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August 30, 2001 

 New report shows African-American 
households have a $5 billion appetite 
for consumer electronics 
Growth in spending exceeds that of White households

African-American consumers are in the midst of an electronic products buying binge. That’s the hottest trend revealed in the eighth annual report, “The Buying Power of Black America.” Last year black households spent more than $5 billion dollars on computers, audio and video equipment, an increase of 32 percent in a single year.

“This is the largest increase of any of the 25 categories that we measured,” said Ken Smikle, president of Target Market News and publisher of the report. “Historically, the more African-Americans make in income, the more they spend on products that provide leisure and information. This trend is truer than ever.”  In 2000, black earned income grew by 10.8 percent to $543 billion.

The most significant growth in the consumer electronics category was in purchases of satellite dishes. In 2000, African-American households spent $44 million, an increase of 731 percent over the previous year on hooking up their televisions for satellite service.  Perhaps not surprisingly, dollars for large-sized TV’s showed an increase in black homes of 91 percent to $361 million.  Like audio and video hardware purchases, software purchases by African-American consumers showed a comparable increase of 29 percent to $1.2 billion. 

Computers and related equipment accounted for $1.6 billion in expenditures by African-American consumers in 2000, an increase of 28 percent over 1999.  Dollars spent for Internet access from home grew 69 percent to $307 million.

While the average spent by black households for consumer electronics grew 32 percent between 1999 and 2000, the average spent by white households showed an increase of 15 percent for the same period.

“There is a pattern among black households – in good economic times and bad – to acquire products that will enable them to access more entertainment and information options at home, said Smikle.  “This continues to be true, even though they also spent $2.3 billion on leisure activities outside of the home such as attending movies and concerts.  This makes African-Americans an excellent marketing opportunity for the latest home entertainment technology.”


August 1, 2000                                                                

African-Americans' Income Growth
Continues to Outpace Whites'
Thanks to robust economy, blacks change spending habits

Chicago -- A newly published study on African-American consumers indicates that the nation's growing economy is fostering changes in long-established habits in how black households spend their dollars.

Economic conditions have never been better for African-Americans, who now represent the eleventh largest economy in the world, and prosperity is changing the types of purchases they make. According to the seventh annual edition of "The Buying Power of Black America," earnings for all black households in the U.S. increased 11% between 1998 and 1999, from $441billion to $490 billion. 

Earnings for white households during this same period increased slightly more than 9%. This double-digit earnings growth fueled a change in spending patterns. For example, last year marked the third consecutive year of increased spending for new cars and trucks by black households. Previous purchase patterns showed growth only in alternating years.

Other lifestyle changes indicated in black household expenditures include sharp increases in out-of-home dinner meals (81%), athletic gear and exercise equipment (160%), and gifts of jewelry (546%). 

Expenditure figures suggest that time on the Internet may also be cutting into the hours spent with other media. Cable TV subscriptions for all black households dropped from $3.4 billion in 1998 to $2.7 billion in 1999. 

The most dramatic change that occurred among black consumers was found in the earnings of black women. According to "The Buying Power of Black America," African-American women accounted for 48% of the dollars earned by black households in 1999, versus 42% in 1998. Of the $490 billion earned by all African-Americans last year, black women had $235.2 billion in earnings. 

"This increase in earnings has given black women new choices and more clout as consumers." said Ken Smikle, president of Target Market News which published the report. "They have always been the ones in the household that sacrificed the most in economic hard times. Now, thanks to new opportunities and a strong economy, they are focusing more on their own needs."


Oct. 26, 1999

BLACKS OUTPACE WHITES IN DOLLARS 
SPENT ON COMPUTER-BASED PRODUCTS
Total expenditures double to top billion-dollar mark


Chicago -- Thanks to a strong economy, African-American households enjoyed a bigger increase in income last year than white or Hispanic households. According to the newest edition of the annual report, "The Buying Power of Black America," total earned income for African-Americans grew to $441 billion in 1998, a 12 percent increase over the previous year.

These strong earnings provided black consumers with the confidence to spend aggressively in a number of product categories. However, the most dramatic increases were in computer-based products, with expenditures last year totaling $1.3 billion. That's an average increase of 143 percent over the amount spent in 1997. During this same period, white households increased their spending on computer-related items by an average of only 10 percent.

"There is no so-called digital divide when we talk about the rate at which African-Americans are purchasing computers and logging onto the Internet," said Ken Smikle, editor of the report and president of the Chicago-based research firm, Target Market News, which published it. "Not only do black consumers recognize the value of this technology, but they are acquiring it at an unprecedented rate."

The sixth annual edition of "The Buying Power of Black America" shows that African-American households continued to outspend their white counterparts in most communication and information technology areas.

The amount spent by African-Americans for Internet services grew 140 percent, while whites boosted their spending by 57 percent.

The dollars African-Americans spent for computer hardware grew 196 percent, but increased on 6 percent for white households.

Black households increased their spending on cable TV services by 14 percent, while whites increased by nine percent.

Among the other product categories in which African-Americans significantly increases their spending were books, cars, consumer electronics, home furnishings and charitable contributions.

The number of black women wage earners grew by 67 percent and continued to grow faster than number of black men in the work force. 



Feb. 17, 1999

BLACK HOUSEHOLDS CONTINUE TO OUTSPEND 
WHITE HOUSEHOLDS ON KEY CONSUMER PRODUCTS
Black women benefit most from a good economy 

Chicago -- Black households continue to out pace the spending of white households for such items as apparel, consumer electronics, personal care services and gifts, according to the latest edition of the annual report, "The Buying Power of Black America."

The report, issued by the Chicago-based research firm, Target Market News, Inc., indicates that African-American consumers are still feeling confident about the economy and their personal financial status. "Because of the nation's strong economy, African-American consumers are continuing to purchase at a brisk rate. The emphasis is shifting more towards personal items and away from big ticket products for the home," said Ken Smikle, president of Target Market News and editor of the report.

Total earned income for African-Americans continues to grow at a rate faster than income for whites, said Smikle. "Black women are the big winners in this economy. Their presence in the work force grew two percent between 1996 and 1997, while the number of black men wage earners grew less than one percent." In 1997 total black earned income (money from salaries and wages) grew to $392 billion from 367 billion in 1996. 

Black women made their presence felt in the marketplace by significantly
increasing their spending on personalized items. Dollars spent for personal care services (hair salons, messages, manicures, etc.) increased more than $2.2 billion dollars over 1996 to a total of $3.3 billion in 1997. Their cosmetic purchases grew by $400 million and expenditures for hair care products increased $113 million.

Among the purchases that grew the most dramatically was on-line access to the Internet. Black household expenditures for these services increased to $60 million in 1997 from $10 million in 1996. "African-Americans have always embraced new communications technology with heavy purchases." said Smikle. "Acquiring access to the internet is proving to be no exception."

African-Americans had more than twice the per capita spending of white
households on satellite dishes. The total in dollars spent by blacks in 1997 to be hooked up was $187 million, more than 15 percent of the total spent on televisions and related equipment for the home.


Feb. 12, 1997

STUDY FINDS INVESTMENTS BY BLACKS
GROWING AT A GREATER RATE THAN WHITES
Market Value of Stocks and Bonds Increased
By 125% In 1996 To $7.2 Billion

Chicago -- African-American households are investing at a greater rate in stocks and bonds than white households, according to a new study by Target Market News. The market value of blacks' investments in the stock and bond markets increased by 125% between 1995 and 1996.

Based on an analysis of income and expenditure data from the U.S. government and other sources, Target Market News has found that in 1996 African-American households had an estimated $7.2 billion invested on stocks and bonds, compared to $3.2 billion in 1995.

"These findings are significant because they dispel the notion that blacks are not interested in investing their money," said Ken Smikle, president of Target Market News. The ten-year-old, Chicago-based research firm monitors the habits of black consumers.

The study also found that between 1995 and 1996 the dollars invested by white households in stocks dropped by eight percent, and the dollars invested in bonds grew by only one-tenth of one percent.

"Though the average black household has less than $500 invested, and the average white household has thousands of dollars placed in stocks and bonds, African-Americans represent the growth opportunity for the future," said Smikle. "Black household income is growing at a faster rate than income for whites and, therefore, the black population is where the financial services industry needs to focus its attention."

Target Market News publishes an annual study, "The Buying Power of Black America," which reported last year that African-Americans had total earned income of $367 billion in 1996, up from $324 billion in 1995. 

"We believe that this data will cause financial services companies to pay greater attention to the African-American market," said Smikle. "Just as consumer products companies discovered how important this segment of the population is to their bottom line, brokerage firms, banks, investment advisers and others are beginning to realize the same thing."

September 8, 1997

NEW REPORT SHOWS BLACKS OUT-SPENDING 
WHITES FOR NEW CARS, CLOTHING, FURNISHINGS
AND ON-LINE COMPUTER SERVICES

Chicago -- Black households are spending more than their white counterparts for news cars, clothing, home furnishings and other items, according to the latest edition of the annual report, "The Buying Power of Black America."

The report from the Chicago-based research firm, Target Market News, reveals shifts in the way African-American consumers made purchases in 1996. "Black consumers continue to demonstrate confidence in the economy through their willingness to spend money on big ticket items," said Ken Smikle, president of Target Market News and editor of the report.

African-American households have traditionally spent more than whites on such items as apparel, foods for cooking and telephone service. The latest item to be added to this list is access to the Internet. Expenditures for on-line services by black homes included for the first time in this year's report þ were $10 million. 

Compared with white households, blacks spent two-and-a-half times more for on-line services. Based on all expenditures for on-line services, African-Americans provided 25% of the subscription revenues to America Online, CompuServe, Prodigy and others.

According to the report, the earnings of all African-Americans increased slightly more than 13% in 1996 to $367 billion from $324 billion in 1995. 

"In 1994 and 1995, the emphasis in spending was on meeting the needs of children and youngsters in the household," said Smikle. "Now these wage-earners are buying for themselves and making purchases they postponed when they were putting their children first." Among the examples of this new spending, Smikle cited the increase in home furnishings, appliances and new cars purchases.



August 16, 1996

NEW REPORT SHOWS GROWTH IN SPENDING 
BY BLACKS EXCEEDS WHITES IN MANY CATEGORIES

Chicago -- The 1996 report on The Buying Power of Black America shows that African Americans are significantly increasing their purchases in categories such as cars, home electronics, personal care products and beverages. Black households also continue to out-spend their white counterparts on average for food, apparel and gifts.

The recently released report is the third edition published by Target Market News Inc, the most widely-quoted authority on African American consumers. The Chicago-based marketing research firm specializes in gathering data on marketing and media targeted toward African Americans, and also publishes the monthly newsletter, Target Market News, which tracks trends in black consumer marketing.

"As the economy continues to grow, African Americans are becoming more confident and aggressive in their purchases," said Ken Smikle, publisher of Target Market News and editor of the report. "The expenditures per household, in many cases, are greater or distinctly different from white consumers." Target Market News estimates that blacks had $324 billion in spending power in 1995.

Car purchases are an example of the differences between black and white spending patterns. The amount spent on average by white households on cars and trucks increased about 9% between 1994 and 1995. The amount spent by blacks for the same period increased by 156%.

The dollars spent by white households on used cars increased by 13% from 1994 to 1995. The amount black households spent increased by 76%. Black households now spend on average 17% more on used cars than white households.


July 30, 1993

A NEW REPORT SHOWS WHERE BLACK CONSUMERS 
SPEND $282 BILLION ANNUALLY

Chicago -- A newly published report, "The Buying Power of Black America," offers a detailed look at the products and services on which African Americans spend $282 billion each year.

The report is published by Target Market News Group Inc., a marketing
information firm that specializes in gathering data on the Black consumer market. It also issues a monthly newsletter, Target Market News, which tracks trends in Black consumer marketing and media.

"This is the first time that a comprehensive report has examined how African Americans spend their dollars," said Ken Smikle, publisher of Target Market News and editor of the report. "The primary significance of the report is that it shows many of the assumptions companies make about how these consumers spend their money are simply wrong. The purchases made by Black consumers need to be given greater consideration for the impact they have on all businesses."

The report, which will be published annually, includes a breakdown of the total dollars spent by all African Americans households on 450 products and services in 27 categories. There are additional sections listing expenditures by Black consumers that exceed those made by the general population, information on the nation's largest Black cities, and the total income earned by the Black population.

The report is based on responses in interviews and diaries from more than 2,800 Black households--one of the largest sample groups surveyed of any Black consumer study. Among some of the unexpected findings revealed in the report were these:

African Americans spend as much on eating dinner out of the home ($3.4 billion) as they do for lunch out of the home ($3.5 billion)

Black men collectively spend more for personal care services each year ($1.02 billion) than do Black women ($891 million)

Black households were three times more likely than the general population to purchase miscellaneous household appliances.

"There has been a void in the area of accurate research on African American consumers," said Smikle, "and most of the recent studies have focused on buying preferences, attitudes and lifestyles. This report is the missing link in those studies. It focuses on the actual dollars spent, and that's the bottom line for most businesses."

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