Taking our affluence for granted

Black Enterprise, Oct, 2003 by Earl G. Graves, Sr.

African American has long been established as a dominant influence on consumer tastes and styles in America. And with the emergence of hip hop culture, the nation's most dominant cultural export, that influence now extends across the globe. Our national economy has been sustained by seemingly indefatigable consumer spending (in the absence of business spending). In such an economy, the importance of black consumer spending cannot be understated.

Unfortunately--and inexplicably--that fact is going unrecognized by many businesses, including major fashion labels, upscale retail outlets, high-end consumer product makers, and travel and lodging companies. Many companies in these industries devalue African Americans as a market for their products and services, failing to invest marketing and advertising dollars against reaching black consumers, even as the billions we spend keep their businesses in the black.

While other ethnic groups are growing in population, according to target Market News (www.targetmarketnews.com), a research and information company specializing in black consumer marketing, black consumers still outspend all other groups in apparel, food, beverages, cars, trucks, home furnishings, and travel. In its most recent annual "Buying Power" report on African American consumer spending, Target Market News reports that in 2002 we spent $22.9 billion on apparel products and services; $3.2 billion on consumer electronics; $5.1 billion on travel, transportation, and lodging; and $11.6 billion on household furnishings and equipment.

That's why we've expanded our Lifestyle section and broadened our editorial coverage to reflect the options available to the increasingly affluent, younger, aspirational, and rapidly growing audience of BLACK ENTERPRISE readers--the people driving these spending trends. We are devoting more space to fashion, health, travel destinations, and other consumer options that are not just a measure of what we can afford as a result of our progress as successful executives, entrepreneurs and professionals. These pages are also a reflection of the passions and aspirations our success affords our personal lifestyle choices. These changes are designed to serve a readership with more money, more choices, and higher expectations than any generation of African Americans before them.

As importantly, we are making it our mission to help marketers of couture fashion, apparel and consumer electronics retailers, the hospitality industry, and other high-end consumer goods to recognize the untrapped potential of the upscale African American consumer market and to invest more in their efforts to effectively serve that market. As other industries (most notably the world's automakers) have already learned, we will handsomely reward those companies that do not take our spending for granted and work with us to build mutually rewarding relationships. Recognizing and catering to the changing needs and interests of our growing and increasingly affluent audience is good business. It's too lucrative to ignore.