major Force in Urban America The 2008 American Community Survey of the Census Bureau found that blacks make up 12.4% of the population as a whole but 19.2% of Americans living in the principal cities of metropolitan areas. African Americans account for only 6.5% of those living in rural areas. [Table 4-7] Table 4-7 Percent of Residents in Urban and Rural Areas, African-Americans vs. Others African Americans

Category

Non-Hispanic Whites

Others

All U.S........................................................................

12.4%

65.4%

22.2%

Urban .........................................................................

14.1

60.2

25.7

Rural ..........................................................................

6.5

82.8

10.7

In metropolitan or micropolitan statistical area...........

12.6

64.3

23.1

In metropolitan statistical area ...................................

13.1

62.5

24.4

In principal city .........................................................

19.2

49.6

31.2

Not in principal city...................................................

9.3

70.6

20.1

8.6

79.4

12.0

In principal city .........................................................

12.3

72.3

15.4

Not in principal city...................................................

6.7

82.9

10.4

Not in metropolitan or micropolitan statistical area ...

8.2

82.1

9.7

In micropolitan statistical area

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

South Remains Home to 55% of African Americans The South has retained its historical role as the predominant region for the African-American population. More than half (55%) of blacks live in the South. [Table 4-8] Most of the states with the highest proportion of black residents are in the South. These include Mississippi (38%), Louisiana (32%) and Georgia (30%).

Predominately black

counties are also mainly located in the South. Examples include Hinds County, Mississippi, which is 67% black, and Dougherty County, Georgia (66%).

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There are important exceptions to this rule. The District of Columbia and Prince George’s County and Baltimore City, Maryland are predominately black, while blacks make up more than 40% of the population of St. Louis, Missouri, Essex County, New Jersey and Wayne County, Michigan. Moreover, a number of states with significant black populations are not in the South. These include New York, which has 3.4 million black residents, California (2.5 million) and Illinois (1.9 million). [Tables 4-9, 4-10 and 4-11] Table 4-8 Distribution of African-American Population % of African-American Population

% of Total Population in Region

Northeast ......................................

17.6%

12.5%

Midwest ........................................

17.7

10.4

South ............................................

55.3

19.3

West .............................................

9.4

5.2

Region

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-9 States with Highest Percentage of African Americans, 2008

State

% of Total Population of State

State

% of Total Population of State

.District of Columbia.......................

53.4%

.Tennessee........................................

16.3%

.Mississippi ....................................

37.5

.New York ..........................................

15.9

.Louisiana ......................................

31.9

.Arkansas ..........................................

15.5

.Georgia.........................................

30.0

.Florida ..............................................

15.4

.Maryland.......................................

28.9

.Illinois ...............................................

14.6

.South Carolina ..............................

28.1

.Michigan ...........................................

13.9

.Alabama .......................................

26.2

.New Jersey.......................................

13.6

.North Carolina ..............................

21.2

.Ohio..................................................

11.7

.Delaware ......................................

20.6

.Texas................................................

11.4

.Virginia..........................................

19.6

.Missouri ............................................

11.1

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-10

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Counties with Highest Percentage of African Americans, 2008 % of Total Population of County

County

% of Total Population of County

County

Hinds County MS...........................

66.5%

Hampton city VA ................................

48.4%

Dougherty County GA....................

65.6

St. Louis city MO................................

47.8

Prince George's County MD ..........

63.9

Sumter County SC.............................

47.3

Baltimore city MD...........................

63.1

Caddo Parish LA................................

46.7

Clayton County GA ........................

62.6

Muscogee County GA........................

46.0

Orleans Parish LA..........................

61.1

Richland County SC ..........................

45.5

DeKalb County GA ........................

54.1

Norfolk city VA ...................................

44.7

Montgomery County AL .................

53.5

East Baton Rouge Parish LA .............

44.7

District of Columbia........................

53.4

Fulton County GA ..............................

42.8

Jefferson County AR......................

52.6

Newport News city VA .......................

42.1

Portsmouth city VA ........................

52.2

Suffolk city VA ...................................

41.3

Richmond County GA ....................

51.9

Essex County NJ ...............................

41.2

Shelby County TN..........................

50.9

Jefferson County AL ..........................

41.0

Richmond city VA ..........................

50.8

Wayne County MI ..............................

40.5

Bibb County GA .............................

49.9

Florence County SC ..........................

40.5

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-11 States with Largest African-American Populations, 2008

State

No. (in thousands)

New York ..............

3,363

Florida...................

2,916

Georgia .................

Cumulative Percent of AfricanAmerican Population 8.6%

State

No. (in thousands)

Cumulative Percent of AfricanAmerican Population

Tennessee ..........

1,043

84.8%

16.2

Missouri ..............

679

86.5

2,908

23.6

Indiana ................

578

88.0

Texas ....................

2,898

31.0

Massachusetts ....

456

89.2

California...............

2,451

37.3

Arkansas .............

450

90.3

North Carolina.......

1,992

42.4

Connecticut .........

362

91.2

Illinois....................

1,920

47.3

Wisconsin ...........

342

92.1

Maryland ...............

1,658

51.5

Kentucky .............

329

92.9

—continued—

Table 4-11

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States with Largest African-American Populations, 2008 [Cont.]

State

No. (in thousands)

Cumulative Percent of U.S. AfricanAmerican Population

State

No. (in thousands)

Cumulative Percent of U.S. AfricanAmerican Population

Virginia..................

1,546

55.5%

District of Columbia ..

322

93.8%

Michigan ...............

1,425

59.1

Oklahoma .................

290

94.5

Louisiana ..............

1,410

62.7

Arizona .....................

270

95.2

Ohio ......................

1,382

66.2

Washington...............

245

95.8

Pennsylvania ........

1,343

69.6

Minnesota .................

239

96.4

South Carolina ......

1,276

72.9

Top 30 states............ 37,671

96.4

New Jersey...........

1,256

76.2

All other states..........

Alabama ...............

1,230

79.3

All states ................. 39,059

Mississippi ............

1,093

82.1

1,388

1.2 100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Florida Registers Largest Growth in Black Population Between 2000 and 2008 Florida added 581,000 blacks to its population, representing cumulative growth of 25%, while the African-American population of Georgia increased by 558,000. Texas added 494,000 blacks to its population, largely as a result of the migration of African Americans from Louisiana in the aftermath of Hurricane Katrina. [Table 4-12]

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Table 4-12 States with Largest African-American Population Growth, 2000-2008

State

No. (in thousands)

% Cumulative Growth

.Florida..................................................

580,669

24.9%

.Georgia ................................................

558,402

23.8%

.Texas ...................................................

493,577

20.5%

.New York .............................................

348,351

11.6%

.North Carolina......................................

254,109

14.6%

.California..............................................

187,571

8.3%

.Maryland ..............................................

181,011

12.3%

.Virginia.................................................

156,151

11.2%

.Pennsylvania .......................................

117,959

9.6%

.New Jersey ..........................................

114,047

10.0%

Note: Table includes states with African-American population of 50,000 and more. Source: Compiled by Packaged Facts based on data from U.S. Census Bureau.

New York, Atlanta and Chicago Top List of Metro Areas with Large Black Populations With 3.4 million African-American residents, the New York metropolitan area is by far the most significant black population center. The Atlanta metro area, with 1.7 million blacks, and Chicago, which has a black population totaling 1.7 million, rank next on the list of metro areas with significant African-American populations. Other metropolitan areas with large African-American populations include Washington, D.C. (1.4 million), Philadelphia (1.2 million), Miami (1.1 million) and Detroit (1 million). [Table 4-13]

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Table 4-13 Metropolitan Areas with Largest African-American Populations (in thousands) Metropolitan Area

No.

Metropolitan Area

No.

New York-Northern New Jersey-Long Island, NY-NJ-PA .................................... 3,399

Tampa-St. Petersburg-Clearwater, FL ......... 311

Atlanta-Sandy Springs-Marietta, GA........ 1,702

Birmingham-Hoover, AL Metro Area............ 309

Chicago-Naperville-Joliet, IL-IN-WI.......... 1,678

Riverside-San Bernardino-Ontario, CA ........ 307

Washington-Arlington-Alexandria, DCVA-MD-WV ............................................ 1,381

Orlando-Kissimmee, FL................................ 305

Philadelphia-Camden-Wilmington, PANJ-DE-MD ............................................. 1,181

Jacksonville, FL ............................................ 287

Miami-Fort Lauderdale-Pompano Beach, FL .............................................. 1,094

Baton Rouge, LA .......................................... 278

Detroit-Warren-Livonia, MI ..................... 1,005

Cincinnati-Middletown, OH-KY-IN ................ 259

Houston-Sugar Land-Baytown, TX .........

946

Jackson, MS ................................................. 251

Los Angeles-Long Beach-Santa Ana, CA ...........................................................

916

Columbus, OH .............................................. 244

Dallas-Fort Worth-Arlington, TX .............

877

Milwaukee-Waukesha-West Allis, WI .......... 243

Baltimore-Towson, MD ............................

763

Indianapolis-Carmel, IN ............................... 242

Memphis, TN-MS-AR...............................

578

Columbia, SC .............................................. 241

Virginia Beach-Norfolk-Newport News, VA-NC .....................................................

523

Nashville-Davidson--Murfreesboro-Franklin, TN ................................................. 234

St. Louis, MO-IL.......................................

503

Kansas City, MO-KS .................................... 230

Cleveland-Elyria-Mentor, OH .................

405

Raleigh-Cary, NC ......................................... 216

Charlotte-Gastonia-Concord, NC-SC.......

393

Minneapolis-St. Paul-Bloomington, MN-WI .. 208

New Orleans-Metairie-Kenner, LA .........

382

Augusta-Richmond County, GA-SC ........... 192

Richmond, VA Metro Area ......................

363

Pittsburgh, PA .............................................. 189

San Francisco-Oakland-Fremont, CA .....

362

Charleston-North CharlestonSummerville, SC .......................................... 183

Boston-Cambridge-Quincy, MA-NH .......

313

Phoenix-Mesa-Scottsdale, AZ .................... 182

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

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Marriage and Family Marriage Less Common Only 34% of black men and 26% of black women are married. These percentages are significantly lower than those for non-Hispanic whites (55% and 52% respectively), Hispanics (48% and 45%) and Asians (60% and 59%). [Tables 4-14 and 4-15] When blacks do get married, they enter into marriage at a comparatively later stage of life. For example, the median age at first marriage for black women is 29.7 years, compared to 25.1 years for Latinas and 25.7 years for non-Hispanic white women. [Table 4-16] Table 4-14 Marital Status of Men 18 Years Old and Over by Race and Hispanic Origin, 2008 Category

Blacks

Non-Hispanic Whites

Hispanics

Asians

Now married, except separated .....

34.2%

55.4%

47.5%

60.0%

Separated ......................................

3.8

1.3

2.5

1.0

Divorced.........................................

9.9

10.2

6.6

3.9

Widowed ........................................

2.6

2.8

1.5

1.4

Never married ................................

49.6

30.2

41.8

33.7

Total ..............................................

100.0%

100.0%

100.0%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-15 Marital Status of Women 18 Years Old and Over by Race and Hispanic Origin, 2008 Category

Blacks

Non-Hispanic Whites

Hispanics

Asians

Now married, except separated .....

26.4%

51.7%

45.3%

59.0%

Separated ......................................

5.1

1.7

4.5

1.5

Divorced.........................................

13.4

12.4

9.8

6.4

Widowed ........................................

9.3

10.8

5.8

7.6

Never married ................................

45.8

23.4

34.7

25.6

Total ..............................................

100.0%

100.0%

100.0%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

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Table 4-16 Median Age at First Marriage, African Americans vs. Other Population Groups, 2008 Population Group

Men

Women

African-American ..........................

29.9

29.7

Hispanic........................................

27.2

25.1

Non-Hispanic White ......................

27.3

25.7

Asian.............................................

29.5

26.5

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Household Structure Differs African-American households are about as likely as non-Hispanic white households to fall into the family category (63% vs. 65%). However, black family households are much less likely to consist of married couples with or without children. They are far more likely to be households headed by unmarried women with children. Around 18% of black households consist of single women with children, compared to 5% of non-Hispanic white, 13% of Hispanic and 4% of Asian households. Another characteristic of black households is that they are more likely to take the form of women living alone. Nearly one in five (18.5%) of African-American households consist of women living on their own, compared to 16% of non-Hispanic white, 8% of Hispanic and 10% of Asian households. [Table 4-17] On average, black households and families are larger than non-Hispanic white households. However, they are smaller than Hispanic and Asian households. [Table 4-18] Table 4-17 Household Types, African-American vs. Other, 2008

Household Type

Black

Non-Hispanic White

Hispanic

Asian

Family households..................

63.2%

64.8%

76.6%

74.4%

With own children under 18 ..

33.6

27.0

47.8

39.1

Married couple ......................

28.1

52.3

49.2

60.6

With children under 18........

12.9

20.3

30.9

33.3

Female householder, no husband present, family..........

29.1

8.9

18.6

9.1

With children under 18........

17.8

4.9

12.5

4.3

—continued—

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Chapter 4: Demographic Profile

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Table 4-17 Household Types, African-American vs. Other, 2008 [Cont.]

Household Type

Black

Non-Hispanic White

Hispanic

Asian

Non-family households ...........

36.8%

35.2%

23.4%

25.6%

Male householder .................

16.3

16.0

13.0

12.9

Living alone.........................

13.8

12.6

9.2

9.6

Not living alone ...................

2.5

3.4

3.9

3.3

Female householder .............

20.4

19.1

10.3

12.7

Living alone.........................

18.5

16.4

8.4

10.3

Not living alone ...................

1.9

2.7

1.9

2.4

100.0%

100.0%

100.0%

100.0%

Total .......................................

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-18 Mean Size of Households and Families by Race and Hispanic Origin, 2008 Mean Number of People in Household Black

Non-Hispanic White

Hispanic

Asian

All households ....................

2.66

2.45

3.47

3.04

Family households ..............

3.43

3.03

3.92

3.54

Household Type

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Grandparents Play Especially Important Role in Black Families Approximately half (51%) of black grandparents living with their grandchildren are responsible for raising them. In comparison, of grandparents living with grandchildren, 44% of non-Hispanic white, 32% of Hispanic and 17% of Asian grandparents have parental responsibilities. [Table 4-19]

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Table 4-19 Grandparents Living with Own Grandchildren by Responsibility for Grandchildren, African Americans vs. Other Population Groups, 2008 (in thousands) Responsible for Grandchildren

Category

No. Living with Grandchildren

No,

% of Grandparents Living with Grandchildren

% of All Grandparents Responsible for Grandchildren

African American ............

1,229

621

50.5%

23.7%

Hispanic ..........................

1,504

484

32.2

18.4

Asian...............................

483

80

16.5

3.0

Non-Hispanic White ........

3,041

1,344

44.2

51.2

All ...................................

6,447

2,624

40.7%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

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Chapter 4: Demographic Profile

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Education, Employment and Income Black Women Educational Strivers Around 8% of black women in the 18-and-over age group are enrolled in college. Only Asian women are more likely to be attending college. As is the case in other population segments, black women are more likely than their male counterparts to attend college (8.1% vs. 5.5%). They also are more likely to have a college degree (19% vs. 16%). [Tables 4-20 and 4-21] Table 4-20 College Enrollment of the Population Age 18 and Over by Gender, African Americans vs. Others, 2008 Category

Men

Women

Black ............................................

5.5%

8.1%

Non-Hispanic white ......................

6.0

6.9

Hispanic .......................................

4.6

5.6

Asian ............................................

9.1

9.7

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-21 Educational Attainment of People Age 25 and Over by Race and Hispanic Origin and Gender

Educational Attainment

Black

NonHispanic White

Hispanic

Asian

Less than high school diploma............

19.3

9.9

39.2

14.9

High school graduate ..........................

31.4

29.3

26.0

16.0

Some college or associate’s degree ...

31.7

30.0

21.9

19.5

Bachelor’s degree ...............................

11.5

19.3

8.9

29.8

Graduate or professional degree ........

6.0

11.4

4.0

19.9

—continued—

Table 4-21

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Educational Attainment of People Age 25 and Over by Race and Hispanic Origin and Gender [Cont.]

Educational Attainment

Black

NonHispanic White

Hispanic

Asian

High school graduate or higher.......... Male .................................................

79.2%

89.7%

59.2%

87.5%

Female.............................................

81.8

90.4

62.5

83.0

Male .................................................

15.8

32.1

12.1

53.0

Female.............................................

19.0

29.4

13.8

46.8

Bachelor’s degree or higher.................

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Unemployment Hits Hard in African-American Community The Bureau of Labor Statistics reported a November 2009 unemployment rate of 15.6% among black adults, compared to 9.3% for whites. The unemployment rate for black men was 16.9%, substantially higher than the 9.8 % experienced by white men. [Table 3-22] Table 4-22 Unemployment Rate for the Population Age 20 and Over by Race and Hispanic Origin, November 2009 Category

Unemployment Rate

All.............................................................................. Black .......................................................................

15.6%

White.......................................................................

9.3

Hispanic ..................................................................

12.7

Men........................................................................... Black .......................................................................

16.9

White.......................................................................

9.8

Women ..................................................................... Black .......................................................................

11.7

White.......................................................................

7.4

Source: Compiled by Packaged Facts based on data from U.S. Bureau of Labor Statistics.

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Chapter 4: Demographic Profile

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One in Three Black Women Works as Manager or Professional Both black men and women are more likely than their Hispanic counterparts to be employed in management and professional jobs. As is the case in the non-Hispanic white and Hispanic population segments, black women are more likely than black men to work as managers or professionals (32% vs. 22%). [Tables 4-23 and 4-24] Table 4-23 Occupations of Males Age 16 and Over by Gender, 2008

Category

Black

NonHispanic White

Management, professional and related ....................

22.0%

36.1%

14.9%

49.0%

Service .....................................................................

21.4

11.5

20.3

13.3

Sales and office occupations ...................................

18.9

18.3

14.4

18.2

Farming, fisheries and forestry.................................

0.6

0.7

3.1

0.2

Construction, extraction, maintenance and repair....

11.9

16.6

25.2

6.3

Production, transportation, material movement........

25.3

16.8

22.1

13.0

Total ........................................................................

100.0%

100.0%

100.0%

100.0%

Hispanic

Asian

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 4-24 Occupations of Females Age 16 and Over by Gender, 2008

Category

Black

NonHispanic White

Management, professional and related ....................

32.0%

41.7%

23.4%

45.8%

Service .....................................................................

27.2

17.7

30.4

19.5

Sales and office occupations ...................................

32.9

35.0

33.5

26.4

Farming, fisheries and forestry.................................

0.1

0.2

1.1

0.2

Construction, extraction, maintenance and repair....

0.6

0.6

0.8

0.4

Production, transportation, material movement........

7.1

4.7

10.9

7.8

Total ........................................................................

100.0%

100.0%

100.0%

100.0%

Hispanic

Asian

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

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Income Patterns Analyzed In general, income levels for African Americans are higher than those of Hispanics and lower than those of non-Hispanic whites and Asians. Income data for African Americans include the following patterns: •

African-American women experience less of an income disparity with other groups than do African-American men. Their mean income is around 10% lower than the average for women as a whole, while the mean income of black men is 31% lower than that of men as a whole. [Table 4-25]

Average household and family incomes for blacks are around one-third lower than average household and family incomes as a whole. [Table 4-26]

Black married-couple families, especially those with a wife in the paid labor force, face less of an income disparity. Black married couples with a wife in the paid labor force have an average income of $87,631, which is only 16% lower than that of all families in this category. [Table 4-27]

Around one in six (16.1%) African Americans has an income of $50,000 or more. [Table 4-28]

Nearly one in four (23.1%) black families and 18% of black households have an income of $75,000 or more. [Tables 4-29 and 4-30]

Table 4-25 Mean Income of People Age 15 and Over, African Americans vs. Other Population Groups, 2008 All Category

Mean Income

Men

Women

% Difference

Mean Income

% Difference

Mean Income

% Difference

African American ......

$29,264

-23.7%

$33,076

-30.7

$26,146

-10.1

Hispanic....................

27,892

-27.3

32,534

-31.9

22,063

-24.1

Non-Hispanic White ..

41,414

7.9

52,640

10.2

30,423

4.6

Asian.........................

44,593

16.2

54,680

14.5

34,561

18.8

All .............................

$38,376

$47,751

$29,087

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

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Table 4-26 Mean Household and Family Income, African Americans vs. Other Population Groups, 2008 Household Income

Family Income

Population Group

Amount

% Difference

Amount

African American .........

$46,533

-32.0%

Hispanic .......................

51,572

-24.6

54,145

-32.0

Non-Hispanic White .....

74,102

8.3

88,178

10.7

Asian............................

86,185

26.0

94,803

19.0

All ................................

$68,424

$79,634

$53,196

% Difference -33.2%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

Table 4-27 Mean Income of Families by Type, African Americans vs. Other Population Groups, 2008 Category

All

African American

Hispanic

Non-Hispanic White

Married couple ....................

$91,452

$75,146

$62,852

$96,846

Wife in paid labor force .....

104,585

87,631

75,770

109,467

Male householder ...............

56,808

42,777

50,424

61,135

Female householder ...........

39,660

32,089

32,216

45,806

All .......................................

$79,634

$53,196

$54,145

$88,178

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

Table 4-28 Distribution of Income of People Age 15 and Over, African Americans vs. Other Population Groups, 2008 African American

Hispanic

Non-Hispanic White

Asian

Less than $35,000 .........

69.7%

74.3%

57.6%

55.4%

$35,000 to $49,999 ........

14.2

12.2

14.9

12.7

$50,000 to $74,999 ........

10.5

8.6

14.4

14.5

$75,000 to $99,999 ........

3.2

2.4

5.9

7.6

$100,000 and over .........

2.4

2.5

7.3

9.8

Total ..............................

100.0%

100.0%

100.0%

100.0%

Income

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

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The African-American Market in the U.S.

Chapter 4: Demographic Profile

Table 4-29 Distribution of Income of Families, African Americans vs. Other Population Groups, 2008 African American

Hispanic

Non-Hispanic White

Asian

Less than $35,000 .........

44.3%

43.1%

21.0%

21.6%

$35,000 to $49,999 ........

15.7

16.8

12.7

12.4

$50,000 to $74,999 ........

17.0

17.8

20.2

16.6

$75,000 to $99,999 ........

9.7

9.8

16.0

12.8

$100,000 and over .........

13.4

12.5

30.1

36.6

Total ..............................

100.0%

100.0%

100.0%

100.0%

Income

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

Table 4-30 Distribution of Income of Households, African Americans vs. Other Population Groups, 2008 African American

Hispanic

Non-Hispanic White

Asian

Less than $35,000 .........

50.8%

45.9%

31.7%

28.0%

$35,000 to $49,999 ........

15.6

16.4

13.5

11.8

$50,000 to $74,999 ........

15.4

16.9

18.6

15.6

$75,000 to $99,999 ........

8.1

9.2

13.0

12.3

$100,000 and over .........

10.0

11.7

23.2

32.3

Total ..............................

100.0%

100.0%

100.0%

100.0%

Income

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

Homeownership below Average Fewer than half (46%) of the housing units occupied by African Americans are owneroccupied. The rate of homeownership among blacks is significantly lower than the average (67%). [Table 4-31]

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Chapter 4: Demographic Profile

The African-American Market in the U.S.

Table 4-31 Percent Owner-Occupied Housing Units, African Americans vs. Other Population Groups, 2008 Population Segment

%

Black ........................................................................

45.6%

Non-Hispanic white ..................................................

73.4

Hispanic ...................................................................

49.1

Asian ........................................................................

59.4

All ............................................................................

66.6%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, 2008 American Community Survey.

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Chapter 5 Overview of AfricanAmerican Shoppers

Single black moms are much more likely than their counterparts in other population groups to agree that their kids have a significant impact on the brands they buy (49% vs. 31%).

African Americans are more likely than other consumers to report that they visit a variety of stores when they shop.

Black consumers are much less likely than other consumers to view advertising as a waste of time and are more likely to remember advertised products when shopping.

Black households are less likely to respond to incentive offers (49% vs. 58%).

When black consumers are in stores, they are more likely than other shoppers to notice advertising on shopping carts and video monitor displays.

African Americans remain much less likely to shop online, but there is much less of a disparity between black and other consumers when it comes to catalog shopping.

Black consumers are much more likely to watch a television home shopping channel.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Overview Blacks Spend Less Time Shopping but Enjoy It More

A

ccording to data compiled by the Bureau of Labor Statistics, the average AfricanAmerican spends less time than other Americans purchasing goods and services. For example, Hispanic women spend an average of 6.86 hours per week, compared

to 5.6 hours for African-American women. [Table 5-1] However, Experian Simmons National Consumer Study (NCS) data suggest that when African Americans do go shopping they enjoy it more than other consumers.

Black

consumers are more likely to agree that they enjoy shopping even when they don’t make a purchase (44% vs. 35%) and to say that they really enjoy any kind of shopping (35% vs. 35%). [Table 5-2] Table 5-1 Number of Hours per Week Spent Purchasing Goods and Services, African-American vs. Other Consumers Category

All

Men

Women

Black .....................................................

5.04

4.41

5.60

White.....................................................

5.39

4.13

6.58

Hispanic ................................................

5.60

4.41

6.86

All .........................................................

5.39

4.20

6.44

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 American Time Use Survey.

Table 5-2 Attitudes toward Shopping, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

Even when I don’t purchase make a purchase I enjoy shopping ....................................

44%

35%

33%

23%

52%

46%

I really enjoy any kind of shopping ....................................

35

25

23

14

44

34

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers

Black Women More Likely to Be Primary Shopper in Household Women are the primary shopper in 80% of black households. In other households, women are slightly less likely to be the primary shopper (76%). [Table 5-3] Table 5-3 Gender of Primary Shopper, African-American vs. Other Consumers Category

African-American

Other

Male...............................................................................

17%

22%

Female...........................................................................

80

76

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Shopping a Social Event for Black Women Compared to their counterparts in other population segments, African-American women are more likely to prefer to shop with their family (34% vs. 31%) and friends (30% vs. 27%). They also are more likely to enjoy shopping with men (20% vs. 14%). [Table 5-4] Table 5-4 Shopping as a Social Event, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

I prefer to shop with my family ...

31%

30%

27%

29%

34%

31

I prefer to shop with my friends..

26

22

21

16

30

27

I especially enjoy shopping with opposite sex .......................

23

20

27

26

20

14

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Single Black Moms Like to Shop with Their Kids African-American single mothers are much more likely than their counterparts in other population groups to enjoy shopping with their children (45% vs. 35%). However, married black mothers are slightly less likely than other married moms to like to go shopping with their kids (44% vs. 46%). [Figure 5-1]

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Figure 5-1 Percent of Women with Children Who “Enjoy Shopping with My Children,” AfricanAmerican vs. Other by Marital Status

50

46

45

44

45 40

35

35 30 25 20 15 10 5 0 Black MothersUnmarried

Other MothersUnmarried

Black MothersMarried

Other MothersMarried

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

African-American Kids Have Major Impact on Their Moms When Shopping African-American kids have a significant impact on the choices made by their moms when they go shopping together. Single black moms are much more likely than their counterparts in other population groups to agree that their kids have a significant impact on the brands they buy (49% vs. 31%). [Figure 5-2]

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Figure 5-2 Percent of Women with Children Whose Children “Have Significant Impact on Brands I Buy,” African-American vs. Other by Marital Status

55

49

47

50

39

45 40

31

35 30 25 20 15 10 5 0 Black MothersUnmarried

Other MothersUnmarried

Black MothersMarried

Other MothersMarried

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Consumers Spend Less On average, African-American consumers spend less than other consumers. For example, the $36,721 spent annually by black consumer units is less than the average expenditures of Hispanic ($53,052), non-Hispanic white ($53,773) and Asian ($55,430) consumer units. However, African-American consumer units spend a higher portion of their after-tax income than any other consumer category except Hispanics. [Table 5-5] Experian Simmons NCS data confirm that black consumers are less likely to have made major purchasing decisions in a wide range of product categories in the previous 12 months. For example, they are less likely than other consumers to have purchased an automobile (25% vs. 30%) or household furnishings (27% vs. 36%). [Table 5-6]

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Table 5-5 Average Annual Expenditures of Consumer Units, African-American vs. Other Category

Amount

% of After-Tax Income

Black .....................................................

$36,721

Non-Hispanic White ..............................

53,773

80.8

Hispanic ................................................

43,052

87.9

Asian.....................................................

55,430

75.4

All .........................................................

$50,486

84.5%

81.7%

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Table 5-6 Purchases Made in Last 12 Months, African-American vs. Other Consumers Category

African-American

Other

Automobile.....................................................................

25%

30%

Automotive accessories .................................................

20

26

Clothing..........................................................................

69

82

Food products................................................................

75

84

Home electronics ...........................................................

37

48

Household furnishings ...................................................

27

36

Household products .......................................................

52

60

Major household appliances ..........................................

22

27

Sporting goods...............................................................

15

27

Truck..............................................................................

5

8

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Deciding Where to Shop Shopping Trips Cover Multiple Stores When African Americans go shopping, they tend to visit numerous stores. According to Experian Simmons NCS data, they are more likely than other consumers to report that they visit a variety of stores when they shop. [Figure 5-3] Figure 5-3 Percent Visiting a Variety of Stores When They Shop, African-American vs. Other Consumers by Gender 59 60

53

50 45

50 42 40

33

30 20 10 0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

African-American Consumers Will Travel to Shop at Favorite Store Geographic convenience is not an issue for African-American shoppers when it comes to shopping at their favorite store. They are less likely than other consumers to shop at their favorite stores because of their convenient location and more likely to claim that they will travel up to an hour or more to shop at their favorite store. Criteria such as service, the

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

store’s environment and price are less important to black shoppers than they are to other consumers. [Table 5-7] Table 5-7 Reasons for Picking Stores, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

I shop favorite stores because of convenient location ................

45%

51%

46%

50%

44%

52%

Will travel up to an hour or more to shop favorite store ........

33

22

27

18

38

26

Normally only shop stores located nearby ...........................

42

59

41

57

43

60

Only shop favorite stores because know kind of service received .....................................

43

48

44

48

43

47

Only shop favorite stores because of price ........................

43

45

41

40

44

51

Friend’s opinion of store influences my shopping there ....

18

21

14

20

22

22

Store’s environment makes a difference whether shop there ...

60

67

51

61

67

74

Prefer shopping local stores to national chains...........................

27

35

29

34

26

35

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

New Stores Attract Black Shoppers Compared to other shoppers, African-American shoppers are more highly motivated to try out new stores. They are more likely to go out of their way to try new stores (16% vs. 8%) and to be first among their friends to try a new store (19% vs. 9%). [Table 5-8]

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Chapter 5: Overview of African-American Shoppers

Table 5-8 Attitudes toward New Stores, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

Usually first among friends to try new store ..............................

19%

9%

15%

8%

21%

10%

Often go out of my way to find new stores .................................

16

8

14

8

18

8

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Shoppers Shop Specialty Stores for Brand Names Brand names draw black shoppers to specialty stores. African-American shoppers are more likely to shop at specialty stores because they carry the best brands (26% vs. 20%) and more brands (26% vs. 20%). [Table 5-9] Table 5-9 Attitudes toward Specialty Stores, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

Prefer shopping specialty stores because they tend to carry best brands .......................

26%

20%

25%

23%

27%

18%

Prefer shopping specialty stores because they carry more brands ..............................

26

20

26

23

26

18

Prefer shopping specialty stores because employees are knowledgeable...........................

30

35

32

38

29

32

Prefer buying product from specialty store than not..............

29

26

30

28

28

24

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

African-American Consumer Base Includes Frequent Mall Visitors In general, black consumers are somewhat less likely than other consumers to have gone to a shopping mall in the past four weeks (50% vs. 53%) and are much less likely to have gone to a strip mall during this period (29% vs. 43%). However, African Americans are more likely to have visited a shopping mall six or more times during the past four weeks. [Table 5-10] Table 5-10 Visits to Malls in Last Four Weeks, African-American vs. Other Consumers Category

African-American

Other

Shopping malls .............................................................. Gone in last 4 weeks....................................................

50%

53%

6 or more ...................................................................

8

5

4-5..............................................................................

9

9

1-3..............................................................................

33

39

29

43

5

6

Number of times ..........................................................

Strip malls ...................................................................... Gone in last 4 weeks.................................................... Number of times .......................................................... 6 or more ...................................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Women Frequent Users of Convenient Stores Compared to other women, black women are more likely to have shopped at a convenience store 10 or more times in the past four weeks (10% vs. 7%). A higher percentage of black consumers report visiting a wide range of convenience stores. [Tables 5-11 and 5-12]

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Table 5-11 Number of Times Shopped Convenience Stores in Last Four Weeks, African-American vs. Other Consumers by Gender All Consumers

Men

African-

Category

Women

African-

African-

American

Other

American

Other

American

Other

10 or more .................................

11%

10%

13%

14%

10%

4-9 .............................................

17

20

17

23

16

17

1-3 .............................................

18

20

16

19

19

21

7%

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 5-12 Convenience Stores Shopped in Last Four Weeks, African-American vs. Other Consumers Category

African-American

Other

7-Eleven ...................................................

19.8%

18.0%

AM/PM Mini Markets.................................

7.5

3.5

BP Connect ..............................................

9.3

3.8

Circle K .....................................................

8.5

5.6

Citgo Quick Mart .......................................

8.4

3.6

On the Run ...............................................

3.9

2.2

Quick Check Food Stores.........................

3.7*

0.9

Quick Trip .................................................

5.8

4.2

Speedway Superamerica..........................

6.6

4.2

Stop-N-Go ................................................

5.9

1.9

Wawa Food Markets.................................

4.9

3.3

White Hen Pantry......................................

3.1*

1.5

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Factors Driving Purchase Decisions of Black Shoppers African Americans More Receptive to Advertising Black consumers are much less likely than other consumers to view advertising as a waste of time and are more likely to remember advertised products when shopping. They are more positive about watching commercials on TV and reading ads in magazines. [Table 5-13] Table 5-13 Attitudes toward Advertising, African-American vs. Other Consumers by Gender All Adults African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

I don’t like advertising in general....................................

18%

41%

22%

42%

15%*

39%

Advertising is a waste of my time .........................................

16

28

17*

29

16*

27

Ads help me learn about products available ...................

57

45

58

43

57

47

Remember advertised products when shopping .........

36

29

36

27

37

32

Read magazine ads out of curiosity...................................

33

25

31

22

34

28

Enjoy reading ads in magazines ..............................

30

14

28

13

32

16

Find TV advertising interesting ...............................

36

25

39

25

34

25

When commercials come on I mute the TV ..........................

15

25

18*

24

13*

26

When commercials come on I change the channel...............

30

41

39

43

23

40

Advertising in general ..........

Magazine ads ........................

TV commercials ....................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Product Placement Works Well with African-American Consumers African-American consumers are more likely to remember brand-name products used on their favorite TV shows (33% vs. 23%) and in movies (28% vs. 19%). Even more important from the perspective of marketers, they are more likely to buy a brand name if they see it on TV (20% vs. 13%) or in a movie (19% vs. 11%). [Table 5-14] Table 5-14 Impact of Product Placement, African-American vs. Other Consumers by Gender All Adults African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

When watching TV, notice brand name products used ........

44%

41%

44%

41%

44%

41%

I remember brand name products used on favorite TV show ..........................................

33

23

34

22

32

23

If character uses brand name, more likely to use.......................

22

10

22

10

21

10

If I see brand name in a TV show, I buy it in store/online ......

20

13

20

13

21

13

When watching movies I notice brand name products used ........

36

32

38

31

35

32

I remember brand names characters used in movies .........

28

19

27

19

29

19

If I see brand name in a movie, I buy it in store/online.................

19

11

20

12

18

10

Television ..................................

Movies .......................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Ads on Public Transit Catch Black Consumers’ Attention As seen in Figure 5-4, Census Bureau data show that African Americans are more likely than other population groups to take public transportation to work. Consequently, they are more likely than other consumers to notice out-of-home ads in venues such as bus stops (23% vs. 18%), subway trains or platforms (13% vs. 6%) and buses (34% vs. 25%). [Table 5-15]

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Figure 5-4 Percent Taking Public Transportation (Excluding Taxicabs) to Work, African Americans vs. Others

14

12 11

12 10

8

8 5

6

3

4 2 0 All

Black

NonHispanic White

Asian

Hispanic

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau 2008 American Community Survey.

Table 5-15 Effectiveness of Out-of-Home Advertising, African-American vs. Other Adults by Gender All Adults

Men

African-

Noticed ads last 30 days

Women

African-

African-

American

Other

American

Other

American

Other

Bus shelters/benches............

23%

18%

22%

19%

24%

18%

Buses....................................

34

25

33

25

34

24

Subway trains or platforms ...

13

6

12

6

13

6

Taxis .....................................

14

9

15

10

13

8

Large billboards ......................

42

53

41

53

43

52

Mobile billboards on trucks or vans ....................................

21

25

19

25

22

25

Airport displays .......................

12

12

12

12

13

11

Banner displays by airplanes/blimps......................

8

8

10

9

7

7

Public transit ...........................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Sales, Specials and Bargains Less Likely to Draw Black Shoppers Experian Simmons NCS data indicate that black shoppers are not more motivated than other consumers are by sales and specials. While slightly more likely to be drawn to stores by sales, they are less likely to shop for specials or bargains or to hold out on buying items until they go on sale. [Table 5-16] Table 5-16 Attitudes toward Sales and Bargains, African-American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

I shop for specials or bargains ...

54%

56%

48%

51%

59%

62%

I hold out on buying items until a sale .........................................

41

50

35

45

46

55

Price not most important factor, I get what I want..............

44

42

43

46

44

38

I’m drawn to stores I don’t shop by sales.............................

35

33

29

30

39

36

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Incentive Offers Fail to Persuade Black Consumers In general, black households are less likely to respond to incentive offers (49% vs. 58%). Incentive offers drawing less participation from African Americans include contests or competitions (8% vs. 10%), rebates on product purchases (40% vs. 51%) and free products with coupons or other offers attached (33% vs. 37%). [Table 5-17]

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Table 5-17 Response to Incentive Offers, African-American vs. Other Consumers by Gender All Consumers African-

Category Household responds ..................

Men

Women

African-

African-

American

Other

American

Other

American

Other

49%

58%

48%

57%

50%

58%

Type of offer............................... Contests or competitions .........

8

10

8

10

9

10

Free products, coupons or other offers attached ................

33

37

35

35

32

38

Proof of purchase gifts .............

17

16

16

15

18

17

Rebates on product purchases.................................

40

51

37

51

42

52

Sweepstakes ...........................

13

13

13

13

13

13

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Cents-Off Coupons Not as Interesting to African-American Shoppers African-American households are less likely than other households to use cents-off coupons of all kinds. As is the case with other households, color leaflets inserted in newspapers are most likely to be used. African-American consumers are about as likely as other households to have ever used an on-shelf coupon machine in a store. They are most likely to redeem cents-off coupons in supermarkets and for food and grocery items. [Table 5-18]

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Table 5-18 Use of Cents-Off Coupons, African-American vs. Other Consumers Category

African-American

Other

65%

72%

Color leaflets received by mail .......................................

30

43

Other items received by mail .........................................

22

34

Color leaflets inserted in newspapers ............................

32

45

Other newspaper inserts/advertisements ......................

31

37

Magazines .....................................................................

21

30

In or on packages ..........................................................

24

36

Handed out near stores .................................................

24

30

Internet or email.............................................................

15

21

Seen ..............................................................................

62

67

Ever used ......................................................................

46

48

Discount stores ..............................................................

24

21

Drug stores ....................................................................

22

23

Newsstands/tobacco stands ..........................................

5

3

Restaurant/fast food chains ...........................................

24

28

Supermarket/grocery/convenience stores .....................

57

64

Save money...................................................................

51

61

Try new products ...........................................................

15

21

Beauty/grooming products.............................................

25

34

Beverages .....................................................................

26

30

Drug products ................................................................

18

23

Fast food/restaurant.......................................................

27

30

Food/grocery products...................................................

41

53

Household cleaning products ........................................

34

41

Paper goods ..................................................................

28

31

Pet foods .......................................................................

9

23

Tobacco products ..........................................................

8

7

Household uses ............................................................. Sources ........................................................................

On-shelf coupon machine in store.............................

Where redeem cents-off coupons ..............................

Reasons for using .......................................................

Types used ...................................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

African-American Shoppers More Aware of Brands When they shop, African-American consumers are more likely to always look for a brand name (39% vs. 33%). However, this does not mean that they are more loyal to brands. They also are more likely than other consumers to change brands often for the sake of variety or novelty (24% vs. 17%). [Table 5-19] Table 5-19 Brand Awareness, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

I always look for brand name .....

39%

33%

39%

32%

38%

34%

I change brands often for variety/novelty............................

24

17

20

15

27

19

I don’t buy unknown brands to save money ...............................

34

34

33

34

34

35

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Environmental Concerns Have Lower Priority African-American shoppers are less likely to be motivated by environmental concerns when deciding what to buy. They are about as likely to buy recycled paper products but are less likely to buy eco-friendly products even if they are less expensive.

African-American

consumers are less likely to feel they have a personal obligation to be environmentally responsible or to believe that it is important for others to see them as environmentally conscious. [Table 5-20] Table 5-20 Attitudes toward Green Products, African-American vs. Other Consumers by Gender Statement

African- American

Other

I buy recycled paper products......................................................

35%

37%

Would buy less expensive eco-friendly products .........................

47

68

Have personal obligation to be environmentally responsible .......

64

77

It’s important that others see me as environmentally conscious ..

38

47

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers

In-Store Behavior Shopping Cart Ads More Likely to Engage Black Shoppers When black consumers are in stores, they are more likely than other shoppers to notice advertising on shopping carts (18% vs. 13%) and video monitor displays (21% vs. 18%). They also are slightly more likely to notice radio and public address announcements (29% vs. 27%). They are much less likely to pay attention to signs on merchandise racks and shelves (42% vs. 50%), free-standing displays with products (38% vs. 48%) and promotions or displays at the end of aisles (35% vs. 45%). [Table 5-21] Table 5-21 Impact of In-Store (excluding Food Stores) Advertising and Promotions on Shoppers, African-American vs. Other Refer to always/sometimes

African-American

Other

Advertising on the floor ..................................................

39%

43%

Advertising on shopping cart .........................................

18

13

Departmental signs or aisle markers .............................

42

49

Free-standing displays with product ..............................

38

48

In-store demonstrations .................................................

33

36

Lighted merchandise graphics .......................................

26

28

On the Internet...............................................................

25

29

Promotion displays without products .............................

22

23

Promotion or display at end of aisle...............................

35

45

Radio/public address announcements...........................

29

27

Signs on merchandise rack/shelves ..............................

42

50

Store brochures/flyers....................................................

50

56

Video monitor displays...................................................

21

18

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Online and Catalog Shopping African Americans Less Likely to Shop Online The Internet has had less of an impact on the shopping habits of black consumers than it has on the shopping behavior of other Americans. Black consumers are less likely to report that the Internet has changed the way they get information for products or shop for products. They also are less likely to be doing more shopping on the Internet than before, although they are more likely to like to hear about products and services by email. [Table 5-22] African Americans remain much less likely to shop online. Only 31% of black consumers report placing an online order in the past 12 months, compared to 50% of other consumers. [Table 5-23] Table 5-22 Attitudes toward Online Shopping, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

Doing more shopping on the Internet than before ...................

23%

33%

20%

33%

26%

34%

Internet changed the way I get information for products .............

42

55

44

55

40

54

Internet changed how I shop for products................................

27

38

29

39

26

37

I like to hear about products and services by email ................

26

19

24

17

28

20

It’s safe to make purchases online .........................................

31

42

32

43

29

40

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Table 5-23 Online Shopping, African-American vs. Other Consumers Category

African-American

Other

31%

50%

Banking services.....................................

5

6

Books/music/video..................................

11

20

Computer products .................................

5

9

Electronics/appliances ............................

4

7

Tickets for events other than movies ......

4

8

Toys/games ............................................

4

9

Travel services/packages .......................

5

8

$1000 or more ........................................

4

10

$500-$999 ..............................................

4

6

$200-$499 ..............................................

5

10

Less than $200 .......................................

7

11

Placed Internet order in last 12 months .... Item/service purchased.............................

Amount spent ...........................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Catalog Shopping More Popular There is much less of a disparity between black and other consumers when it comes to catalog shopping. Around four in ten (39%) African Americans bought merchandise from a catalog in the past 12 months, compared to 43% of other consumers. Women’s apparel is the most popular item purchased from catalogs. [Table 5-24]

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Table 5-24 Catalog Shopping, African-American vs. Other Consumers Category

African-American

Other

39%

43%

6 or more ................................................

6

8

3-5...........................................................

7

12

1-2...........................................................

8

10

Accessories ............................................

5

5

Apparel-men’s.........................................

7

8

Apparel-women’s ....................................

12

13

Footwear/shoes ......................................

8

6

Gifts ........................................................

5

6

Home furnishing......................................

4

3

Home linens............................................

4*

3

Toys/games ............................................

5*

5

Other

7

8

Cash/check/money order ........................

9

5

Credit card ..............................................

9

21

Debit card/electronic funds transfer ........

5

5

Bought merchandise from catalog in last 12 month ............................................ Number of times .......................................

Items purchased .......................................

Method of purchase ..................................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Consumers More Likely to Watch TV Shopping Channels Although less likely to shop online, black consumers are much more likely to watch a television home shopping channel. This holds for both black men (15% vs. 8%) and black women (25% vs. 16%). [Figure 5-5]

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Figure 5-5 Percent Watching Television Home Shopping Channel, African Americans vs. Others by Gender

30 25 25 20 20 16

15 15

12 8

10

5

0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

Paying for What They Buy Black Consumers Less Likely to Have Bank Accounts and Credit Cards Compared to other consumers, African Americans remain less likely to have bank accounts and credit cards. For example, only around 15% of African Americans have checking accounts, compared to around 30% of other consumers. Credit cards also are less commonly owned by black consumers, although there is less of a disparity with respect to ownership of debit/ATM cards. [Table 5-25] Table 5-25 Banking Profile, African-American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

14%

31%

12%

30%

16%

32%

Interest bearing checking account(s).................................

15

30

11

31

17

30

Debit card/electronic funds transfer .....................................

20

26

18

24

22

28

Have debit/ATM card .................

55

63

51

62

58

64

Have or use credit cards ............

40

70

36

68

42

72

American Express....................

8

14

7*

15

8

13

Discover...................................

6

16

6*

15

6

16

MasterCard ..............................

17

33

16

33

18

32

Visa..........................................

23

44

21

44

24

43

Other bank credit card .............

5

6

**

5

4*

7

Gasoline credit card .................

6

9

8*

10

5

9

Clothing/specialty store card....

5

9

**

4

5

13

J.C. Penney .............................

9

12

6*

7

11

17

Sears .......................................

9

13

9*

11

10

14

Type of bank account................. Non-interest bearing checking account(s) ...................

Type of card...............................

—continued—

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The African-American Market in the U.S.

Chapter 5: Overview of African-American Shoppers

Table 5-25 Banking Profile, African-American vs. Other Consumers by Gender [Cont.] All Consumers African-

Category

Men

Women

African-

American

Other

Other department store credit card ..........................................

9%

18%

Other credit cards ....................

7

11

Any department store ..............

17

27

Use credit monitoring.................

13

11

African-

American

Other

American

Other

8%*

12%

10%

25%

6*

11

8

12

14

19

19

35

11

11

14

11

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Cells with a double asterisk indicate that the number of cases is too small for reliability. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Paying Bills by Phone More Popular among Black Women As is true in other households, African-American women are most likely to pay the bills. They are slightly more likely than other women to pay bills by phone (19% vs. 17%). [Table 5-26] Table 5-26 Paying Bills, African-American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

Self ..........................................

60%

66%

47%

58%

70%

74%

Someone else in household ....

29

38

40

46

21

31

Online ......................................

21

31

21

29

22

33

By mail.....................................

39

56

32

49

44

62

By phone .................................

15

14

9

11

19

17

Automatically deducted from bank account............................

16

27

10

23

21

30

Who pays...................................

Method used ..............................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission

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Chapter 5: Overview of African-American Shoppers The African-American Market in the U.S.

.

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The African-American Market in the U.S.

Chapter 6 Shoppers

Chapter 6: African-American Food Shoppers

African-American Food

African-American consumers as a whole are about as likely as other consumers to look for organic and natural foods when they are in supermarkets.

Black women are less likely to say that they really enjoy cooking.

Black consumers include a core group of extremely frequent users of fast food restaurants.

Black consumers enjoy grocery shopping more than their counterparts in other consumer segments.

Nearly four in 10 (37%) married African-American moms shopped 10 or more times in a supermarket in the previous four weeks, compared to only 29% of their counterparts in other population groups.

Both single and married African-American women with children are much more likely than their counterparts in other population segments to refer to a range of instore advertising and promotional activities when they are shopping in a supermarket.

Among products sold in supermarkets, laundry and cleaning products are a highpriority item for African-American shoppers.

Compared to other consumer units, African-American consumer units allocate a greater percentage of their annual expenditures on food to cereal and cereal products, pork, fish and seafood and processed fruits.

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Eating at Home vs. Going Out Black Shoppers Look for Organic Foods

A

frican-American consumers as a whole are about as likely as other consumers to look for organic and natural foods when they are in supermarkets. Black men are more likely and black women are less likely than their counterparts in other

consumer segments to shop for organic and natural food items. Black consumers are only slightly less likely than other consumers to try new foods. Coupons promoting new foods are as likely to have an impact on black consumers as they do on other consumers. [Table 6-1] Table 6-1 Attitudes toward Food, African-American vs. Other Consumers by Gender All Consumers African-

Statement

American

Men

Women

AfricanOther

American

AfricanOther

American

Other

Organic/natural food................ When shopping for food look for organic/natural ......................

25%

24%

24%

20%

25%

28%

I prefer foods without artificial additives.....................................

44

45

43

40

44

50

I look for freshest ingredients when I cook................................

56

55

52

48

59

63

Often swayed by coupons to try new foods .............................

34

34

27

28

40

41

I like to try out new food products .....................................

48

50

46

47

50

53

Trying new foods .....................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Home Cooking Less of a Centerpiece Black women in general are less likely to say that they really enjoy cooking. When they do cook, they are less likely to refer to recipes or try new ones.

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The African-American Market in the U.S.

Chapter 6: African-American Food Shoppers

Fast food as well as frozen and prepared meals appear to offer stiff competition to homecooked meals in black households. Black women are less likely to believe that all fast food is junk and less likely to support the trend toward healthier fast food. Moreover, African Americans are less likely to believe that frozen dinners have little nutritional value and are more likely to eat store-made meals and frozen dinners. [Table 6-2] Table 6-2 Home Cooking vs. Fast Food and Prepared Foods, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

The kitchen is the most important room in my home .......

32%

30%

29%

24%

34%

36%

I really enjoy cooking .................

50

52

46

45

53

59

I like to try new recipes ..............

47

54

39

45

53

63

I usually refer to recipes when cooking ......................................

22

37

20

29

24

46

I think all fast food is junk...........

31

36

34

33

29

39

Fast food fits my busy lifestyle ...

23

22

28

25

19

20

I prefer fast food to home cooking ......................................

12

9

13*

9

11

8

I like trend towards healthier fast food.....................................

42

52

41

47

42

57

I often eat store-made, precooked meals ............................

22

20

22

21

22

18

I often eat frozen dinners ...........

22

19

22

20

21

18

Frozen dinners have little nutritional value..........................

38

43

36

40

39

46

Home cooking ...........................

Fast Food ..................................

Prepared Foods ........................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Single Moms Less Interested in Cooking Compared to other single moms, black single mothers are less likely to enjoy cooking and try new recipes. They are more likely to eat store-made and frozen dinners and to claim that they prefer fast food to home cooking. Married black mothers, on the other hand, are more likely than single mothers as well as their married counterparts in other population segments to say that they really enjoy cooking. They are less likely to try new recipes but are more likely to look for the freshest ingredients when they cook. Organic and natural foods, however, have a lower priority. [Table 6-3] Table 6-3 Attitudes Toward Food and Cooking of Women with Children by Marital Status, African-American vs. Other Consumers Not Married With Children African-

Statement

Married With Children African-

American

Other

American

Other

The kitchen is the most important room in my home .......

31%

31%

43%

42%

I really enjoy cooking .................

51

54

70

62

When shopping for food look for organic/natural ......................

20

25

22*

27

I look for freshest ingredients when I cook................................

52

53

67

62

I like to try new recipes ..............

49

58

63

68

I often eat store-made, precooked meals.............................

29

23

**

14

Fast food fits my busy lifestyle ...

23

25

17*

22

I prefer fast food to home cooking ......................................

15

12

**

8

I often eat frozen dinners ...........

23*

20

**

12

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Cells with a double asterisk indicate that the number of cases is too small for reliability. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Fast Food Competes with Home-Cooked Meals In general, African-American consumers are less likely to go to family restaurants (72% vs. 81%) and are about as likely as other consumers to go to fast food restaurants (84% vs. 86%).

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The African-American Market in the U.S.

Chapter 6: African-American Food Shoppers

However, black consumers include a core group of extremely frequent users of both family and fast food restaurants. African Americans are more likely than other consumers to go to family restaurants 10 or more times a month (11% vs. 6%). The same pattern holds in the case of fast food restaurants. More than half (55%) of black consumers report going to fast food restaurants 14 or more times in the past 30 days, compared to 45% of other consumers. [Table 6-4] African-American moms are more likely than other moms to go to fast food restaurants frequently. Nearly seven in ten (68%) of single black moms went to a fast food outlet 14 or more times in the past month, compared to 55% of other single moms. Married black women with children also are more likely to be frequent users of fast food restaurants (62% vs. 52%). Single moms are more likely to share a meal at a fast food restaurant with teens, while married mothers are more likely to eat with kids under 12. [Table 6-5] There are significant differences between the family and fast food restaurant choices of blacks and other adults. Applebee’s and McDonald’s are the most popular restaurants within both consumer groups. However, African Americans are more likely to choose IHOP and Golden Corral when they eat at a family restaurant. In the fast food category, KFC ranks much higher in popularity among blacks than among other consumers. [Tables 6-6 and 6-7] Table 6-4 Going Out to Family and Fast Food Restaurants, African-American vs. Other Consumers by Gender All Consumers African-

Category Go to family restaurants ......

Men

Women

African-

African-

American

Other

American

Other

American

Other

72%

81%

69%

79%

74%

83%

With whom .............................. Alone ....................................

10

7

13

9

8

5

With other adults...................

54

66

51

63

56

69

With children under 12..........

18

17

15

16

20

19

With teens 12-17...................

13

10

13

8

13

12

With friends/co-workers ........

18

18

17

16

18

20

—continued—

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Table 6-4 Going Out to Family and Fast Food Restaurants, African-American vs. Other Consumers by Gender [Cont.] All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

10 or more ............................

11%

6%

13%

6%

9%

6%

6-9.........................................

9

11

9*

10

8

11

4-5.........................................

13

16

11*

16

14

16

3 or less ................................

30

41

28

40

32

43

Go to fast food restaurants ............................

84

86

83

85

86

86

Alone.....................................

37

34

42

39

34

30

With other adults ...................

48

52

49

51

47

53

With children under 12 ..........

24

21

17

18

29

24

With teens 12-17...................

17

11

15

9

19

14

With friends/co-workers ........

22

18

20

18

23

18

14 or more ............................

55

45

56

46

54

44

6-13.......................................

21

30

18

29

23

31

1-5.........................................

6

9

Number of times in last 30 days ........................................

With whom ..............................

Number of times in last 30 days ........................................

6*

9

6*

9

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 6: African-American Food Shoppers

Table 6-5 Going Out to Family and Fast Food Restaurants by Women with Children by Marital Status, African-American vs. Other Consumers Not Married With Children African-

Category

Married With Children African-

American

Other

American

Other

73%

76%

85%

85%

With other adults......................

53

56

64

68

With children under 12.............

35

28

36

46

With teens 12-17......................

20

21

32

28

With friends/co-workers ...........

23

25

19

18

Go to fast food restaurants......

89

89

93

92

With other adults......................

32

28

28

23

With children under 12.............

49

49

62

50

With teens 12-17......................

48

39

48

56

With friends/co-workers ...........

33

29

35

31

Visited 14 or more times in last 30 days ......................................

68

55

62

52

Go to family restaurants .......... With whom .................................

With whom .................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 6-6 Family Restaurants Visited Most, African-American vs. Other Consumers African-American

%

Other

%

Applebee’s .....................................

16%

Applebee’s.....................................

19%

IHOP..............................................

13

Olive Garden .................................

12

Golden Corral ................................

11

Chili’s Grill & Bar............................

9

Red Lobster ...................................

11

IHOP..............................................

8

Chili’s Grill & Bar............................

7

Red Lobster ...................................

8

Chuck E. Cheese’s ........................

7

Denny’s .........................................

8

Olive Garden .................................

7

Cracker Barrel ...............................

8

TGI Friday’s ...................................

6

Outback Steakhouse .....................

8

Denny’s..........................................

6

TGI Friday’s ...................................

6

Ruby Tuesday ...............................

6

Golden Corral ................................

5

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Table 6-7 Fast Food Restaurants Visited Most, African-American vs. Other Consumers African American

Other

Fast Food Restaurant

%

Fast Food Restaurant

%

McDonald’s ....................................

49%

McDonald’s ....................................

45%

Burger King....................................

29

Burger King....................................

23

KFC ..............................................

22

Subway..........................................

20

Subway ..........................................

20

Taco Bell........................................

18

Wendy’s .........................................

19

Wendy’s.........................................

17

Pizza Hut .......................................

17

KFC .............................................

13

Popeyes.........................................

16

Arby’s.............................................

11

Church’s Fried Chicken..................

14

Pizza Hut .......................................

11

Taco Bell........................................

13

Dairy Queen ..................................

9

Domino’s Pizza ..............................

10

Starbucks.......................................

8

Chick-Fil-A .....................................

9

Chick-Fil-A .....................................

8

Dunkin’ Donuts ..............................

7

Sonic .............................................

8

Dairy Queen...................................

7

Dunkin’ Donuts ..............................

7

Arby’s.............................................

6

Domino’s Pizza ..............................

7

White Castle ..................................

6

Jack-in-the-Box

6

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers

Shopping for Food Black Consumers Enjoy Grocery Shopping Experian Simmons National Consumer Study (NCS) data suggest that black consumers enjoy grocery shopping more than their counterparts in other consumer segments. For example, only 23% of black women agree with the statement that “shopping for groceries is a bore,” compared to 34% of other women. [Figure 6-1] Figure 6-1 Percent Agreeing “Shopping for Groceries is a Bore,” African-American vs. Other Consumers

40 34

34 35

34

30

30

26 23

25 20 15 10 5 0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Married Black Moms Spend the Most at Supermarkets In general, African Americans are about as likely as other consumers to spend $150 or more per week in supermarkets and are slightly less likely to go to a supermarket 10 or more times in a four-week period. Black women, however, are slightly more likely than other women to buy $150 worth of food and other products at supermarkets. [Table 6-8]

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

However, there are significant differences between the grocery shopping behavior of married black women with children and that of other mothers. As seen in Table 6-2, 37% of married African-American moms shopped 10 or more times in a supermarket in the previous four weeks, compared to only 29% of their counterparts in other population groups. Married black moms also are more likely than both black and other single moms to be frequent supermarket shoppers. [Table 6-9] Table 6-8 Profile of Food Shoppers, African-American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

$150 or more .............................

19%

19%

17%

19%

20%

18%

$125-$149..................................

10

14

10*

14

9

14

$101-$124..................................

12

15

12

15

12

15

$100 or less ...............................

42

42

43

40

42

43

10 or more .................................

42

44

39

40

45

47

4-9 .............................................

31

37

28

36

33

38

1-3 .............................................

8

9

Average amount spent per week ..........................................

Number of times shopped in supermarket in last 4 weeks ...

9*

10

7*

7

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers

Table 6-9 Profile of Female Food Shoppers with Children by Marital Status, African-American vs. Other Consumers Not Married With Children African-

Category

Married With Children African-

American

Other

American

Other

$150 or more .............................

26%

30%

37%

29%

$125-$149 .................................

14

15

6

19

10 or more .................................

41

43

58

54

4-9 .............................................

37

34

28

35

Average amount spent per week...........................................

Number of times shopped in supermarket in last 4 weeks ....

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

African-American Moms Pay More Attention to In-Store Advertising in Supermarkets Black women as a whole are less likely than other women to pay attention to various types of advertising and promotions used in supermarkets.

However, both single and married

African-American women with children are much more likely than their counterparts in other population segments to refer to a range of in-store advertising and promotional activities when they are shopping in a supermarket. For example, compared to other married women with children, married black moms are more likely to refer to advertising on the floor (59% vs. 53%), advertising on shopping carts (20% vs. 15%), in-store announcements (49% vs. 41%), radio/public address announcements (45% vs. 29%) and video monitor displays (32% vs. 17%). [Tables 6-10 and 6-11]

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Table 6-10 Impact of In-Store Advertising and Promotions on Food Shoppers, African-American vs. Other Consumers by Gender All Consumers

Refer to always/sometimes

AfricanAmerican

Men

Women

AfricanOther

American

AfricanOther

American

Other

Advertising on the floor ...........

44%

50%

38%

48%

49%

53%

Advertising on shopping cart...

18

13

17

13

19

13

Announcements in store .........

34

35

30

31

37

38

Computerized information/coupon center ......

28

25

23

23

31

28

Free-standing displays with product....................................

42

57

38

54

46

60

In-store demonstrations ..........

38

45

35

41

40

49

In-store samples .....................

40

52

36

48

44

56

Message/offers at the shelf.....

30

41

32

39

29

43

On the Internet........................

18

17

17

16

19

18

Overhead aisle markers..........

35

47

34

45

35

49

Promotion displays without products ..................................

19

24

16

23

21

25

Promotion or display at end of aisle ....................................

38

51

34

48

41

54

Radio/public address announcements ......................

27

25

20

24

32

27

Video monitor displays............

19

16

19

17

20

15

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers

Table 6-11 Impact of In-Store Advertising and Promotions on Female Food Shoppers with Children by Marital Status, African-American vs. Other Consumers Not Married With Children African-

Refer to always/sometimes

Married With Children African-

American

Other

American

Other

Advertising on the floor ..............

46%

42%

59%

53%

Advertising on shopping cart .....

20

17

20

15

Announcements in store ............

38

36

49

41

Computerized information/coupon center .........

33

26

33

32

Free-standing displays with product.......................................

42

51

53

61

In-store demonstrations .............

36

43

51

50

In-store samples ........................

45

49

56

58

Message/offers at the shelf........

31

37

33

47

On the Internet...........................

22

17

22

22

Overhead aisle markers.............

37

42

41

50

Promotion displays without products.....................................

24

24

26

26

Promotion or display at end of aisle ...........................................

39

41

50

56

Radio/public address announcements .........................

39

25

45

29

Video monitor displays...............

22

16

32

17

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Favorite Supermarkets Differ Both African-American and other consumers are most likely to shop at supermarkets at WalMart. However, black food shoppers are much more likely to shop at Kroger (22.2% vs. 13.9%), Save-A-Lot (19.8% vs. 5.3%), and Food Lion (13.6% vs. 6.2%). [Table 6-12]

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Table 6-12 Supermarkets Shopped in Last Four Weeks, African-American vs. Other Consumers African American Supermarket

Other %

Supermarket

%

Walmart Super Center ...................

61.8%

Walmart Super Center ...................

57.4%

Kroger ............................................

22.2

Kroger............................................

13.9

Save-A-Lot.....................................

19.8

Safeway.........................................

10.4

Food Lion.......................................

13.6

Albertsons......................................

9.5

Piggly Wiggly .................................

12.9

Trader Joe’s...................................

7.7

Publix .............................................

10.6

Publix.............................................

7.2

Pathmark .......................................

9.1

Food Lion.......................................

6.2

Safeway .........................................

8.7

Winn-Dixie .....................................

5.4

Albertsons......................................

8.7

Save-A-Lot.....................................

5.3

Winn-Dixie .....................................

7.9

Meijer.............................................

5.0

Giant Food Stores..........................

7.5

Whole Foods .................................

4.5

IGA Markets...................................

7.2

Stop & Shop ..................................

4.3

Jewel-Osco ....................................

7.1

Shoprite .........................................

4.3

Shoprite .........................................

6.9

Giant Food Stores..........................

3.6

Bi-Lo ..............................................

6.7

Vons .............................................

3.2

Whole Foods..................................

6.1

Fred Meyer ....................................

3.2

Meijer .............................................

5.9

Ralph’s...........................................

3.1

Stop & Shop...................................

5.7

IGA Markets...................................

3.1

Trader Joe’s...................................

5.3

H.E.B. Pantry.................................

3.0

Ralph’s...........................................

5.3

Giant Eagle....................................

2.8

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 6: African-American Food Shoppers

Spending Patterns in Supermarkets Black Shoppers Spend More on Laundry and Cleaning Products Among products sold in supermarkets, laundry and cleaning products are a high-priority item for African-American shoppers. According to Bureau of Labor Statistics (BLS) data, black consumers spend an average of $153 annually, or 0.4% of their total expenditures, on laundry and cleaning products, compared to $147 (0.3% of total expenditures) spent by other consumers. [Table 6-13] Table 6-13 Average Annual Expenditures for Housekeeping Supplies, African-American vs. Other Consumer Units 2008 African-American

Amount

% of All Annual Expenditures

Laundry and cleaning products .......

$153

0.4%

Other household products ...............

226

Item

0.6

Other

Amount

% of All Annual Expenditures

$147

0.3%

367

0.7

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Food Expenditures Analyzed Compared to other consumer units, African-American consumer units allocate a greater percentage of their annual expenditures on food to cereal and cereal products (0.4% vs. 0.3%), beef (0.6% vs. 0.5%), pork (0.5% vs. 0.3%), fish and seafood (0.4% vs. 0.2%) and processed fruits (0.3% vs. 0.2%). Categories for which black consumers spend a smaller proportion of their budgets include fresh fruits and sugar and other sweets. [Table 6-14]

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Chapter 6: African-American Food Shoppers The African-American Market in the U.S.

Table 6-14 Average Annual Expenditures for Food and Beverages, African-American vs. Other Consumer Units 2008 African-American

Other % of All Annual Expenditures

Amount

% of All Annual Expenditures

Cereals and bakery products..........

$382

1.0%

Cereals and cereal products.........

148

0.4

173

0.3

Bakery products.............................

234

0.6

351

0.7

Meats, poultry, fish, and eggs.........

848

2.3

846

1.6

Beef ...............................................

208

0.6

243

0.5

Pork ...............................................

174

0.5

162

0.3

Other meats...................................

85

0.2

109

0.2

Poultry ...........................................

190

0.5

155

0.3

Fish and seafood ...........................

144

0.4

126

0.2

Eggs ..............................................

47

0.1

52

0.1

Dairy products .................................

263

0.7

452

0.9

Fresh milk and cream ....................

116

0.3

175

0.3

Other dairy products ......................

147

0.4

277

0.5

Fruits and vegetables ......................

447

1.2

685

1.3

Fresh fruits.....................................

128

0.3

234

0.4

Fresh vegetables ...........................

130

0.4

223

0.4

Processed fruits.............................

98

0.3

119

0.2

Processed vegetables ...................

91

0.2

109

0.2

Other food at home..........................

886

2.4

1,361

2.6

Sugar and other sweets................

80

0.2

136

0.3

Fats and oils ..................................

82

0.2

108

0.2

Miscellaneous foods ......................

449

1.2

711

1.4

Nonalcoholic beverages ................

261

0.7

353

0.7

Food prepared on out of-town trips

14

54

0.1

Total ................................................

$2,825

Item

c/ 7.7%

Amount $524

$3,868

1.0%

7.4%

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey

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Chapter 7: When Black Shoppers Buy Clothes

Chapter 7 When Black Shoppers Buy Clothes

African Americans are much more likely than other consumers to keep up with the latest fashions (38% vs. 23%).

By a wide margin, African Americans are more likely than other adults to agree that they “really enjoy clothes shopping.”

African-American consumer units dedicate a significantly higher portion of their annual expenditures to apparel.

African-American consumer units spend more than others on clothing for children under 16.

Both African-American men and women are more likely to purchase dress clothes when they shop.

Black consumers are more likely to agree that clothes purchased at a discount store are just as good as those bought at a department store (60% vs. 54%).

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Chapter 7: When Black Shoppers Buy Clothes

The African-American Market in the U.S.

Shopping for Clothes Fashion Drives African-American Shoppers, Both Men and Women

A

s seen in Figure 7-1, African Americans are much more likely than other consumers to keep up with the latest fashions (38% vs. 23%). While AfricanAmerican women are more likely than other women to keep up with the latest

fashions (43% vs. 31%), the fashion gap between black men and other men is even wider (32% vs. 15%). Both African-American men and women are more likely to ascribe to other measures of fashion consciousness. For example, they are more likely to turn to fashion magazines for cues about what clothes to buy and have a higher likelihood of saying they like to make a unique fashion statement. [Table 7-1] Figure 7-1 Percent of Consumers Who “Keep up with the Latest Fashions,” African-American vs. Other

43

45 40

38 32

35

31

30 23

25 20

15

15 10 5 0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 7: When Black Shoppers Buy Clothes

Table 7-1 Attitudes toward Fashion, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

American

Other

American

Fashion magazines help determine clothes I buy..............

20%

11%

19%

I am first among my friends to try new styles .............................

20

9

I like to make a unique fashion statement...................................

33

I stick with styles that have stood the test of time ................. I have a conservative dress style ...........................................

AfricanOther

American

Other

6%

20%

15%

20

6

21

11

15

29

11

36

18

60

65

60

66

60

64

44

53

39

53

48

54

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

More African Americans Enjoy Clothes Shopping By a wide margin, African Americans are more likely than other adults to agree that they “really enjoy clothes shopping.” The disparity between black and other consumers is widest in the case of men (35% vs. 16%). [Figure 7-2] One result of the pleasure black consumers derive from shopping for clothes is that they appear to spend more than they would like for new clothes. They are more likely than other consumers to admit that they spend more than they can afford for clothes and to buy clothes that they don’t really need. [Table 7-2]

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Chapter 7: When Black Shoppers Buy Clothes

The African-American Market in the U.S.

Figure 7-2 Percent of Consumers Who “Really Enjoy Clothes Shopping,” African-American vs. Other

57

60 50

47 43

40

35 30

30 16

20 10 0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 7-2 Attitudes toward Shopping for and Buying Clothes, African-American vs. Other Consumers by Gender All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

I make my clothes last a long time ............................................

73%

80%

73%

78%

73%

81%

I often buy clothes I don’t really need...........................................

25

21

19

13

30

28

Everything I wear is the highest quality............................

33

24

36

24

31

24

I spend more than I can afford for clothes ..................................

19

10

17

9

20

12

My budget allows me to buy designer clothes.........................

16

10

16

11

16

9

Every season I buy the latest fashions .....................................

19

10

18

6

19

14

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 7: When Black Shoppers Buy Clothes

Buying Clothes Blacks Spend More Than Other Consumers for Apparel African-American consumer units dedicate a significantly higher portion of their annual expenditures to apparel (5.4% vs. 3.4%). Although the average income of black consumers is lower than that of other consumers, they still spend more in absolute terms ($1,983 vs. $1,776). [Table 7-3] Table 7-3 Average Annual Expenditures for Apparel and Footwear, African-American vs. Other Consumer Units 2008 African-American

Item

Amount

Men and boys ..................................

$413

Men, 16 and over...........................

304

Boys, 2 to 15 .................................

109

Women and girls..............................

% of All Annual Expenditures 1.1% 0.8

Other

Amount $429

% of All Annual Expenditures 0.8%

350

0.7

0.3

79

0.2

778

2.1

710

1.4

Women, 16 and over .....................

646

1.8

590

1.1

Girls, 2 to 15 ..................................

132

0.4

120

0.2

Children under 2 ..............................

100

0.3

92

0.2

Footwear .........................................

478

1.3

292

0.6

Other apparel products and services ...........................................

214

0.6

253

0.5

Total................................................ $1,983

5.4%

$1,776

3.4%

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Children’s Clothing Especially Important As seen in Figure 7-3, African-American consumer units spend more than others on clothing for children under 16. Experian Simmons National Consumer Study (NCS) data confirm the importance of spending on children’s clothing within black households. Both married and single black moms are more likely than their counterparts in other population groups to have spent $400 or more on children’s clothing in the past 12 months.

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Chapter 7: When Black Shoppers Buy Clothes

The African-American Market in the U.S.

Figure 7-3 Percent of Women with Children Spending $400 or More on Children’s Clothing in Past 12 Months by Marital Status, African-American vs. Other Consumers

46

50 41

45

39

40 33 35 30 25 20 15 10 5 0 Unmarried Black Other Unmarried Moms Moms

Married Black Moms

Other Married Moms

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Shoppers More Likely to Buy Dress Clothes Although African-American men are more likely to buy apparel items such as sweats and jeans, they also are more likely to purchase dress clothes when they shop. They have a higher likelihood of buying a suit (19% vs. 8%), overcoat (10% vs. 6%) and necktie (18% vs. 14%). [Table 7-4] A similar pattern holds in the case of African-American women. Compared to other women, black women are more likely to buy a suit (21% vs. 6%), dress (35% vs. 27%) and blazer (10% vs. 8%). [Table 7-5]

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Table 7-4 Men’s Apparel and Accessories Purchased by Men in Last 12 Months, AfricanAmerican vs. Other Category

African-American

Other

Overcoat/topcoat ...........................................................

10%

6%

Leather jacket ................................................................

13

5

Raincoat or all-weather coat .......................................... Suit ................................................................................ Sport coat or blazer .......................................................

9* 19 5*

5 8 7

Slacks/pants (not jeans) ................................................

27

27

Sweater .........................................................................

15

12

Regular or dress shirt ....................................................

24

29

Necktie...........................................................................

18

14

Belt ................................................................................

30

25

Gloves ...........................................................................

12

10

Sunglasses (non-prescription) .......................................

16

16

Wallet.............................................................................

16

12

Other shoes ...................................................................

25

22

Boots (excluding work boots).........................................

9*

8

Socks.............................................................................

41

42

Slippers..........................................................................

13

7

Sweats...........................................................................

15

9

Sport shirt (all types)......................................................

16

17

T-shirt (outerwear) .........................................................

33

30

Jeans .............................................................................

39

36

Other gym/jogging/workout clothes................................

10*

8

Utility/work clothes/work boots.......................................

11*

16

Underwear .....................................................................

44

46

Nightwear/pajamas ........................................................

13

9

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Table 7-5 Women’s Apparel and Accessories Purchased by Women in Last 12 Months, AfricanAmerican vs. Other Category

African-American

Other

Overcoat/jacket..............................................................

20%

21%

Blazer of jacket (suit type)..............................................

10

8

Raincoat or all-weather coat ..........................................

10

7

Leather jacket ................................................................

10

4

Suit.................................................................................

21

6

Other shoes ...................................................................

33

43

Boots (excluding work boots).........................................

17

14

Skirt................................................................................

27

21

Dress .............................................................................

35

27

Slacks/pants (not jeans).................................................

31

41

Sweater..........................................................................

23

33

Belt.................................................................................

16

12

Gloves............................................................................

14

13

Sunglasses (non-prescription) .......................................

18

25

Purse/handbag ..............................................................

38

44

Wallet.............................................................................

15

14

Scarf ..............................................................................

10

11

Swimsuit ........................................................................

13

23

T-shirt.............................................................................

28

40

Jeans .............................................................................

40

48

Blouse/shirt ....................................................................

41

50

Sweats ...........................................................................

15

16

Other gym/jogging/workout clothes................................

14

17

Nightwear/nightgown/pajamas.......................................

32

33

Other lingerie .................................................................

18

16

Slippers..........................................................................

30

21

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 7: When Black Shoppers Buy Clothes

Watches Important Fashion Accessory for Black Consumers Black consumers view watches as an important fashion accessory.

Compared to other

consumers, they are more likely to have purchased a watch for themselves or someone else in the past 12 months (32% vs. 25%). [Figure 7-4] Figure 7-4 Percent of Consumers Who Bought a Watch for Themselves or Others in the Past 12 Months, African-American vs. Other

32 35 25

30 25 20 15 10 5 0 African-American

Other

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 7: When Black Shoppers Buy Clothes

The African-American Market in the U.S.

Favorite Department and Discount Stores Discount Stores Attract African-American Clothes Shoppers Although African Americans are highly fashion conscious, they have positive attitudes toward shopping for the clothes offered by discount retailers. Compared to other shoppers, they are more likely to agree that clothes purchased at a discount store are just as good as those bought at a department store (60% vs. 54%). Black women are especially likely to agree with this statement (65% vs. 56%). [Figure 7-5] Figure 7-5 Percent Agreeing “Clothes at Discount Store Just as Good as Department Store,” AfricanAmerican vs. Other Consumers by Gender

65

70 60 60

54

54

56 52

50 40 30 20 10 0 All Black Adults

All Other Adults

Black Men Other Men

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Family Dollar Store Near Top of List for Black Shoppers Walmart and Target are the most popular department/discount stores among both African Americans and other consumers. However, African Americans are more likely than other

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Chapter 7: When Black Shoppers Buy Clothes

consumers to shop at discounters Family Dollar Store and Dollar General Store. Single black moms are especially likely to shop at Family Dollar Store. [Tables 7-6, 7-7 and 7-8] Table 7-6 Department/Discount Stores Shopped in Last Three Months by Consumers, AfricanAmerican vs. Other African-American

%

Other

%

Walmart .........................................

64%

Walmart .........................................

70%

Target ............................................

35

Target ............................................

44

Family Dollar Store ........................

32

J.C. Penney ...................................

30

J.C. Penney ...................................

32

Sears .............................................

25

Kmart .............................................

28

Kohl’s.............................................

24

Dollar General Store ......................

28

Kmart.............................................

24

Macy’s ...........................................

25

Macy’s ...........................................

22

Sears .............................................

22

Dollar General Store......................

19

Sam’s Club ....................................

20

Costco ...........................................

19

Big Lots..........................................

20

Sam’s Club ....................................

18

Foot Locker....................................

15

Family Dollar Store ........................

17

Burlington Coat Factory .................

15

Big Lots .........................................

14

T.J. Maxx .......................................

15

Old Navy........................................

14

Ross Dress For Less .....................

15

Bath & Body Works .......................

12

Bath & Body Works........................

14

Hallmark/Hallmark Gold Crown .....

11

Old Navy........................................

14

Toys R Us......................................

10

Kohl’s.............................................

14

T.J. Maxx .......................................

10

Dillard’s..........................................

13

Gamestop ......................................

9

Marshall’s ......................................

13

Dillard’s..........................................

9

Costco ...........................................

12

Michael’s .......................................

9

Gamestop ......................................

12

Victoria’s Secret.............................

8

Payless Shoe Source ....................

12

Dick’s Sporting Goods ...................

8

Kids Foot Locker............................

9

Payless Shoe Source ....................

8

Belk ..............................................

9

Marshall’s ......................................

8

BJ’s Wholesale Club......................

8

Ross Dress For Less .....................

8

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 7: When Black Shoppers Buy Clothes

The African-American Market in the U.S.

Table 7-7 Department/Discount Stores Shopped in Last Three Months by Women Not Married with Children, African-American vs. Other African-American

%

Other

%

Walmart .........................................

67%

Walmart .........................................

73%

Family Dollar Store ........................

39

Target ............................................

49

Target ............................................

37

J.C. Penney ...................................

30

Dollar General Store ......................

37

Old Navy........................................

25

Kmart .............................................

33

Kmart .............................................

24

J.C. Penney ...................................

32

Sears .............................................

24

Old Navy ........................................

25*

Macy’s ...........................................

24

Payless Shoe Source.....................

23*

Kohl’s.............................................

23

Sears .............................................

22*

Dollar General Store ......................

22

Big Lots..........................................

22

Family Dollar Store ........................

22

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 7-8 Department/Discount Stores Shopped in Last Three Months by Women Married with Children, African-American vs. Other African-American

%

Other

%

Walmart .........................................

85%

Walmart .........................................

80%

Target ............................................

61

Target ............................................

62

Dollar General Store ......................

49*

J.C. Penney ...................................

44

J.C. Penney ...................................

47

Kohl’s.............................................

38

Kmart .............................................

46

Old Navy........................................

30

Family Dollar Store ........................

43*

Kmart .............................................

30

Big Lots..........................................

36*

Sears .............................................

28

Burlington Coat Factory .................

36*

Macy’s ...........................................

27

Sam’s Club ....................................

35*

Dollar General Store .....................

25

Macy’s............................................

32*

Costco

24

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 8 Stores

Chapter 8: Black Shoppers in Drug Stores

Black Shoppers in Drug

African Americans are less likely to concur that over-the-counter (OTC) store brand drugs work like advertised brands.

Black consumers are more likely to believe that it is worth paying more for brand prescription medications.

Black consumers are less likely to take headache and pain relievers as well as heartburn and indigestion aids.

Black consumers are significantly less likely to report that they use vitamins.

Compared to other women, African-American women are less likely to use foundation make-up, eye shadow and eye liner and mascara and are more likely to use perfume and cologne.

Experian Simmons National Consumer Study (NCS) data show that black consumers visit drug stores more often than their counterparts in other consumer segments.

While spending less in absolute terms for personal-care products and services ($528 vs. $628), African Americans allocate a higher proportion of their budgets to this consumer expenditure category (1.4% vs. 1.2%).

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Chapter 8: Black Shoppers in Drug Stores

The African-American Market in the U.S.

Factors Shaping Purchase Decisions in Drug Stores Black Consumers Place Higher Value on Brand-Name Over-theCounter Drugs

C

ompared to other consumers, African Americans are less likely to concur that overthe-counter (OTC) store brand drugs work like advertised brands. Although they are more likely to believe that OTC medications are safer than prescription drugs,

they also have a higher likelihood of believing that non-prescription medications are not effective. [Table 8-1]

Table 8-1 Attitudes toward Over-the-Counter Drugs, African-American vs. Other Consumers by Gender

All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

OTC store-brand drugs work like advertised brands .............

53%

67%

54%

65%

53%

68%

OTC medications safer than prescription drugs ...................

13

9

13

10

13

8

No point taking nonprescription medications since they don’t work ..............

16

10

14

11

18

10

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Consumers Less Likely to Buy Over-the-Counter Medications for Routine Aches and Pains This skeptical attitude toward OTC medications affects the behavior of black consumers. They are less likely to take headache and pain relievers (73% vs. 83%) as well as heartburn and indigestion aids. [Table 8-2]

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The African-American Market in the U.S.

Chapter 8: Black Shoppers in Drug Stores

Table 8-2 Use of Headache/Pain Relievers and Heartburn/Indigestion Aids, African-American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

Headache/pain relievers ............

73%

83%

64%

78%

80%

87%

Heartburn/indigestion aids .........

40

48

33

45

46

50

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Brand-Name Prescription Drugs More Popular Black consumers are more likely to believe that it is worth paying more for brand prescription medications. They also are more likely to look for the most advertised medications available. [Table 8-3] Table 8-3 Attitudes toward Brand Name Drugs, African-American vs. Other Consumers by Gender

All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

Worth paying more for brand prescription medications ........

23%

15%

22%

15%

23%

15%

Always look for most advertised medications available .................................

27

22

24

21

30

23

Most expensive medications usually the best.......................

13

7

15

7

11

6

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 8: Black Shoppers in Drug Stores

The African-American Market in the U.S.

Vitamins Less Important Compared to other adults, African Americans, especially African-American men, are less likely to believe that people need more vitamins when they get older. Their attitudes toward vitamins are reflected in their behavior in drug stores. Black consumers are significantly less likely to report that they use vitamins. [Table 8-4 and Figure 8-1]] Table 8-4 Attitudes toward Vitamins, African-American vs. Other Consumers by Gender

All Consumers African-

Statement

Men

Women

African-

African-

American

Other

American

Other

American

Other

People need more vitamins when they get older ................

56%

59%

52%

57%

60%

61%

Believe that vitamins and nutrients make difference........

62

63

58

59

65

68

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Figure 8-1 Percent of Consumers Using Vitamins, African-American vs. Other

64

70 60

57

56

51

51 45

50 40 30 20 10 0 All Black Adults

All Other Black Men Other Men Adults

Black Women

Other Women

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 8: Black Shoppers in Drug Stores

Use of Personal-Care Products Many Differences in Use of Personal-Care Products Compared to other women, African-American women are less likely to use foundation makeup, eye shadow and eye liner and mascara and are more likely to use perfume and cologne. Hair products less likely to be used by African-American women include hair spray, hair styling creams and shampoo. [Table 8-5] African-American men are more likely to use after shave/cologne, facial cleansing products, moisturizers and hair conditioners. They are less likely to use shampoo, hair spray, hair styling creams and lotions, shaving cream and razor blades for non-disposable razors. [Table 8-6] Table 8-5 Use of Personal-Care Products, African-American vs. Other Women African-American Women

Other Women

Foundation make-up.................................

41%

67%

Eye shadow/eye liner/eye brow pencil......

35

57

Lipstick & lip gloss ....................................

77

77

Mascara....................................................

44

68

Moisturizers/creams/lotions ......................

80

86

Nail polish .................................................

65

63

Perfume/cologne/toilet water ....................

81

74

Razor blades (for non-disposable shavers)....................................................

26

45

Shaving cream or gel................................

27

35

Disposable razors/shavers .......................

47

55

Electric & battery shavers .........................

13

12

Product Cosmetics ...............................................

Shaving Products ...................................

—continued—

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Chapter 8: Black Shoppers in Drug Stores

The African-American Market in the U.S.

Table 8-5 Use of Personal-Care Products, African-American vs. Other Women [Cont.] African-American Women

Other Women

Hair coloring products (use at home) ........

28%

32%

Hair conditioner/treatment.........................

72

73

Hair removal (bleach, depilatories, waxing) .....................................................

21

16

Hair spray .................................................

24

56

Hair styling creams/gels/lotions ................

44

51

Home permanents & relaxers ...................

52

4

Shampoo ..................................................

85

97

Deodorants & anti-perspirants .................

94

93

Eye drops & eye wash (nonprescription) ..............................................

35

37

Suntan/screen & sunless products ...........

16

54

Facial cleansing & medicated products.....

53

60

Product Hair products ..........................................

Other ........................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 8-6 Use of Personal-Care Products, African-American vs. Other Men African-American Men

Other Men

After shave/cologne ..................................

68%

55%

Deodorants & anti-perspirants .................

89

91

Disposable razors/shavers........................

44

39

Electric & battery shavers .........................

40

38

Eye drops & eye wash (nonprescription) ..............................................

32

27

Facial cleansing/medicated products/toners .........................................

32

17

Hair conditioner/treatment.........................

41

27

Product

Hair spray .................................................

8*

15

—continued—

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The African-American Market in the U.S.

Chapter 8: Black Shoppers in Drug Stores

Table 8-6 Use of Personal-Care Products, African-American vs. Other Men [Cont.] African-American Men

Other Men

Hair styling creams/gels/lotions ................

22%

25%

Moisturizers/creams/lotions ......................

66

35

Razor blades (for non-disposable shavers)....................................................

49

56

Shampoo ..................................................

77

92

Shaving cream or gel................................

57

68

Suntan/screen & sunless products ...........

9

33

Product

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Oral Care Products Have High Priority African-American consumers are much more likely to use mouthwash. Tooth whiteners are also used more often by African Americans, especially African-American men (15% vs. 8%). [Table 8-7] Table 8-7 Use of Oral Care Products, African-American vs. Other Consumers by Gender Men

Women

African-

Category

American

AfricanOther

American

Other

Mouthwash/dental rinse.............

73%

58%

75%

60%

Dental floss ................................

52

54

60

70

Manual.....................................

86

83

85

86

Power ......................................

35

31

39

33

Toothpaste.................................

90

91

92

96

Tooth Whiteners ........................

15

8

18

16

Toothbrushes.............................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 8: Black Shoppers in Drug Stores

The African-American Market in the U.S.

Drug Store Shopping Patterns Black Shoppers Visit Drug Stores More Often Experian Simmons National Consumer Study (NCS) data show that black consumers visit drug stores more often than their counterparts in other consumer segments. For example, 43% of African Americans shopped at Walgreen’s—the most popular drug store chain—in the last four weeks, compared to 39% of other consumers. Similar disparities can be seen in the case of the next most popular drug store chains: CVS (39% vs. 30%) and Rite-Aid (23% vs. 17%). African-American consumers also are more likely to shop frequently at drug stores. For example, 9% of African Americans shopped at a CVS outlet four or more times in the past four weeks, compared to 6% of other consumers. [Table 8-8] Table 8-8 Percent Shopping at Drug Stores in Last Four Weeks by Name of Store and Frequency of Shopping, African-American vs. Other Consumers Category

African-American

Other

CVS ........................................................

39%

30%

Rite-Aid ...................................................

23

17

Walgreen’s..............................................

43

39

CVS ........................................................

9

6

Rite-Aid ...................................................

5

3

Walgreen’s..............................................

11

9

Name of drug store ...................................

Percent shopping 4 or more times ............

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Blacks Less Likely to Redeem Cents-Off Coupons for Drug Products African-American consumers are about as likely to report that they redeem cents-off coupons in drug stores. However, they are less likely to use them for drug products (18% vs. 23%) or beauty/grooming products (25% vs. 34%). [Table 8-9]

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The African-American Market in the U.S.

Chapter 8: Black Shoppers in Drug Stores

Table 8-9 Use of Cents-Off Coupons in Drug Stores, African-American vs. Other Consumers Category

African-American

Other

Redeem cents-off coupons in drug stores .....................

22%

23%

Use cents-off coupons for drug products ..........................

18

23

Use cents-off coupons for beauty/grooming products....

25

34

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Consumers Allocate More to Personal-Care Products In both absolute and relative terms, African-American consumers spend significantly less than other consumers for drugs and medical supplies. Their average annual expenditures for drugs total $252 and take up 0.7% of all expenditures. Other consumers spend $514, or 1% of total expenditures, on drugs. However, personal-care products have a higher priority for black consumers than they do for other consumers. While spending less in absolute terms for personal care products and services ($528 vs. $628), African Americans allocate a higher proportion of their budgets to this consumer expenditure category (1.4% vs. 1.2%). [Table 8-10] Table 8-10 Average Annual Expenditures for Selected Categories of Drug-Store Purchases, African-American vs. Other Consumer Units 2008 African-American

Item

Amount

% of All Annual Expenditures

Other

Amount

% of All Annual Expenditures

Health and medical.......................... Drugs.............................................

$252

0.7%

$514

1.0%

Medical supplies ............................

36

0.1

124

0.2

Personal-care products and services ...........................................

528

1.4

628

1.2

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

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Chapter 8: Black Shoppers in Drug Stores

132

The African-American Market in the U.S.

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February 2010


The African-American Market in the U.S.

Chapter 9: Home Electronics and Furnishings

Chapter 9 Shopping for Home Electronics and Home Furnishings

African Americans are more likely to say they love to buy new gadgets and appliances.

African-American households are more likely to subscribe to cable TV, including premium channels.

Black consumers are more likely to be planning to buy an MP3 player.

The gap in computer ownership between blacks and other population segments has declined significantly. According to Experian Simmons National Consumer Study (NCS) data, 78% of black households have a computer, compared to 84% of other households.

When African Americans buy computers, they are most likely to head to stores in the audio/video electronics store category.

Compared to other consumers, black consumers are about as likely to have purchased 10 or more downloads in the past 12 months.

Black consumers are much more likely than other consumers to view their cellphone as a platform to be used for information and commerce as well as voice communications.

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Chapter 9: Home Electronics and Furnishings

The African-American Market in the U.S.

Home Electronics and Home Entertainment Black Consumers Place High Priority on Home Electronics

A

frican Americans are more likely than other consumers to claim to be the first to have new electronic equipment (17% vs. 9%). They also are more likely to say they love to buy new gadgets and appliances (32% vs. 26%). [Table 9-1]

The high priority placed by black consumers on consumer electronics is seen in the way they allocate their spending. According to Bureau of Labor Statistics data, compared to other consumers, black consumers spend a higher proportion of their annual budgets on audio and visual equipment. [Figure 9-1] Table 9-1 Attitudes toward Consumer Electronics, African American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

I’m first of friends to have new electronic equipment..................

17%

9%

16%

12%

18%

6%

Friends ask my advice when buying electronic equipment ......

22

17

25

23

20

11

Pay anything for electronic product I want ............................

20

9

25

12

16

6

I love to buy new gadgets and appliances..................................

32

26

35

30

29

22

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 9: Home Electronics and Furnishings

Figure 9-1 Percent of Annual Consumer Expenditures Allocated to Audio and Visual Equipment, African-American vs. Other Consumer Units

2.4

2.5 2.1

2.0

2.0

2.0 1.6 1.5

1.0

0.5

0.0 All

Black

Non-Hispanic White

Asian

Hispanic

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey

Multiple Televisions More Common in Black Households African-American households are more likely to subscribe to cable TV, including premium channels. They also are more likely to own three or more TV sets (49% vs. 45%) and two or more DVD players (70% vs. 61%). They are less likely to still use VCRs (47% vs. 56%). A complete in-a-box home theater system is more common (10% vs. 7%). [Tables 9-2 and 9-3]

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Chapter 9: Home Electronics and Furnishings

The African-American Market in the U.S.

Table 9-2 Subscription to Cable Television, African-American vs. Other Consumers Category

African-American

Other

Household subscribes to cable TV .......

68%

63%

Digital cable ..............................................

42

39

Satellite dish .............................................

38

34

Cinemax....................................................

18

11

Encore ......................................................

20

13

HBO ..........................................................

27

20

The Movie Channel...................................

20

12

Showtime ..................................................

21

13

Starz .........................................................

21

14

Premium channels currently receive ....

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 9-3 Ownership of Home Entertainment Equipment, African-American vs. Other Consumers All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

Television sets—3 or more ........

49%

45%

48%

45%

24%

19%

DVR ...........................................

30

34

29

35

30

33

DVD player—2 or more..............

70

61

70

62

69

60

Complete in-a-box system .......

10

7

10*

8

9

6

Separate components..............

6

10

7*

12

5*

8

VCRs—3 or more ......................

17

14

19

14

16

13

Household still uses VCR ..........

47

56

52

56

44

57

Home theater equipment ...........

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

136

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The African-American Market in the U.S.

Chapter 9: Home Electronics and Furnishings

More African Americans Plan to Buy MP3 Players Ownership of electronic equipment is widespread among African Americans. For example, one in three (34%) owns a camcorder, while more than half (52%) own a camera. Black consumers are about as likely as other consumers to own an MP3 player (30% vs. 32%), and they are more likely (16% vs. 12%) to be planning to buy an MP3 player. [Table 9-4] Table 9-4 Ownership of Consumer Electronics, African-American vs. Other Consumers Category

African- American

Other

Camcorder/video ...........................................................

34%

41%

Still camera....................................................................

52

73

Film based 35mm camera ...........................................

18

25

Film based instant camera...........................................

4

3

Digital point and shoot .................................................

25

50

Digital SLR (allows for switching lenses) .....................

4

7

Own .............................................................................

30

32

Plan to purchase..........................................................

16

12

PDA ...............................................................................

8

9

Portable MP3/digital media player .................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Four in Five Black Households Own Computer The gap in computer ownership between blacks and other population segments has declined significantly. According to Experian Simmons National Consumer Study (NCS) data, 78% of black households have a computer, compared to 84% of other households. Around 30% of black households have two or more computers. [Table 9-5]

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Chapter 9: Home Electronics and Furnishings

The African-American Market in the U.S.

Table 9-5 Ownership of Computers African-American vs. Other Consumers Category

African-American

Other

78%

84%

2 or more ................................................

29

41

Plan to purchase PC in future ...................

36

31

Household owns computer .......................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Home Electronics Stores Popular Destination for Black Computer Buyers When African Americans buy computers, they are most likely to head to stores in the audio/video electronics store category. Computer stores are the next most popular choice for African-American computer buyers. When they buy software, black consumers are most likely to look for it in a computer store. [Table 9-6] Best Buy is the most popular home electronics store among black consumers. Office Depot ranks highest among office supply/computer retailers. [Table 9-7] Table 9-6 Purchases of Computers and Software, African-American vs. Other Consumers Category

African-American

Other

Audio/video electronics store ....................

12%

17%

Computer store .........................................

9

12

Department store ......................................

9

4

Direct from manufacturer ..........................

4

11

Online .......................................................

5

11

Audio/video electronics store ....................

5

7

Computer store .........................................

8

6

Office supply store ....................................

4

3

Online .......................................................

7

13

Most recent computer purchase ...........

Where bought software in last 12 months.....................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The African-American Market in the U.S.

Chapter 9: Home Electronics and Furnishings

Table 9-7 Percent Shopping at Home Electronics and Office Supply/Computer Stores in Last Three Months, African-American vs. Other Consumers Category

African-American

Other

Home electronics store ............................. Shopped last three months ..................... Any store ..............................................

34%

39%

Best Buy ...............................................

26

29

Radio Shack .........................................

12

11

Made purchase in last 4 weeks...............

12

16

Any store ..............................................

27

32

Fedex Kinko’s .......................................

4

3

Office Depot..........................................

13

12

Office Max ............................................

7

9

Staples..................................................

11

15

Office supply/computer store .................... Shopped in last three months .................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

African-American Consumers Major Customers for Music Industry Compared to other consumers, black consumers are more likely to have bought 10 or more CDs in the past 12 months (11% vs. 6%), and they are about as likely to have purchased 10 or more downloads. When African-American consumers buy music, they are most likely to purchase it at department stores. [Table 9-8]

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Chapter 9: Home Electronics and Furnishings

The African-American Market in the U.S.

Table 9-8 Music Purchases, African-American vs. Other Consumers Category

African-American

Other

Purchased in last 12 months ................. 10 or more CDs ........................................

11%

6%

10 or more downloads ..............................

12

12

Audio/video stores ....................................

11

8

Department stores ....................................

13

11

Discount stores .........................................

10

10

Online .......................................................

9

14

Record or CD Stores ................................

10

6

Where bought in last 12 months

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Black Consumers Depend More on Cellphones Black consumers are much more likely than other consumers to view their cellphone as a platform to be used for information and commerce as well as voice communications. For example, they are more likely to use a cellphone to get information (36% vs. 29%) and keep up with news and sports (13% vs. 8%). They are more likely to see value in accepting ads on their cellphone (19% vs. 7%) and to purchase products advertised on a cellphone (13% vs. 4%). [Table 9-9] African Americans are as likely as other consumers to own a cellphone (89% vs. 88%). However, pre-paid and non-contract plans are more popular than annual or multi-year contracts. [Table 9-10]

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Table 9-9 Importance of Cellphones, African-American vs. Other Consumers Statement

African-American

Other

Cellphone is an expression of who I am ........................

18%

9%

Only use my cellphone for basic calling.........................

42

51

Use cellphone to get information I need ........................

36

29

Use information from cellphone to decide how to use free time.........................................................................

18

8

Rely on cellphone to keep up with news/sports .............

13

8

Like idea of cellphone moving beyond voice/text...........

36

29

Likely purchase products I see advertised on cellphone .......................................................................

13

4

Interested in cellphone for store purchases ...................

11

3

Accept advertisements and receive value in exchange .......................................................................

19

7

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 9-10 Ownership of Cellphones, African American vs. Other Consumers by Gender All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

89%

88%

91%

88%

87%

89%

Annual or multi-year contract .....

42

61

41

61

43

61

Prepaid ......................................

13

8

14*

8

12

9

No contract (not prepaid plan)

13

10

12

10

14

10

Family ........................................

55

58

59

57

52

59

Individual ..................................

30

25

28

24

32

25

Bluetooth ...................................

28

27

31

29

26

26

Camcorder phone ......................

15

15

16

16

15

14

Camera/picture phone ...............

44

51

42

49

45

53

Downloadable ringtones ............

28

32

28

31

28

32

Email..........................................

25

23

26

24

23

21

Own cellphone ........................... Type of plan ..............................

Additional services...................

—continued—

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Table 9-10 Ownership of Cellphones, African American vs. Other Consumers by Gender [Cont.] All Consumers African-

Category

Men

Women

African-

African-

American

Other

American

Other

American

Other

Games .......................................

36%

32%

37%

31%

35%

34%

GPS navigation system..............

10

10

11

11

9

9

Instant messaging......................

20

19

18

19

21

18

MP3/digital music player ............

16

14

16

15

15

13

Nationwide coverage .................

19

28

22

30

17

27

Picture messaging .....................

27

27

27

26

28

27

Song downloading .....................

19

16

18

15

19

16

Speaker phone ..........................

43

44

42

43

44

44

Text messaging .........................

45

51

45

50

45

52

Video downloading ....................

10

10

11

10

9

9

Video messaging .......................

10

9

11

10

10

9

4

**

4

Walkie-talkie/push-to-talk...........

4*

3*

3

Wallpaper downloading..............

17

19

17

18

16

19

Web browsing ............................

22

22

23

23

21

21

$150 or more .............................

11*

12

10

11

12

12

$100-$149..................................

15

18

16

19

14

18

$50-$99......................................

28

26

30

27

26

26

Less than $50 ............................

15

23

12

22

18

23

Amount of bill last month........

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Cells with a double asterisk indicate that the number of cases is too small for reliability. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Shopping for Home Furnishings and Home Improvements African Americans Spend More on Furniture Although spending less in absolute terms than other consumers, black consumers allocate relatively more of their annual budgets for furniture (0.9% vs. 0.8%). Black consumer units spend approximately $1,100 annually on household furnishings and equipment. [Table 9-11] Table 9-11 Aggregate Annual Expenditures by African-American Consumer Units for Household Furnishings and Equipment, 2008 African-American % of All Annual Expenditures

Other % of All Annual Expenditures

Item

Amount

Household textiles ...........................

$116

Furniture ..........................................

339

0.9

394

0.8

Floor coverings ................................

21

0.1

48

0.1

Major appliances .............................

121

0.3

216

0.4

Small appliances/miscellaneous housewares .....................................

61

0.2

120

0.2

Miscellaneous household equipment........................................

458

1.2

789

1.5

Total................................................

$1,116

0.3%

3.0%

Amount $128

$1,694

0.2%

3.2%

Source: Compiled by Packaged Facts based on data from Bureau of Labor Statistics 2008 Consumer Expenditure Survey.

Most Popular Home Furnishing Retailers Listed Black consumers are less likely to have shopped at a home furnishings store in the past three months (23% vs. 30%). They are about as likely as other consumers to have gone to an Ikea or Pier 1 Imports outlet. [Table 9-12]

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Table 9-12 Shopping at Home Furnishings Stores, African-American vs. Other Consumers Category

African-American

Other

Shopped in last 3 months ......................... Any store.................................................

23%

30%

Bed, Bath & Beyond ...............................

12

16

Ikea .........................................................

5

5

Pier 1 Imports .........................................

5

4

3 or more ................................................

9

10

1-2...........................................................

7

13

Number of times shopped in last 4 weeks........................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Fewer African Americans Shop at Home Improvement Stores In a pattern that likely is related to a lower rate of homeownership, African Americans are less likely to have shopped at a home improvement store in the previous three months (40% vs. 64%). As is the case among other consumers, Home Depot is the most popular home improvement outlet among black consumers. [Table 9-13]

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Table 9-13 Shopping at Home Improvement Stores, African-American vs. Other Consumers Category

African-American

Other

Any store ..................................................

40%

64%

Ace Hardware ...........................................

8

15

Home Depot .............................................

30

42

Lowe’s ......................................................

24

38

Shopped in last 3 months ......................

Menards....................................................

4*

7

True Value Hardware................................

5

8

Other.........................................................

4*

5

Made purchase in last 4 week ............... Any store .................................................. Ace Hardware ..........................................

17 2*

35 7

Home Depot .............................................

12

21

Lowe’s ......................................................

9

18

7 or more ..................................................

7

12

3-6 ............................................................

14

24

1-2 ............................................................

10

19

Number of times shopped in last 4 weeks.......................................................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 10: Affluent African-American Shoppers

Chapter 10 Affluent AfricanAmerican Shoppers

There are 1.5 million African-American households with an income of $100,000 or more.

The New York metropolitan area has the largest number of affluent black households—183,000, or 13% of all affluent African-American households.

Compared to other affluent Americans, affluent blacks are much more likely to consider money to be the best measure of success (29% vs. 19%).

Affluent blacks are more likely than other affluent consumers to be uncomfortable entrusting their money to a bank.

Around half (48%) of affluent African Americans have investments of any kind.

When buying or leasing a car, affluent African-Americans are more likely to acquire a vehicle worth $40,000 or more (14% vs. 9%).

Around one in four (26%) affluent African Americans plans to buy a car in the next 12 months, the same proportion as other affluent consumers.

Compared to other affluent consumers, affluent blacks are more likely to have taken a cruise ship vacation in the last three years and to be planning to get on a cruise ship in the next 12 months.

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The African-American Market in the U.S.

Overview Affluent Black Households Total 1.5 Million

T

here are 1.5 million African-American households with an income of $100,000 or more. With a mean income of $152,000, affluent black households generate an aggregate income of $223 billion.

At the top of the income pyramid in the African-American community are 156,000 households with an annual income of $200,000 or more.

With an average income of

$336,000, these super-affluent black households represent around 11% of all affluent African-American households but are responsible for 24% of the aggregate income of affluent blacks. [Table 10-1] The distribution of income in the African-American population mirrors the winner-take-all phenomenon that has taken hold in American society as a whole. Black households with an income of $100,000 or more account for only 10% of all black households but are responsible for one-third of the aggregate income of African-American households. [Table 10-2] Table 10-1 African-American Households with Incomes of $100,000 or More by Income Level, 2008

Income Level

No. (in thousands)

Mean Income

Aggregate Income (in million $)

% of Affluent Households

% of Aggregate Income

68.2%

53.1%

$100,000 to $149,999........

998

118,338

$118,101

$150,000 to $199,999........

309

168,222

51,981

21.1

23.4

$200,000 or more ..............

156

336,301

52,463

10.7

23.6

$200,000 to $249,999......

79

216,172

17,078

5.4

7.7

$250,000 or more ............

77

459,551

35,385

5.3

15.9

All ......................................

1,464

$152,012

$222,545

100.0%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

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Table 10-2 Aggregate Income of African-American Households, Affluent vs. Other Households, 2008 % of Total

Income Level

# (in thousands)

Mean Income

Aggregate Income (in millions)

Below $100,000.............

13,131

$34,773

$456,604

$100,000 or more ..........

1,464

152,012

Total..............................

14,595

$46,533

Households

Aggregate Household Income

90.0%

67.2%

222,545

10.0

32.8

$679,149

100.0%

100.0%

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

New York Metro Area Has Largest Population of Affluent Blacks The New York metropolitan area has the largest number of affluent black households— 183,000, or 13% of all affluent African-American households. The Washington, D.C. metro area has the second-largest concentration of affluent black households (135,000), followed by Atlanta (78,000) and Chicago (70,000). [Table 10-3]

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Table 10-3 Metropolitan Areas Ranked by Number of African-American Households with Income of $100,000 or More % of All Affluent Black Households

Metropolitan Area

No. of Households

New York-Northern New Jersey-Long Island, NY-NJ-PA.....................

182,888

13.3%

Washington-Arlington-Alexandria, DC-VA-MD-WV ..............................

135,273

9.8

Atlanta-Sandy Springs-Marietta, GA ....................................................

77,839

5.7

Chicago-Naperville-Joliet, IL-IN-WI ......................................................

69,794

5.1

Los Angeles-Long Beach-Santa Ana, CA ............................................

57,511

4.2

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD...............................

48,179

3.5

Houston-Sugar Land-Baytown, TX.......................................................

42,049

3.1

Baltimore-Towson, MD.........................................................................

37,592

2.8

Dallas-Fort Worth-Arlington, TX ...........................................................

35,842

2.6

Miami-Fort Lauderdale-Pompano Beach, FL .......................................

33,014

2.4

Detroit-Warren-Livonia, MI ...................................................................

31,363

2.3

San Francisco-Oakland-Fremont, CA ..................................................

23,894

1.7

Virginia Beach-Norfolk-Newport News, VA-NC ....................................

19,207

1.4

Riverside-San Bernardino-Ontario, CA ................................................

19,045

1.4

Boston-Cambridge-Quincy, MA-NH .....................................................

16,187

1.2

Memphis, TN-MS-AR ...........................................................................

14,152

1.0

Charlotte-Gastonia-Concord, NC-SC ...................................................

13,530

1.0

Richmond, VA .....................................................................................

13,380

0.9

St. Louis, MO-IL ...................................................................................

12,930

0.9

Cleveland-Elyria-Mentor, OH ...............................................................

10,591

0.8

Source: Compiled by Packaged Facts based on data from U.S. Census Bureau, March 2009 Current Population Survey.

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Profile of Affluent Black Shoppers Affluent Blacks Shop More Often Compared to other affluent consumers, affluent African Americans are more likely to go shopping frequently (36% vs. 28%). They also are far more likely to try out new stores and are more willing to travel an hour or more to shop at their favorite store. When affluent blacks enter a store, they are more likely to head right to the clearance rack and to spend long periods of time browsing. [Table 10-4] Table 10-4 Shopping Behavior of Affluent Consumers, African-American vs. Other Statement

African-American

Other

Even when I don’t purchase make a purchase I enjoy shopping ........................................................................

37%

35%

I go shopping frequently ................................................

36

28

Usually first among friends to try new store ..................

20

8

Often go out of my way to find new stores.....................

15

7

Will travel up to an hour or more to shop favorite store...............................................................................

33

22

Normally only shop stores located nearby .....................

44

58

Will travel an hour or more to factory outlet stores ........

37

28

I tend to spend long periods of time in stores browsing ........................................................................

36

30

I head right to clearance rack when I enter a store ........

44

36

Importance of shopping..............................................

Trying new stores ........................................................

Convenience ................................................................

In-store behavior..........................................................

Note: This and subsequent tables in this chapter define affluent consumers as those with a household income of $100,000 or more. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Affluent Blacks Highly Brand-Conscious Compared to other affluent consumers, affluent blacks are much more likely to always look for a brand name (42% vs. 33%). They are more likely to be drawn to specialty stores because they believe these stores have the best brands (30% vs. 23%) and to avoid buying unknown brands in order to save money (39% vs. 34%). However, affluent blacks are more likely than other affluent consumers to change brands for the sake of variety or novelty (23% vs. 15%). [Table 10-5] Table 10-5 Attitudes toward Brands of Affluent Consumers, African-American vs. Other Statement

African-American

Other

I always look for brand name .........................................

42%

33%

Prefer shopping specialty stores because they tend to carry best brands ...........................................................

30

23

I don’t buy unknown brands to save money...................

39

34

I change brands often for variety/novelty .......................

23

15

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Black Shoppers Analyzed Affluent African-American shoppers differ in several ways from other affluent shoppers. For example, the primary shopper in the household is more likely to be female (82% vs. 78%). They are more likely to have placed a mail/phone order (40% vs. 35%) than an Internet order (52% vs. 70%) in the last 12 months. They are less likely to have gone to a shopping mall or strip mall in the past four weeks, but they are about as likely to be frequent visitors to supermarkets. [Table 10-6]

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Table 10-6 Profile of Affluent Shoppers, African-American vs. Other Category

African-American

Other

Gender of primary shopper ............................................ Male.............................................................................

17%

21%

Female.........................................................................

82

78

Placed a mail/phone order in last 12 months .................

40

35

Placed an Internet order in last 12 months ....................

52

70

Bought merchandise from a catalog in last 12 months ..

44

49

Shopped in a home electronics store in last 3 months...

48

49

Shopped in a home furnishings store in last 3 months

32

39

Shopped in a convenience store in last 4 weeks ...........

54

55

Went to a shopping mall in the last 4 weeks..................

56

60

Went to a strip mall in the last 4 weeks..........................

42

51

Went to a supermarket 10 or more times in last 4 weeks ............................................................................

45

46

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Coupons and Incentives Less Enticing to Affluent Black Shoppers Affluent African Americans are less likely than other affluent consumers to use cents-off coupons or to respond to incentive offers from manufacturers. Color leaflets received in the mail or in newspapers are the most popular type of cents-off coupon. Rebates on product purchases are the most commonly used incentive offers. [Tables 10-7 and 10-8]

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Table 10-7 Use of Cents-Off Coupons by Affluent Consumers, African-American vs. Other Category

African-American

Other

67%

76%

Color leaflets received by mail .....................................

33

48

Color leaflets inserted in newspapers ..........................

33

49

Other newspaper inserts/advertisements.....................

30

38

Magazines ...................................................................

21

31

In or on packages ........................................................

27

41

Handed out in or near stores .......................................

29

35

Internet or email ...........................................................

18

27

Seen on-shelf coupon machine in store.......................

63

71

Ever used an on-self coupon machine.........................

47

56

Used by household member .......................................... Type used ......................................................................

Use of on-shelf coupon machines..................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 10-8 Impact of Incentive Offers from Product Manufacturers on Affluent Consumers, African-American vs. Other Category

African-American

Household responds ......................................................

52%

Other 66%

Type of offer................................................................... Contests or competitions .............................................

8*

11

Free products, coupons/other offers attached .............

36

41

Proof of purchase gifts .................................................

17

18

Rebates on product purchases ....................................

44

62

Sweepstakes ...............................................................

8*

13

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Affluent Black Food Shoppers Alert to In-Store Announcements Compared to other affluent consumers, affluent African-American consumers are more likely to pay attention to in-store announcements (37% vs. 32%) and radio/public address announcements (29% vs. 24%). They also are much more likely to notice advertising on shopping carts (20% vs. 12%). [Table 10-9] Table 10-9 Impact of In-Store Advertising and Promotions on Affluent Food Shoppers, AfricanAmerican vs. Other Refer to always/sometimes

African-American

Other

Advertising on the floor ..................................................

52%

51%

Advertising on shopping cart .........................................

20

12

Announcements in store ................................................

37

32

Computerized information/coupon center ......................

29

27

Free-standing displays with product ..............................

50

61

In-store demonstrations .................................................

40

47

In-store samples ............................................................

43

55

Message/offers at the shelf............................................

39

44

On the Internet...............................................................

22

21

Overhead aisle markers.................................................

41

48

Promotion displays without products .............................

25

26

Promotion or display at end of aisle...............................

46

56

Radio/public address announcements...........................

29

24

Video monitor displays...................................................

28

17

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Personal Finances Affluent Blacks Less Financially Secure Compared to other affluent Americans, affluent blacks are less likely to feel financially secure (27% vs. 37%) or to be happy with their standard of living (51% vs. 59%). They also are much more likely to consider money to be the best measure of success (29% vs. 19%). Affluent African Americans also have less confidence in their ability to manage money. They are less likely to agree that they are very good at managing money and less likely to maintain that they are careful with their money. [Table 10-10] Table 10-10 Attitudes toward Money of Affluent Consumers, African-American vs. Other Statement

African-American

Other

Money is the best measure of success ..........................

29%

19%

I am happy with my standard of living ............................

51

59

I feel financially secure...................................................

27

37

I’m very good at managing money .................................

46

53

I’m careful with my money .............................................

53

61

I’m no good at saving money .........................................

25

23

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Blacks Interested in Financial Services but Distrust Banks Affluent blacks are much more likely than their counterparts in other population segments to find ads for financial services interesting (32% vs. 11%). Affluent African Americans also are more likely to read the financial pages in their newspaper. [Table 10-11]

However, while more interested in exploring financial services, affluent blacks are wary of financial institutions.

They are more likely than other affluent consumers to be

uncomfortable entrusting their money to a bank. [Figure 10-1]

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The lack of trust in financial institutions appears to affect the behavior of affluent African Americans. According to Experian Simmons NCS data, they are less likely than other affluent Americans to have checking or savings accounts. [Table 10-12] Table 10-11 Attitudes toward Financial Services, African-American vs. Other Affluent Consumers Statement

African-American

Other

I find ads for financial services interesting .....................

32%

11%

I read financial pages of my newspaper ........................

31

27

Shop for best deal for financial services ........................

44

34

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Figure 10-1 Percent of Affluent Consumers Who Are “Uncomfortable Entrusting Money to a Bank,” Affluent vs. Other

25

20

20

15

15

10

5

0 African-American

Other

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Table 10-12 Ownership of Bank Accounts by Affluent Consumers, African-American vs. Other Category

African-American

Other

Non-interest bearing checking account(s)......................

27%

35%

Interest bearing checking account(s) .............................

26

40

Saving(s) accounts ........................................................

51

59

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Credit Cards less Common among Affluent African Americans According to Experian Simmons NCS data, only 60% of affluent blacks have or use credit cards, compared to 81% of other affluent consumers. Visa is the most popular card among affluent black cardholders. [Table 10-13] Table 10-13 Use of Credit and Debit Cards, African-American vs. Other Affluent Consumers Category

African-American

Have or use ...................................................................

Other

60%

81%

18

23

Type of card................................................................... American Express........................................................ Discover.......................................................................

9*

19

MasterCard ..................................................................

31

40

Visa..............................................................................

36

53

Department store .........................................................

24

30

Debit card ....................................................................

65

73

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Life Insurance Important to Affluent Blacks Affluent African Americans are more likely to believe that it is important to be well insured for life insurance (67% vs. 62%). Although they are substantially less likely than other affluent Americans to have health insurance (68% vs. 85%), the gap is much narrower in the case of life insurance (61% vs. 64%). Affluent blacks are more likely to have a life insurance policy in the whole/universal/variable (cash value) category (21% vs. 18%). They are as

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Chapter 10: Affluent African-American Shoppers

likely as other affluent consumers to have a life insurance policy valued between $200,000 and $499,999. [Figure 10-2 and Table 10-14] According to Experian Simmons NCS data, affluent African Americans are less likely to have homeowners and auto insurance, a pattern likely related to lower rates of ownership of homes and cars. [Table 10-15] Figure 10-2 Percent Believing It Important to Be Well Insured with Life Insurance, African-American vs. Other Affluent Consumers

70 69

67

68 67 66 65 64

62

63 62 61 60 African-American

Other

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 10-14 Ownership or Health and Life Insurance by Affluent Consumers, African-American vs. Other Category

African-American

Have health insurance ...................................................

Other

68%

85%

Dental ..........................................................................

53

62

Vision care ...................................................................

43

45

Loss of income (through medical/disability) .................

22

22

Have life insurance ........................................................

61

64

—continued—

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Table 10-14 Ownership or Health and Life Insurance by Affluent Consumers, African-American vs. Other [Cont.] Category

African-American

Other

Type............................................................................... Group life .....................................................................

7%*

10%

Term life.......................................................................

30

36

Whole/universal/variable (cash value) life...................

21

18

Value of life insurance.................................................... $500,000 or more ........................................................

8*

$200,000-$499,999......................................................

16

10 16

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 10-15 Ownership of Automotive and Homeowner’s Insurance by Affluent Consumers, African-American vs. Other Category

African-American

Other

Automotive.....................................................................

71%

87%

Homeowners..................................................................

54

69

Insurance company (no agent) ....................................

18

17

Through an agent ........................................................

26

44

Homeowner’s insurance $300,000 or more ...................

24

35

How obtained homeowner’s insurance ..........................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Education Loans More Common among Affluent Blacks Affluent African-American consumers are less likely than their counterparts in other population segments to have loans of any kind (58% vs. 68%). However, although the data are to be used with caution because of a small sample size, Experian Simmons NCS data indicate that personal loans for education are more common among affluent blacks (14% vs. 11%). [Table 10-16]

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Table 10-16 Loans Held by Affluent Consumers, African-American vs. Other Category

African-American

Other

Any loans.......................................................................

58%

68%

Auto loan(s) for new car.................................................

28

33

Personal loan(s) for education only ...............................

14*

11

Home mortgage (1 )......................................................

31

47

Home equity loan...........................................................

10*

18

st

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Half of Affluent Blacks Have Investments Around half (48%) of affluent African Americans have investments of any kind. The most commonly held investment is a 401k (34%), followed by mutual fund/brokerage accounts (17%) and IRAs (16%). [Table 10-17] Table 10-17 Investments Owned by Affluent Consumers, African-American vs. Other Category

African-American

Other

Any investments ............................................................

48%

64%

Mutual fund/brokerage accounts ...................................

17

34

U.S. savings bonds........................................................

10*

15

Money market ................................................................

8*

20

Common stock in company other than employer...........

8*

16

401K ..............................................................................

34

39

IRA.................................................................................

16

24

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Online Bill Paying Popular Two in five (40%) affluent African Americans pay their bills online. This percentage is nearly as great as the proportion of other affluent consumers paying bill online (44%). [Table 10-18]

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Table 10-18 Method of Paying Bills by Affluent Consumers, African-American vs. Other Category

African-American

Other

Online ............................................................................

40%

44%

By mail ...........................................................................

45

55

By phone........................................................................

14

13

Automatically deducted from bank account ..................

25

30

In person........................................................................

20*

13

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Shopping for Clothes Affluent African Americans Like Shopping for Clothes Compared to other affluent consumers, affluent blacks are far more interested in fashion. For example, they are much more interested in keeping up with the latest fashions (42% vs. 27%) and looking to fashion magazines to help decide what clothes to buy (20% vs. 11%). Affluent African Americans also are more likely to enjoy clothes shopping (43% vs. 31%) and to report that they spend more than they can afford for clothes (22% vs. 12%). [Table 10-19] Table 10-19 Attitudes toward Fashion of Affluent Consumers, African-American vs. Other Statement

African-American

Other

Fashion magazines help determine the clothes I buy ....

20%

11%

I like to keep up with the latest fashions ........................

42

27

I often buy clothes I don’t really need ............................

29

23

Everything I wear is the highest quality..........................

41

30

I no longer wear clothes I wore a year ago ....................

16

10

I am first among my friends to try new styles .................

20

10

I spend more than I can afford for clothes .....................

22

12

I like to experiment with new styles................................

32

22

I really enjoy clothes shopping.......................................

43

31

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Blacks Spend More for Children’s Clothing Affluent blacks are more likely than other affluent consumers to buy children’s clothing (51% vs. 43%). They also have a higher likelihood of spending $400 or more annually (27% vs. 20%). [Table 10-20]

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Table 10-20 Purchase of Children’s Clothing in Last 12 Months by Affluent Consumers, AfricanAmerican vs. Other Category

African-American

Other

Bought children’s clothing ..............................................

51%

43%

Spent $400 or more .......................................................

27

20

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Black Women Buy More Dress Clothes Compared to other affluent women, affluent black women are more likely to have purchased a suit in the past 12 months (17% vs. 5%). Skirts (22% vs. 16%) and dresses (24% vs. 20%) also are more popular purchases. [Table 10-21] Table 10-21 Purchase of Women’s Apparel and Accessories by Affluent Women, African-American vs. Other Category

African-American

Other

53%

51%

19

16

Bought in last 12 months ............................................... Category ........................................................................ Overcoat/jacket ............................................................ Blazer of jacket (suit type)............................................

9*

6

Suit...............................................................................

17

5

Skirt..............................................................................

22

16

Dress ...........................................................................

24

20

Slacks/pants (not jeans)...............................................

23

27

Sweater........................................................................

18

25

Purse/handbag ............................................................

27

28

T-shirt...........................................................................

22

26

Jeans ...........................................................................

29

30

Blouse/shirt ..................................................................

29

31

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Department/Discount Store Preferences Differ Both black and other affluent consumers are most likely to shop at Walmart, Target and Macy’s.

However, there are significant differences in the remaining most popular

department/discount stores. Stores on the top-15 list of affluent African Americans that are not included in the stores most popular among other affluent consumers include Marshall’s, Family Dollar Store, Ross Dress for Less and Dollar General Store. Retail outlets popular among other affluent consumers but not among affluent black consumers include Old Navy and Victoria’s Secret. [Table 10-22] Table 10-22 Department/Discount Stores Shopped in Last Three Months by Affluent Consumers, African-American vs. Other African-American

%

Other

%

Walmart .........................................

57.5%

Walmart .........................................

61.2%

Target ............................................

45.4

Target ............................................

51.3

Macy’s ...........................................

37.8

Macy’s ...........................................

28.6

Costco ...........................................

27.7

Kohl’s.............................................

28.2

J.C. Penney ...................................

25.2

J.C. Penney ...................................

28.2

Kmart .............................................

22.5

Costco ...........................................

27.7

Marshall’s ......................................

18.7

Sears .............................................

24.0

T.J. Maxx .......................................

18.0

Sam’s Club ....................................

19.9

Sears .............................................

17.9

Kmart.............................................

18.1

Kohl’s.............................................

17.7

Old Navy........................................

16.3

Bath & Body Works........................

16.5

Bath & Body Works .......................

15.1

Sam’s Club ....................................

15.7

Hallmark/Hallmark Gold Crown .....

12.6

Family Dollar Store ........................

15.4

Toys R Us......................................

11.6

Ross Dress For Less .....................

15.0*

T.J. Maxx .......................................

11.6

Dollar General Store ......................

14.3

Victoria’s Secret.............................

11.5

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Consumer Electronics and Home Entertainment Affluent Black Consumers Are Early Adopters Compared to other affluent consumers, affluent blacks are much more likely to claim to be the first among their friends to have new electronics equipment (24% vs. 13%). They also have a much higher likelihood of saying they will pay anything for an electronics product they want (23% vs. 11%). [Table 10-23] Table 10-23 Attitudes toward Consumer Electronics by Affluent Consumers, African-American vs. Other Statement

African-American

Other

I’m first of friends to have new electronics equipment ...

24%

13%

I pay anything for an electronic product I want...............

23

11

I love to buy new gadgets and appliances .....................

33

31

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Digital Divide Narrows among Affluent Consumers Although Internet usage is lower, affluent African-American households are nearly as likely as other households to own a computer (90% vs. 95%). They have about the same likelihood of owning four or more computers and are more likely to be planning to purchase a computer in the future. [Table 10-24] Table 10-24 Use of Computers and the Internet by Affluent Consumers, African-American vs. Other Category

African-American

Other

Household owns ..........................................................

90%

95%

Household owns four or more......................................

16

15

Plan to purchase computer in the future ......................

47

37

Ownership of computers ................................................

—continued—

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Table 10-24 Use of Computers and the Internet by Affluent Consumers, African-American vs. Other [Cont.] Category

African-American

Other

Used Internet at home in last 7 days ...........................

71%

80%

Went online at home 25 times or more in last 7 days (excluding email) ..........................................................

24

35

Use of the Internet .........................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Television Important in Affluent Black Households Affluent black consumers are more likely to own five or more television sets. Multiple DVD players and VCRs also are more common. [Table 10-25] Table 10-25 Ownership of Consumer Electronics by Affluent Consumers, African-American vs. Other Category

African-American

Other

68%

81%

35MM...........................................................................

21

25

Digital or point-and-shoot.............................................

47

65

DVD player ....................................................................

93

95

3 or more .....................................................................

54

43

MP3 player ....................................................................

42

45

Plan to purchase MP3 .................................................

16*

14

Personal digital assistant ...............................................

17

19

5 or more .....................................................................

32

24

42 inches or more ........................................................

25

20

LCD .............................................................................

40

45

Plasma.........................................................................

14

19

Traditional tube ............................................................

57

72

DVRs .............................................................................

31

47

Still camera....................................................................

Television sets ...............................................................

Plan to purchase DVR .................................................

9*

4

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Table 10-25 Ownership of Consumer Electronics by Affluent Consumers, African-American vs. Other [Cont.] Category

African-American

Other

Complete in-a-box system ...........................................

19%*

10%

Separate components..................................................

12*

17

VCRs .............................................................................

75

82

3 or more .....................................................................

27

19

Home theater equipment ...............................................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Cellphones Vital Part of Affluent Black Lifestyle Affluent African Americans are slightly more likely than other affluent consumers to own cellphones. They are about as likely to have a cellphone bill of $150 or more. [Table 10-26] Table 10-26 Ownership of Cell Phones by Affluent Consumers, African-American vs. Other Category

African-American

Other

97%

95%

Bluetooth......................................................................

46

40

Camcorder phone ........................................................

20

19

Camera/picture phone .................................................

55

67

Downloadable ringtones ..............................................

38

42

Email............................................................................

42

34

Games .........................................................................

43

41

GPS navigation system................................................

15

16

Instant messaging........................................................

25

24

MP3/digital music player ..............................................

17

21

Nationwide coverage ...................................................

31

39

Picture messaging .......................................................

36

36

Song downloading .......................................................

18

21

Own cellphone ............................................................... Additional services .........................................................

—continued—

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Table 10-26 Ownership of Cell Phones by Affluent Consumers, African-American vs. Other [Cont.] Category

African-American

Other

Speaker phone ............................................................

52%

58%

Text messaging ...........................................................

64

67

Wallpaper downloading ...............................................

18

23

Web browsing ..............................................................

30

31

Previous month’s bill of $150 or more............................

19

18

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Books Also Key in Entertainment Choices of Affluent Blacks A substantial majority (59%) of affluent African Americans report purchasing books in the previous 12 months. Nearly one in three (31%) bought hardback books. [Table 10-27] Table 10-27 Purchase of Books by Affluent Consumers, African-American vs. Other Category

African-American

Purchased books in last 12 months ...............................

Other

59%

69%

Hardcover ....................................................................

31

41

Paperback ...................................................................

43

57

Bookstore ....................................................................

40

48

Online ..........................................................................

17

24

Bought any books as gifts in last 12 months..................

29

43

Type purchased .............................................................

Where purchased ..........................................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Automotive Multiple Vehicles a Hallmark of Affluent Black Households Because they are more likely to live in urban areas, affluent blacks are less likely than other affluent consumers to own a vehicle. However, a majority (65%) own two vehicles or more, with 37% owning three or more vehicles. [Table 10-28] Table 10-28 Ownership of Vehicles by Affluent Consumers, African-American vs. Other Category

African-American

Household owns/leases any car/pickup/SUV.................

Other

85%

98%

3 or more .....................................................................

37

46

2...................................................................................

28

40

1...................................................................................

19

11

Number of vehicles in household...................................

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

New Cars Favored Like other affluent consumers, affluent African Americans are more likely to buy a new vehicle than a used one. When buying new cars, affluent blacks are somewhat more likely to rely on dealer finance and less likely to depend upon car loans from a commercial bank or credit union.

Features more likely to be on a new car bought by an affluent African

American include an extended service contract, GPS and satellite radio. Affluent black new car buyers are about as likely as other affluent consumers to buy a car with automatic climate control, a burglar alarm/security system and rust proofing. [Table 10-29]

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Table 10-29 Profile of Most Recently Acquired Cars by Affluent Consumers, African-American vs. Other Category

African-American

Other

New ...............................................................................

40%

51%

Used ..............................................................................

32

37

New vs. used ................................................................

Leased...........................................................................

6*

6

Finance method for new cars ..................................... Dealer finance ...............................................................

30

28

With commercial bank auto loan....................................

13

17

With credit union auto loan ............................................

14

16

NTI-lock brakes..............................................................

51

63

Automatic climate control...............................................

34

34

Burglar alarm/security system .......................................

46

45

DVD player ....................................................................

21

23

Extended-service contract .............................................

26

22

4 wheel drive (part of full) ..............................................

16

29

Global positioning system (GPS)-navigation system .....

19

11

Rust proofing .................................................................

20

19

Satellite radio .................................................................

19

17

Side-impact air bag(s)....................................................

34

36

Sun roof/moon roof/T-top...............................................

31

34

Features of new car .....................................................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Blacks More Drawn to Luxury Cars As seen in Table 10-30, affluent black consumers are about as likely as other affluent consumers to have purchased an automobile in the last 12 months and are slightly more likely to have bought automotive accessories during this period. When buying or leasing a car, affluent African-Americans are more likely to acquire a vehicle worth $40,000 or more (14% vs. 9%). [Table 10-31]

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Table 10-30 Automotive Purchases Made in Last 12 Months, African-American vs. Other Category

African-American

Other

Automobile.....................................................................

33%

34%

Automotive accessories .................................................

30

28

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Table 10-31 Amount Spent on Most Recent Vehicle Purchase/Lease by Affluent Consumers, African-American vs. Other Category

African-American

Other

$40,000 or more ............................................................

14%

9%

$30,000-$39,999............................................................

18

16

$20,000-$29,999............................................................

15

29

$15,000-$19,999............................................................

11*

16

$20,000-$14,999............................................................

**

8

Less than $10,000 .........................................................

16*

15

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Cells with a double asterisk indicate that the number of cases is too small for reliability. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

One in Four Affluent Blacks Plans to Buy Car in Next 12 Months Around one in four (26%) affluent African Americans plans to buy a car in the next 12 months, the same proportion as other affluent consumers. The percentage of black and other affluent consumers planning to buy a new car is also the same (54%). [Table 10-32]

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Table 10-32 Next Vehicle Purchase by Affluent Consumers, African-American vs. Other Category

African-American

Other

New ...............................................................................

54%

54%

Used ..............................................................................

28

40

Domestic........................................................................

26

25

Japanese/Korean/\Other Asian......................................

16

15

European .......................................................................

**

4

Undecided/not sure........................................................

33

50

More than 4 years from now ..........................................

27

18

About 3 to 4 years from now..........................................

11*

20

About 2 years from now.................................................

16

29

1 year from now or less .................................................

26

26

New vs. used ................................................................

Foreign vs. domestic...................................................

Timing of planned purchase .......................................

Note: Cells with a single asterisk indicate a projection that is relatively unstable because of the size of the sample base and is to be used with caution. Cells with a double asterisk indicate that the number of cases is too small for reliability. Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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The Affluent Black Traveler Cruise Ship Vacations More Popular Compared to other affluent consumers, affluent blacks are more likely to have taken a cruise ship vacation in the last three years (21% vs. 15%). They are even more likely to be planning to get on a cruise ship in the next 12 months (27% vs. 15%). [Figures 10-3 and 10-4] Figure 10-3 Percent of Affluent Travelers Taking Cruise Ship Vacation in Last Three Years, AfricanAmerican vs. Other

25

21

20 15

15

10

5

0 African-American

Other

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Chapter 10: Affluent African-American Shoppers

Figure 10-4 Percent of Affluent Travelers Planning to Take Cruise Ship Vacation in Next 12 Months African-American vs. Other

27 30

25

20

15

15

10

5

0 African-American

Other

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

Affluent Black Travelers Analyzed Around four in ten affluent African Americans has a passport and has taken a trip abroad in the past three years. A substantial majority (70%) have stayed in a hotel on domestic travel in the past 12 months, while 40% rented a car for business or personal use. [Table 10-33]

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Table 10-33 Profile of Affluent Travelers, African-American vs. Other Category

African-American

Other

Visited any theme park in last 12 months ......................

20%

29%

Domestic travel in last 12 months ..................................

51

68

Spent $500 or more on any domestic trip ......................

31

48

Have valid passport .......................................................

41

59

Foreign travel in last 3 years..........................................

43

54

Enrolled in frequent flier program...................................

28

38

Stayed in hotel/motel on domestic travel in last 12 months ...........................................................................

70

79

Enrolled in frequent hotel/motel guest program .............

18

24

Vehicle rental for business/personal use .......................

40

44

Source: Compiled by Packaged Facts based on data from Experian Simmons National Consumer Study, Summer 2009. This material is reprinted with permission.

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Appendix

African-American Market Resources

Appendix Addresses of Selected AfricanAmerican Market Resources Advertising/Marketing Anderson Communications 2245 Godby Road Atlanta, GA 30349 (404)766-8000 www.andercom.com

FraserSmith Group 3 Tobey Place East Northport, NY 11731 (212) 980-5970 www.frasersmith.com

Burrell Communications Group, Inc. 233 North Michigan Avenue, Suite 2900 Chicago, IL 60601 (312) 297-9600 www.burrell.com

FUSE 802 N. 1st Street St. Louis, MO 63102 (314) 421-4040 www.fuseadvertising.com

Carol H. Williams Advertising 1400 65th Street Emeryville, CA 94608 (510) 763-5200 www.carolhwilliams.com Circulation Experti, Ltd. 707 Westchester Avenue, Suite 309 White Plains, NY 10604 (914) 948-8144 www.experti.com E. Morris Communications, Inc. 820 North Orleans Street, Suite 402 Chicago, IL 60610 (312) 943-2900 www.emorris.com Equals Three Communications, Inc. 7910 Woodmont Avenue, Suite 200 Bethesda, Maryland 20814 (301) 656-3100 www.equals3.com

Globalhue 4000 Town Center, Suite 1600 Southfield, MI 48075 (248) 223-8900 www.globalhue.com The Hunter-Miller Group, Inc. 6745 S. Wabash Avenue, Suite 2 Chicago, IL 60637 (733) 602-1620 www.huntermillergroup.com Images USA 1320 Ellsworth Industrial Blvd. Atlanta, GA 30318 (404) 892-2931 www.imagesusa.net Matlock Advertising & Public Relations 107 Luckie Street Atlanta, GA 30303 (404) 872-3200 www.matlock-adpr.com

Footsteps, LLC 200 Varick Street, Suite 610 New York, NY 10014 (212) 336-974 www.footstepsgroup.com February 2010

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Appendix

African-American Market Resources

The African-American Market in the U.S.

Phoenix Marketing International Multicultural Division 7745 S.W. 138th Terrace Miami, FL 33158 (305) 971-1437 www.phoenixmi.com

Ebony, Jet Johnson Publishing 820 South Michigan Avenue Chicago, Illinois 60605 (312) 322-9200 www.ebonyjet.com

Prime Access, Inc. 345 Seventh Avenue New York, NY 10001 (212) 868-6800 www.primeaccess.net

Essence Essence Communications Inc. 135 West 50th Street, 4th Floor New York, NY 10020 (212) 522-1212 www.essence.com

Sanders/Wingo 221 North Kansas, 9th Floor El Paso, TX 79901 (915) 533-9583 www.sanderswingo.com Tapestry 35 West Wacker Drive Chicago, IL 60601 (312) 220-3381 www.tapestrypartners.com SpikeDDB 55 Washington Street, Suite 650 Brooklyn, NY 11201 (718) 596-5400 www.spikeddb.com UniWorld Group, Inc. 1 Metro Center North, 11th Floor Brooklyn, NY 11201 (212) 219-1600 www.uniworldgroup.com Vigilante 345 Hudson Street, 4th Floor New York, NY 10014 (212) 444-6060 www.vigilantenyc.com

Heart and Soul Heart and Soul Enterprises 2514 Maryland Avenue Baltimore , MD 21218 (800) 834-8813 www.heartandsoul.com Honey Sahara Media, Inc. 81 Greene Street, 4th Floor New York, NY 10012 (212) 343-9200 www.honeymag.com UPTOWN Uptown Media Group 113 East 125th Street, 2nd Floor Harlem, NY 10035 (212) 360-5073 www.uptownlife.net Vibe Vibe Lifestyle Network 113 E. 125th Street, 2nd floor New York, NY 10016 (212) 360-7267 www.vibe.com Other Media

Publications Black Enterprise Earl G. Graves Ltd. 130 Fifth Avenue, 10th Floor New York, NY 10011 (212) 242-8000 www.blackenterprise.com

2

BET Networks 1235 W Street, NE Washington, DC 20018 (202) 608-2000 www.bet.com

Š Packaged Facts

February 2010


The African-American Market in the U.S.

Appendix

African-American Market Resources

BlackAmericaWeb. 13760 Noel Road Dallas, TX 75240 (972) 789-1058 www.BlackAmericaWeb.com GIANTLife.com P.O. Box 8392 Red Oak, IA 51591 (212) 431-4477 www.giantmag.com Interactive One (Division of Radio One, Inc.) 205 Hudson Street 6th Floor New York, NY, 10013 www.interactiveone.com Radio One, Inc. 5900 Princess Garden Pkwy, 7th Floor Lanham, MD 20706 (301) 306-1111 www.radio-one.com TV One 1010 Wayne Avenue Silver Spring, MD 20910 (301) 755-0400 www.tvoneonline.com

February 2010

Š Packaged Facts

3


Appendix

4

African-American Market Resources

The African-American Market in the U.S.

Š Packaged Facts

February 2010

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