NEW RESEARCH has found that British businesses are losing up to £4.5 billion each year by overlooking black, Asian and minority ethnic consumers.

The landmark Black Pound Report 2022, released today (January 31) found that ‘multi-ethnic’ consumers, (the term it uses to describe people from black, Asian, and other ethnic groups) have an annual disposable income of £4.5 billion which is being overlooked by major British brands and businesses.  The disposable income figure for African Caribbean consumers alone is £1.1 billion.

The research, which examined how brands and businesses can respond to the needs of multi-ethnic customers, surveyed 3,500 people. It found that multi-ethnic customers spend £230 million on health and beauty products each month, however nearly four out of ten black women buyers still find it difficult to purchase the cosmetics and skin care goods that they need.

The Black Pound Report 2022 found that multi-ethnic consumers spend up to 25 per cent more on health and beauty products than other consumers, with 22 per cent of them needing to go to specialist stores, a figure that rises to 30 per cent for black women.

Buying locally

The research also found that multi-ethnic consumers were also “more inspired” to buy locally, with 64 percent of participants supportive of the idea compared to 56 percent of the overall population.

According to Lydia Amoah, Founder and CEO of BACKLIGHT, who created and published the Black Pound Report, the research demonstrated the “untapped economic power” of the multi-ethnic customer and could play aa key role in helping firms better understand an audience that has for many years been overlooked.

She said: “When 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. She 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.”

Respect

Amoah continued: “I would like the Black Pound Report to change how brands treat their consumers and treat everyone with respect and serve them equally. 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.”

I would like the Black Pound Report to change how brands treat their consumers and treat everyone with respect and serve them equally.

Lydia Amoah, Founder and CEO of BACKLIGHT

Among the report’s other significant findings was the extent to which multi-ethnic consumers engage in ‘psychological passing,’ defined as the desire to change and adapt appearance or behaviour to ‘fit in,’ and avoid being racially profiled by security officers and shop workers.

This was shown to be a significant problem in retail environments, according to the survey. To be socially accepted, 13 percent of respondents said they had consciously changed their appearance, while 12 per cent said they had changed their speech.

Inclusive

The report also examined how firms can better appeal to black, Asian, and minority ethnic customers by being more inclusive and considering diversity in their marketing and product development.

In comparison to 74 per cent of white consumers, 93 per cent of multi-ethnic consumers believe brands have a responsibility to embrace diversity and inclusion. Diversity in advertising is three times more important to multi-ethnic consumers (24%) than white consumers (8%).

Multi-ethnic consumers were also twice as likely as white consumers to trust brands that have spent time considering ethnic diversity in the creation of their products and services, and who employ a diverse workforce.