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The Shopping Experience of Black Consumers - US - April 2014

Published By :

Mintel

Published Date : May 2014

Category :

Apparel

No. of Pages : 185 Pages

Black consumers shop a wide variety of stores – from Walmart to Barney’s New York. This is not a one-size-fits-all consumer. Marketers need to better understand the different consumer segments within the Black community and how each segment is unique and has different expectations when it comes to the shopping experience. While they are all on a hunt for the best bargain, the actual experience and the store’s understanding of cultural nuances is what keeps them coming back.
Table of Content

Scope and Themes

What you need to know
Definition
Consumer survey data
Expenditure data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

The market
Figure 1: Average annual expenditures of black households, by select categories, at current prices, 2007 and 2012
The consumer
Attitudes toward shopping
Figure 2: Attitudes toward shopping and spending, by gender, February 2014
Attitudes toward shopping
Figure 3: Shopping enjoyment, by Black versus all, by gender, November 2012-December 2013
Figure 4: Black consumers’ attitudes toward store staff, by gender, February 2014
Shopping triggers
Figure 5: Emotional shopping triggers and motivations, by gender, February 2014
Shopping brick and mortar stores
Figure 6: Types of stores shopped – in-store, by gender, February 2014
Decision factors for choosing stores
Online shopping
Effective sales promotions
Black shopping clusters
Figure 7: Black shopping clusters, February 2014
What we think

Issues and Insights

Given their passion for shopping in-store, what can marketers do to lure Black consumers to shop online?
Lacking plastic and safety concerns with online transactions
The issues
The implications
Finding the right fit
The issues
The implications
Service and sensitivity
The issues
The implications

Trend Applications

Inspire trend: Return to the Experts
Inspire trend: Guiding Choice
Mintel futures: Access Anything Anywhere

Consumer Expenditures

Key points
Overall expenditures among Blacks rose by 18% from 2007-12
Figure 8: Average annual expenditures of Black households, by category, at current prices, 2007-12

Attitudes Toward Spending

Key points
Black consumers buy what they want with little regret
Figure 9: Attitudes toward shopping and spending, February 2014
Women admit they sometimes can’t control spending
Figure 10: Attitudes toward shopping and spending, by gender, February 2014
Younger Blacks splurge and less likely to feel remorse
Figure 11: Attitudes toward shopping and spending, by age, February 2014
Higher income Blacks splurge so that they stand out from others
Figure 12: Attitudes toward shopping and spending, by household income, February 2014

Attitudes Toward Shopping

Key points
Blacks LOVE to shop, they shop more frequently and spend more time in stores
Figure 13: Shopping enjoyment, by Blacks versus all, by gender, November 2012-December 2013
Figure 14: Shopping enjoyment and engagement, by race/Hispanic origin, November 2012-December 2013
Black men are much more engaged than other men in shopping
Figure 15: Shopping enjoyment and engagement, by gender, November 2012-December 2013
Figure 16: Shopping enjoyment and engagement, by gender, November 2012-December 2013
Low pricing attracts women to stores, but selection will likely draw men in
Figure 17: Impact of price and promotions on where Blacks shop, by gender, November 2012-December 2013
Getting the best price is important to Blacks, but less so when compared to others
Figure 18: Attitudes toward price promotions, by race/Hispanic origin, November 2012-December 2013
Blacks shop around for best deal, kids weigh heavy in decisions
Figure 19: Impact of sales and promotions on shopping, by race/Hispanic origin, November 2012-December 2013
Great service and good environment motivates Blacks to shop at certain stores
Figure 20: Importance of store experience when shopping among Black consumers, by gender, November 2012-December 2013
Blacks shop stores with convenient locations, but they will travel if they have to
Figure 21: Black consumers’ attitudes toward store distance when deciding where to shop, by gender, November 2012-December 2013
Blacks are more willing than others to travel farther to shop
Figure 22: Attitudes toward the proximity of stores consumers shop, by race/Hispanic origin, November 2012-December 2013
Shopping is a social outing, Blacks like to shop with others
Figure 23: Black consumers’ attitudes toward shopping alone or with others, by gender, November 2012-December 2013
Word of mouth is key for building awareness, not necessarily sales
Figure 24: Black consumers’ attitudes toward influencing others’ shopping behaviors, by gender, February 2014
Knowledgeable and helpful staff set stores apart, win over Blacks
Figure 25: Black consumers’ attitudes toward store staff, by gender, February 2014
Blacks open to trying new products, brand names matter
Figure 26: Black consumers’ attitudes toward brands, by gender, February 2014

Shopping Triggers

Key points
Triggers for Blacks to buy are often emotionally charged, a feeling of entitlement
Figure 27: Black consumers’ shopping triggers and motivations, February 2014
Sales play a vital role in feeding shopping triggers, especially percentage-off sales
Figure 28: Impact sales promotions have on shopping triggers, by type of sale, February 2014
Free shipping, no sales tax type of incentives work if sales clerk or friend tells them about it
Figure 29: Impact other types of incentives have on shopping triggers, by type of incentive, February 2014
Coupons complement emotional triggers, BOGO doesn’t make them feel like smart shoppers
Figure 30: Impact coupons and BOGO free/discount offers have on shopping triggers, by type of offer, February 2014

Shopping at Brick and Mortar Stores

Key points
Blacks shop a variety of stores, receptivity to visiting new stores is higher than others
Figure 31: Attitudes toward where consumers shop, by race/Hispanic origin, November 2012-December 2013
One quarter of Blacks shop high-end department stores
Figure 32: Types of stores shopped online and in person – in-store, by gender, February 2014
Blacks more likely to shop four or more of the same type of store
Figure 33: Types of stores shopped online and in person – in-store, by count of brick and mortar stores shopped, February 2014

Decision Factors for Choosing Stores

Key points
Styling and design are important factors in deciding where to shop
Figure 34: Decision factors for shopping stores – any important, by gender, February 2014
Quality is equally as important as price
Figure 35: Importance of quality, price, durability, and convenience in where Blacks shop, by types of stores shopped online and in person – any purchase, February 2014
Brand names are more important for children stores and high-end department stores
Figure 36: Importance of brands, familiarity, and service in where Blacks shop, by types of stores shopped online and in person – any purchase, February 2014
High-end, specialty, children’s, resale shops should be trendy, fun, exciting
Figure 37: Importance of the store’s aesthetics on where Blacks shop, by types of stores shopped online and in person – any purchase, February 2014

Online Shopping

Key points
Compared to the average, Blacks less likely to be shopping online
Figure 38: Attitudes about shopping online – any agree, by race/Hispanic origin, November 2012-December 2013
Nine in 10 have purchased at least one item online
Figure 39: Black consumers’ attitudes toward time spent shopping online, by gender, February 2014
Figure 40: Online shopping behaviors and receptivity (nets), February 2014
Clothing, electronics, footwear, and toys are top items purchased online
Figure 41: Black consumer receptivity toward shopping online – positive to online shopping, February 2014
Figure 42: Black consumer receptivity to shopping online – negative to online shopping, February 2014
Women more likely to shop mid-tier stores online, men shop electronic stores
Figure 43: Types of stores shopped online, by gender, February 2014

Effective Sales Promotions

Key points
Women are more cost conscious and take advantage of sales
Figure 44: Black consumers’ attitudes toward deals, by gender, February 2014
Circulars are effective at driving sales, especially among women
Figure 45: In store support materials influence, by gender, November 2012-December 2013
Incentives that are most effective vary based on size of item purchased
Figure 46: Effective promotions, by size of item, February 2014

Cluster Analysis

Figure 47: Black shopper segments, February 2014
Savvy Pro Femmes
Demographics
Characteristics
Opportunity
Risk-Averse Followers
Demographics
Characteristics
Opportunity
Mature Experience Seekers
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 48: Shopping attitudes and behaviors, by Black shopping clusters, February 2014
Figure 49: Attitudes toward shopping and spending, by Black shopping clusters, February 2014
Figure 50: Black consumers’ shopping triggers and motivations, by Black shopping clusters, February 2014
Figure 51: Types of stores shopped online and in person – any purchase, by Black shopping clusters, February 2014
Figure 52: Decision factors for shopping stores - any important, by Black shopping clusters, February 2014
Figure 53: Online shopping behaviors and receptivity, by Black shopping clusters, February 2014
Cluster demographic tables
Figure 54: Demographics, by Black shopping clusters, February 2014

Marketing Strategies

Key points
Overview of the brand landscape
Brand analysis: Walmart
Figure 55: Walmart, “I Knew That” TV ad, 2013
Figure 56: Walmart, “Short Talk” TV ad, 2013
Brand analysis: Ashley Stewart, K&G, and Burlington Coat Factory
Figure 57: Ashley Stewart, “Why do YOU love Ashley” video, 2011

Demographic Profile of US Black Population

Key points
Buying power
Figure 58: Buying power trends among Black consumers, 1990-2018 (projections)
Black buying power is growing at a faster rate than that of White consumers
Figure 59: Changes in buying power, by race, June 2013
Black buying power over $1 trillion
Figure 60: Top 10 states ranked by share of Black buying power, 2012
Top 10 states with highest buying power represent two thirds of buying power
Figure 61: Top 10 states ranked by value of Black buying power, 2012
Population statistics
Black population growing at a faster rate than Whites
Figure 62: Population by race and Hispanic origin, 2009-19
Black population growth slows
Figure 63: Asian, Black, and Hispanic populations, 1970-2020
Children under 18 years old account for 27% of Black population
Figure 64: Black population, by age, 2009-19
Geographic concentration
Majority of Blacks reside in South, a different marketing approach may be needed
Figure 65: Black geographic concentration, by region, 2010
Population grows in the South, reverse migration may be occurring
Figure 66: Top 20 states with highest Black population and percent change from 2000-10
NY, Chicago, Philadelphia, Detroit, and Houston top Black metros
Figure 67: Top 10 cities with the largest number of Blacks, 2010
More than 80% of Detroit and Jackson’s population is Black
Figure 68: Top 10 cities with the highest percentage of Blacks, 2010
Gender
Figure 69: Men by race and Hispanic origin, 2009-19
Figure 70: Women by race and Hispanic origin, 2009-19
Generations
iGeneration and Millennials represent nearly half of Black population
Figure 71: Population of generations, by race/Hispanic origin, 2014
Figure 72: Distribution of population by race and generation, 2014
Education
Majority of Blacks seek college, while others may be relying on entrepreneurship
Figure 73: Educational attainment of Blacks aged 25 or older, by age, 2012
Marital status
Only one third of Blacks are married, compared to 50% or more of others
Figure 74: Percentage of married and not married people aged 18 or older, by race and Hispanic origin, 2013
Blacks twice as likely never to marry, may trace back to history in America
Figure 75: Marital status of adults aged 18 or older, by race/Hispanic origin, 2013
Figure 76: Marital status of Blacks, by age, 2013
Figure 77: Marital status of Black adults, by gender, 2013
Employment
Black employment rate is lower than for others, rebounding slowly after recession
Figure 78: Labor-force participation rate of people aged 16 or older, by race and Hispanic origin, 2002-12
Teens and seniors are working too, marketers may be missing the mark by ignoring them
Figure 79: Labor-force participation rate of Blacks aged 16 or older, by age and gender, 2012
Income
Blacks have lower household incomes, attributed to several factors besides occupation
Figure 80: Median household income, by race and Hispanic origin of householder, 2012
Figure 81: Household income distribution by race and Hispanic origin of householder, 2012
Parental status
One third of Black households are headed by women
Figure 82: Households type, by race of householder, 2013
More Black children born to unmarried women in 2012
Figure 83: Fertility rate, by race and Hispanic origin of mother, 2002-12
Figure 84: Percent of births to unmarried mothers, by race and Hispanic origin of mother, 2002 and 2012
Figure 85: Households with own children, by race and Hispanic origin of householder, 2013
Figure 86: Who children live with, by race and Hispanic origin, 2012
Figure 87: Black households, by presence and ages of own children, 2013
Home ownership
Four out of 10 Blacks are homeowners
Figure 88: Homeownership rate, by race of householder, 2001-11

Appendix – Other Useful Consumer Tables

Attitudes toward spending
Figure 89: Attitudes toward shopping, by gender, February 2014
Figure 90: Attitudes toward spending, by age, February 2014
Figure 91: Attitudes toward shopping and spending, by household income, February 2014
Figure 92: Attitudes toward shopping and spending, by generations, February 2014
Figure 93: Attitudes toward shopping and spending, by repertoire of brick and mortar stores shopped, February 2014
Figure 94: Attitudes toward shopping and spending, by repertoire of online shopped, February 2014
Attitudes toward shopping
Figure 95: Attitudes price promotions, by gender, November 2012-December 2013
Figure 96: Attitudes toward store experience, by race/Hispanic origin, November 2012-December 2013
Figure 97: Attitudes toward shopping companions, by race/Hispanic origin, November 2012-December 2013
Figure 98: Shopping attitudes and behaviors (nets), February 2014
Figure 99: Shopping attitudes and behaviors (nets), by age, February 2014
Figure 100: Shopping attitudes and behaviors (nets), by generations, February 2014
Shopping triggers
Figure 101: Black consumers’ shopping triggers and motivations, by gender, February 2014
Figure 102: Black consumers’ shopping triggers and motivations, by age, February 2014
Figure 103: Black consumers’ shopping triggers and motivations, by household income, February 2014
Figure 104: Black consumers’ shopping triggers and motivations, by generations, February 2014
Figure 105: Effective promotions – any purchase, by Black consumers’ shopping triggers and motivations, February 2014
Figure 106: Effective promotions – any purchase, by Black consumers’ shopping triggers and motivations, February 2014 (continued)
Figure 107: Effective promotions – any purchase, by Black consumers’ shopping triggers and motivations, February 2014 (continued)
Figure 108: Effective promotions – any purchase, by types of stores shopped online and in person – any purchase, February 2014
Figure 109: Effective promotions – any purchase, by types of stores shopped online and in person – any purchase, February 2014
Figure 110: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 111: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 112: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 113: Effective promotions – any purchase, by shopping triggers and motivations, February 2014
Figure 114: Effective promotions – any purchase, by shopping triggers and motivations, February 2014
Figure 115: Effective promotions – any purchase, by shopping triggers and motivations, February 2014
Figure 116: Effective promotions – any purchase, by types of stores shopped online and in person – any purchase, February 2014
Brick and mortar stores shopped
Figure 117: Attitudes toward where Black consumers shop, by gender, November 2012-December 2013
Figure 118: Types of stores shopped online and in person – any purchase, by age, February 2014
Figure 119: Types of stores shopped online and in person – any purchase, by household income, February 2014
Figure 120: Types of stores shopped online and in person – any purchase, by generations, February 2014
Figure 121: Types of stores shopped online and IN PERSON – in-store, by age, February 2014
Figure 122: Types of stores shopped online and IN PERSON – in-store, by household income, February 2014
Figure 123: Types of stores shopped online and IN PERSON – in-store, by generations, February 2014
Ideal store ambiance
Figure 124: Decision factors for shopping stores – any important, by age, February 2014
Figure 125: Decision factors for shopping stores – any important, by household income, February 2014
Figure 126: Decision factors for shopping stores – any important, by generations, February 2014
Figure 127: Decision factors for shopping stores – any important, by repertoire of brick and mortar stores shopped, February 2014
Figure 128: Decision factors for shopping stores – any important, by repertoire of online shopped, February 2014
Online stores shopped
Figure 129: Types of stores shopped online and in person – online, by age, February 2014
Figure 130: Types of stores shopped online and in person – online, by household income, February 2014
Figure 131: Types of stores shopped online and in person – online, by generations, February 2014
Figure 132: Online shopping behaviors and receptivity – have bought online and would do so again, by gender, February 2014
Figure 133: Online shopping behaviors and receptivity – have bought online and would do so again, by age, February 2014
Figure 134: Online shopping behaviors and receptivity – have bought online and would do so again, by household income, February 2014
Figure 135: Online shopping behaviors and receptivity, by generations, February 2014
Figure 136: Online shopping behaviors and receptivity, by repertoire of brick and mortar stores shopped, February 2014
Figure 137: Online shopping behaviors and receptivity, by repertoire of online shopped, February 2014
Figure 138: Types of stores shopped online and in person – online, by repertoire of brick and mortar stores shopped, February 2014
Figure 139: Types of stores shopped online and in person – online, by repertoire of online shopped, February 2014
Effective store promotions
Any purchase
Figure 140: Effective promotions – any purchase, by types of stores shopped online and in person – any purchase, February 2014
Figure 141: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 142: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 143: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 144: Effective promotions – any purchase, by types of stores shopped online and in person – any purchase, February 2014
Figure 145: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014
Figure 146: Effective promotions – any purchase, by attitudes toward shopping and spending, February 2014

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