By CultureBanx Team

• African Americans are the 2nd-largest consumer group, presenting businesses with a $300B opportunity
• In 2019, consumer expenditures by Black households totaled approximately $835B
  

At 47.8 million strong, African Americans are the second-largest consumer group, presenting businesses with a $300 billion opportunity stake in this community. Despite being 13.4% of the U.S. population, Black households accounted for just under 10% of the nation’s total spending on goods and services in 2019, according to McKinsey. However, if companies interpret this data as proof that there’s little profit in serving Black consumers they are making a multi-billion mistake.

Why This Matters: In 2019, consumer expenditures by Black households totaled approximately $835 billion, and combined spending by all Black households has increased 5% annually over the past two decades. When you read that African Americans have $1.4 trillion in spending power, it’s an incredibly impressive number. Even more so when you realize that’s more money than Spain, Mexico, Netherlands, Turkey, or Switzerland generate annually. It’s incredible to think that the collective purchasing power of Black Americans is greater than most developed nations.

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In this Elevating Black Entrepreneurs conversation, Black founders and change agents are developing a thoughtful and intentional process to create more innovative entrepreneurs. We’ll dig into the data and the long-term viability for Black Founders seeking innovative solutions for transforming their businesses. Through strategic approaches, dynamic support, and unique competitive advantage, we will break down what it takes to elevate the next generation of Black businesses being enriched through constant professional grade innovation.

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By Gary J. Nix

• Travis Scott brand partnerships garnered $50M in revenue in 2020
• His partnerships showed a fair amount of range including Nike, McDonald’s and Epic Games Fortnite
  

The conversation found at the intersection of culture and commerce has significantly advanced, especially over the last three years. Along those lines, we’ve seen companies such as McDonald’s (MCD +0.15%) partner with people of cultural note such as J. Balvin, BTS, and Saweetie. It could be argued, however, that their recent work in this arena began with Travis Scott whose brand partnerships garnered $50 million in revenue during 2020.

Why This Matters: Leveraging culture and being a natural part of (the) culture continues to be a hot-button discussion topic. More businesses understanding the long-term revenue-based advantages to cultural competency and intelligence will ultimately lead to a sensible and sustainable solution including more business-related opportunities for those who create the culture. We’ve seen a plethora of campaigns that have missed the mark and been called out for insensitivity, money grabs, and culture vulturing.

By Shakera Moreland

• Landis raised a $165 million funding round with investment from Will Smith, Jay-Z, and Sequoia Capital
• In 2019 57% of African American were renters and 26.7% were white
  

Investors lined up around the block to help Landis, a rent-to-own startup, close its $165 million funding round including business moguls Will Smith and Jay-Z, along with Sequoia Capital. Everyone knows that homeownership is the pinnacle of the American Dream, however the current economy and scorching hot housing market is making it harder to accomplish. With Black homeownership only at 40.6%, the lowest level since the 60s, Landis may be the missing key to buying up the block in the $8.5 billion rent-to-own market.

Why This Matters: In 2019 57% of African American were renters and 26.7% were white, so getting cultural trendsetters involved can really help turn around these numbers. Landis purchases a home and rents it out to the future homeowner until they can qualify for a mortgage. Not only are they purchasing the homes, but they are teaching financial literacy at the same time so that future home-owners will have more understanding of how to manage and improve their credit. Traditionally, you need to have a respectable credit score and have enough for a down-payment to secure a loan, unless you are buying a house with cash.

By CultureBanx Team

• T-Mobile has nearly notified all of the 50M customers whose personal data was stolen
• Black people are 53% more likely to claim a data breach led to a loss or decrease in business
  

T-Mobile claims it has notified nearly all of the 50 million customers whose personal data was stolen in the company’s largest ever data breach. Currently it has 38% of the U.S. prepaid market, and if you look at the breakdown by race, 14% of T-Mobile users are Black, according to Nielsen. When it comes to data breaches they are often more problematic for people of color living on fixed or low incomes, therefore mitigating widespread damage from this data breach to these communities is imperative for T-Mobile to restore consumer confidence.

Why This Matters: This is the fifth such incident the wireless carrier has suffered in the past three years, so clearly this is a persistent problem. Situations like these have a negative impact on Black people are 53% more likely to claim a data breach led to a loss or decrease in business, according to a report from the Rand Corporation. People of color often fall victim to incorrect or stolen information that in turn can have long-term crippling effects.