In recent months, we have experienced a shift in the markets. We witnessed protestors in different states in the United States take to the streets to dismantle white supremacy and fight for justice. A considerable movement on social media pushed to put money directly in the hands of Black business owners. Black-owned businesses in particular whose owners are denied Cares Act Government Aid was on the front line to ensure they capture the market space. Many people think it is essential to support Black businesses because, until you fully engage the black community, you are living in a capitalist society. This type of mentality and stereotype was created by institutionalized racism and the wealth gap created between black and white people. Blacks earn about 20%_25% lower than their white counterparts. According to the U.S Federal Reserve data, 53% of Black-owned businesses were denied loans from banks in 2014 as compared to 20% of the white-owned market. Other influencing factors include less generational wealth, discriminatory lower homeownership, and higher student debt.
Most African Americans believe it is essential to build economic power because it will be the foundation of their political power. They say for them to have safe neighborhoods and people t to have living-wage jobs, everybody has to support black-owned businesses. Organizations such as MKE Black in Milwaukee promote and connect people with black-owned businesses, services, and resources.
Rich Bank, the co-founder of MKE-Black, says shopping at a black-owned enterprise stimulates the entire neighborhood economy. Daddy’s Soul Food and Grill offers police officers 50% off their meals to encourage them to subsequently engage in dialogue with customers in a neutral environment. Open and difficult conversations are necessary, especially during this “Black Lives Matter” movement. Shopping at black-owned businesses serves other purposes as well. It allows those who are not able to join in the protests but want to contribute to the ‘Black Lives Matter’ a means to do so.
African Americans exhibit a considerable difference in shopping behavior and purchasing when compare to the total U.S population. Research shows how culture, socio-economics, and business influence how, why, and what motivates African Americans spending. Culture is always at the core of it all when it comes to the choice of item and where to purchase it. Love for technology makes African Americans perceptive and conscious consumers. Most importantly, attention is paid to how companies are speaking/relating to African Americans, and issues surrounding them. Thus making them be termed to as a woke generation. African Americans are welcoming recipients of advertising across all channels; they are more likely to agree that advertising provides meaningful information on most platforms. Though advertising designed to reach black consumers declined by 5% between 2017-2018, no forms of advertisement ranging from phones, television, and billboards, among others, have had a drop in their total viewership.
African Americans outspend the overall market on personal soap, cosmetics, and bath needs by nearly 19%. African Americans are 20% more likely to than the total population to pay extra for a consistent product. Besides, most African Americans are expected to shop at high-end stores. They also are more likely to buy at a specific enterprise or purchase a particular item endorsed by their favorite celebrity. While online shopping grows, quite a percentage of African Americans continue to head to physical stores for the personal touch and feel the experience. More than half (52%) of African Americans find in-shopping relaxing, compared to 26% of the total population. African Americans are more influenced than the entire community by store staff and other customer relations factors. In recent days, we have seen most African Americans supporting businesses that align with the ‘Black Lives Matter’ spirit. The “for us by us ‘trend also saw most black-owned brands have a profound impact on the market place. In general, African Americans lead in how much they spend and where they shop as well. Thus, they move markets.
With online shopping now accounting for almost 50% of total retail. Sales have proliferated. E-commerce has a significant impact on traditional retailing, and this will continue in the following years. Smartphones have played a massive role in boosting online shopping. Given that over 66% of the world’s population are smartphones only internet users, it means most orders are made on the now so many online markets at the palm of their hands. Giant e-commerce companies like Amazon, E-bay, and Alibaba have reported an averaged 54% improvement in the purchase of items since this novel coronavirus pandemic hit the world. The pandemic necessitated that people stay under lockdown; thus, visiting physical shops was rendered impossible. Online shopping has become people’s favorite since one can order for anything from all over the world and have it delivered at the doorstep. Online shopping has ensured a zero rate of discrimination and all forms of ism.