2021
9
US Black Consumers: Online Shopping Behaviors Market Report 2021
2021-05-19T04:16:26+01:00
OX1047479
3695
138354
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Report
en_GB
“Despite historic barriers in economic opportunity and digital access, many Black consumers are eager and enthusiastic online shoppers. Yet, they still do not shop online at rates as high as…

US Black Consumers: Online Shopping Behaviors Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Black Consumers: Online Shopping Behaviors Consumer market including the behaviors, preferences, and habits of the consumer.

With an estimated $1.4 trillion in buying power as of 2019, Black consumers are a powerful force in retail. As online shopping continues to boom, spurred by the upheaval caused by COVID-19, understanding how Black consumers approach online shopping will be critical to success. However, there are some challenges keeping Black consumers from taking full advantage of the digital channel, including income gaps, more limited access to credit cards, and an ongoing although narrowing digital divide.

In this report, Mintel takes an in-depth look at Black consumers’ online shopping behaviors and shopping trends as well as industry efforts to appeal to these consumers, discussing the impact of COVID-19 and prevailing economic trends and making recommendations about how to maximize share of wallet from this group.

Read on to discover more about the consumer market, read our Black Consumers: Digital Trends & Impact of COVID-19 One Year Later – US – April 2021 report, our Black Consumers: Leisure & Entertainment – US – 2021 report, or take a look at our other Technology And Telecoms Industry Market Research reports.

Quickly understand

  • The impact of COVID-19 on Black consumers’ online shopping behavior.
  • Demographics and key trends shaping the Black consumer market as well as their use of online shopping.
  • Overall market size of ecommerce and Black ecommerce spending.
  • Retailers’ marketing approaches towards Black consumers.

Covered in this report

Payment options include: PayPal, American Express, Google Wallet, Samsung Pay, Apple.

Brands include: Urban Outfitters, Walmart, CVS, Anthropologie, Bold Xchange, Amazon, Target, Belk, Dosh, ShopSavvy, Taobao, Meow Coins, Scuti, Sephora, Fenty Beauty, Semicolon Books, Hilton Carter, Dosh, Ibotta, Fetch, Farmville, Puma, Cloud9, League of Legends, Halo, World of Warcraft,

Expert analysis from a specialist in the field

This report, written by Fiona O’Donnell, a leading analyst in the Multicultural Consumers sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Despite historic barriers in economic opportunity and digital access, many Black consumers are eager and enthusiastic online shoppers. Yet, they still do not shop online at rates as high as the population overall, even though the gap is shrinking. In order to gain further traction from this important audience, retailers will need to make sure they are fully welcoming Black consumers, including offering the right site experiences and products – and free shipping wouldn’t hurt either.
Fiona O'Donnell - Mintel Analyst
Fiona O’Donnell

Director, Multicultural Consumers

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: US and market context
    • Economic and other assumptions
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US retail ecommerce sales and fan chart forecast, at current prices, 2015-25
      • Figure 2: Made an online purchase in the last 30 days, by Black consumers vs all, 2010-20
    • Impact of COVID-19 on Black consumers and online shopping
      • Figure 3: Short-, medium- and long-term impact of COVID-19 on Black consumers and online shopping, May 2021
    • Opportunities and challenges
    • Meet the Mavens
      • Figure 4: Key characteristics and attitudes, by Mavens online shopping segment, January 2021
    • Be mobile-friendly to capture consumers who are mobile-first
      • Figure 5: Key characteristics and attitudes, by Black consumers who use smartphones to shop, January 2021
    • Be an ally
  3. The Market – Key Takeaways

    • A large and important audience
    • Pandemic spurs an ecommerce boom
    • Black online shopping also grows, but at a slower rate
    • Digital divide, lack of credit could impede online shopping
    • Over 45 million and growing
      • Figure 6: US population, by race and Hispanic origin, 2016-26
    • Economic opportunity challenges
      • Figure 7: US household income distribution and median, by race and Hispanic origin of householder, 2019
    • More young consumers
      • Figure 8: US population by age, by all and Black, 2021
    • More likely to live in cities
      • Figure 9: Population by county type and race/ethnic origin, 2016
  4. US eCommerce Market Size and Forecast

    • Pandemic gains slow but make a lasting impact
      • Figure 10: Total US retail ecommerce sales and fan chart forecast, at current prices, 2015-25
    • Black consumers were catching up prior to COVID-19
      • Figure 11: Made an online purchase in the last 30 days, by Black consumers vs all, 2010-20
      • Figure 12: Average number of online purchases in the last 30 days, by Black consumers vs all, 2010-20
    • Disproportionate pain from COVID-19 slows Black spending
      • Figure 13: Shopping online more due to COVID-19, by Black consumers vs all, April 2020-February 2021
    • Impact of COVID-19 on Black consumers and online shopping
      • Figure 14: Short-, medium- and long-term impact of COVID-19 on Black consumers and online shopping, May 2021
    • Immediate impact
    • Short term
    • Recovery
    • Learnings from the Great Recession
  5. Market Factors

    • A persistent but narrowing digital divide
    • Smartphones a critical channel
      • Figure 15: Black consumers’ smartphone ownership and attitudes, January 2021
    • Limited access to credit cards
      • Figure 16: Credit card ownership, by race and Hispanic origin, May 2020
    • “Shopping while Black”
      • Figure 17: Black consumers’ views on store discrimination, 2015-20
    • Urban dwellers more likely to buy online
      • Figure 18: Online shopping frequency, by urban area, January 2021
  6. Companies and Brands – Key Takeaways

    • Adopt equitable principles
    • Make it easier to “buy Black”
    • Go mobile
    • It’s all in the game
  7. Competitive Strategies

    • Trend Drivers underpin competitive strategies
      • Figure 19: Mintel Trend Drivers and Pillars – Rights, Identity and Surroundings
    • Sephora addresses equity issues from the ground up
    • Amazon, Target, Belk support “for us by us”
      • Figure 20: Bold Xchange ecommerce site
      • Figure 21: Target Hilton Carter ad
  8. Market Opportunities

    • Think mobile
      • Figure 22: ShopSavvy App
    • Offer value – even for those without access to credit
      • Figure 23: Dosh App
    • Bring on the fun – and games
  9. The Consumer – Key Takeaways

    • Three segments engage in varied levels of online shopping
    • Lower frequency than the norm, but young, affluent buy most often
    • Opportunities for personalization
    • Growing range of goods purchased online
    • Value particularly important for seniors
    • Shipping costs a potential concern
    • Out of stock, security issues frustrate Black shoppers
    • Positive feelings about online shopping
  10. Black Consumer Segmentation – Online Shopping

    • Three segments with different approaches to online shopping
      • Figure 24: Black consumer online shopper segments, January 2021
    • Online shopping frequency, device usage by segments
      • Figure 25: Black consumers’ online shopping frequency segments, by online shopper segments, January 2021
      • Figure 26: Devices used by Black consumers to browse and buy online, by online shopper segments, January 2021
    • Moderates (34%)
    • Characteristics
      • Figure 27: Profile of Moderates shopper segment, January 2021
    • Opportunities
      • Figure 28: What would motivate Black consumers to make more purchases online, by online shopping segments, January 2021
    • Mainstreamers (31%)
    • Characteristics
      • Figure 29: Profile of Mainstreamers online shopper segment, January 2021
    • Opportunities
      • Figure 30: Black consumers’ online shopping frustrations, by online shopping segments, January 2021
    • Mavens (34%)
    • Characteristics
      • Figure 31: Profile of Mavens online shopper segment, January 2021
    • Opportunities
      • Figure 32: Black consumers’ attitudes toward online shopping – Pro in-store, by online shopping segments, January 2021
  11. Online Shopping Behavior

    • Black consumers shop online less often than the norm
      • Figure 33: Black consumers’ online shopping frequency, index to all, January 2021
    • Younger, affluent groups most likely to buy online
      • Figure 34: Black consumers’ online shopping frequency, by age and income, January 2021
    • Fathers shop online somewhat more frequently than mothers
      • Figure 35: Black consumers’ online shopping frequency, by gender and parental status, January 2021
    • Heavy reliance on smartphones for browsing and buying
      • Figure 36: Devices Black consumers use to browse and buy online, index to all, January 2021
    • Older consumers more likely to rely on PCs
      • Figure 37: Devices used by Black consumers to browse and buy online, by gender and age, January 2021
    • Affluent consumers use PCs most; less affluent smartphones
      • Figure 38: Devices used by Black consumers to browse and buy online, by household income, January 2021
  12. Key Elements of eCommerce

    • Important factors in the shopping journey
    • Convenience somewhat less critical for Black consumers
      • Figure 39: Key elements of ecommerce, by Black consumers vs all, October 2020 and January 2021
    • Interest in convenience rises with age
      • Figure 40: Black consumers’ top-ranked elements of ecommerce, by gender and age, January 2021
    • Parents more interested in seamlessness, personalization
      • Figure 41: Black consumers’ top-ranked elements of ecommerce, by gender and parental status, January 2021
  13. Categories Shopped Online

    • Comfort growing with online shopping
      • Figure 42: Product categories shopped for online, by Black consumers vs all, May 2020 and January 2021
    • Women buy clothes, men gadgets and gear
      • Figure 43: Product categories Black consumers shop for online, by gender, January 2021
    • Parents particularly likely to buy necessaries online
      • Figure 44: Product categories Black consumers shop for online, by parental status, January 2021
    • City dwellers buy more types of products online
      • Figure 45: Product categories Black consumers shop for online, by area of residence, January 2021
  14. Online Purchasing Motivations

    • Value a key driver
      • Figure 46: What would motivate Black consumers to make more purchases online, January 2021
    • Combine value and convenience
    • TURF Analysis
      • Figure 47: TURF Analysis – Online purchasing motivations, January 2021
      • Figure 48: Table – TURF Analysis – Online purchasing motivations, January 2021
    • TURF Methodology
    • Free shipping most effective with seniors
      • Figure 49: What would motivate Black consumers to make more purchases online, by gender and age, January 2021
    • Discounts more of a draw for more affluent shoppers
      • Figure 50: What would motivate Black consumers to make more purchases online, by household income, January 2021
  15. Barriers to Online Purchase Completion

    • High shipping can lead to abandoned carts
      • Figure 51: Barriers to Black consumers’ online purchase completion, indexed to all, January 2021
    • Value, quality particularly key for older men
      • Figure 52: Barriers to Black consumers’ online purchase completion, by gender and age, January 2021
    • Discounts appeal to Mavens
      • Figure 53: Barriers to Black consumers’ online purchase completion, by online shopping segments, January 2021
  16. Online Shopping Frustrations

    • Black consumers concerned about site safety, performance
      • Figure 54: Black consumers’ online shopping frustrations, indexed to all, January 2021
    • PC buyers more concerned about security, privacy
      • Figure 55: Black consumers’ online shopping frustrations, by device usage, January 2021
    • Parents more concerned about finding what they need
      • Figure 56: Black consumers’ online shopping frustrations, by parental status, January 2021
  17. Attitudes toward Online Shopping

    • High expectations for online shopping
      • Figure 57: Black consumers’ attitudes toward online shopping – Expectations, January 2021
    • Affluent shoppers more driven by selection, convenience
      • Figure 58: Black consumers’ attitudes toward online shopping – Expectations, by age and income, January 2021
    • Positive about online shopping
      • Figure 59: Black consumers’ attitudes toward online shopping – Pro-online, January 2021
    • Parents particularly likely to enjoy online shopping
      • Figure 60: Black consumers’ attitudes toward online shopping – Pro-online, by parental status, January 2021
    • Black consumers value a blended store/online experience
      • Figure 61: Black consumers’ attitudes toward online shopping – Pro in-store, January 2021
    • Younger shoppers want the best of both worlds
      • Figure 62: Black consumers’ attitudes toward online shopping – Pro in-store, January 2021
  18. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
    • Terms
  19. Appendix – The Market

      • Figure 63: Total US retail ecommerce sales and forecast, at inflation-adjusted prices, 2015-25
      • Figure 64: eCommerce share of total US retail sales, 2015-25
  20. Appendix – Trend Drivers

      • Figure 65: Mintel Trend Drivers and Pillars

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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