DURHAM, N.C., Jan. 16 /PRNewswire-USNewswire/ -- The buying power of minority consumers in North Carolina soared from 1990-2006, providing strong and growing new markets for businesses and investment, a new study published by the North Carolina Institute of Minority Economic Development shows.
During 1990 to 2006, the buying power of N.C.'s African Americans grew 160 percent; American Indians, 175 percent; Asians, 579 percent; and Hispanics 1,042 percent, according to the 2006 edition of Buying Power in North Carolina. The Institute's bi-annual report tracks consumer spending, disposable income and population growth among African Americans, Hispanics, Asians and American Indians in North Carolina.
"Minority consumers in North Carolina represent a substantial and growing segment of our state's economy and offer enormous market potential for businesses and investors," says Institute President Andrea L. Harris.
"Up until now, there have been no geographically precise surveys of annual expenditures and income of the state's major racial and ethnic groups to help business people make timely, informed decisions about marketing to minority consumers in the state," Harris says. "This study addresses that gap."
The report provides comprehensive data on the buying power of all N.C. consumers beginning in 1990 and projected through 2011. It details minority buying power for each of the state's 15 metropolitan statistical areas and 100 counties. It also provides market implications, insights and perspectives on each minority market.
"It is our hope that savvy entrepreneurs, established businesses, marketing specialists, economic development organizations, chambers of commerce and others will use the information to tap this important emerging market and further expand business growth in North Carolina," Harris says.
North Carolina's African-American, Hispanic and Asian markets are large and their growth rates are compelling, says report author Jeffery M. Humphreys, Ph.D., assistant director of the Selig Center for Economic Growth and director of economic forecasting at the Terry College of Business at the University of Georgia.
Among the key findings Humphreys details in the report: - The total buying power of all North Carolina residents increased 144 percent from 1990-2006, significantly higher than the 123 percent increase for the United States as a whole. - During that period, North Carolina emerged as one of the nation's most important African-American markets based on size (8th), market share (9th) and growth rate (33rd). In 2006, African-American purchases accounted for one of every seven dollars spent in the state. Total buying power climbed 160 percent to $35.9 billion in 2006 from $13.8 billion in 1990. That rate was higher than N.C.'s total buying power increase (144 percent) as well as that of the nation (150 percent). - North Carolina's Hispanic market has reached critical mass and is an extremely fast-growing market, with significant, above-average growth in both buying power and population. The state's Hispanic buying power grew 1,042 percent to $9.6 billion from 1990-2006, nearly four times greater than the 277 percent increase in Hispanic buying power nationwide. The increase makes North Carolina the 15th-largest Hispanic market in the country. - North Carolina is home to the nation's second-fastest growing Asian consumer market, behind only Nevada. Asian buying power rose 579 percent to $4.8 billion in 2006, up from $706 million in 1990. - North Carolina boasts the nation's sixth-largest American-Indian consumer market with buying power estimated at $2.1 billion in 2006, up 175 percent from 1990. American Indians living in the state account for only 0.9 percent of the state's overall consumer market, approximately the same as in 1990. But this market segment is more concentrated than in most other states. American Indians account for 0.6 percent of the total U.S. consumer market.
"The state's Hispanic and Asian markets, in particular, offer an opportunity to tap into the type of fast-paced growth that typically is found only in rapidly developing countries," Humphreys says.
"Moreover, tapping into one or more of these niche markets is likely to be far less risky than tapping into overseas markets," he says, given the lack of currency fluctuation risk and the stable and well-understood political and legal system.
Looking ahead, Humphreys concludes that clear opportunities exist for businesses to expand by marketing to minority consumers in the state.
The report projects the 10-largest counties for each minority group in 2006 (based on Selig Center projections of data reported for earlier years):
- African American: Mecklenburg, Wake, Guilford, Cumberland, Durham, Forsyth, Pitt, Wayne, Onslow, Nash. - American Indian: Robeson, Cumberland, Wake, Mecklenburg, Jackson, Swain, Harnett, Hoke, Scotland, Guilford. - Asian: Wake, Mecklenburg, Guilford, Durham, Cumberland, Orange, Forsyth, Onslow, Chatham, Catawba. - Hispanic: Mecklenburg, Wake, Durham, Forsyth, Guilford, Cumberland, Union, Johnston, Gaston, Catawba.
The buying power report pulls disposable personal income for 1990-2005 from U.S. Department of Commerce's Bureau of Economic Analysis data reported for that period. Buying power figures for 2006-2011 are projections made by the Selig Center using economic modeling and forecasting techniques.
The N.C. Institute of Minority Economic Development is a nonprofit organization founded in 1986 to promote models and knowledge that build the asset base of minority and low-wealth communities, with a particular focus on minority- and women-owned businesses. Through research and data analysis on emergent trends in North Carolina's minority and low-wealth communities, the Institute works to the close the information and data gap and to promote balanced public policies and private-sector practices.
North Carolina Institute of Minority Economic Development
