Setting Traps to Lure the Black Dollar
On February 28, 2018, Ellen McGirt’s article in Fortune Magazine headlined: “raceAhead: A New Nielsen Report Puts Black Buying Power at $1.2 Trillion.” This announcement seems to have awakened the realization that America blacks, despite their lower economic status, have money to spend. This is no foolish spending as McGirt emphasizes with the note from the Nielsen report that blacks “expect the brands they buy to support social causes. (Nielsen quoted in McGirt)”
In later news it has been noted that black female entrepreneurs are the fastest growing business population in America. According to Kerry Hannon in “Black Women Entrepreneurs: The Good And Not-So-Good News,” published in Forbes that “the number of firms owned by black women grew by a stunning 164%, between 2007 and 2019. (The 2018 State of Women-Owned Business Report quoted in Hannon)”
Earlier in 2018, the Marvel Comics vehicle Black Panther proved just how willing black folks are to spend their dollars when the market gives them something they want. The movie grossed over 1 billion in twenty-six days with a record turnout of 37% African Americans and 67% women. Black Panther broke records in revenue, African-American, and female attendance.
So, what does 1.2 trillion African American dollars,167% growth in black female entrepreneurial businesses, and the Black Panther movie have to do with American business? These are only three of the flags that tell big business that black folks have money that they are willing to spend on products directed toward the black community. Add the Nielsen article, “Black Impact: Consumer Categories Where African Americans Move Markets” findings to these and businesses know exactly what products to target to lure black dollars into their pockets.
More recently, as I was checking out the notifications on my Facebook account one group posted a credit card offered by one bank that exhibited a picture of a black woman that it was making available to its customers. There were the usual responses of the majority for, myself and another person questioning the purpose, and of course, the forthcoming attack because the “haters”, which included me, were not willing to support black business. It’s not that I don’t support black business, but that I question everything.
I replied to the accusation of “hater” with the following:
Black or white, all banks are in the business of making money. They, like white businesses, are well aware of the money blacks interject into the economy to the tune of 1.2 Trillion annually. They’re even more aware of the surge of black female entrepreneurs who are building viable businesses in areas where blacks have been excluded and that the whites are courting them (https://www.usatoday.com/…/black-women…/2575786002/).
Now while the professional, business savvy black woman might not be swayed by a picture of a black woman on a credit card, the same group that dressed up in African garb for the fictitious kingdom of Wakanda may very well be willing to invest in such ploys. As such, I am addressing these marketing strategies that are primarily for the purpose of luring the black spending power into their nets. IF, they are offering better rates on those credit cards, offering better services, and paying higher interest on their bank accounts than white-owned banks, then perhaps the change in banking establishments might be worth the trip. However, if their products are no different from white banks, except for a black woman on a credit card, then why change banks only for the pretty picture? (www.traceylinmiller.com)
“Let the buyer beware” is a point that was adhered to in the last century – even though borrowers then were as ignorant in many ways as borrowers now. Credit cards are borrowing from the bank. Debit cards are borrowing against yourself. The only difference is that debit cards hold your money as collateral and fees that are collected when you spend more than the money that you have in the bank. Credit cards have interest rates which are applied exponential depending upon the credit rating of the borrower.
The buyer need be aware that they’re not going to a bank only for the pretty picture on the card, but also for other products that they may need from their bank in the future. These products might include car loans, home loans, personal loans or student loans in the future. Many buyers might not look beyond the pretty picture or the fact that the bank is black owned. Some have forgotten that it was unscrupulous lending that created the subprime mortgage recession around 2007 that turned the banking industry and economies worldwide upend. (See the following links for more information on this phenomenon: https://www.thebalance.com/what-caused-the-subprime-mortgage-crisis-3305696, https://fortune.com/2015/06/17/subprime-mortgage-recession/)
The important thing to remember is that just like the banks are in the business of making money, the consumer is in the business of building equity and a solid economic foundation. In order for the consumer to get the most for investing their money in any bank shop around and question everything.
Works Cited
“Black Impact: Consumer Categories Where African Americans Move Markets.” What People Watch, Listen To and Buy – Nielsen, The Nielsen Company (US), LLC., 15 Feb. 2018, www.nielsen.com/us/en/insights/article/2018/black-impact-consumer-categories-where-african-americans-move-markets/.
Hannon, Kerry. “Black Women Entrepreneurs: The Good And Not-So-Good News.” Forbes, Forbes Media, LLC, 9 Sept. 2018, www.forbes.com/sites/nextavenue/2018/09/09/black-women-entrepreneurs-the-good-and-not-so-good-news/#3665ea7e6ffe.
McGirt, Ellen. “RaceAhead: A New Nielsen Report Puts Black Buying Power at $1.2 Trillion.” Fortune, Fortune Media IP Limited, 28 Feb. 2018, fortune.com/2018/02/28/raceahead-nielsen-report-black-buying-power/.