So You Think You Know the Black-Woman's Market? Think Again!

By Miriam Muléy
www.diversityinc.com
February 22, 2008

The Black-women's market is one of the most visible, fastest growing, most influential segments in business today. The very concept of "ethnic target marketing" was born as a result of the tremendous growth of African Americans. This influence has not diminished; in fact, it has grown. Yet somehow, despite this growth, the recognition of African-American women as a vital source of incremental business has waned in recent years.

The Power of the African American Woman Is Unmatched

Read the comments of one African-American woman interviewed by The 85% Niche:

"When I begin to think just about my own personal life, I'm the fourth generation out of slavery. And when I think of just that and put it into context in terms of just how my own family has accumulated assets over the years--whether it's homeownership, whether we have started our businesses--[it speaks to] the buying power in the African-American community."

With more than $450 billion in buying power, expected to grow to $600 billion in 2008, Black women are an economically vibrant consumer audience. In fact, based on estimates from Packaged Facts and the Selig Economic Center, the buying power of Black women exceeds that of Latinas and Asian women combined.

Consider these additional compelling facts about this powerhouse consumer. African-American women:

* Spend in major categories from automotive, to home and family care, to personal care, to wellness, and more--categories representing significant volume

* Account for 58 percent of all new car and truck sales made among African Americans, compared to 44 percent of women overall. Are also more likely to purchase prestige and luxury cars and trucks than women in general

* Spent $57 billion on food-related items

* Skew high on food-at-home expenditures ($36 billion)

* Spend 30 percent more than the general market on personal/beauty products, an industry estimated at $7.5 billion

* Were 19.1-million strong in 2000, representing 52.5 percent of all African Americans. Will grow more than 9.6 percent by 2010

* Between 2001 and 2055, African Americans will transfer $1.1 trillion--$3.4 trillion of their wealth to offspring; Black women are expected to be the gatekeepers of this wealth transference

* Are educated--there will be 200 Black-female college graduates for every 100 Black-male graduates by 2010. The number of master's degrees conferred to Black women increased 149.5 percent between 1991 and 2001

* Had the highest labor-force-participation rate among women in 2004 at 61.5 percent, versus 58.9 percent for whites

* Are very entrepreneurial. In 2004, there were more than 500,000 African-American women-owned businesses in the United Stats, with revenues of more than $21 billion.

* Are making solid advancements, assuming powerful positions in business, law, medicine, journalism and other professional fields.

* Actively browse the Internet for shopping.


Internet Users: Male Female

African-Americans 50% 60%

Total U.S. Population 66% 68%

From a service perspective, it's important for corporations to recognize that well-educated and professional Black women compare their retail experience with the service they receive at Nordstrom, Saks or Neiman Marcus. There are certain triggers that will engender strong reactions from women and women of color--positive or negative--when she makes a large purchase. Consider this statement from one woman of color interviewed by The 85% Niche as she entered a car dealership:

"As I walked into that car dealership, it's amazing that I walked out of one equally as fast when they asked whether my husband was going to co-sign. They made an assumption about me … about my buying power."

What this means for corporations is that women of color are pivotal consumers. They are a segment of buyers not to be overlooked or marginalized as inconsequential to the bottom line. Based on diversity population-growth trends, corporations will be increasingly more dependent upon diverse women of color to achieve company sales targets. As the general market declines in size, the diverse and women's markets take on more and more importance. Focusing on the needs of demographic and gender groups is essential to fundamental business growth.

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Miriam Muléy is CEO of The 85% Niche, www.85percentniche.com , which increases market share among women, especially multicultural women. She most recently was executive director, diversity growth markets, at General Motors, No. 34 on The 2007 DiversityInc Top 50 Companies for Diversity® list, and also held executive positions at Johnson & Johnson, No. 17 on the Top 50, and other major corporations.