African American Shopper Analysis

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1 African American Shopper Analysis 2013 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public.

2 African American Shopper Analysis Table of Contents Shopping attitudes & opinions Deal Seeking Purchase influence Social & mobile engagement In-store influence While African Americans represent just 12% of the U.S. adult population, their households account for $156.9 billion in discretionary spending, according to our latest estimates, which is 8.7 percent of the total annual discretionary spend nationwide. Nationwide, 1.4 percent of all households are African American households with annual incomes of $100,000 or more. The top Designated Market Areas in which to find wealthy African American households represent the highest share of all households in the DMA are Washington D.C., New York, NY and Atlanta, GA. For example, households in the Washington DC DMA are 4.13 times more likely than average to be occupied by wealthy African Americans African Americans are more optimistic when it comes to their personal financial outlook than the general population. They are 37 percent more likely than average to say that that in the next 12 months they will be better off financially. Further, they are 17 percent more likely to be planning to purchase medium ticket items and 26 percent more likely to be planning to buy big ticket items. As African Americans represent increasingly valuable purchasing power, it is important to understand how to advertise and engage them with relevant messages. This report provides vivid insights into the attitudes, behaviors and motivators of African Americans. They are trend setters and image conscious and brands and luxury items are important to them. They are an engaged group with media and are highly receptive to advertising in various channels ranging from social media to in-store marketing. 2

3 African Americans are trend setters Shopping attitudes and opinions All adults African Americans I often go out of my way to find new stores to shop at 177 I am usually the first among my friends to shop at a new store I am willing to travel up to an hour or more to shop at my favorite stores I spend a lot of money on toiletries and cosmetics for personal use I try to keep abreast of changes in styles & fashions In general, advertising presents a true picture of the products of wellknown companies I buy products from companies which sell their products directly to consumers through distributors or reps who work from their homes When I shop for health and beauty care products, I look for organic/ natural items Index 3

4 Stylish threads Apparel shopping attitudes THE CROSS-CHANNEL MARKETING BUYER S GUIDE Clothing and style is important to African Americans and they like to lead the trends by being the first to try new fashions. They express themselves through their style and make unique fashion statements. In fact, African Americans are 78% more likely than average to say they no longer wear clothes they wore a year ago because they have gone out of style. Fashion magazines play an important role in influencing their decisions on what to buy. Brands that communicate messages that will resonate with these values will be successful in engaging the African American audience. 2X MORE LIKELY I like to make a fashion statement 4

5 Luxury lovers Auto shopping attitudes African Americans feel strongly about how they re perceived by others especially when it comes to their automobile. They are more likely than the average American to feel that their car should express their personality and prefer to drive a luxury vehicle. They are 39% more likely to say they like to get a new car every two or three years further proving their desire to stay stylish and trendy. I 44% more likely to say owning a foreign car is much more prestigious than owning an American car 5

6 Deal-Seeking THE CROSS-CHANNEL MARKETING BUYER S GUIDE African Americans are more likely to be deal seekers looking for deals online and offline. In a recent report on deal seekers, we segmented shoppers into six distinct segments based on their shopping behaviors and motivations for finding a deal. We looked at the distribution of African Americans among these segments and found that African Americans are more likely to be deal seekers than average and especially more likely to fall into the Offline Deal Seekers and Deal Thrillers segments. Deal seeking Deal rejecting 18% 13% 14% 12% 34% 8% All adults 21% 16% 18% 7% 32% 6% African Americans Deal-Seeker Influentials Always seeking the best deal online, offline and mobile Offline Deal Seekers Avid deal seekers through more traditional media Deal Thrillers Always seeking the best deal, but prefer offers from their favorite stores Deal Takers While not actively seeking a deal, they will take one when offered and even shop a new store to get one Deal Indifferents Lacking in shopping enthusiasm in general, Deal Indifferents are unlikely to change their behavior because of a deal Deal Rejectors The most dealaverse group, they want convenience overall 6

7 Highly receptive to all forms of advertising Marketers can more effectively plan their strategies by understanding African Americans purchase influencers and their attitudes towards advertising. Interestingly, they are less likely than average to be influenced by their friends or others and are more likely than average to be influenced by most types of advertising. They tend to have positive views of advertising from various channels and use it as a way to find out about new products. This once again confirms that African Americans like to be the first among their friends to try new things and that they learn about products from advertising and remember them when shopping. Things African Americans may say (or not say): purchase influencers I am likely to purchase products I see advertised on my cell phone (+39%) Advertising helps me choose products to buy for my children (+33%) My children have a significant impact on the brands I choose (+25%) I often notice the ads in the lobbies of movie theaters (+31%) I ask people for advice before buying new things (-19%) 7

8 Get social to reach African Americans When examining the best ways to reach African Americans, we found that they are very receptive to advertising through social channels. In general, African Americans are more likely to be active on social networks with many regularly inviting others to connect with them. They are also 14% more likely than average to use social media to tell people about companies and products that they like. As expected, African Americans routinely follow their favorite companies and brands on social networks, so it is important for marketers to engage them here with posts that resonate and that they will want to share with their personal networks. 28% more likely to purchase products advertised on a social media site 8

9 Engage African Americans on-the-go THE CROSS-CHANNEL MARKETING BUYER S GUIDE While African Americans are on par with the US average for smartphone ownership, they are less likely to use shopping apps and shopping sites on their phone. However, mobile phones are very important to African Americans and are viewed as a source of self expression. Coupled with the fact that African Americans are 86% more likely to be receptive to mobile advertising, mobile is a critical channel for reaching this group. Marketers should consider offering value to African Americans who are 41% more likely as a group to respond to an advertisement if something of value is offered in exchange. Consider mobile payments, which they are 37% more likely to be interested in than the average adult. 86% more likely to be interested in receiving ads on cell phone 9

10 Grab attention with in-store promotions The top indexing in-store marketing tactics among African Americans and the percent of African American shoppers who always refer to them are: While we know African Americans are deal seekers they are overall less likely than average to use coupons except to trying new products. In fact, they are 25 percent more likely to say that they use coupons to try new products (36 percent of African Americans cite this reason versus 29 percent of all coupon users). When considering promotions for products or services, marketers should plan for in-store as African Americans are big browsers and more likely than the average shopper to say that they refer to things like promotional displays, lighted graphics, video displays, in-store announcements or radio as well as demos and samples. They are also more likely to refer to advertising on the floor and on shopping carts when finding and choosing the items they buy. Meantime, they re less likely to refer to department signs and aisle markers. Advertising on shopping cart 183/2.5% Advertising on the floor 152/11.5% Radio/Public address system 150/5.2% Promotional displays without products 148/5.1% Video monitor displays 148/3.8% Lighted merchandise graphics 147/4.3% Announcements in store 133/5.5% In-store demonstrations 127/7.7% Computerized information/coupon center 115/5% In-store samples 114/10.1% 10

11 Source: The data found in this report is based on the Spring 2013 Simmons Connect study, a comprehensive survey of 24,374 U.S. adults, including 2,101 African Americans. Simmons Connect links in-depth consumer lifestyles, attitudes, brand preferences and more to their complete cross-channel media use covering 11 platforms including smartphones, digital tablets and home computers. About Experian Marketing Services Experian Marketing Services is a global provider of integrated consumer insights and targeting, data quality and cross-channel marketing. We help organizations from around the world intelligently interact with today s dynamic, empowered and hyperconnected customers. By coordinating seamless interactions across all marketing channels, marketers are able to plan and execute superior brand experiences that deepen customer loyalty, strengthen brand advocacy and maximize profits. For more information, please visit 11

12 Experian Marketing Services 300 Park Avenue South, 9 th Floor New York, NY Experian Information Solutions, Inc. All rights reserved Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

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