Marketing to Black Millennials: Incl Impact of COVID-19 - US - June 2020

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition 
Scope
EXECUTIVE SUMMARY 
Market overview 
Top takeaways 
Impact of COVID-19 on Black Millennials
Figure 1: Short-, medium- and longer-term social and consumer issues and impacts of COVID-19 on Black Millennials, June 2020
The insights
Black Millennials are grateful and hope for the best amidst some concerns
Figure 2: Black Millennials’ perspectives on life, indexed to all Millennials, March 2020
Black Millennials are accomplished, but still beleaguered by financial shortcomings
Figure 3: Black Millennials’ personal achievement and success in America – Financial, March 2020
Black Millennials are concerned about America’s future
Figure 4: Black Millennials’ future outlook – American society, indexed to all Millennials, March 2020
Black Millennials do more with less
Figure 5: Where Black Millennials spend extra money, indexed to all Millennials, March 2020
Black Millennials support the brands that support them 
Figure 6: Black Millennials’ brands and beliefs, indexed to all Millennials, March 2020
The opportunities
Create financial security products and services that will be of value to Black Millennials
Offer brand transparency and accountability when showing support
What it means
IMPACT OF COVID-19 ON BLACK MILLENNIALS
What you need to know: it’s not business as usual
Figure 7: Short-, medium- and longer-term social and consumer issues and impacts of COVID-19 on Black Millennials, June 2020
Opportunities
Impact of COVID-19 on Black consumers
High unemployment plus capital infusion will drive entrepreneurship
Figure 8: PayPal $530 million and Bank of America $1 billion announcements, June 2020
Stagnant Black consumer wealth may further erode future financial security
Figure 9: Homeownership rate, non-Hispanic White vs Black, 1994-Q1 2020
Vulnerable Black-owned businesses may permanently close
How the COVID-19 crisis will affect Black Millennials 
Older Black Millennials at higher risk
Younger Black Millennials struggling to achieve success will experience a setback
Black Millennial women will balance self-care with survival
How a COVID-19 recession will reshape Black Millennials’ future
Sharp rise in unemployment will impact ability to pay everyday bills
Figure 10: Monthly unemployment rate, by race and Hispanic origin, January 2007-May 2020
Black consumers across educational attainment will struggle to pay for essentials
Figure 11: Inability to pay current month’s bills and cover a $400 emergency expense, by race and Hispanic origin and educational attainment, 2018
Black consumer confidence in 2020 recession unlikely to mirror confidence during 2007-09 recession
Figure 12: Black consumers’ economic perceptions, by economic perceptions, April 2020
COVID-19: US context
THE MARKET – WHAT YOU NEED TO KNOW
There are nearly 12 million Black Millennials
Black Millennials earn less than their peers
Homeownership is a difficult goal to reach, even in good economic times
Most Black Millennials are single
Black Millennials want access to all types of content
BLACK MILLENNIALS BY THE NUMBERS
Black Millennials account for about one quarter of the Black population 
Figure 13: Distribution of generations, by race and Hispanic origin, 2020
Figure 14: Distribution of generations, by race and Hispanic origin, 2019
Black Millennials may hold off on parenthood – for now
Figure 15: Households with related children, by race and Hispanic origin of householder, 2018
CHARACTERISTICS OF BLACK MILLENNIALS
Black Millennials are more likely to be single
Figure 16: Marital and partnership status, total and Black, and aged 25-44, October 2018-December 2019
Black Millennials earn less than their peers
Figure 17: Personal income distribution and median income among people aged 25-44, by race and Hispanic origin, 2018
Black Millennials’ financial independence impacts their college experience 
Figure 18: Educational attainment of people aged 25-44, by total and Black, 2019
Educational attainment does not equate to earnings equity for younger Black Millennials
Figure 19: Median annual earnings of 25-34 year olds with a bachelor’s degree, by select occupations, by race and Hispanic origin, 2017
Black homeownership trails the average
Figure 20: Homeownership, by race/Hispanic origin of householder, 2002-19
Figure 21: Homeownership, by age groups <25-44, 2019
Most Black Millennials have health insurance, but recent job losses can impact coverage
Figure 22: Types of insurance owned, total and Black, October 2018-December 2019
Figure 23: Medical insurance policy source, total and Black, October 2018-December 2019
MARKET PERSPECTIVE – MEDIA AND CONTENT
Black Millennials subscribe to everything
Figure 24: Black consumers’ media consumption, Black total and Millennials, December 2019
Engagement in messaging driven by consumer control and content
Figure 25: Black Millennials’ path-to-purchase media behavior, December 2019
Black Millennials’ familiarity with traditional and digital devices drive consumption
Figure 26: Black Millennials’ content consumption preferences, December 2019
KEY TRENDS – WHAT YOU NEED TO KNOW 
Many Black Millennials are one financial misstep away from trouble
Black Millennials were impacted early during lockdown, but still hopeful
Brands express support for Black Millennials, but will need to step up and take action
WHAT’S HAPPENING WITH BLACK MILLENNIALS AND THE ECONOMY
Most Black Millennials live paycheck to paycheck
Figure 27: Black consumers’ current financial situation, by generation, April 2020
Black Millennials express realism in their economic future
Figure 28: Black consumers’ perceptions on the American economy, by generation, April 2020
Black Millennials are hopeful amidst economic loss 
Figure 29: Black consumers’ financial outlook, by generation, April 2020
WHAT TO WATCH
Black Millennials demand partnership from brands
A shift in messaging
Issuing a challenge
Figure 30: Pull Up Or Shut Up challenge, June 3, 2020
Figure 31: L’Oréal response to protests, June 3, 2020
Figure 32: L’Oréal response to Pull Up Or Shut Up challenge, June 5, 2020
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most Black Millennials live comfortably, but some life goals seem far away
Black Millennials are thankful, but still want more
Dwindling faith in institutions drive Black Millennials’ concern for future of America
Black Millennials believe the government has power to fix societal ills
Black Millennials are able to afford their needs and some wants
Brands that support Black Millennials’ causes will earn their dollars
WHAT IT MEANS TO BE SUCCESSFUL IN AMERICA
Ever elusive financial security defines success for Black Millennials
Figure 33: Black Millennials’ perceptions of success in America, March 2020
Younger Millennials seek control over their career and finances
Figure 34: Success in America, by younger and older Black Millennials, March 2020
Affluent Black Millennials see their dreams within their reach
Figure 35: Success in America, by Black Millennials’ household income, March 2020
PERSONAL BENCHMARKS OF ACHIEVEMENT 
Some Black Millennials are living their dreams
Figure 36: Black Millennials’ personal achievements, indexed to all Millennials, March 2020
Black Millennials seek greater financial stability
Figure 37: Black Millennials’ personal achievement and success in America – Financial, March 2020
Lived personal experiences are expected – not a part of “success”
Figure 38: Black Millennials’ personal achievement and success in America – Lived experiences, March 2020
Nearly half of Black Millennials live a middle-class lifestyle
Figure 39: Black consumers’ personal achievement, by generation, March 2020
Black Millennial men’s higher earnings offer financial security
Figure 40: Black Millennials’ personal achievement, by gender, March 2020
Multiple sources of income allow Millennials to lead a comfortable life
Figure 41: Black Millennials’ personal success, by number of income sources, March 2020
PERSPECTIVES ON LIFE
Gratitude and hope are universal among all Millennials
Figure 42: Black Millennials’ perspectives on life, indexed to all Millennials, March 2020
Younger Millennials are hopeful, yet still express concern for their life’s direction
Figure 43: Black consumers’ perspectives on life, by generation, March 2020
Low-income earners are discontented, but believe their goals are still attainable
Figure 44: Black Millennials’ perspectives on life, by household income, March 2020
OUTLOOK FOR AMERICA’S FUTURE
Black Millennials have little faith in American society
Figure 45: Black Millennials’ future outlook – American society, indexed to all Millennials, March 2020
Women’s concern for American society heightened toward election season
Figure 46: Black Millennials’ future outlook – American society, by gender, March 2020
Younger Millennials show apprehension for the future
Figure 47: Black consumers’ future outlook – American society, by generation, March 2020
SOLVING SOCIAL ISSUES – WHO’S RESPONSIBLE?
Responsibility for resolution is divided between public goods and societal issues
Figure 48: Black Millennials’ perception of who should be responsible for social issues, March 2020
Black Millennials’ lack of belief in institutions rooted in a lack of action
Figure 49: Black Millennials’ perception of responsibility for social issues – Government, indexed to all Millennials, March 2020
Personal experiences with discrimination in the workplace drive expectations for social change
Figure 50: Black Millennials’ perception of responsibility for social issues – Brands and companies (NET), indexed to all Millennials, March 2020
Black Millennials’ reliance on each other will drive any change they see
Figure 51: Black Millennials’ perception of responsibility for social issues – Individuals like me, indexed to all Millennials, March 2020
WHERE EXTRA MONEY IS SPENT
Black Millennials earn less, but try to do more with their money
Figure 52: Where Black Millennials spend extra money, indexed to all Millennials, March 2020
Returning to a fun lifestyle may be important to younger Millennials in the medium term
Figure 53: Where Black consumers spend extra money, by generation, March 2020
Women typically treat themselves and may be first to return to normal frequency
Figure 54: Where Black Millennials spend extra money, by gender, March 2020
Parents more likely to balance their financial future with entertaining the family
Figure 55: Where Black Millennials spend extra money, by parental status, March 2020
BRANDS AND BELIEFS
Black Millennials expect brands to choose a side
Figure 56: Black Millennials’ brands and beliefs, indexed to all Millennials, March 2020
Older Black Millennials most likely to vote with their wallet
Figure 57: Black consumers’ brands and beliefs, by generation, March 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Consumer survey data
Abbreviations
Abbreviations
APPENDIX – THE CONSUMER
Figure 58: Marital and partnership status, total and Black, October 2018-December 2019
Figure 59: Types of insurance owned, total and Black, October 2018-December 2019
Figure 60: Medical insurance policy source, total and Black, October 2018-December 2019