Reported by Liku Zelleke
The consumer market is filled with every demographic across the world and businesses usually focus on one specific set or sub-group to ensure they have a niche to which only they can cater too. But then there are those that, in creating that niche, have overlooked newcomers into it and hang on to their old plans.
Case in hand is how luxury brand manufacturers seem to have overlooked a lucrative market: the upscale Black woman.
“We are an incredibly powerful force, carrying influence in dynamics that continue to impact the world,” writes Maryann Reid, Digital Managing Editor of Black Enterprise Magazine. She says companies need to “wake up and start paying attention to younger, more affluent, and tech-savvy black women” and the “luxury brands they purchase” if they hope to make more money.
Reid backs her theory with three main reasons:
First: Black women like Michelle Obama, Oprah, and Beyoncé are in the fore and leading the way in increased incomes, better education, and opinions that can influence and set trends in today’s society.
She has the data to back it too; a 2015 Nielsen report (Increasingly Affluent, Educated and Diverse: African American Consumers) says it focused on a segment of African-Americans who are often overlooked: those with annual household incomes of $75,000 and more. They are a quickly growing source of influence – more so than the non-Hispanic whites that luxury brands consider the “ideal” consumer demographic.
Apart from that, statistics show that over 63 percent of Black women are more likely to buy a luxury vehicle in the next year than the general market while they are also twice more likely to shop at Neiman Marcus than the general population… all very strong numbers.
Second: Black women’s increased ability to discern which brands are most deserving of their loyalty and their hard-earned money means they will be able to put a heavy market influence (worth a projected $1.2 trillion dollars) into play… that’s a loyalty that is worth earning.
Third: Black women, like everyone in this century, are easily contactable online. The Nielsen report shows that Black Americans are more connected online in both social media and mobile advertising with big data showing that some of them earning $100,000 annually do more online shopping than their white compatriots.
With Black women holding all this sway, harnessing the loyalty of this particular demographic is “one of the smartest marketing moves that companies can make,” Reid says.