Up to £4.5bn Multi-Ethnic consumers’ annual disposable income is being overlooked by big brands and British businesses, according to the latest edition of the Black Pound Report 2022.
High street retailers are also missing out an additional £2.7bn spending on hair and beauty; with one in five Multi-Ethnic consumers saying they cannot readily buy what they need. “When there is an audience spending £2.7bn every year on health and beauty products, demonstrating that they want to spend their money with businesses on their high street, why on earth would brands not want a slice of that pie?,” queried Lydia Amoah, Founder and CEO of BACKLIGHT; the company which created and published the Black Pound Report.
Amoah recalls going into a department store at the age of 21, and struggled to find a shade for her skin tone: “The assistant who I turned to for help, said ‘they only stocked colours for ‘normal skin’. In that moment, I decided that my life’s work would be dedicated to ensuring that no one would ever have that same experience.”
UNTAPPED ECONOMIC POTENTIAL
That experience led to the creation of the Black Pound Report; to help change the way businesses treat their consumers so that everyone is treated with respect and served equally. “I would like the Black Pound Report to change how brands treat their consumers; and treat everyone with respect and serve them equally,” explained Amoah. “For the first time, this report shows the untapped economic power of the Multi-Ethnic consumer and allows businesses to understand an audience that has rarely been researched in depth. From media consumption through to health and beauty product choices, Multi-Ethnic consumers have distinct motivators. Businesses must understand and reflect these to sell their products and services and be truly inclusive.”
Multi-Ethnic consumers are spending £230m every month on health and beauty; and yet nearly four in 10 Black female shoppers say it’s not easy to find cosmetics and skin care. Multi-Ethnic consumers spend 25% more on health and beauty products than any other consumer. That’s partly due to a quarter (22%) of all Multi-Ethnic consumers needing to go to specialist shops to get all their health and beauty products; increasing to 30% for Black women.
INTERSECTIONAL SHOPPING EXPERIENCES
However, a worrying finding in the report is the frequency that Multi-Ethnic consumers employ ‘Psychological Passing’, particularly in retail environments. ‘Psychological Passing’ is felt by all ethnicities; but at higher rates amongst Multi-Ethnic consumers. This refers to consumers feeling they need to adjust and adapt their appearance or behaviour to ‘fit in’; to mitigate against profiling by security staff and shop workers. Around 13% of Multi-Ethnic respondents admit they have consciously changed the way they dress; and 12% changed the way they spoke to be socially accepted. Multi-Ethnic consumers who are LGBTQ+ or have a disability are 10% more likely to have adjusted their behaviour when in a store; highlighting the impact of intersectionality shopping experiences.
HOW BRANDS CAN BE MORE INCLUSIVE
The Black Pound Report also provides great insights into how brands can become more inclusive and tap into the growing buying power of Multi-Ethnic consumers; by being more inclusive in their product creation and advertising. Not surprisingly, around 93% of Multi-Ethnic consumers think brands have a responsibility to approach diversity and inclusion; compared to 74% of those from a White background. Additionally, diversity in advertising is three times more important to Multi-Ethnic consumers (24%) than White consumers (8%).
Furthermore, Multi-Ethnic consumers are around twice as likely as White consumers to favour and trust brands that are representative of different communities; have considered ethnic diversity in the creation of their products and services; and have diverse staff in their stores and across the business as a whole. If a company or brand impressed them in some way, eight in ten (78%) of Multi-Ethnic consumers would make a point of telling their friends about it; compared to 67% of White consumers. Additionally, 59% of Black, Asian and Multi-Ethnic people say they are more likely to purchase products from a brand with an inclusive product range.
PUSH FOR EQUALITY & CHANGE
British Vogue’s Editor-in-chief and European Editorial director, Edward Enninful OBE, congratulated Amoah and the team behind the Black Pound Report: “There has been so much positive movement for Black and Multi-Ethnic consumers in the fashion and beauty sector in recent years; and it is brilliant to see the continued push for change happening in our industry.”
“The Black Pound Report is helping businesses to understand the value of inclusion in the products they create, stock and market”, highlighted Amoah. The comprehensive research into the Multi-Ethnic consumer reveals the economic power of the Multi-Ethnic individual; explores the challenges they face engaging with brands and businesses; and highlights the opportunity for brands and businesses to reach this growing audience. Click here to access the full report.
Inclusive advertising campaigns with messages tied to diversity and inclusion (D&I) lead to increased sales and business success, according to recent research. Moreover, 2/3 of consumers prefer to buy from brands with inclusive advertising. Click here to read more.
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