Afrocentric marketing not just a niche: with a growing interest and wide range of products, black and white companies are cashing in on this trend together.

With a growing interest and wide range of products, black and while companies are cashing in on this trend together.

Five years ago, brightly colored handwoven Kente cloth, brimless Kufi hats, earthy mud cloths from Ghana and Senegal and bone-toned cowrie shell jewelry appeared to be a nostalgic way of dressing among African Americans. Instead of a short-term fad, these elements have formed an exciting new trend - the Afrocentric lifestyle.

African Americans have placed ethnic products high on their shopping lists. No longer a form of "alternative" dressing or decorating, Afrocentric merchandise is among the hottest selling retail products on the market, with growing crossover appeal to mainstream consumers.

Many African American entrepreneurs are cashing in on this market. For these new black-owned businesses, the key to retailing success lies in selling ethnic products in large volume. But while the spirit is willing, their pockets are not always as deep. To take their message and products to market, many black-owned companies are forming joint ventures with majority-owned corporations, from manufacturing to retail, to underwrite their production, marketing and distribution efforts.

Blackberry at Macy's, a stylish Afrocentric retail boutique based in Washington, recently teamed up with Federated Department Stores, the largest retailer in the United States. As a result, Blackberry's installed a boutique inside the flagship store of that venerable, century-old retail institution, Macy's Herald Square 

With an eclectic collection of Afrocentric merchandise from ceramic figurines to bed linens, this Blackberry occupies 500 square feet of leased space on the first floor Arcade section of this store in the heart of New York City. Owner Diane White also operates a free-standing 500-sq.-ft. store in the upscale Fashion Centre at the Pentagon City shopping mall in suburban Arlington, Virginia.

A family business, Blackberry is co-owned by Diane and her mother, Dorothy White, the company vice president, while a sister, Alyssa, works as a buyer. The National Retail Federation recently honored Blackberry as its Small Retailer for 1996.

In 1988, White, then working as a financial analyst for the African region at the World Bank, got the urge to try specialty retail after working as a volunteer sales associate on weekends at Art d' Afrique in D.C's Union Station. Four years later, she opened her first store at a shopping mall in Prince George's County, Maryland. By 1994, this Harvard M.B.A. had opened two more Blackberry shops in leased spaces at major department stores - at Woodward & Lothrop in Washington, and John Wanamakers in Philadelphia. (Both stores have since closed their doors.)

But the opportunity of a lifetime occurred last June when Tracy Mullin, president of the National Retail Federation, introduced White to Allen Questrom, CEO of Federated Department Stores. White's unique business experience and savvy made a favorable impression, and set the wheels of a joint venture in motion. "We didn't have any specific positioning for the black consumer," says Questrom. "We didn't know what size of our market they were. But Diane brought passion and commitment to the venture. She's well educated and understands her market. So we said let's find some space and see what it can do," he explains.

Now, Blackberry at Macy's is one of eight featured shops in the Arcade. The decorative home and personal accessory shop officially opened in November in time for the holiday season. According to her agreement, the shop accepts Macy's credit card and honors the department store's return policy. White has 12 to 15 staff sales associates who are Macy's employees, but the shop manager, Jim Roberts, is a Blackberry employee.

Blackberry's best-selling home items are candleholders, pillows, ceramic pieces and picture frames. Other popular buys include greeting cards, books and personal accessories. Prices range from $5 to $700 for special items. White estimates that 85% of her customers are African American.

The company has a roster of 1,500 designers and manufacturers. Approximately two-thirds of Blackberry's merchandise is made by U.S. artisans.

White's most recent coup is her deal with Spiegel's, which will now showcase some of her merchandise in the fall and holiday issues of their E Style catalog, a joint venture between Ebony magazine and Spiegel.

Looking ahead, White wants to make sure her deal with Macy's is so successful that more Blackberry shops can be opened in other locations. She envisions Blackberry becoming a national chain of boutique stores over the next five years. "I'd like to be the next Museum Store. Or to have an operation like the $100 million MoMA) stores," she muses. "I didn't leave a job at the World Bank for just one or two stores," she adds.

BUILDING COALITIONS

Two years ago, White and several other black vendors formed the International Black Buyers and Manufacturers Expo and Conference as a venue to introduce new Afrocentric products, designed and manufactured by African Americans. In April 1995, the response to the organization's first three-day expo and conference was overwhelming.

"It was the first time that African Americans had a forum to come together as a group to form a retail network, to keep those green dollars flowing into African American communities," says Tonyia Rawls, one of the producers of the event, which drew approximately 300 participants.

The biannual event is held during the last weekend in March and on Columbus Day in October at Howard University in D.C. The group's upcoming trade show on Oct. 12-14, centers on the theme "Strategic Alliances," and Rawls anticipates that at least 1,000 participants will attend.

Rawls believes that African Americans are "faring" much better these days, recalling a time - not so long ago - when manufacturers would not make Afrocentric products.

"The strength of any nation is based on their manufacturing capabilities. African Americans are mass consumers. Like any nation, African Americans are now placed in the position of retailers and manufacturers. The more we can increase our manufacturing capabilities, it enhances and strengthens our position," says Rawls, who is president and owner of International Concepts Group, an advertising and marketing firm based in Alexandria, Virginia.

Afrocentric products are hot, as both Rawls and White emphasize, and more of the major retailers are vying for exclusive rights to ethnic product lines. A recent cross-ethnic survey, conducted by Market Segment Research in New York, found that almost half of the black population (49%) purchased merchandise from catalogs in 1994, and that even nonminority consumers expressed interest in Afrocentric catalogs.

Crossover appeal is extremely important to jewelry designer and marketer Coreen Simpson. "It's great being successful in the African American market. But to become successful, an African American designer must become popular and cross over," she explains. "I always design with crossover appeal and never limit myself to my ethnic group. It's a simple matter of economics."

Simpson, an acclaimed fine arts photographer, began designing jewelry for others at the suggestion of a friend.

"Since I didn't have any start-up capital, I used my own jewelry. I constantly recycled pieces that I didn't sell. When I made a profit, I reinvested the money the following week to buy the gold, silver and stones that I needed," she recalls.

Simpson had built a strong client base among white women in the cosmetics and beauty industry, who were very familiar with her highly creative, one of a kind, avant-garde creations. She carted the handcrafted jewelry in oversized bags to clients all over New York City.

In 1989, Audreen Ballard, a senior editor at Lear's magazine, told Simpson that she wanted a cameo with African American features. Simpson discovered that ethnic cameos were extremely rare, which inspired her to design an African American cameo line. It took her a year to learn how to make the intricate engravings with their bas-relief images.

She kept the mold and model but gave away the first 100 of the black cameos to key clients and friends, like Ballard.

Avon Products, Inc. approached Simpson about a joint venture in 1993. The result is that she created the Coreen Simpson Regal Beauty Collection, a special budget line of designs that includes a modestly priced cameo. She will also design a variation of her Black Angel pin for the collection.

Her company, Cameo Designs Ltd., grossed in the six figures last year. Simpson, however, declined to discuss the financial terms of her licensing agreement with Avon, now in its third year. "I am more than pleased with my relationship with Avon. The company has a high regard for its designers and that is very rewarding," she declares.

Avon has agreements with six other African American designers, including Therez Fleetwood, who calls her exclusive contract with Avon "the best of both worlds." Fleetwood, 32, was the first African American designer to create Afrocentric clothing for Mickey and Minnie Mouse in Disneyland, Florida, in 1993. She came to Avon the following year with her own clothing line.

Now, the Boston native is a salaried independent consultant and the main designer for The Avon Boutique, a quarterly catalog of beauty products and home decorative and gift items designed for the African American market. "I am able to establish myself as a designer. At the same time, I can do other projects as a consultant. It's really the best of both worlds for me," she explains.

Fleetwood's creations are showcased in every catalog, along with two to three other designers. She is responsible for eight to 20 new concepts quarterly. From concept to development, the cycle usually takes from six to 12 weeks with final approval by Avon.

"I always design with African American consumers in mind. I select elements from authentic African products I want to use, then water them down slightly to fit the lifestyles of African Americans," she says.

Fleetwood believes that as more African Americans become aware of their culture, they will shop for Afrocentric products reflecting their heritage.

The Avon Boutique generates multimillion dollar sales. Paulette Brown, Avon's manager of African American marketing, would not discuss the catalog's gross sales or the percentage from catalog sales compared with the company's total sales. "The boutique catalog has a yearly production rate of 12 million copies. Sixty percent of its customers are African American and 40% non-African American," she notes.

The publication is Avon's direct selling tool, and is only available through sales representatives. The company has a total sales force of 445,000, and 12% are African American, she says.

According to Brown, Avon is a very "multicultural company." The Avon Boutique, she says, is "a natural extension reinforcing the corporation's philosophy in celebrating global diversity."

FASHIONING DEMAND

Celebrating "global lifestyles" is something the Design Group Ltd. does best. Its ethnic-inspired home furnishings - including a unique collection of bedsheets and accessories - are designed, merchandised and marketed by African Americans. The company has teamed up with Dan River, a major textile marketing and manufacturing compa-ny, to produce its designs.

A global lifestyle means celebrating any race or nationality "and being comfortable with it," says Leland Paul Michael, president of the company. "As African Americans, we are still becoming acclimated to our cultural background and all aspects of diversity. The Design Group cannot improve what other cultures have created. But we can celebrate their heritage and greatness through our products."

The Plainfield, New Jersey-based company is comprised of six partners, some of whom are graduates of the Fashion Institute of Technology in New York. The partners, who each invested $5,000 in the company, represent a wide spectrum of backgrounds and talents: from a financial analyst to an importing and apparel quality control expert to textile a,nd fashion designers and merchandisers.

Prior to forming the company, the partners had been involved in various small business groups for about 10 years. After helping countless minorities become successful entrepreneurs, they decided to use that expertise to set up shop for themselves. However, the partners have kept their day jobs, knowing well the financial pitfalls facing most small businesses. They also committed to working long weekends at Michael's home to eliminate the high overhead of leasing an office space.

They draw inspiration from a wide range of sources. The textile patterns for their 200-thread count bedsheets and cotton-polyester blend accessories are influenced by the embroidered dashiki robes worn by the Swahili of East Africa, the tribal mud cloths of Mali in West Africa and the mola panels of the Cuna Indians of Panama. Michael describes the patterns as "predominately masculine with soft shapes, colors and graphics."

In 1994, the fledgling company signed a two-year licensing agreement with Dan River. Michael points to the textile company's built-in customer base with existing sales opportunities as key factors in forming the venture. Dan River also has sole responsibility for the sales and manufacturing of all the products.

"When we met, the circumstances were extraordinarily rare because the company had not been formally established. But the group had a good solid concept and original designs," says John Hall, vice president of sales and marketing for the home fashion division of Dan River.

"They knew exactly what they wanted to do. There was a lot of positive energy on both sides. So we worked closely together and developed a product line within nine to 10 months," explains Hall.

The first collection was launched 18 months ago under the name, The Design Group Ltd. by Dan River. According to Hall, the textile company has placed the innovative product line in several direct-marketing catalogs and smaller retail stores. "Getting a new product line into traditional department stores can be difficult," says Hall. "It requires building exposure, and it involves a learning curve."

The Design Group is presently the only African American company that has a licensing agreement with Dan River. The contract expires in December and Michael says the company is exploring other options. It is seeking an overseas investment company, and hopes to continue earning profits from licensing agreements with co-manufacturers.

The Group, which is a member of the New York/New Jersey Minority Purchasing Council, earned a little under $100,000 in 1994. Based on standard licensing agreement percentages (2% to 7%), direct sales and craft shows, the company made $500,00 last year, but reinvested profits.

Michael admits that the company is technically cash poor. "Every profit is turned back into the business. We do it because most companies want long production runs, which do not support smaller shops owned and operated by African Americans. If we stockpile the products, we can ship to the smaller markets which account for at least 25% of our business," he explains.

Glad to be in business and turning a profit, The Design Group sends thank-you letters to its customers and buyers. So far, Michael estimates the company has sent 30,000 "thank yous for investing in a growing company" - a testament to its ever-expanding client base.