Wealthy Black American overlooked as a Major Demographic! (6543 hits)
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New study says rich African Americans are a largely untapped market. The Louisiana Weekly reports of a new study that finds wealthy African Americans have been virtually ignored as a demographic despite having $29.8 billion in disposable income.
The study, titled "Marketing to Affluent African Americans: Strategic Insights for Reaching an Untapped Market," consisted of online interviews with affluent African Americans as well as a series of regional focus groups held in Atlanta, Chicago, Miami and Washington, DC.
It features the results of insights on the behaviors, attitudes, opinions and spending patterns of affluent African Americans, defined as individuals earning at least $75,000 annually.
"This study provides marketers with insights, case studies, interviews with executives and data to help them more effectively target this growing audience of consumers," said Andrea Hoffman, CEO of Diversity Affluence (diversityaffluence.com), a consultancy that specializes in providing marketing insights on affluent ethnic consumers.
"Marketers will benefit immeasurably from engaging these influential consumers who have been waiting to be acknowledged for years, but have been largely ignored by most luxury brands," she told the Louisiana Weekly.
Hoffman came up with the term "Royaltons" in reference to American affluent ethnic consumers. African American Royaltons (AARs) refer to a small but wealthy group of influential people who purchase items such as Rolex watches, luxury cars and who frequently travel internationally.
Other results from the survey: • Royaltons conduct extensive research on luxury items before they buy.
• Decisions influencing their purchase included tailored advertising, personalized service and event marketing at the retail level.
• AARs are aspirational, and focus on trading up to more luxurious brands.
• Fashion is an expected luxury and is equally important to both men and women. Men's fashion spending is focused on career and casual wear, while women spend money on purses and shoes.
