According to the newest edition of “The Buying Power of Black America” report, African-American households are tightening their belts when it comes to dining out, expanding their wardrobes, and leisure activities out of the home. At the same time, they are increasing their spending on home repairs and remodeling, audio and visual electronics, and online purchases of books. The report also estimates that black households collectively had earned income of $679 billion in 2004.

According to the report, black households had $679 billion in earned income in 2004, an increase of 3.5% over the $656 earned in 2003.

Among the products and services that showed the greatest one-year increase were sound systems (+127%), computer online services (+38%) and sports and recreational equipment (+19%), dishwashers (+ 42%), washing machines (+45%), and contributions to churches (+19%).

”This change in expenditures by black consumers means that obtaining and holding on to their loyal will be more competitive for marketers,” said Smikle. “This represents a time of opportunity for those companies that can demonstrate they are serious about providing value for these customers.”

The U.S. has been making strides in this area for decades. Marketers who are familiar with the subtle (and not so subtle) nuances of multicultural marketing and the most efficient and current methodologies are an appreciating asset. In fact, as the marketplace continues to reflect the changing demographic, brands will begin to rely more heavily on these assets to develop relevant and effective marketing strategies. Moreover, brands that have implemented a robust multicultural marketing program will further distance themselves from their competitors who do not.

To develop a successful multicultural marketing strategy, the brand must have a clear understanding of the impact of the following areas of influence:

- Overall minority population as a relative consumer subset of the entire population
- Economic indices such as buying power, business ownership, brand influence, and buying habits
- Urban migration and the impact of immigration

Once a brand has gained an understanding of the target consumer’s current and future relationship to the marketplace, it can begin to develop a strategy that will assist in communicating effectively with their customer. This basic model applies to all brands in all geographic locations—especially those that are experiencing a shift in consumer demographics.

In the UK, for example, research released by MCC (our international partner agency), shows that 60 percent of Asian and Black consumers responded that if the brands increased marketing efforts toward them they would be more inclined to buy their product. Similarly in the U.S., a study conducted by Bendixen & Associates revealed that African American respondents said they "are more likely to support a brand that is marketing to them directly and giving back to their community." Consumers all over the world are embracing their heritage and demanding that brands respect their individuality.

Multicultural marketing is a reflection of the importance of that demand. It empowers the brand through research and understanding to effectively communicate with key consumers. As the multicultural reality takes form in all parts of the globe, the maturation of the U.S. market (super-growth of the ethnic consumers) is perfect for modeling, best practice dissemination and benchmarking.

We are proud to be on the cutting edge of innovation and customized marketing. Our experience, marketplace understanding, research techniques and execution abilities uniquely position us as key assets to any organization searching for new ways to communicate with multicultural consumers.

The Axis Agency — a new agency for a new world!