Apparel-footwear spending by US blacks to hit $70 bn by 2030: McKinsey

Black consumers increasingly use online channels to shop for these products, and they are also more likely—by 11 percentage points—to prefer to use e-commerce to shop for and buy apparel, the survey found.

What is especially distinctive is Black consumers’ strong preference for Black-owned fashion brands and brands that are culturally resonant with Black culture. They are up to three times as likely as non-Black consumers to switch to a Black-owned apparel or footwear brand, McKinsey said in a release.

Apparel-footwear spending by US Black consumers will grow by about 6 per cent a year to $70 billion in nominal dollars by 2030, according to a survey by McKinsey. This will be part of the total of $445 billion in nominal dollars that the survey data suggests will be up for grabs from 2022 to 2030, including a cumulative $50 billion in entirely new spending.

This demand for fashion brands that speak to Black culture is especially prominent in luxury fashion goods

These preferences are linked to an overall rise in inclusive consumers across race and ethnicity: 45 per cent of consumers want to support diverse brands.

McKinsey’s research suggests that a fashion brand’s ability to tailor marketing and engagement to Black consumers could be particularly fruitful. These consumers are more likely to rely on recommendations from friends and family—one of the top four critical buying factors for footwear and luxury fashion goods for Black respondents in the survey.

Maintaining a strong brand position and capitalising on word of mouth and buzz can reinforce a brand’s value in the Black community, McKinsey suggests.

In addition, Black consumers are more price-conscious when evaluating brand alternatives—a finding that holds across sectors. Compared with non-Black shoppers, Black consumers are four percentage points more likely to switch luxury brands to pursue lower price points.

These findings suggest that marketing material that highlights the value customers can experience from brands’ products would be particularly well received.

Black consumers are five percentage points more likely than their non-Black counterparts to visit a brand’s website before making a purchase but are six percentage points less likely to read print reviews. They are also more likely to shop online for fashion than non-Black consumers.  

This digital-first engagement style may be a sign of their active engagement with brands or reflective of the fact that they are relatively younger. The research on key buying factors shows that Black consumers are active shoppers who are continuously on the lookout for brands they trust and are proud to support.

Fibre2Fashion News Desk (DS)