Big British businesses are losing out on billions of pounds by 鈥渙verlooking鈥 black, Asian and multi-ethnic consumers, a landmark report has revealed.
The Black Pound Report 2022, which launched on Monday (January 31), found that disposable income worth up to 拢4.5bn is being 鈥渋gnored鈥.
It said multi-ethnic consumers are spending 拢230m every month on health and beauty, but nearly four in 10 black women shoppers still find it difficult to buy cosmetics and skin care.
According to the research, consumers from multi-ethnic backgrounds spend 25% more on health and beauty products than any other consumer, with 22% needing to go to specialist shops 鈥 rising to 30% for black women - to buy health and beauty items.
The research also found that black, Asian and multi-ethnic consumers were 鈥渕ore motivated鈥 to buy locally, with 64% of participants responding positively compared to 56% of the general population.
The Black Pound Report is the most comprehensive research into the multi-ethnic consumer carried out in the 海角视频.
Lydia Amoah, founder and chief executive of culture change agency BACKLIGHT, which created and published the report, said: 鈥淲hen I was 21, I went into a department store to buy make-up. I struggled to find a shade for my skin tone and asked the assistant for help.
鈥淪he said they only stocked colours for 鈥榥ormal skin鈥. In that moment, I decided that my life鈥檚 work would be dedicated to ensuring that no one would ever have that same experience.
鈥淚 would like the Black Pound Report to change how brands treat their consumers and treat everyone with respect and serve them equally.鈥
Ms Amoah said the report showed the 鈥渦ntapped economic power鈥 of the multi-ethnic consumer, and allowed businesses to understand an audience that has rarely been researched in depth.
鈥淔rom 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,鈥 she added.
'Psychological Passing'
One of the findings in the report was the frequency that multi-ethnic consumers employ 鈥榩sychological passing鈥 - where people feel the need to adjust and adapt their appearance or behaviour to 鈥榝it in鈥, to mitigate against profiling by security staff and shop workers.
The report found this was particularly an issue in retail environments. Some 13% of respondents admitted they had consciously changed the way they dressed, while 12% said they had 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, according to the report.
'Diversity and inclusion rewarded'
The Black Pound Report also explained how brands could appeal to black, Asian and multi-ethnic consumers by being more inclusive, and thinking about diversity in their product creation and advertising.
A total of 93% of multi-ethnic consumers think brands have a responsibility to approach diversity and inclusion, compared to 74% of those from a white background. Diversity in advertising is three times more important to multi-ethnic consumers (24%) than white consumers (8%).
The report also said 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%) multi-ethnic consumers would make a point of telling their friends about it, compared to 67% of white consumers. Some 59% of black, Asian and multi-ethnic people say they are more likely to purchase products from a brand with an inclusive product range.
Edward Enninful, British Vogue鈥檚 editor-in-chief and European editorial director, added: "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."
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