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Black and other women of color as consumers
Women of Color Are on a Buying Spree
By Peter Ortiz
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© 2004 DiversityInc.com
July 01, 2004
They are 32.7 million strong with $723 billion in purchasing power, but advertisers may be missing the lucrative population of women of color. And while there are many similarities among them, African-American, Latina and Asian-American women have their own distinct buying patterns.
Understanding the nuances and preferences of women of color is crucial to tapping this growing market, according to a new report. By 2008, the African-American, Asian-American and Latina women who make up this market are expected to reach 36.8 million and flex their economic muscle to the tune of $1 trillion in buying power.
Their share of U.S. buying power is growing – from 8 percent of total U.S. buying power in 2003 to 9.4 percent in 2008.
Packaged Facts, a division of MarketResearch.com, published the findings in a new report, “The U.S. Multicultural Women Market.” Data from the report came from the 2003 Simmons Market Research Bureau National Consumer Survey, the U.S. Census Bureau, the U.S. Department of Commerce, U.S. Center for Education Statistics and the U.S. Department of Health and Human Services.
“Don’t ignore them if you’re a marketer,” said Don Montuori, editor of Packaged Facts. “They have money, they like to shop and they strive to do well. It is a strong, viable market.”
While non-Hispanic white women still represent the majority of women in population, educational achievement, professional ranks and higher salaries, women of color are advancing more quickly in all these areas, according the report.
Women of color 18 and older represent nearly 30 percent of the total U.S. female population and their population increased more than seven times that of white women between 1995 and 2002.
Women of color, compared with non-Hispanic white women, shop more often, don’t mind driving a long distance to their favorite stores and enjoy wearing the latest fashions and buying designer clothes. The group also is more likely to listen to advertisers and consider their children in their buying decisions.
The report also lists differences among women of color shaped by employment, education, culture and social values.
Advertisers need to remember that Latinas, Asian Americans and African Americans share common goals that shatter some stereotypes, such as their desire to advance their careers even if it means spending less time with family, Montuori said. They also are consumers with distinctive tastes.
“I don’t know that people realize that they do command such wealth … and that they are not a monolithic entity,” Montuori said.
Within the Latino culture, Puerto Rican women are more likely to be single mothers, hold managerial positions and earn more than $50,000 yearly, whereas Mexican and Cuban women are likely to be married. Latina women shop less frequently than other women of color, place convenience over price when selecting a store and enjoy shopping with family and children. They also place more weight on brand name and price when deciding on prescription drugs.
African-American women carry the most spending power among women of color at $270 billion and the largest share of that market, but are expected to soon be eclipsed by Latinas. Of the three groups, they are more likely to be single or head of a household. Those between 18 and 24 and who graduated high school are as likely to be in college as non-Hispanic white women.
African-American women have the highest rate of work-force participation, at 62 percent. From 1992 to 2002, African-American women narrowed the income gap from 17.6 percent to 9.9 percent against non-Hispanic white women.
Compared with other women, African-American women enjoy shopping for clothes and aren’t afraid to try new fashions. They also enjoy watching television with their children, buying frozen dinners and frequenting fast-food restaurants. Asian-American women completed more bachelor’s degrees and earned more in salary than other women of color and white women. They were more likely to be managers or professionals. They also are more likely to browse the Internet for shopping, working and during their free time.
But despite success in the workplace, more Asian-American children are likely to have a stay-at-home mother. Most Asian-American women were born outside the United States and, although this will change, it is important for marketers to appreciate that Asian Americans, like many Latinas, still are tightly connected to their native languages and cultures .
Wanla Cheng proscribes a multi-faceted approach to marketing that acknowledges women of color who embrace their American culture while not letting go of their native language and heritage. Cheng is president of Asia Link Consulting Group, a New York multicultural-market research and consulting firm. “It is important to customize to these groups,” Cheng said.
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