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NEW YORK -- Driven by advances in education and employment, the African-American market now commands a buying power of $762 billion, an economic pocketbook that is expected to reach $981 billion by 2010, according to a new report from market research firm Packaged Facts.
"Having roughly the same purchasing power as Hispanics, African-Americans tend to be left behind when it comes to marketing and advertising because Hispanics are expected to have more rapid population growth," said Don Montuori, the publisher of Packaged Facts. "Marketers would be wise, however, to tap into the African American segments that outpace their Hispanic counterparts, such as those with incomes greater than $50,000; owner-occupied households; married-couple families; and African American women--all sectors which offer huge potential in the consumer goods markets."
According to the report, "The U.S. African-American Market," which for the first time examined the black population from a regional perspective, African-Americans in the West and Northeast have higher average incomes than those in the Midwest and the South, and consequently account for a disproportionate share of the aggregate income of African Americans.
Blacks living in the Northeast are much more likely to want to get to the very top in their career--viewing their work as a career, not just a job, said the report. For this reason, African-Americans in the Northeast are far more likely than African-Americans as a whole to feel secure financially, and happy with their standard of living.
However, while the market potential is steadily increasing, industry-wide lack of targeted marketing and advertising remain obstacles to growth in several sectors that are largely untapped.
Now in its 6th edition, the study provides a profile of consumer expenditure patterns, shopping behavior, and attitudes towards food, health, entertainment, leisure, and technology. Strategies and opportunities for marketing to the African-American community are also covered.