Affluent Blacks and Latinos are Prime for Relevant Brand Marketing

Wednesday, May 21st, 2014
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Luxury Brand Marketing to Affluent Blacks and Latinos Hispanics

Luxury Brand Marketing to Affluent Blacks and Latinos Must Be Relevant

As the percentage of the Hispanic and African American populations continues to outpace Whites in America, their ranks of six-figure earners are rising with it. Yet luxury brands are slow to recognize their growing numbers and failing to seize the opportunity to earn their business through targeted, relevant marketing.

The nation’s largest minority is rapidly gaining affluence:

  • Affluent Latinos grew 200% over the past 10 years as 12% of total US Hispanics now have household incomes of $100K+.
  • Latino purchasing power today stands at $1 trillion and projected to reach $1.5 trillion by 2015 — an increase of more than 600% within the span of a quarter century, the highest among all minority groups.
  • Affluent Hispanics reside in high numbers well beyond the metro areas of LA, NYC and Miami; they’ve established thriving communities throughout the US. In fact, Washington D.C. is home to the most affluent Latinos in the country.
  • Segments within this audience include small business owners, young professionals, second generation wealthy and immigrant entrepreneurs.

 

African Americans constitute a major growth market:

  • Black households control $131 billion in discretionary income, more than any other minority group.
  • 17% of Black households in the U.S. are considered “affluent” and account for 45% of total Black purchasing power.
  • Blacks in general are above average givers, donating $1,363 per year vs. $1,325 per year for whites.
  • Affluent African Americans are taking multiple vacations each year .
  • As their educational attainment has soared in recent years, Blacks are positioned to benefit from the economic recovery.

 

While wealthy Blacks and Latinos may seemingly belong to the affluent mainstream, luxury marketers must:

  1. Develop strategies for directly reaching these segments of affluence and…
  2. Engage them in a culturally relevant manner.

 

By our count, there are 578,000 African Americans and 1,083,000 Hispanic Americans of very high income and net worth that luxury brands should be targeting with personalized marketing. When you acknowledge your ethnic audience with messaging and imaging that they can relate to, you can establish an emotional connection that is so essential for achieving high-end brand loyalty.

 

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