African-American consumers expect the financial and economic community to pay attention on Tuesday using purchasing power, or, where appropriate, not buying.
Blackout Day is a movement urging black consumers, and others, not to spend a dollar on a business or brand that is not owned by Black on Tuesday. The campaign was launched by activist Calvin Martyr to use the power of the wallet to draw attention to the need for equal financial and economic opportunities for African Americans.
The median household income by race in the US shows that African-Americans still lag far behind other racial populations, according to the latest data available from the US Census Bureau. 2018 is $ 41,692, the lowest of all groups. By contrast, Asian American households have the highest median income of $ 87,194, followed by white households at $ 70,642. The average Hispanic family income in the United States is $ 51,450.
Black Americans account for one in nine overall workers in the United States workforce, but one in six front-line industry workers, who tend to be lower-paying jobs, according to a study by the Research Center. Economic and Political. According to Nielsen, nearly one in five black men work in the military and are 112% more likely to have or continue to serve than the average American adult.
Despite representing 14% of the total U.S. population, black households account for just 10% of total spending, or $ 1.39 trillion in 2019, according to Nielsen.
However, purchasing power within the black community has increased 108% between 2000 and 2017, more than any other race, Nielsen said. Black consumer spending is expected to grow to $ 1.8 trillion by 2024.
Black consumers also spend more than other groups on certain categories of consumers, particularly on personal care and beauty. Nielsen’s data shows that African-American consumers buy about 86% of all ethnic hair and beauty aids, more than 22% of women’s fragrances, and 20% of men’s toiletries.
Makeup vendor Sephora is responding to Blackout Day by closing its stores from 10 am to 12 pm local time, so employees have time to train and the opportunity to discuss racial profiling, as well as a racial bias study that the company charge.
Sephora corporate employees will also participate in leadership training on Tuesday, focusing on unconscious biases, inclusive behaviors, and overcoming cultural appropriation and obstacles.
The impact the Blackout Day movement will have on the retail sector is unknown, but some experts believe it will increase over time with awareness and participation if it becomes an annual or otherwise more frequent event.
“The spirit behind the initiative is admirable and is likely to generate broad participation beyond the African American consumer cohort,” said Greg Portell, senior partner in Kearney’s global consumer practice. “The message is simple and makes it easier for a broad consumer base to participate. Small Business Saturday provides a model of what the impact might be as consumers have demonstrated their willingness to focus their purchases.”
Small Business Saturday is an annual shopping event that takes place on the Saturday after Thanksgiving, when the holiday shopping begins.
Portell acknowledged that there are some challenges that add complications for well-intentioned consumers, including how to define what is considered a black business and access to information.
As a company or brand is more easily or easily identified as a black company, Portell anticipates that “the push for black-owned companies should be significant” as long as the companies are prepared with additional inventory, personal and other preparations for an increase in business.
Brands and retailers need to pay attention. Black consumers are more socially aware than others. 38% of African Americans ages 18 to 34 want brands to be socially conscious, and 41% of black consumers, ages 34 to 41, seek that rating when making purchasing decisions. That’s 4% and 15% more, respectively, than the general population, according to Nielsen.