While the overall population says it will spend about 10% more on holiday gifts this year, than last year, African Americans say they plan to spend 17% more.
• All shoppers: Will spend 12% more on gift cards; 10% more on electronic merchandise and 10% more on toys.
• African Americans: Will spend 17% more on electronics, 17% more on food, and 15% more on apparel.
The Nielsen research highlighting the projected growth of minority spending can help retailers and marketers focus on who to target. (Neilsen.
In simple language, there will be a lot more black faces in Television commercials.
Black spending power is forecast to reach as much as 1.1 Trillion by 2017 and some even more aggressive sampling suggesting it will top 1.5 Trillion as early as 2015.
That’s 44 million people spending a projected 1.5 Trillion dollars on consumer goods and services. Outpacing every other demographic group. Latinos being the closest in spending.
Money circulates zero to one time within the black community, compared to the more than six times it circulates in the Latino community, nine times in the Asian community, and an unlimited amount of times within the white community, according to the University of Georgia’s Selig Center for Economic Growth.
Birdie Ross-Haith grew up patronizing black-owned businesses. A native Victorian, Ross-Haith said her parents emphasized to her and her siblings the importance of supporting the black community by purchasing products and services from people who looked like them. As an adult with a business of her own, however, Ross-Haith said that mind-set has seemingly fallen by the wayside. “That’s what’s wrong with the black culture now. They don’t try to help each other,” said Ross-Haith, co-owner of B&B Handbags. “(Black shoppers) would come and look but never buy. Ross-Haith’s statements come on the heels of recently released data that reports black buying
power has increased from $957.3 billion in 2010 to an expected $1.1 trillion by 2015. Although this data from the State of the African-American Consumer Report reflects a positive growth in blacks’ disposable income, the growing failure of blacks to do significant business with other blacks casts a dark shadow over the news.”(Victoriaadvocate.com.
The sad reality is there is no end in sight blacks earn more and spend more. As is evidenced by survey after survey, metric after metric, The black community has made itself a well-lubricated conduit for money. No Nation can be powerful without economic power. No people can be powerful without economic power, Money.
This Christmas as blacks march once again for justice, they will put down their placards and walk into Department stores plunking down hundreds of millions, if not billions, on consumer goods and services many can ill afford.
The unfortunate result is that very little, if any measurable percentage of that expenditure will find it’s way into black-owned businesses.
The website (Blackmeinamerica reports
Black buying power continues to increase, rising from its current $1 trillion levels to a forecasted $1.3 trillion by 2017.
- Each year, African Americans spend more than $47 billion on Lincoln automobiles, $3.7 billion on alcohol, $2.5 billion on Toyotas, $2 billion on athletic shoes, and $600 million each year on McDonald’s and other fast foods, according to Target Market News Inc., a Chicago-based marketing research group.
- Blacks also spend wildly to keep up their appearances. The black hair care and cosmetics industry counts as a $9 billion a year business, but while African Americans are spending the most, they are profiting the least, said officials from the Black-Owned Beauty Supply Association (BOBSA) in Palo Alto, Calif. Beauty product lines designed for African Americans were once 100 percent owned and operated by blacks, today other ethnic groups control more than 70 percent of the market.
- The current homeownership rate reveals that 73.5 percent of whites own homes while approximately 43.9 percent of African Americans are homeowners, according to the Harvard Joint Center for Housing Studies State of the Nation report for 2013.
- Sixty percent of African Americans have less than $50,000 saved in company retirement plans and only 23 percent have more than $100,000. https://bmia.wordpress.com/2010/11/05/how-do-black-people-in-america-spend-507-billion-dollars-annually/.
- The loyalty blacks have to their church also has proven costly, said officials at Faith Communities Today, a nonprofit based in Hartford, Conn. A 2013 study revealed that black churches have collected more than $420 billion in tithes and donations nationwide since 1980, an average of $252 million a week.
blackamerica.com The latter part of the report is particularly instructive. An estimated $252 million dollars weekly paid in tithes and offerings.
Yet how many Pastors teach/preach self-empowerment? How many even care where Parishioners get the money they demand in tithes and offerings?
Even within a single congregation how many black congregants own businesses? Do their sisters and brothers in Christ know of these businesses? Do they shop at stores owned by fellow congregants? The answer is a resounding no.
As someone who has owned a small business for the past 13 years, I can attest to those realities. I have heard the full gamut, “I ain’t making them rich”.
The longer you are in business the smaller the share of the black community you get. There is a psychological disconnect which I will leave to the professionals. Having been in business all these years I laugh at them, the only time some come in is when they do not have enough money. In which case they expect you to sell to them at a loss. Even when their pockets are filled with money they want to make sure you actually lose money selling to them. Not so when they buy from other merchants.
In other situations, they come selling stolen items, or soliciting money when their kids sell stuff from school. Purchasing items is a giveaway as they never return to deliver the item/s purchased. Finally, they come asking store owners to fund basketball, football, and other community programs, even though they never spent a single penny with you.
Is it any wonder that those from the black community who strike it rich sometimes give nothing to the community?
There is nothing to give back, the black community gave nothing to them.
Those are the facts whether we want to face them or not. In far too many instances the only time blacks walk into a black business is with outstretched arms looking for a handout.
There is a distinct and general desire to see each other fail. If black America is to move forward that mentality will have to change.
forward that mentality will have to change.
Mike Beckles is a former police Detective corporal, businessman, freelance writer, he is a black achiever honoree, and publisher of the blog mikebeckles.com.
He’s also a contributor to several websites.
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