What you need to know

Throughout the COVID-19 crisis, digital technology has literally been a lifeline for consumers. These tools have been particularly critical for Black consumers, who have been disproportionately impacted by both the health and economic consequences of the pandemic. Meanwhile, the Black Lives Matter movement has made staying informed and connecting with community more essential than ever for Black consumers. In this Report, Mintel examines Black consumers’ purchase and usage patterns for digital devices and communication services, showing how COVID-19 has affected these trends and how brands can best connect with this important audience.

Key issues covered in this Report

  • The composition and spending power of the Black consumer audience and how it shapes their need for digital products.

  • The impact of COVID-19 on Black consumers’ purchase and usage behavior for digital devices and services.

  • How tech companies are seeking to connect with Black consumers.

  • Market opportunities for digital products amongst the Black consumer audience.

Definition

This Report evaluates Black consumers’ attitudinal and behavioral changes due to COVID-19 as they relate to technology hardware and communications. For the purposes of this Report, the market definition is based on Bureau of Economic Analysis and includes:

  • Technology hardware: includes televisions and other video/audio equipment and information processing equipment (including computers/tablets and peripheral equipment).

  • Communication: includes telecommunication services and internet access.

Readers of this Report may also be interested in Digital Trends: Incl Impact of COVID-19 on Technology One Year Later – US, June 2021 and Black Consumers: Leisure and Entertainment – US, June 2021.

COVID-19: US and market context

This Report was written in March 2021. Consumer research was fielded in January 2021.

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in spring 2020, and non-essential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region. 

The impact on the Black community was particularly pronounced from both a health and an economic perspective, with higher rates of unemployment, illness and death. While reliance on technology did surge and sales of tech hardware devices actually grew, getting access to the devices and services they needed could be challenging for many in the Black community.

Vaccine rollout began in December 2020. Based on current estimates of vaccine production and distribution, the US could reach herd immunity, with 70-85% of the population vaccinated, by late summer to early fall 2021. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered. Pervasive inequities have also slowed vaccination rates for Black consumers as compared to other groups.

Economic and other assumptions

Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecast for GDP to grow by 4.6% in 2021 and unemployment to continue to fall to average 5.7% for the year do not take into consideration the impact of the $1.9 trillion economic relief package, which is expected to further boost growth.

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