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  Nouveau Niche: Targeting African Immigrants in the US Nouveau Niche: Targeting African Immigrants in the US
by Mya Frazier
July 6, 2009 issue

In our age of niche marketing, untapped markets are rare, meaning the potential rewards for brands making even the slightest of efforts might offer big payoffs in brand loyalty. Consider the African immigrant community in the US—once virtually nonexistent and diffuse—which has emerged as an increasingly cogent, powerful and affluent demographic.

Today 1.4 million African immigrants live in the US, 40 times more than in 1960 and an increasingly significant proportion of all immigrants—3.7 percent compared to 0.4 percent in 1960. More than half of African immigrants arrived between 1990 and 2000. Compared to other immigrant communities, African immigrants’ median income is higher: US$ 35,774, compared to US$ 30,288. Today the African consumer segment buying power tops US$ 50 billion.

Yet this niche demographic requires distinct branding communications outside already existing ethnic marketing efforts. Martin Mohammed, President of the US African Chamber of Commerce, recently completed—in conjunction with market research firm New American Dimensions—the national marketing research study on the US emerging African market. The study examined US populations from Ghana, Somalia, Ethiopia, Sudan, Liberia, Nigeria, Cameroon and Kenya. The findings were based on the results of focus groups and interviews with African immigrants in four key population centers: Minneapolis/St. Paul, Los Angeles, New York City and Washington D.C.

“Historically, corporations think that the African immigrants are similar with the African-American community,” Mohammed says. “Although in terms of skin color they look the same, the immigrant Africans have different consumer behavior and they do have different shopping habits and a different way of engaging one another.”

Mohammed immigrated to the US from Somalia a decade ago. He created the umbrella chamber of commerce a year ago to support African-owned businesses and consumers, because he’s yet to see a single ad or marketing message tailored specifically to his demographic. It’s a confounding reality that Mohammed simply doesn’t understand and wants to change. “There is money to be made with this segment and there are benefits to reaching to this audience,” Mohammed says. “Yet, not once in the last ten years, not one message or ad. Pretty much all the traditional corporate sectors, from Target, Best Buy and AT&T, they are all still in the mode of thinking we are all part of the African-American segment.”

Mohammed doesn’t understand the oversight, especially in this age of marketing segmentation. “For some reason, we are just ignored,” he said. “It’s a huge opportunity to build brand loyalty in our community. We are going to be a loyal consumer to a brand that notices us. Additionally, we are coming from a continent of 1 billion people,and 600 million are teenagers, so the brand loyalty doesn’t just go here but there as well.”

Indeed, there are countless opportunities for brands that make an effort to create a meaningful connection and spark brand conversations with this new audience. Despite concentrating geographically upon arrival, African immigrants have spread out across the country. For example, the African population in Washington, D.C., has risen by 148 percent in a decade. This is a highly educated demographic. In fact, two-thirds of the black population in Harvard, Brown, Yale, Princeton, Penn, Duke and Berkeley is African.

There is certainly some room for improvement: 62 percent of African immigrants agreed that they are usually portrayed negatively in the media. Acclimating to a new society, consequently, comes at a price.

One focus group participant explains: “I think when you assimilate in a culture you can lose sight of where you came from. For me I’ve been living here nine years so I still consider myself African as opposed to African-American. Because for me being recognized as African is important to me. I know I can blend in really well, so that’s the challenge for me not losing that sense of identity.”

Brands must recognize the important role self-identity plays in the life of African immigrants and that African immigrants rely on the recommendations of friends and family when making purchases or choosing brands. Yet the survey also shows that—as with other demographics—price still drives purchasing behavior, with 34 percent of respondents choosing the lowest-priced brand.

Despite the neglect to develop campaigns that target this demographic, the study did uncover examples of brand recognition and loyalty—especially among status brands that communicate wealth and accomplishment.

 
     
 
According to the study, Olay, Dole, Sony, MAC, Mercedes-Benz, Tide and Land Rover strongly connected with the African immigrant community. So the interest is there. And so is the money. But brands have yet to capitalize on this niche market. And despite ample evidence from the study that Africans want to learn more about financial planning and investing, no financial brands have reached out just yet. In fact, only 25 percent of survey respondents said they trusted financial systems in the US such as banking and insurance.

Nearly a year ago, Bruce Corrie, an economist and dean of the College of Business Leadership at Concordia University in St. Paul, MN, released the numbers detailing the buying power of the 1.3 million–strong African immigrant community at US$ 45 billion. So why aren’t brands taking notice—particularly in this economic climate where they must be creative, intelligent and proactive in seeking new business?

“Well, at 1.3 million, it was still a much smaller group compared to Asian and Hispanic communities,” Corrie says. “The visibility is not as large, but what we are finding is that it could make a difference for companies trying to expand reach into market segments that may not be tapped. It would be worth the while of many companies to explore this market, from the data alone. Just look at the consumption of electronics and the diversity of the retail stores they shop.”

Corrie offers this advice to brands that might want to start seeking new relationships with this community: Utilize symbols that are appealing to this demographic. For example, use soccer in messaging instead of football or baseball. And, more broadly, branding to this community must portray Africans in a positive light.

“Respect is a critical part of the culture, and the way you show respect to somebody is by treating them with dignity. But what happens very often is what is portrayed about who an African is; it is always the starving child or someone rioting. But if you ask them to describe who is an African, it is different,” he says. “It is someone who treasures family and extended family and is very active in their community, values respect of their elders. Try to emphasize the issue of family and extended family. If they want to reach out around the common theme of family those kinds of images will resonate.”

Corrie, like Mohammed of the African Chamber of Commerce, remains perplexed by the lack of tailored communications from brands to capitalize on this increasingly influential audience. “This is not a very brand conscious community—but if you make the effort and build the relationship with these communities you can get that loyalty because other brands aren’t making the effort,” he said.

 
     
   
 

Mya Frazier is freelance business journalist. She can be reached at www.myafrazier.com.

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