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Seeking diverse fashion designers for designer showcase - ASAP
Tuesday, February 2nd, 2010Bank Lending to Minorities and Small Businesses
Monday, November 2nd, 2009
Wine Marketing to Minorities
Wednesday, September 23rd, 2009
Confirming the trend of black consumption of fine wines is the existence of the African American Association of Vintners and the African American Wine Tasting Society, which publishes The African American Wine Journal – geared specifically towards black wine lovers. According to Uptown Magazine, African Americans are even moving into the production of wine with about ten black-owned vineyards in the U.S., many of which have received rave reviews for their wines. The following appeared in The Wine Report magazine in January 2004:
Wine marketers “have made a big, fat mistake” by overlooking the buying power of African-American consumers, says Carolyn Hebsgaard. A Boston-area attorney, Hebsgaard is a charter member of Divas Uncorked—a group of professional African-American women who enjoy wine. “They’ve failed to recognize that we’ve arrived both professionally and socially.”
Even USA Today is getting in on the action having recently launched a Wine Club with reader tasting panels (www.USATODAYWineClub.com). The African American Wine Tasting Society (www.aawts.org) now has chapters in nine cities including New York City where, not surprisingly, African American wine consumption is highest.
Wealthy African Americans and Wine Consumption
Monday, September 7th, 2009
We’ve all heard the rap lyrics talking about sipping Patron “in da club” but those stereotypes are simply not accurate when taken out of the very narrow arena of rap videos.
Upscale black consumers have a much more sophisticated palate and are looking for the best in fine wines. Just ask Eric Woods, advertising executive and co-owner of Harlem Vintage, a black-owned wine store in Harlem.
Harlem Vintage carries wines from around the world including a vintage from a black-owned winery in South Africa and one from a Mexican-American owned vineyard in California. The store has been teeming with customers since it opened its doors almost a year ago. Eric has keyed into the booming trend of wine consumption among wealthy African Americans who annually spend $4.4 million on wine purchases in stores — and are more likely than the general population to spend $20 or more per bottle.
According to our 2008 research among wealthy male and female black consumers, 30.8% reported that they consume imported wine at least once a week and 31.3% consume domestic wine at least once a week. This consumer group also expressed a deep interest in attending invitation only wine dinners where they can learn more about wine and wine collecting while connecting with like minded peers.
Note to wine marketers. . . there’s a huge market here. Think about hosting an invitation only wine tasting and maybe play some soft jazz, but put the rap on hold for the evening.
Watch for our next blog post on the trend among African American male executives who are replacing the old school three martini lunch with a nice glass of point noir as well as insight from the Association of African American Vintners
Wine marketers….are you listening? Are you advertising and marketing to this audience where they play, or consume media relevant to them?
One Wealthy African American is Helping Other African Americans Build Wealth
Saturday, June 13th, 2009
Investing in Rare Coins Offers Security in an Unstable Economy
There has been much advice of late regarding non-traditional vehicles as an alternative to traditional retirement funding and investment strategies. From investment pundits like Jim Cramer, to conservative talk show hosts like Glenn Beck, many are touting the undeniable benefit of investing in metals and coins as a balance to other less stable forms of investment.
Most people investing for their future aren’t aware of the potential of rare coins and precious metals to balance a portfolio. And most financial advisers trained in the world of stocks and bonds have little knowledge of investing in rare coins. Finding a true coin expert who is knowledgeable, not just in dealing rare coins but in incorporating them into a viable investment strategy, is key. A collection of rare coins is no longer just a hobby but a strategic and secure investment.
Consider the following:
- The collapse of Indy Mac, Washington Mutual and Lehman Bros caused worldwide concern over our banking system. With that kind of uncertainty many worried investors are converting a portion of their assets into gold.
- Coins are liquid, private and insurable.
- Rare coins have entered a renaissance with new collectors vying for a limited number of rare coins. To paraphrase Mark Twain: “Buy rare coins…they aren’t making any more.”
Kenneth Smaltz, of K. Smaltz Inc., is a preeminent expert and 25-year veteran of this niche industry – and, notably, founder of the first African-American-owned rare coin company in the U.S. He has been featured in More! Rags to 
Riches by Gail Liberman and Alan Lavine as well as Crain’s New York, Black Enterprise, Fortune Small Business and The Network Journal’s “Top 40 Under 40” list. Kenneth says his mission is to “change the perception of rare coin collecting from being a hobby to becoming a profitable investment option for investors.” His advice to curious potential investors is to “do your homework, and then find a dealer you can trust. He/she should first listen to your goals and objectives and then put together a program that will work for you. This is the best way for the personal investor and collector to buy coins that will be the most likely to continue to appreciate in value over the years.”
Be aware that rare coins and precious metals are bought and sold differently. They appreciate and depreciate due to varying factors taking place in the market. Wise instruction from an expert can help you minimize your losses and protect your assets in this unstable economy – and maybe even add some unexpected enjoyment to your investing!
For additional information on Kenneth Smaltz visit www.keeperofthecoins.com
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.
How One Black Model Increased Cosmetic Sales
Sunday, April 19th, 2009“This is why Liya’s Kebede’s Estee Lauder contract was such a big deal and one cannily planned by her agency. We really pushed Liya as a beautiful woman, not a beautiful black woman,” says Bart. Meanwhile, Estee Lauder president Patrick Bousquet-Chavanne had been looking for a way to update and broaden the brand’s appeal, concerned that its image had become fusty and middle-aged. “The choice of Liya herself was first linked to her style and personality,” he says. “But she also makes the image of the brand hipper and more fashion forward. You can’t have a single white face express the diversity of the world today.” And certainly not the diversity of the U.S. by some estimates, black women account for 19% of all cosmetics sales in the country. Estee Lauder has expanded the range of makeup shades it offers, and Liya’s ads will appear not only in publications like Essence, targeted at black readers, but also in W and Vogue.
Kebede’s big break came when Tom Ford asked her for an exclusive contract for his Gucci Fall/Winter 2000 fashion show. Kebede’s popularity in the fashion industry sky-rocketed when she appeared on the cover of the May 2002 edition of Paris Vogue which dedicated the entire issue to her.
According to Keke Cargill, Assistant Store Manager, Elizabeth Arden NYC:
“Ethnic skin reigns in different hues from dark chocolate to milky white. With the realization of this unique quality most beauty empires have started to place ethnic models in ad campaigns. When Estee Lauder added Ethiopian model Liya Kebede they noticed an increase in their foundation shades and also expanded on darker palette of shades for all the affluent women of color that started swamping their beauty counters. Christian Dior, YSL Beaute, and others have taken notice and acted as well.
We at Elizabeth Arden understand that we have an underserved clientele that we intend on paying more attention to. Hosting and organizing a recent event for Diversity Affluence at our 691 5th Ave location with African American only guests was a huge success, and the first of many we are planning.”
This sort of progress is encouraging!
Wealthy Ethnic Consumer: Purchasing Power Insight for Luxury Marketers
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.
DMNews: Marketers look closer at black consumers and find segmentation opportunities within
Monday, April 6th, 2009President Obama is making his mark with large spending bills and a unique approach to leadership, but he’s also creating subtler effects in the world of marketing by bringing African-Americans into the spotlight as a consumer segment. Lexus, for example, has started targeting black women with ads for its luxury hybrids, and Amtrak recently launched an Acela Express campaign aimed at blacks and Latinos.
“Since the election of President Obama, there is more curiosity about the African American consumer and their behavior on behalf of marketers,” says Esther Franklin, EVP, director of cultural identities for Starcom MediaVest Group (SMG)’s multicultural unit, SMG Multicultural.
“The whole Obama phenomenon should make it easier for marketers to embrace multicultural and diversity in advertising,” adds Sonya Grier, associate professor of marketing at American University.
Of course, Obama can’t be held solely responsible for this renewed interest in marketing specifically to black consumers. The tight economy — which is driving marketers to target more tightly — combined with improvements in the data and analytics space also may be playing a role in this increased focus on a particular segment of the population.
“It is part of the trend towards segmented targeted marketing to all identifiable consumer groups,” explains Sid Liebenson, EVP, director of marketing, Draftfcb. “The African-American market is not a small or insignificant market in most product categories, so it behooves marketers to understand the marketplace better and look at more relevant ways to connect with the community.”
Even with more data coming in, getting to know African-Americans as a consumer group is a difficult process. The group, which makes up approximately 14% of the US population, is certainly not homogenous. To reach diverse groups within the community, marketers need to research carefully.
“One of the biggest things is to understand the consumer and make sure that the value proposition is relevant,” Grier points out. “Marketers may use stereotypes based on what they believe these consumers want, but it’s not a monolithic market. Segmenting within the group may prove to be more successful. Hip hop [might appeal to] a certain age group or psychographic group, but it’s not all African-Americans.”
In-depth segmentation of African-Americans is sprouting up, like with SMG’s Beyond Demographics initiative. Launched in 2007, Beyond Demographics has done extensive research into the black population, segmenting the group into 12 psychographic divisions with names like “buppies,” “nomads” and “activists.” Lattimer Communications, too, has created six psychographic profiles for black women, including “achievers,” “traditionals” and “cynics.”
However, Lattimer also released a study in February revealing that 86% of African-American women still feel that advertisers do not know how to speak to them.
“A majority of blacks fall within the middle class, and we often forget them, and they often feel that advertisers are not talking to them,” says Leylha Ahuile, senior multicultural expert for research company Mintel. “Targeting advertising to blacks is not about using black people in your ad, it’s about the cultural understanding. What is the message or trigger point?”
As African-American and other minority populations grow, it is essential for marketers to understand these cultural trigger points and build relationships with diverse consumer groups. Ahuile says that in 2050 about half the US population will be “multicultural,” and the buying power of African American consumers is projected to reach $1.2 trillion by the year 2012.
“There’s a lot more understanding that needs to happen,” Franklin said. “The power of the African American consumer dollar is only growing, and we all know our country is growing more multicultural as we speak. Multicultural influences have huge impacts on society in general, and for that reason it’s important for advertisers to have a more complete understanding of what the implications are for their brands and services.”
According to Packaged Facts - The African American Market
Tuesday, March 17th, 2009Thank you to Packages Fact, we continue to gain valuable insight into a growing market that holds economic significance.
Between 2000 and 2006, the African-American population increased by 2.4 million, or 7%. In contrast, the population of non-Hispanic Whites grew by only 1.6%. However, population growth rates for Hispanics (26%) and Asians (24%) were much higher.- Packaged Facts’ The African-American Market in the U.S.
Further….Packaged Facts share with Diversity Affluence that:
There are 2.4 million affluent African-American households with household incomes of $75,000 or more in the U.S. They account for 17% of all African-American households but 45% of total African-American buying power.
Marketing Research for Affluent African Americans
Tuesday, March 17th, 2009The fastest growing segment of the United States population in the 21st century is ethnic consumers. Recent demographic projections from the U.S. Census Bureau indicate that ethnic consumers will compromise the majority of the nation’s population by 2042 – eight years earlier than previous estimates.
In the not-too-distant past, multicultural and mass marketers generally referred to this consumer group as “minorities.” Historically, the term refers to a group that differs – especially in terms of race, religion or ethnic background – from the majority of the United States population.
Fast forward to today. Within this large “minority” demographic, there is a growing subset of upper middle class and wealthy consumers that we call Royaltons™. Royaltons™ is a term coined by Andrea Hoffman of Diversity Affluence to describe people of ethnic backgrounds who earn a minimum of $75,000 annually as individuals or at least $150,000 as a household. We do not use the term “minorities” when referencing Royaltons™ as is only serves to perpetuate stereotypes and does not reflect their economic status.
The Landscape of Opportunity
Within the Royalton™ segment are African American Royaltons™, or AARs, who represent not only an exciting new opportunity for marketers, but also a consumer group that has the potential for a high return on investment (ROI). But first, let’s look at the overall African American consumer population and its economic clout. The African American consumer market has a population exceeding 39 million, and their purchasing power is projected to exceed $1.1 trillion in 20123. Beyond Barack and Michelle Obama exists a large group of peers that are not black celebrities, ball players or hip hop artists…..
Currently, the purchasing power of African Americans is calculated at $892 billion. Clearly, African Americans are a critical part of the American consumer economy. Focusing on the affluent segment, a 2008 Packaged Facts report found there are 2.4 million affluent African American households that have an annual income of $75,000 or more. Interestingly, with the average annual income of those households at $122,000 (only 17% of all African American households), the affluent segment has an influential grasp of 45% of the total purchasing power in the African American market.
Within the population of 39 million, the market segment of this market has gone unnoticed – until now. African American Royaltons™ (AARs) alone represent well over $87.3 billion in purchasing power. While some marketers and industry experts, including Packaged Facts, still define “affluent” as households earning $75,000 annually, Diversity Affluence redefines affluence as individuals earning a baseline annual salary of $75,000; a more relevant figure for today’s economy. Therefore, we believe every marketer should intentionally seek to engage the AAR segment of this audience, which can no longer be ignored.
