The African-American population continues to face daunting economic challenges. Yet, key social and economic indicators point to a significant increase in the number of middle- and higher-income African-Americans over the past decade. During this period, the number of African-American households with an income of $100,000 or more jumped 83%, while the number of African-Americans employed in management and professional occupations grew from 3.8 million to 4.8 million, an increase of 26%. There are now nearly two million blacks who earn at least $75,000 annually.
This report highlights how this expanding middle- and higher-income segment of African-American consumers has become a key component of growth in financial services. For example, between 2006 and 2016 the number of African-Americans with checking accounts increased 30%, while growth in the number of other consumers with checking accounts was essentially flat. Growth in the number of those using various financial services was also higher for African-Americans in the case of savings accounts (29% vs. 20%), credit cards (22% vs. 5%) and debit cards (85% vs. 62%).
"African-Americans: Demographic and Consumer Spending Trends, 10th Edition" shows that marketers of financial services can expect a positive response to their messages from higher-income African-American consumers. African-Americans with a household income of $75,000 or more are far more likely than their counterparts in other consumer segments to find advertising for financial services to be interesting (38% vs. 8%). They also are far more likely to read the financial pages of their newspaper (34% vs. 19%).
The spending habits of black consumers generate opportunities in a wide array of other consumer spending categories as well. For example, although African-American homeownership rates remain lower than average, blacks who do own homes are just as likely as other homeowners to have spent between $1,000 and $2,000 on home improvements in the past year and are nearly as likely as other homeowners to have remodeling plans over the next year (18.5% vs. 19.5%). African-American households also provide a unique opportunity for marketers and retailers of home electronics because they dedicate 63% of their entertainment expenditures to audio and visual equipment, while other households dedicate only 36%.
Key Topics Covered:
CHAPTER 1 EXECUTIVE SUMMARY
Scope of the Report
Methodology
INSIGHTS AND OPPORTUNITIES
African-Americans Express Optimism About the Future
Many Reasons for Optimism
African-Americans Help Drive Growth in Financial Services
Life Insurance Especially Important to Black Consumers
Higher-Income Black Consumers Present Major Opportunity for Financial Firms
Traditional and New Media Both Succeed with Black Consumers
POPULATION TRENDS
Black Population Nears 43 Million
African-American Population Maintains Steady Presence in America
Blacks Lose Ground to Other Multicultural Segments
Black Population a Multifaceted Demographic Segment
Nearly One in 10 Blacks Is Foreign-Born
Black Population Expected to Show Steady Growth Over Next Decade
South Still the Core of Black Population
Migration Continues to Shape Black Experience
African-Americans Have Significant Urban Presence
DEMOGRAPHIC TRENDS
Blacks Key Segment of Younger Age Groups
Women More Predominant in Black Population
More African-Americans Achieve Educational Success
Professional Employment on Upswing
Black Women Predominate in Many Management and Professional Occupations
Number of Affluent Black Households Grows Faster Than Average
One in Three African-Americans Earn $50,000 and Over
African-American Household Structure More Diverse
AFRICAN-AMERICAN BUYING POWER
Expenditures by African-American Consumers Show Significant Growth
African-American Buying Power Concentrated in Large Urban Areas
Affluent Black Households Wield Significant Buying Power
RECENT CONSUMER SPENDING TRENDS
Black Consumers More Likely to Be Planning to Purchase Home Electronics
Black Households Differ from Other Households in Apparel Spending Priorities
Personal Care Items Get High Priority
Black Homeowners Solid Customers for Home Improvement Outlets
Spending on Appliances Up Sharply
Black Consumers Help Drive Auto Buying Boom
African-Americans Join Eating Out Trend
USE OF FINANCIAL SERVICES BY AFRICAN-AMERICANS
Black Consumers Increase Use of Banking Services
African-Americans Important Growth Segment for Banks
Use of Credit Cards on the Rise, Especially Among Affluent Blacks
Department Store Cards Show Highest Growth
Dramatic Increase in Debit Card Use
African-Americans Place High Value on Life Insurance
More Black Consumers View Life Insurance as Investment Vehicle
Auto Insurance Registers Gain Among Black Consumers
Black Consumers More Likely to Buy Homeowners Insurance Directly from Company
MARKETING TRENDS
Brands Can Reach Black Consumers on Social Media
Product Placement Gets Thumbs Up From Black Consumers
TV Advertising Attracts African-American Viewers
BET Retains Top Spot Among African-American Viewers
CHAPTER 2 INSIGHTS AND OPPORTUNITIES
TOPLINE INSIGHTS
Black Consumers Stay Confident
African-Americans Express Optimism About the Future
Many Reasons for Optimism
MARKET TRENDS AND OPPORTUNITIES: FINANCIAL SERVICES
African-Americans Help Drive Growth in Financial Services
Life Insurance Especially Important to Black Consumers
Affluent Blacks Avid Consumers of Information about Financial Services
Higher-Income Black Consumers Present Major Opportunity for Financial Firms
Financial Services Marketers Focus on Building Ties with Black Community
Traditional and New Media Both Succeed with Black Consumers
Affluent Blacks Seen as Missed Opportunity for Financial Advisers
African-Americans Still Underserved by Financial Services Industry
OTHER MARKETING OPPORTUNITIES
African-American Spending Priorities Create Wide Range of Opportunities
Home Electronics
Clothing and Footwear
Personal Care Products and Services
Home Improvement and Home Furnishings
Automotive
Foodservice
CHAPTER 3 POPULATION TRENDS
AFRICAN-AMERICAN POPULATION GROWTH TRENDS
Black Population Nears 43 Million
African-American Population Maintains Steady Presence in America
Blacks Lose Ground to Other Multicultural Segments
Black Population a Multifaceted Demographic Segment
Nearly One in 10 Blacks Is Foreign-Born
One in Six Blacks Will Be Foreign-Born by 2060
Black Population Expected to Show Steady Growth Over Next Decade
WHERE AFRICAN-AMERICANS LIVE
New York Has Largest Black Population
South Is Home to Majority of Black Population
Migration Continues to Shape Black Experience
African-Americans Have Significant Urban Presence
CHAPTER 4 DEMOGRAPHIC TRENDS
AGE AND GENDER
African-Americans Younger Than Most Others
Blacks Key Segment of Younger Age Groups
African-Americans Help Shape Multicultural Shift
Women More Predominant in Black Population
EDUCATIONAL ATTAINMENT
More African-Americans Achieve Educational Success
Wider On-Campus Gender Gap Creates Greater Educational Disparity
Gender Gap Keeps Widening
OCCUPATIONAL TRENDS
African-American Employment Concentrated in Service and Sales
Professional Employment on Upswing
Black Women Predominate in Many Management and Professional Occupations
HOUSEHOLD AND PERSONAL INCOME
Household Income Still Lags Behind the Average
Number of Affluent Black Households Grows Faster Than Average
One in Three African-Americans Earn $50,000 and Over
HOUSEHOLD AND FAMILY STRUCTURE
African-American Household Structure More Diverse
African-American Households Are of Average Size
Marriage Less Common
Half of African-American Children Live With One Parent
CHAPTER 5 AFRICAN-AMERICAN BUYING POWER
TRENDS IN AFRICAN-AMERICAN BUYING POWER
African-Americans Register Above-Average Growth in Aggregate Income
Expenditures by African-American Consumers Show Significant Growth
African-American Buying Power Reaches $1.3 Trillion
African-American Buying Power Concentrated in Large Urban Areas
PROJECTED GROWTH IN AFRICAN-AMERICAN BUYING POWER
Factors Affecting Growth in African-American Buying Power
African-American Buying Power Will Increase at Healthy Rate
CHAPTER 6 RECENT CONSUMER SPENDING TRENDS
OVERVIEW
Spending Priorities Differ
Recent Spending Trends Highlighted
CONSUMER SPENDING HIGHLIGHTS: HOME ENTERTAINMENT
Black Consumers More Likely to Be Planning to Purchase Home Electronics
SPENDING HIGHLIGHTS: APPAREL AND PERSONAL CARE PRODUCTS
Apparel Purchases Total $26 Billion
Black Households Differ from Other Households in Apparel Spending Priorities
Personal Care Items Get High Priority
SPENDING HIGHLIGHTS: HOME IMPROVEMENT AND HOME FURNISHINGS
Black Homeowners Increase Spending on Home Repairs and Maintenance
Black Homeowners Solid Customers for Home Improvement Outlets
Spending on Appliances Up Sharply
CONSUMER SPENDING HIGHLIGHTS: AUTOMOTIVE
Black Consumers Help Drive Auto Buying Boom
African-American Expenditures on New Cars and Trucks Up 51%
Used Autos Retain Appeal
Other Households, 2012 vs. 2015
vs. Other Households, 2012-2015
CONSUMER SPENDING HIGHLIGHTS: INSURANCE
Health Insurance Expenditures Up Dramatically
Spending on Vehicle Insurance Flat
Spending on Life and Other Personal Insurance Declines
CONSUMER SPENDING HIGHLIGHTS: FOOD
African-Americans Join Eating Out Trend
African-Americans Major Customer Base for Fast Food and Family Restaurants
Past 30 Days, African-American vs. Other Households, 2016
CHAPTER 7 USE OF FINANCIAL SERVICES BY AFRICAN-AMERICANS
BANKING SERVICES
Black Consumers Increase Use of Banking Services
African-Americans Important Growth Segment for Banks
CREDIT AND DEBIT CARDS
Black Consumers Turn Away From Cash Transactions
Use of Credit Cards on the Rise, Especially Among Affluent Blacks
Department Store Cards Show Highest Growth
Dramatic Increase in Debit Card Use
Debit Cards, 2006-2016
MasterCard Debit Card Gains Ground Among African-Americans
INSURANCE
African-Americans Place High Value on Life Insurance
Life Insurance, I Make Sure I Am Well-Insured by Having All the Coverage I Need by Household Income Level, 2016
More Black Consumers View Life Insurance as Investment Vehicle
Auto Insurance Registers Gain Among Black Consumers
Automotive Insurance, 2006-2016
Number of Black Households with Homeowners Insurance Shows Steady Growth
Black Consumers More Likely to Buy Homeowners Insurance Directly from Company
Obtained Their Policy, 2006-2016
Market for Renters Insurance Explodes
CHAPTER 8 MARKETING TRENDS
OVERVIEW
Brands Can Reach Black Consumers on Social Media
Product Placement Gets Thumbs Up From Black Consumers
TV Advertising Attracts African-American Viewers
BET Retains Top Spot Among African-American Viewers
MARKETING APPROACHES
JPMorgan Chase Invests in African-American Entrepreneurs
Prudential Highlights African-American Businesses
Allstate Shares Stories Worth Telling
Wells Fargo Celebrates African-American Culture
State Farm Reaches Out to African-American Community
Ford Honors Unsung Heroes
Hyundai Recognizes Women of Color
Lexus Sponsors Show on TV One
Illustration: Lexus Verses and Flow
Companies Mentioned
- Allstate
- Ford
- Hyundai
- JPMorgan Chase
- Lexus
- State Farm
- VEDC
- Wells Fargo
For more information about this report visit http://www.researchandmarkets.com/research/2p5kjz/africanamericans
Media Contact:
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
SOURCE Research and Markets
http://www.researchandmarkets.com
Apr 18, 2017, 07:15 ET
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Comments
The problems of black folk in America cannot be solved economically. Ours is a spiritual problem and we are suffering from amnesia. We have no idea who we are or where we came from originally. We cannot move forward until we look behind and rediscover our true identity. Trying to emulate our oppressor and measure our success economically is futile. We are a different breed of cat. Peace and love to one and all.