Black Dollars Matter
It is safe to say that black women have one of the most unique hair textures in the world. It is because these versatile hair textures and styling choice that they spend billions annually on beauty products. Unfortunately, many of those beloved beauty supply stores where black women go to purchase products ranging from wigs to shampoos to conditioners to so many other beauty products to enhance and support their hairstyle choices resides in the hands of non-black entrepreneurs.
A Nielsen Company report reveals that African Americans will have a collective buying power of $1.3 trillion by 2017. In an Essence 2009 Smart Beauty research study, it was estimated that African-American women spend $7.5 billion annually on beauty products and 80 percent more on cosmetics and skin-care products than the rest of the general market.
Despite the fact that haircare and beauty products are an important aspect of the African American woman’s beauty regimen, the truth remains that other ethnicities dominate the ethnic hair care empire. However, there is a bit of hope as the landscape is rapidly changing.
African American entrepreneurs are beginning to take back control of the beauty supply business and the rate at which this is getting done is growing. For example, you have young entrepreneurs like Kayla and Keonna Davis who became the youngest black women to go into the beauty supply business at 19 and 21 respectively by opening the KD Haircare Supply. Other African American women are now cashing in on this multi-billion-dollar market opportunity, trying to take back this economic power back to the black community.
The importance of using black-owned beauty supplies cannot be overstated. African American communities must be conscious of where they spend their dollars as black dollars also matters. In fact, African Americans are not expected to fuel the non-black beauty supply stores because these dollars are not recycled back into the black community. These nonblack businesses in most cases do not even provide jobs for blacks and do not even show respect and good customer service. Therefore, African American communities should make an effort to only support black-owned beauty supply stores that recycle the black dollars into the black community. Do not forget that the African American beauty industry is worth billions and these billions will do well to get recycled among the black communities.
The creation of Black Owned Beauty Supply Association known as BOBSA has been doing a lot to address this concerns and challenges. This organization continues to generate awareness that translates to the establishment of an ever increasing number black-owned beauty stores. BOBSA has used information sharing and communication to create a unit which is now pulling the black dollars away from the non-black dominated beauty business.
If black-owned beauty companies are to continue growth, they must have the support of black dollars. Black women will have to increase their support for black beauty businesses and remain consistent in this charge.
Are there other options? Yes, African American entrepreneurs might consider pooling their resources together and establishing a supply business where they buy among themselves.
Also, instead of building non-black beauty supplies stores with black dollars, black distributors, entrepreneurs and consumers should instead, make a concentrated effort to spend more money at black-owned stores to regain control and black business owners must do their part to make consumers feel a sense of welcome and appreciation. These things combined can help build the black economy and take back a large chunk of the multibillion-dollar beauty supply industry.