According to a McKinsey & Company analysis, Black spending power is expected to surpass $1.7 trillion in the US. Many firms today have begun to recognize how much African Americans have influenced the US economy. Many organizations realize that the possibility to enhance loyalty, expand the bottom line, and significantly affect Black lives is infinite.
Readers now want to understand: “How can we circulate the Black dollar and help to narrow the racial wealth gap?” From streaming to podcasting to purchasing Black and staying connected to social movements via social media, African Americans are leading the conversation in unprecedented ways, with a remarkable impact on labels, policies, and what the nation watches, purchases, and hears.
Before we get started, let’s have a look at some essential statistics by Nielsen –
- Black Buying Power – $1.57 Trillion (2020)
- Black Viewing Power – $1.06 Trillion
- Online Shopping by Black Families – 48%
- Offline Shopping – 11%
- 2/3 Black Viewers buy from brands that broadcast representative content
- U.S Black population tune into radio – 92% Per Week
- Representation in TV programs – 51%
- Smartphone ownership -98% (2020)
- Advertisement spends on media focused on Black people – $3.8 Billion (2019)
- Streaming Subscriptions – 70% Increase in 2020
As you are all aware, the COVID – 19 pandemic caused a sea of changes in global thought, particularly in Black communities. Job losses, gaps in internet infrastructure, salary disparities across ethnic groups, and political and cultural barriers are some of the challenges. According to McKinsey & Company, there will be a $200 billion yearly discrepancy between Black and White salaries in 2021 alone. As demonstrations rage around the country after the death of 46-year-old George Floyd by Minneapolis police, companies have been a little more vocal in their support than in the past. Millions of dollars in business donations have been made to Black Lives Matter and other social justice groups as a method for corporations to demonstrate their solidarity with the Black community and opposition to institutional racism.
According to Elle, here are some of the brands that donated towards the organization supporting justice and equality.
| Amazon – $10 MillionYoutube – $1 MillionEtsy – $1 MillionFashion Nova -$1 Million Glossier -$500,000Lululemon – $100,000Everlane – $75000Ganni – $100,000Honest Beauty – $100,000Anastasia Beverly Hills – $100,000 |
The Black dollar has more influence than it does as an economic force. Throughout history, the Black dollar could affect societal transformation.. During the 1920s and 1930s, the press and African American market experts argued, with little success, that mainstream advertisers should pay more attention to Black consumers. Still, they rarely discussed the complications of segregation, discrimination, poverty, and undetermined Black participation in American consumer culture. A new system that benefits Black consumers, businesses, and communities are essential to ensure that the Black dollar continues to advance.
As companies advertised their dedication to the Black community, it became evident that their pledges were insufficient. Consequently, The Black Dollar Index Initiative was founded by a group of Black professionals with backgrounds in healthcare, consumer packaged goods, journalism, banking, politics, and consultancy. It scores companies based on qualitative and quantitative parameters to determine their commitment to diversity and investments in causes important to Black Americans. So far, the Black Dollar Index has scored over 100 firms in travel and hotel, consumer goods, finance, technology and media, retail, and food services. So, if you want to know which brands around the globe have large investments in Black Initiatives, the company’s supplier diversity program, and diversity and inclusion activities, this index system will be your analytical guide.
Companies should avoid this mistake by having strong Black representation, particularly in crucial decision-making positions impacting Design, Research, and marketing departments. According to USA Today, over three dozen U.S. corporations, including Amazon, General Motors, and Wells Fargo, have agreed to disclose the diversity reports that they submit to the federal government each year. Companies should be motivated by the success of businesses that have reaped significant benefits by marketing directly to Black consumers. Companies that react must look inside to ensure they have the people, policy, and technology to grasp a market they may have neglected. If they do, they may have an outsized influence and profit. It is time to strengthen the Black Dollar and bridge the financial disparity between races.
Anand Subramanian is a freelance photographer and content writer based out of Tamil Nadu, India. Having a background in Engineering always made him curious about life on the other side of the spectrum. He leapt forward towards the Photography life and never looked back. Specializing in Documentary and Portrait photography gave him an up-close and personal view into the complexities of human beings and those experiences helped him branch out from visual to words. Today he is mentoring passionate photographers and writing about the different dimensions of the art world.
