Edgy Money.
The undervalued misunderstood growth of black consumerism (BME) and it’s vastly growing economy.
The stereotype of rich or wealthy black people is constantly synonymous with the imagery of sports and entertainment, footballers, rappers and grime artists within the UK. Try naming one prominent black businessman who is a billionaire in the UK and the conversation dries up to quiet reflection, upward glances and the soft sound of “hmmm” and gentle finger tapping on the table.
The last ten years have seen a meteoric rise in Millenials and socially mobile black & brown communities getting a solid grasp of their ability to achieve significant finance. Very much independent of family money. Yet it is very much misunderstood by the wider population, as it is still being portrayed by the media that black wealth is either criminal or ill-gotten nefarious means.
The rise of Top Boy style programming although informs societies of the realities of London streets, it also propagates a notion of money through crime rather than academic and industrious means. Why not also do a “The Big Bang Theory” style show with black nerds? — What do you mean it won’t sell?
Socioeconomics among black communities.
Conspicuous consumption is a term introduced by the Norwegian-American economist and sociologist Thorstein Veblen in his book “The Theory of the Leisure Class” published in 1899. The term refers to consumers who buy expensive items to display wealth and income rather than to cover the real needs of the consumer.
A study by Wharton finance professor Nikolai Roussanov also demonstrated this point in his study of “Conspicuous Consumption by Race”.
I’ve known that the black community wears its wealth to glean status among peers within the same economic poorer communities. This was due to the lack of financial inclusion into the monetary system back in the late 1950’s.
*Read my other article on Financial Exclusion
“Blacks do spend more on these things — jewelry, clothing and cars — that have something to do with visibility,” says Wharton finance professor Nikolai Roussanov. “Is it just taste? Or does it have to do with a social status component?”
He then discusses the fact that poorer black and white communities spend and show wealth to distinguish themselves among their community. This is a true point, as the reflective society mirrored that of materialistic ambition being “better” than academic. There where no academic or business leaders to aspire to, growing up. Sports and entertainment dominated childhood ambitions.
Roussanov notes that spending on conspicuous consumption is not entirely counterproductive. In many communities, he says, it may be necessary to present a more affluent image to compete for jobs and to have a social life.
This may explain the chief exception the researchers found in the data: Older people don’t spend more on visible goods, even if their incomes are the same as those of younger people who do. Perhaps it’s the wisdom of age, or the fact that older people grew up in different times. But it’s more likely, says Roussanov, that older people, regardless of their community, don’t need status symbols as much because they’re not out hunting for jobs and mates.
That reinforces the conclusion that spending for status is a deeply entrenched habit among those who do it. “It seems like health and education should receive more funding by individuals, but we can’t simply force that on people and think it will make them better off,” Roussanov says. “How do we promote going to an expensive college rather than buying an expensive watch? There’s no simple fix to it.”
New Trainers, New Girlfriend.
I remember being at an all-boys Roman Catholic school in Harlesden, in the 90’s when the Air Max 90’s came out. Everybody had them, except me. I was still rocking my Reebok Classics. But I slowly realised I was methodically being pushed out of the “cool gang” my lack of trainer game meant I couldn’t participate. My status was diminishing.
Rapidly.
Now, this may not seem much to you, but in Hinsley, you had to have some trend status or you were food for the bullies, academics only got you so far. The rules were brutal and simple.
Trending ahead got you ahead. It got you a seat on the bus and it got you picked for the football squad.
What was worse was having a school crush and your crush was in the cool gang and she was rocking brand new Air Max 90’s. This posed a significant problem.
I fancied her and the only way I was even going to get anywhere near her, I had to be stepping up in some Air 90’s.
Not so easy. I couldn’t go to my parents so I got a job at Marks and Spencers. Thanks, Enni.
Frozen foods department. I loved it. Isolation and the freedom to work at my own paced sold me, plus I was making enough to buy those trainers. The intricacies of school politics were just a brutal as today's government. I had to get into the cabinet. A new trainer policy was the only way.
The end of the month came and I stepped off that number 18 bus like a king.
I got that date.
This was how it was back when I was growing up, but the social conditioning in poorer environments stays the same. Folks have been wearing their wealth since the 50’s due to government exclusion of black people into the financial mechanics (Savings, mortgages, favourable loans terms, access to property etc). Women only got their bank accounts in the 1960’s.
Nothing has changed. We still buy things in order to impress or to maintain some standard of social acceptance, no matter how “individual” and “non-conformist” we all may feel. The YouTube industrial complex (sic) is now governing the ambitions of youth. The optics dictate this is how money is made.
We see evidence of this all-day. Just watch any Grime YouTube video and you will see young men displaying vast displays of wealth. Cars, watches and cash. Grime within the UK as a class of music has propagated the conspicuous consumption theory to a tee. Grime as a genre doesn’t conform to established financial systems, nor does it depict a law-abiding lifestyle, yet the influence and dominance of artists are undeniable.
Urban Purchasing Power
One of the worlds largest and well respected US research company **Nielsen has done a lot of work into cultural spending among the races. Black consumers are speaking directly to brands in unprecedented ways and achieving headline-making results. Throughout 2017, popular brands witnessed the power of Black Twitter and the brand impact of socially conscious Black consumers. Through social media, Black consumers have brokered a seat at the table and are demanding that brands and marketers speak to them in ways that resonate culturally and experientially — if these brands want their business and with African Americans spending $1.2 trillion annually, brands have a lot to lose.
If Black America was a country it would be the 15th largest economy in the world
Sales from Nike Air Jordans are in excess of $3 Billion a year.
**“Our research shows that Black consumer choices have a ‘cool factor’ that has created a halo effect, influencing not just consumers of color but the mainstream as well,” said Cheryl Grace, Senior Vice President of U.S. Strategic Community Alliances and Consumer Engagement, Nielsen. “These figures show that investment by multinational conglomerates in R&D to develop products and marketing that appeal to diverse consumers is, indeed, paying off handsomely.”
Companies should take notice of even the subtle shifts in spending because black consumer brand loyalty is contingent upon a brand’s perception as authentic, culturally relevant, socially conscious and responsible.
In fact, 38% of black consumers between the ages of 18 and 34 and 41% of those aged 35 or older say they expect the brands they buy to support social causes, 4% and 15% more than their total population counterparts, respectively. Moreover, Black consumers’ brand preferences are increasingly becoming mainstream choices, which illustrates that the investment in connecting with Black consumers can often yield sizeable general market returns. For instance, sizable Black spend in health and beauty categories has contributed to a diversification of product offerings that appeal not only to Black consumers but to the general market as well.
Black consumers account for a disproportionate amount of product sales in a number of fast-moving consumer goods categories. Again, with $1.2 trillion in spending power, Black consumers are an important population for smart brands that want to grow market share and brand preference. More importantly, the data suggests that Black consumer spending already significantly affects the bottom line in many categories and industries, and brands can’t afford to lose favour or traction with this segment without potential negative impact.
The Huffington Post said recently,
“Additionally, with the exception of Facebook, Black people are also outpacing the U.S. general population when it comes to social media usage. While 66% of Black people use Facebook as opposed to 70% of the general population, 55% use Instagram compared to 46% of the general population, and 37% use Twitter compared to 33% of the general population. The power of Black people’s presence on social media combined with the fact that consumers are more likely to buy what’s recommended to them can either cause a product to soar, like Popeyes’ chicken sandwich, or tank, like H&M’s “monkey” shirt”.
Not enough Black British Role Models.
We need as a society to be equality and culturally represented in matters of law, finance, media, education and politics.
We’re not.
Which directly influences young adults career decisions. The ratio of Black QC’s to Footballers is obscenely disproportionate. This isn’t news. Shouldn't judges culturally reflect the defendants they administer?
The harsh reality is that many of our so-called role models end up being sporting, acting or musical heroes, as very few children will ever get the chance to emulate them. The support infrastructure to bolster, enhance and nurture these innate qualifying skill sets are not readily available thanks to government cuts.
This comes down to so many social and educational factors, but what we are seeing is a poor show of established black business leaders coming forward and making noise about the talent that is not being seen or developed.
This has to change.
They do exist, don’t get me wrong and kudos to Stormzy for the work he is doing with inner-city kids and educational opportunities. Yes, there is the 2020 edition of the Power List, which is the top UK’s 10 black influential leaders. But I haven’t heard of them, a few but not really. Why are they not in schools giving talks or expos? Do you need to be famous in order for this to happen?
University World News recognises the problem of low numbers of brilliantly talented black people.
“Many in the scientific world are celebrating the fact that two women received this year’s Nobel prizes in physics and chemistry. Donna Strickland and Frances Arnold are only the 20th and 21st female scientists to be recognised by the Nobel Committee. Yet in over 100 years, we have never seen a black scientist become a Nobel laureate.
The main reason why no black scientist has won a Nobel Prize is simply a matter of numbers. Not enough bright young black people are choosing science. Alongside the more limited opportunities for black Africans, black people in Western countries are less likely to study science, less likely to achieve a top degree and less likely to progress to scientific careers.
To become a professor you need support from your institution and to find at least four existing professors at other institutions who will support your application and certify that you are a leader in your field with an international reputation. This requires building large internal and external networks. For many reasons, not enough black academics work in institutions where such reputations and networks are made, significantly reducing the possibility of being promoted to professors.”
