Black buying power to hit $1.5 trillion, thanks to Black women
According to a new Nielson report called African-American Women: Our Science, Her Magic, the businesses run by and the brand loyalty of Black women is driving part of the economy, so much so that total Black spending power is expected to hit a record $1.5 trillion by 2021.
The number of businesses majorly owned by Black women grew 67 percent between 2007 and 2012, at a rate higher than all women generally in the United States.
“Black women have strong life-affirming values that spill over into everything they do. The celebration of their power and beauty is reflected in what they buy, watch and listen to, and people outside their communities find it inspiring,” says Cheryl Grace, Senior Vice President of U.S. Strategic Community Alliances and Consumer Engagement, Nielsen. “Understanding how Black women’s values affect their buying decisions has long been a marketing necessity. Now, marketers must also recognize the intercultural influence of Black women on the general market as an increasingly vital part of how all women see themselves, their families and the rest of the world.”
Nielsen’s new Diverse Intelligence Series report also shows that African-American are increasingly playing a role in brand loyalty as well as the way women across the nation, not just Black women, see themselves. They also have majority ownership in over 1.5 million businesses, with over $42 billion in sales.
In all, these trends are increasing Black buying power as a whole, giving the Black community a bigger influence in the economy as a whole.