AFRICAN-AMERICAN MARKET OFFERS SALES OPPORTUNITY FOR RETAILERS.ATHENS, Ga.-Retailers who consider the needs and preferences of African-American consumers have an opportunity to generate significant revenue. So reports a University of Georgia Organization
The President of the University of Georgia (as of 2007, Michael F. Adams) is the head administrator and is appointed and overseen by the Georgia Board of Regents. study on the purchasing power Purchasing Power
1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.
2. of black consumers, which surpassed $500 billion annually in 1998. Income growth among blacks far exceeds average income growth for all Americans, the study found.
"Consumer goods consumer goods
Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and and services, advertising messages and methods need to be tailored to each minority segment to tap those markets to the fullest," said Jeffrey M. Humphreys, director of economic forecasting at UGA's Terry College of Business, and the study's author.
Buying power Buying Power
The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.
Also referred to as "Excess Equity. is defined in the study as total personal income after taxes.
Humphreys said a combination of factors has contributed to the income growth, which is expected to reach $502 billion nationwide in 1998 and $533 billion in 1999. Foremost among the factors is a strong job market for all Americans; secondly, the gap in educational attainment between blacks and whites in their 20s has narrowed. High school graduation rates showed no statistical difference in 1997, according to U.S. Census data. However, Humphreys noted, the same report showed only 13 percent of African-Americans are college educated, compared with 25 percent of whites and 42 percent of Asian-Americans.
The state with the greatest estimated black buying power is New York at $60.9 billion, followed by California at $40.9 billion.
Humphreys said the claimed by African-Americans' market share is important because the higher it is, the lower the average cost of reaching a potential buyer.
Nationally, black consumers will have control of 8.2 percent of total buying power in 1999, up from 7.4 percent in 1990. "Every year since 1990, the percentage gain in black buying power has been greater or is predicted to be greater than the
growth rate for consumers overall," Humphreys said.
Black Buying Power
African-American consumers' buying power is most concentrated in the following markets
State Share of Overall Buying Power*
North Carolina 14.3
South Carolina 18.1
District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). 39.1
(The average share of an individual consumer's buying power in the U.S. is 8.2%)
* Percentage share of total consumer buying power in the state, projected for 1999 Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia