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Posts Tagged ‘affluent consumer research’
Thursday, November 4th, 2010
In 2008, Diversity Affluence and UPTOWN Magazine embarked on a 3 month research tour that included online research and focus groups which took place in Chicago, Atlanta, Washington DC and New York to find out what some of today’s young, affluent African American professionals crave.
Luxury plays an important and diverse role in the lives of the affluent African American professional. While luxury often involves the acquisition of tangible, expensive items, even for tangible purchases (like automobiles, jewelry, clothing, etc) the role of the emotional experience around the item is paramount. Perhaps no category better exemplifies this than luxury travel.
The key driver for escape and restorative travel is the need to get away from the high pressure, highly structured, highly confined daily grind of work and home. Some of the statements included: “It’s all about me!” or “Every time I accomplish something big at work, I treat myself to a nice trip.” The types of places people mentioned escaping to were warmer or tropical climates such as: The Caribbean Islands (Dominican Republic, Turks & Caicos), Mexico (Cabo San Lucas, the Mediterranean (Greece) and the Pacific Islands.
Other key lifestyle categories that were high on the radar of these professionals included:
- Fine Dining - “I’ll spend hundreds of dollars every few months on dining to increase my food vocabulary.”
- Philanthropy - Hands on giving strongly resonated with focus group participants and education was a critical focus. Their was a desire to have a direct impact on those they helped and not just send checks. “Boys and Girls Clubs are always getting athletic equipment. But schools are not getting what they need to educate youth.”
- Networking - Affluent African American Young Professionals are hungry for in person social networking. They made it clear that in a perfect world “they want the perfect trifecta.” Event planners, marketers and even high end promoters, listen carefully. Incorporate the following 3 elements into your gatherings, every time, and your brand or business is sure to reap the rewards: charity or non profit, equal part single male and single female’s (yes, they both want to make romantic connections) and a good cross section of credible, working professionals so that everyone can network for business. Make these smaller, invitation only moments (50-100 people) so that everyone benefits from a targeted, intimate experience.
To inquire about this report or to purchase it, visit Marketing to Affluent African Americans-Strategic Insights for Reaching an Untapped Market. Mention this blog and receive a 20% discount.
Tags: affluent african americans, Affluent blacks and luxury travel., affluent consumer research, Black Philanthropy, Blacks and nice vacation destinations, Blacks and the travel industry, Marketing to affluent African Americans
Posted in Affluent African American Young Professionals | Comments Off
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
Thursday, April 9th, 2009
 Groundbreaking Strategic Insights Paper Now Available. 39 pages of insight for luxury brands and luxury retailers. Only $895 (includes 1 hour of complimentary phone consulting).
Marketing to Affluent African Americans - Strategic Insights for Reaching an Untapped Market. This groundbreaking Strategic Insights Paper is a collaborative effort between Diversity Affluence and UPTOWN Magazine. It serves to provide expert insight into how to market to the affluent African American consumer segment, also known as African American Royaltons™ (AARs). Its purpose is to educate and validate those who will benefit most from the information: luxury marketers and retailers; brand managers; agencies; and the media.
These insights give the reader a clear and authentic view into this powerful group of consumers’ attitudes and opinions, media and marketing preferences, and shopping and buying habits.
Tags: affluent consumer research, Black Entertainment News, Black Media, luxury marketing during a recession, Multicultural Marketing Firms, Packaged Facts' African American Market in the U.S.
Posted in Affluent African American Marketing Research | Comments Off
Tuesday, March 17th, 2009
The 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.
Tags: affluent consumer research, diversity affluence, luxury brand marketing, marketing research, Michelle Obama, retail marketing
Posted in Uncategorized, marketing research | Comments Off
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