The African American economy is one of the most untapped segments of society. Traditionally, the majority of products are made for the majority ethnic group of people. Say for instance you are living in China, all of the products would be geared for Chinese people.
Here in America, even though there is a diverse population, the majority of the people are either European or Eastern Germany. Consequently the products and services are geared towards an Anglo- Caucasian slant. Yet the African American spending is a huge part of the American economy. This revelation should be an eye opener to the entrepreneur looking to either start of expand their business model.
Let’s take a look at the Untapped Economy in America the African American Economy.
Who They Are
African Americans have been a part of the American landscape since the founding of this country. Their influence even as slaves have shaped the cultural and ethnic makeup of early American and continues to shape the norms of society globally, yet many of the products and services offered by the majority of manufacturers still are made exclusively for Caucasian buyers. We’ll take a look at those products and services later but keep this in mind as we continue in our conversation.
How Much They Spend
African Americans as a group spend on average $1.3T dollars on everything from shoes and clothing to cars and electronics. Their buying dollars account for nearly 10% of the American economy. This is a huge number considering they are only 11-13% of the total American population.
What Has Been Marketed
When we began this article, it was mentioned that most of the products and services in America focus on the majority ethnic group in America, that being Caucasian people. Items such as makeup, clothing, food and even media exclusively play to the white, European segment of society. Can you imaging what it must be like for an African American female, who like her counterpart the Anglo-American female, does the majority of shopping, must feel like when shopping for makeup or accessories which eventuate their natural hair type, skin-toned, and even features?
Speaking generally about black and white females, the differences in the needs of the two women are vast. The skin-types between black and white are different, so are the requirements to keep them looking their best. Black women must make do with what they can in order to get the same outcomes. Imagine a company that exclusively focuses its attention on black women as their new client?
What Could They Desire
The Untapped Economy is a new frontier in marketing and design. African Americans not only have the hunger for products exclusively for them but they have the buying power. Let’s take a look at some of the products and services which black people would consider.
Clothing– Most clothing may be influenced by AA but they are made to fit European bodies.
Makeup-The major makeup companies only see dark skinned makeup and skincare as a second thought.
Food- soul food is the closest thing we have in the way of African food.
Media– Blacks are generations behind in social media. We have yet to begin to tap what the possibilities may be.
Music– Black music is globally inspiring yet it is more for what others can copy from us rather than to cater to us.
Water– Italians has Pellegrino, what water is marketed specifically as an African water brand. Currently there is only one black-owned water manufacturing brand. Fifty-Cents had great foresight but the jury is still out on his adventure.
Computers– has anyone thought that black people are inspired digitally as well as analog.
Drinks– The only maker of drinks has figured out is that black people drink Cognac. There must be a hundred other drinks that speak to black people.
Entertainment- Black people like more than sports and the Real Housewives of ATL or Tyler Perry.
Alcohol- Addressed earlier
Genealogy– This may be the biggest product or service for the future. With over 30M blacks in America not knowing their genealogy I’m surprised there isn’t a genealogy shop on every corner in Detroit.
Books– Black Authors, writing about black topics and interest have been relegated to the back corner of Barnes and Nobel next to the shoe rack.
History- it is almost a sin that no one in the African American community knows their own history. This too is a multi-billion dollar industry waiting to happen.
Success/Motivational Materials- This is an area whose time has been long in the making. The stories and things that motivate blacks are many. The amazing thing is that some of the worlds most successful motivational speakers are Black. They play to a diverse crowd but none focus exclusively to the Black entrepreneur.
Here is the rest of the list:
Marriage and Family
Health and Fitness
Content for Websites
As entrepreneurs we’ve heard it a million times, “I can’t work exclusively in the black community.” We’ve just given you a list of over 30 specific industries which if aimed at servicing the Black community not only will help to build up their community but are viably business models with a base of support.