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Archive for the ‘New Prospects for Luxury Marketers’ Category
Tuesday, September 8th, 2009
 Evidence, A Dance Company Dancers “On Our Toes’ Continues Reign As Premier African American Cultural Event in the Hamptons.
New York’s First Lady Michelle Paterson Lends Support to the Arts in the Hamptons
Southampton, NY Aug 22 - On Our Toes in The Hamptons, the 6th annual fundraiser for Ronald K. Brown’s world acclaimed Evidence, A Dance Company, proved to be once again one of the most electrifying cultural events of the summer season.
Held this year at the Watermill, NY estate of the Honorable Bernard Jackson and his wife Joyce Mullins-Jackson, vice chairman of the Evidence Board of Directors, the late afternoon fete drew over 300 luminaries from across the country including the First Lady of New York, Michelle Paterson, award winning actress, Lynn Whitfield, Christian Dior President Stephane Barraque, Uptown Magazine’s Jocelyn Taylor, National Cares Mentoring Movement Founder Susan L. Taylor, and scores more of the Hamptons and New York’s most glittering movers and shakers.
BlackGivesBack attended this event, which proved to live up to its reputation as the premier African American cultural event in the Hamptons.
 Brie and Alicia Bythewood The very social Alicia Bythewood chaired the event which began with drinks poolside under bright sunny skies. Guests munched on a dazzling array of seafood appetizers from The Seafood Shop including Spicy mini crab cakes to the quintessential Hamptons treat tiny lobster rolls washing it all down with chilled Veuve Clicquot Champagne or the specially created 10 Cane Rum Toe Tapper.
Ms. Bythewood led a dynamic committee that assisted her in this event including fashion designer b Michael, Gail Monroe Perry, Harriet Michel, Brian and Mira Mullins, Ronald K. Brown, Donna Williams, Reginald Van Lee, Neil R. Lowe, Joyce Mullins-Jackson, Reggie Canal, Leslie Mays, Zaid Abdul-Aleem, Dwayne Ashley, Monica F. Azare, Joanne E. Hill, Andrea Hoffman, Sandra D. Jackson-Dumont, James Sullivan, Jocelyn Taylor, Ancy Verdier, and Lisa B. Walker.
Despite the current economic stress, Evidence received extraordinarily generous support for the event from sponsors HSBC Premier, 10 Cane Rum/Moet Hennessey, Prudential, Continental Airlines, Essence, Abyssinian Development Corporation and Uptown Magazine. Christian Dior provided gift bags, that included a Sean John cap and Carol’s Daughter shea butter body lotion (I am now such a fan of this line). The media sponsor was Hamptons.com and the event was coordinated by The JFM Group.
Following cocktails African drummers led the way through the dense woods to the massive party tent transformed into an island paradise by interior designer Anthony Bell and Deanna Annis of The Furniture Garden. Former CBS Early Show co-host Rene Syler emceed the afternoon’s proceedings with a comedic flair. The delightful Syler introduced the company’s new executive director Bruce Michael, who announced plans for the troupe’s upcoming 25th anniversary season in 2010, including a State Department sponsored tour of Africa, performances at the Vancouver International Dance Festival, a marvelous book chronicling the troupe’s 25 year journey, and a major gala in late winter.
There were numerous luxury items auctioned off including dazzling bejeweled Christian Dior watches which Jocelyn Taylor modeled, a one of a kind pen created to commemorate Mathew Henson, the first African-American to reach the South Pole and a once-in-a lifetime chance to go behind the scenes with the famed Rockettes at Radio City Music Hall.
 Major sponsors Noel Hankin, Susan L. Taylor and Stephane Barraque, President of Christian Dior Watches
Tags: A Dance Company, Christian Dior President Stephane Barraque, Evidence, first African-American to reach the South Pole, Rene Syler, Uptown Magazine
Posted in New Prospects for Luxury Marketers | No Comments »
Sunday, June 28th, 2009
I’d like to bring to your attention a phenomenon – an African-American woman who owns a major golf resort, a luxury inn & spa and the WNBA’s Mystics.
She is a first lady of sorts: the first certified Black female billionaire (yes, even preceding Oprah); the first  African-American woman to be an owner or partner in three professional sports franchises; and the first African-American woman to own a golf resort. You may not be familiar with her name, but Golf.com recently posted an article about this co-founder of Black Entertainment Television and aspiring golf mogul, Sheila Johnson.
Ms. Johnson is representative of a niche segment of consumers we at Diversity Affluence refer to as Royaltons. Her extensive real estate holdings and portfolio of successful ventures have firmly placed her in the wealthiest stratum of this segment which is a group not even on the radar of most marketers – if their lack of marketing effort toward them is any indicator.
Note her vitals:
· 60 years old
· daughter of a neurosurgeon
· mother of two children
· divorced (after 33 years of marriage)
· accomplished violinist, professional photographer, author, documentary film producer and luxury linens designer
· budding golf enthusiast
· owner of several show horses
· generous philanthropist
That should blow away your notion of the typical African-American consumer. Sheila Johnson may be a first, but she is one of many.
Luxury brands would be wise to follow the adventures and acquisitions of this affluent African-American Royalton (AAR) as well as her peers. In prior years Forbes and Black Enterprise have paid homage to other AARs such as: Renetta McCann, Ann M. Fudge, Marian Wright Edelman, Sharon Sayles Belton, Cathy Hughes and Sylvia Rhone. These black female powerhouses are redefining the landscape of business across industries. Follow them, offer them a seat on your board, invite them to become diversity advisors to your business.
Insanity has been defined as doing the same thing over an over and expecting a different result. In the same way, continuing to target the usual prospects will deliver the usual results.
Do you know where and how to reach the affluent ethnic consumer? Diversity Affluence can help.
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIn Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: affluent african americans, affluent ethnic consumers, powerful black women
Posted in New Prospects for Luxury Marketers | No Comments »
Thursday, June 11th, 2009
Blacks don’t travel. Blacks don’t like to swim, and so they don’t visit beaches.
Are these statements some of the luggage in your head that needs to be unpacked? Misperceptions such has these are what regularly keep brands and their marketers from the $40 billion in annual revenues this consumer generates for the travel industry. And you may not have even considered the segment of affluent African Americans who frequently indulge in luxury travel.
What is it that you’re missing, you ask? Well, let’s start with the true to life facts and statistics. The fascinating information we’ve gathered from our recent surveys and focus groups with wealthy African Americans will give you valuable insight.
The Definition of Affluence
We ascribe the term affluent to those with annual individual incomes of at least $75,000; though our data demonstrates that AARs (African American RoyaltonsTM) deliver median annual household incomes of $246,000 with many individual incomes exceeding $700,000.
Are You Here for Business or Pleasure?
In an online lifestyle survey Diversity Affluence conducted with UPTOWN Magazine in 2008, a tenth of AARs said they travel on business at least once a week and almost half do so several times a year. When asked how often AARs take a vacation, 67% said several times a year.
We found international travel was common with over 70% of participants owning a passport and having used it in the past year. One third travel internationally at least three times a year, and a tenth every other month.
The purpose of AARs travel ranges from being related to: (business) annual meetings; executive groups; associations; professional organizations; and corporate incentive trips, or (leisure) spa resorts and day spas; weekend getaways; arts, cultural and charity events; charter tours and trips; cruises; anniversary celebrations; destination weddings; honeymoons; holidays; and outdoor activities.
The Lifestyle of Affluence
In both of our recent economic studies, we found the South Atlantic and Middle Atlantic states represented 50% of affluent African American households. Our 2008 focus group participants, representing that same region, revealed luxury travel was #1 on their list of top seven purchasing categories.
These African American RoyaltonsTM had characteristic lifestyle patterns as frequent domestic and international travelers who surround themselves with luxury items and experiences along the way. On the average, 50% purchase luxury items while traveling for business and pleasure. Fine dining and social scenes are of much interest locally and when traveling.
This consumer group is comfortable with treating themselves to the very best, and they research purchases extensively. AARs conduct most of their research online, but word of mouth recommendations significantly influence their choices.
Where Should Your Compass Point?
It is essential for marketers to know where and how to spend their dollars. This is especially true in cost conscious times when every company is scrutinized and accountability takes center stage. The destinations, travel activities, media outlets that attract AARs are distinctive.
Our survey showed leisure travel within the U.S. to be most frequent, as expected, but international destinations like Canada, Europe, the Caribbean and Mexico are also popular. Many African Americans travel where they have familial connections, such as Africa and the Caribbean, and others are attracted to “experience” travel opting to explore exotic locales or visit cultural and historical sites representing their heritage. Since roughly 20% of our survey participants said they run, swim and play tennis regularly, and with the growth of the African-American golf community by thirty per cent in the last decade, destinations offering these activities are quite popular.
Don’t overlook destinations that are all about pampering or those with family appeal. In our findings, AARs nationwide expressed the sentiment that their hard work motivated them to look for ways to reward themselves with exclusive and unique getaways. And remember that many wealthy African Americans families have children to factor into their travel plans. Walt Disney World gets it: they placed a recent ad on BlackNews.com.
Luxury travel resources and those dedicated to the African American community are out there – research them well. Publications, some dedicated to travel such as Odyssey Couleur, and other lifestyle publications with travel features, such as UPTOWN Magazine and The Green Magazine (Golf beyond the links.), offer both print and online advertising and partnership opportunities. For example, the May/June issue of The Green Magazine has an article titled, “Recession Savvy Getaways.”
Have Cash, Will Travel
So which comes first, that AARs aren’t visiting your destination or that you aren’t marketing to them?
Our studies have proven over, and over, that a brand that sends the wrong message – or worse, an offensive one – will immediately lose potential customers and send them to the competition. We believe that any marketer who learns the nuances of this core group of consumers, and the vehicles to properly reach them, will possess the means to unlock their vast buying potential.
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIN Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: affluent african americans, African American travel, Luxury Travel, wealthy african americans
Posted in Luxury Travel and Wealthy African Americans, New Prospects for Luxury Marketers | No Comments »
Friday, June 5th, 2009
With spring moving into summer for most of the country, the opportunity to blow off some steam or make a deal outside the boardroom with a golf club is beckoning. And, marketers who are looking for more “green” should be looking on “the green.”
Prominent figures giving credence to this idea are, of course, President Obama and Tiger Woods.  The Associated Press reported this week that the President has had four golf outings in the last five weeks. During Black History Month earlier this year, the PGA of America presented a display at the PGA Historical Center honoring four groundbreaking African-American heroes in the sport. The presence of African Americans in the game is noteworthy.
A Profitable Niche Segment for Golf Industry and Luxury Brands
Statistically, the African-American golf community has grown by thirty per cent in the last decade with interest in the game rapidly outpacing that of Asian American and Hispanic Americans. In fact, the National Golf Foundation reports that a full fifteen per cent of golfers – a stunning 5.5 million people – are minorities, and 2.3 million of them are African American.
Since participation is a function of household income, it stands to reason that gaining the attention of this niche segment of golf enthusiasts will help brands more effectively implement their target marketing strategy of reaching the affluent ethnic consumer – especially, the African-American RoyaltonsTM. Adding 2.3 million people to a list of potential consumers is any marketer’s dream come true.
Participants With Purchasing Power
Based on minority participation reports conducted by the World Golf Foundation and their Golf 20/20 initiative, the industry has been targeting minority groups who are viewed as important to growing interest and participation in the game. African Americans, along with women and Hispanics, are the demographics “with pent up demand” who will help the sport meet its target of having 55 million participants by the year 2020. If Year 2000 census data showed the golf industry having $62 billion in sales – more than the motion picture and sound recording industry and the amusement, gambling and recreation industry – then the currently growing participation of affluent African-American players offers significant purchasing power to be harnessed. That purchasing power has been estimated to become nearly half (45%) of the projected $1.1 trillion of all African Americans by 2012.
With the proportion of African-American female golf participants found to be above average, another potentially fruitful sub-segment is appearing. Many professional black women are taking to the golf course to capture that lucrative business deal often negotiated on the green. In the Spring 2009 issue of Odyssey Couleur, Pam Swensen, CEO of the Florida-based Executive Women’s Golf Association, stated that she is seeing an increase in membership as more African-American women use golf as a business-building tool.
All any luxury marketing executive has to do to potentially gain new prospects is to let go of some assumptions about who the “typical” golfer was in the past and choose to step into the future of the golf market.
Are you a brand marketer or golf industry related business wondering where and how to reach this audience?
Diversity Affluence™ can help you.
For FREE insight:
Sign up to receive our free monthly eNewsletter, the Royaltons Report.
Join our LinkedIN Luxury Brand Executives Diversity Marketing Group.
Follow us on Twitter.
For more information about our consulting & research services visit our website.
Buy our strategic insights papers.
Tags: affluent ethnic consumers, luxury brand marketing, niche marketing, wealthy african americans
Posted in African American Segmentation, Effective Target Marketing for Luxury Brands, New Prospects for Luxury Marketers, ethnic purchasing power | No Comments »
Thursday, May 28th, 2009
Emphatically, I say, “YES!”
I’m sure you’ve heard the American proverb, “He who has the gold makes the rules!”
As we near the end of the second quarter of 2009, marketers would be wise to follow this bit of astute wisdom as they assess their remaining advertising budgets.
Of course, first you’ll need to discover the gold-holding rule-makers: I will tell you they are the affluent ethnic consumers.
Being the savvy marketer that I’m sure you are, it’s likely you’ve read the articles identifying ethnic consumers as viable new prospects. What I’m not seeing much information disseminated about is the affluent segment – not the middle class – but the truly affluent sub-segments within this consumer group. They are a largely ignored and under-served market segment who are patiently awaiting the right marketing approach from you.
The key to your approach is to never make the mistake of marketing to affluent ethnic consumers from your perspective and asking them to come to you. This sub-segment has made their own rules, and they are highly influential in today’s marketplace. Deliberately cater to them by getting on their turf, seeing through their eyes, and speaking their language. You must go to them, and serve them on their terms, in order to build lasting and meaningful relationships. I’m sure their $282 billion in purchasing power is something you want to harness.
Here are a few tips for luxury marketers, or any marketer, to plan a successful target marketing strategy:
• Identify and utilize appropriate ethnicity-based traditional and non-traditional media outlets in your advertising.
• Partner up with membership-based ethnic organizations.
• Consider instituting a Diversity Advisory Board in your company.
• Hire a more diverse workforce.
Now is not the time to cut back marketing expenditures; instead, correctly divert them toward this sub-segment, and I guarantee you will see better ROI in the way of stronger loyalty, broader word-of-mouth, and fresh revenue streams in addition to your general market initiatives.
Sign up to receive our free monthly eNewsletter, the Royaltons Report.
Buy our strategic insights papers.
Join our LinkedIN Luxury Brand Executives Diversity Marketing Group
Follow us on Twitter
Tags: affluent ethnic consumers, Black America Web, diversity luxury marketing, target marketing strategy
Posted in Affluent African American Marketing Research, African American Segmentation, Banking and Marketing to Affluent African Americans, New Prospects for Luxury Marketers | No Comments »
Saturday, April 11th, 2009
The United States will be experiencing a significant change in the racial and ethnic makeup of its citizens over the next 10 years. Economic experts have made these projections in the past, yet there seems to be a slow response in mainstream marketing to reach these groups with products and services that will target their income levels. The fact that there are wealthy minorities in the country is not a secret; the desire or will to target this consumer market has had a slow response. However, the company that is willing to begin targeting its products and/or services to this market segment will find that they have an advantage over their competitors.
One tool that will help companies focus their efforts on wealthy minorities is the Diversity Affluence 2009 Economist Report. This report provides research and data on population estimates, income levels and the purchasing power of minority groups such as African-Americans, Asian-Americans, and Hispanic-Americans. Marketing departments can use this report as the ground work for developing a marketing plan. The affluent market is defined as those with a household annual income of $75,000 or more. A program developed to reach affluent customers must consider the different levels of wealth, and how to target each group. This is why clearly identifying each group and knowing how they think is important, and the Diversity Affluence 2009 Economist Report will assist your marketing department with this process.
The purchasing power of wealthy minorities is unbelievable, which makes it hard to imagine why they have been invisible to mainstream marketing for so long. From 1991 to 2000, the buying power for affluent African-Americans increased by 150 percent and 126 percent for Hispanics during the same period. Even though economists and marketers define affluence based on a person’s income level, many affluent consumers do not identify themselves as being rich. They consider their lives comfortable, and shop for value with a good price. Many affluent minorities will pay extra for convenience; however, they are happier if they can get a bargain.
Learning the size and scope of the market is part of the goal of the Diversity Affluence 2009 Economist Report. Marketers would be wise to purchase this report ($495) in order to start planning their 2010 strategies. Their numbers will continue to increase, even as the country is going through an economic downturn. This is the group that retailers want to see shopping more. Motivating these wealthy prospects will help sales to flourish again.
Tags: Add new tag, affluent consumer research, Affluent Prospects, Black Consumers, Black Market Reports, luxury marketing during a recession, minority purchasing power, retail marketing, Segmentation, wealthy minorities
Posted in New Prospects for Luxury Marketers, Uncategorized | Comments Off
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