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Digital Trends - Black Consumers - US - July 2015

Despite having lower household incomes on average, Black consumers’ strong desire to keep up with the latest in technology suggest they are willing to sacrifice in other areas so that they can have the same products that higher income earners have. This consumer group loves being among the first to own the latest gadgets – both for the entertainment value and the image it projects – smart, tech savvy, successful, etc.Blacks also value technology that adds both entertainment and fun to their lives.

This report looks at the following areas:

  • Technology not for the sake of it – It’s about talk value, image and entertainment
  • Blacks aren’t ready to cut the cord – The bigger the screen the better
  • Blacks more confident in their tech savvy, but that’s not always a good thing
  • Blacks want smart devices, even if it means owning multiple products

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Blacks spent $10.2 billion on select electronics, TVs and computers largest chunk
          • Figure 1: Estimated Black consumer spending on select electronic equipment, 2014
        • The issues
          • Technology not for the sake of it – It’s about talk value, image and entertainment
            • Blacks aren’t ready to cut the cord – The bigger the screen the better
              • Figure 2: Household ownership of televisions, Black versus all, April 2015
            • Blacks more confident in their tech savvy, but that’s not always a good thing
              • Figure 3: Black consumers’ perceptions of their tech-savvy and adoption, Black versus all, April 2015
            • Blacks want smart devices, even if it means owning multiple products
              • The opportunities
                • Stand out from the crowd with targeted advertising
                  • As seen on TV: Leveraging Black celebrities could pay off
                    • Show and tell: Blacks need to see why they can’t live without devices
                      • What it means
                      • The Market – What You Need to Know

                        • Buying power growth expected to impact electronics, already at over $10 billion
                          • Blacks are a bigger fish in this small pond than one may think
                          • Expenditures on Select Electronic Equipment

                            • Blacks splurge in areas where they get mostentertainment
                              • Figure 4: Spending on selected electronic equipment, by all consumers and Black consumers, 2014
                            • Blacks’ spending on entertainment forecast to grow 41% from 2014-19
                            • Market Perspective

                              • Black buying power likely to reach $1.4 trillion by 2019
                                • Figure 5: Buying power trends among Black consumers, 1990-2019 (projections)
                              • Black buying power growing at a faster rate than that of White consumers
                                • Figure 6: Changes in buying power, by race/Hispanic origin, June 2014
                            • Market Factors

                              • Blacks households outnumber other multicultural groups
                                • Figure 7: Number of households in US, by race/Hispanic origin, January 2015
                              • iGeneration and Millennials represent nearly half of Black population
                                • Figure 8: Population of generations, by race/Hispanic origin, 2015
                                • Figure 9: Distribution of population by race and generation, 2015
                              • Blacks have lower household incomes, several factors besides occupation to consider
                                • Figure 10: Median household income, Blacks versus all, 2013
                              • Average incomes up 17% in a 10-year period
                                • Figure 11: Median household income for households headed by Blacks, in inflation-adjusted dollars, 2003-13
                            • Key Players – What You Need to Know

                              • Don’t sleep – Beats by Dre, Apple and Comcast are revolutionizing the industry
                                • Down, but not out – Wearable tech and portable gaming devices
                                • What’s Working?

                                  • Beats by Dre – Live out Loud
                                    • Figure 12: Beats by Dre Presents: LeBron James in re-established 2014 – Powerbeats2 Wireless, October 2014
                                  • Ethnically diverse emojis – Adding color to the conversation
                                    • Comcast – Bringing your world to life via the big screen
                                      • Figure 13: "Lip Sync" -- XFINITY Share app, May 2015
                                  • What’s Struggling?

                                    • Wearable tech and portable gaming devices – Down but not out
                                    • What’s Next?

                                      • Can you speak emoji?
                                      • The Consumer – What You Need to Know

                                        • Blacks are tech-savvy – First to have gadgets, they provide entertainment and escape
                                          • Where there’s a will there’s a way, Blacks turn TVs into smart(er) TV
                                            • Limited space, portability and convenience drive laptop and tablet sales
                                              • Smartphones win big among Blacks, Samsung is the leader
                                                • Digital gap is closed, Blacks spend more time online than others
                                                • Technology Products Overview

                                                  • Small devices are nice, but Blacks must have big screens, highest picture clarity
                                                    • Figure 14: Black household ownership of consumer electronics hardware, April 2015
                                                  • Vast majority of Blacks own a smartphone, tablets also prevalent
                                                    • Figure 15: Black personal ownership of consumer electronics hardware, April 2015
                                                • Television Ownership

                                                  • Three quarters of Black households own an HD TV
                                                    • Figure 16: Household ownership of televisions, Black versus all, April 2015
                                                  • Availability of brands at mass merchandisers may be driving sales
                                                    • Figure 17: Brand of television(s) owned by household, Asian versus all, April 2014-December 2014
                                                  • Blacks have more TVs in their household than others
                                                    • Figure 18: Number of televisions owned, Black versus all, April 2015
                                                • Television Behaviors and Attitudes

                                                  • Watching TV is an integral part of Blacks’ lives
                                                    • Figure 19: Television watching behaviors, Black versus all, April 2015
                                                  • Family TV is important, but children have less influence on Black parents
                                                    • Figure 20: Attitudes toward watching television, Black versus all, April 2015
                                                  • One third of Blacks build their schedule and events around TV programs
                                                    • Figure 21: Attitudes toward TV and advertising – Any agree, Black versus all, Fall 2014
                                                • Physical and Digital Playback

                                                  • One in five Black households turn their TV into smart(er) TVs
                                                    • Figure 22: Household ownership of media playback devices, Black versus all, April 2015
                                                  • Magnavox over indexes for DVD/Blu-ray players among Blacks
                                                    • Figure 23: Brand of DVD/Blu-ray player(s) owned by household, Blacks versus all, April 2014-December 2014
                                                • Gaming Consoles

                                                  • Black consumers more likely than others to have a gaming device
                                                    • Figure 24: Gaming console ownership, Black versus all, April 2015
                                                  • PlayStation is a winner among Blacks, more so than the total population
                                                    • Figure 25: Brand summary of video game systems owned or played, Black versus all, April 2014-December 2014
                                                  • Blacks seek games that are action packed or sports-related
                                                    • Figure 26: Genre of video games owned or played, Black versus all, April 2014-December 2014
                                                • PCs and Tablets

                                                  • More than half of Black households have a tablet, on par with total population
                                                    • Figure 27: Household and personal ownership of PCs, Black versus all, April 2015
                                                  • Dell is #1, but more Blacks buy Toshibas compared to the average
                                                    • Figure 28: Brand of PC(s) owned by household, Black versus all, April 2014-December 2014
                                                • Mobile Phones and Wearables

                                                  • Three out of 4 Blacks own a smartphone, Samsung is the leader
                                                    • Figure 29: Personal ownership of mobile phones, Black versus all, April 2015
                                                    • Figure 30: Brand of cell phone/smartphone owned, Black versus all, April 2014-December 2014
                                                  • Ownership of wearable devices low…for now
                                                    • Figure 31: Personal ownership of wearable devices, Black versus all, April 2015
                                                • Other Portable Electronics Hardware

                                                  • Smartphones impacting sales of other portable devices
                                                    • Figure 32: Black household/personal ownership of other portable electronics hardware – Type, trended, April 2010-December 2014
                                                    • Figure 33: Other portable electronic hardware ownership, Black versus all, April 2015
                                                  • One quarter use smartphone to read e-books, opportunity for larger screen
                                                    • Figure 34: Devices used to read an e-book in the last 12 months, Black versus all, April 2014-December 2014
                                                  • More Blacks buy TomTom GPS, ranks #2 in leading brand
                                                    • Figure 35: Brand of GPS owned, Black versus all, April 2014-December 2014
                                                • Internet Usage

                                                  • The digital divide has closed
                                                    • Figure 36: Blacks’ incidence of internet use, April 2012-December 2014, and by age, April 2014-December 2014
                                                  • One in five households access internet through their TV or gaming device
                                                    • Figure 37: Methods used to access the internet in the last three months, Black versus all, April 2015
                                                • Online Activities

                                                  • Blacks more likely to check product reviews, do price comparisons online
                                                    • Figure 38: Online activities in past three months, Black versus All, April 2015
                                                • Social Media

                                                  • Facebook and YouTube are most popular, Blacks over index on Twitter and Instagram
                                                    • Figure 39: Social media sites visited, Black versus all, April 2015
                                                • Attitudes toward Technology and Electronics

                                                  • Blacks significantly more likely to be “almost always online”
                                                    • Figure 40: Attitudes toward technology, Black versus all, April 2015
                                                  • Blacks are tech geeks and trendsetters when it comes to technology
                                                    • Figure 41: Attitudes toward electronics – Any agree, Black versus all, April 2015
                                                • Appendix – Data Sources and Abbreviations

                                                  • Data sources
                                                    • Sales data
                                                      • Consumer survey data
                                                        • Abbreviations and terms
                                                        • Appendix – Consumer

                                                          • Television
                                                            • Figure 42: Black household ownership of televisions – Type, trended, Fall 2010-14
                                                            • Figure 43: Blacks’ attitudes toward TV and advertising – Any agree, trended, Fall 2010-14
                                                          • Physical and digital playback
                                                            • Figure 44: Black household ownership of DVD/Blu-ray player, trended, Fall 2010-14
                                                          • Gaming consoles
                                                            • Figure 45: Blacks and video games – Owns or plays, trended, Fall 2010-14
                                                          • PCs and tablets
                                                            • Figure 46: Black household ownership of PCs – Type, trended, Fall 2010-14
                                                          • Mobile phones
                                                            • Figure 47: Black cellphone/smartphone ownership – Type, trended, Fall 2012-14
                                                          • Other portable electronics
                                                            • Figure 48: Black household/personal ownership of other portable electronic hardware – Type, trended, Fall 2010-14
                                                          • Internet usage
                                                            • Figure 49: Black internet usage, trended, Fall 2012-14

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                                                        Digital Trends - Black Consumers - US - July 2015

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