The purchasing behavior of African-Americans has some distinct characteristics that retailers and marketers should identify and use to establish effective market position, according to a new report by the Nielsen Co., “The State of the African-American Consumer.”

The report notes that this population has a buying power of nearly $1 trillion. African-Americans shop more often than all other groups, but spend less money per trip and overall. This behavior reflects their propensity to make quicker/smaller purchases based on short-term needs, and less on deal availability or the desire to “stock up.” This shopping behavior partly explains why African-Americans are more likely to frequent convenience stores than non-African-American consumers.
According to Schaumburg, Ill.-based Nielsen, African-Americans made 165.7 shopping trips per household over the past year, compared with 153 trips for non-African-Americans. However, African-Americans’ average basket ring per household was $37 per trip, compared with $45 for non-African-American households. Overall, Aftrican-Americans spent $6,138 per household per year, versus. $6,883 for non-African-Americans.
When it comes to channel shopping frequency, African-Americans made 17.4 shopping trips per household to convenience stores, compared with 12.7 trips for non-African-Americans. African-Americans also shopped more frequently than non-African-Americans at dollar stores (20.7 shopping trips vs. 11.4) and drug stores (15.6 trips vs. 13.9).
African-Americans made fewer shopping trips per household than non-African-Americans at grocery stores, supercenters, mass merchandisers and warehouse clubs, according to the Nielsen research.
“A few major factors driving African-Americans’ retail traffic may be access to private transportation and lack of major retail development in some urban areas where a concentration of African-American communities reside,” the report notes.
The report goes on to identify a number of business opportunities, including:

The number of African-American households earning $75,000 or more has grown by 63.9 percent in the past decade -- a rate greater than that of the overall population. This continued growth in affluence, social influence and household income will continue to impact the community’s economic power, especially with women.
The percentage of African-Americans attending college or earning a degree has increased to 44 percent for men and 53 percent for women. Higher educational and professional success, along with a lower birth rate, is increasing both the age and affluence of the population, increasing the demand for aging, health care and financial management services.
African-Americans are heavy users of electronic media, providing marketers with many opportunities to access them with advertising and images that are appealing and highlight their services.
African-American women tend to be the primary decision-makers for most household buying decisions. Marketers should be employing advertising messages and images that appeal to them.
Trends in technology adoption and social networking also provide this group with an influence over popular culture beyond the limits of ethnic categorization.

“The State of the African-American Consumer” is the first of three annual reports attempting to provide a fairly complete picture of the African-American consumer. Those interested can get a full copy of the report.

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