McKinsey&Company
A $300 billion opportunity
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Bias in banking. People of color report deeply ingrained racial biases in the US financial-services sector. Nearly 50% of Latinx and 40% of Black respondents said they had to alter their appearance or behavior when interacting with banks, a 2021 Edelman survey revealed. Moreover, high-income Black consumers said they were asked to pay higher fees and to provide multiple forms of employment verification. Unfair treatment has led many consumers to switch banks, keep cash at home, or use alternatives such as cryptocurrency. [Fortune] |
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Breaking barriers in beauty. Black women spend six times the amount that White women do on beauty but often struggle to find products that suit them—for instance, hair extensions that match their natural textures. Now, a new crop of Black female founders is raising millions to launch brands that aim to serve consumers overlooked by the $2.4 billion wig and extensions industry. One US start-up recently raised $1.4 million to make hair extensions from natural plant fibers, which are gentler on scalps and cut down on waste from plastic. [FT] |
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A lifetime of engagement. Companies that offer their goods and services in more Black communities and create products catering to Black households tap into a $300 billion opportunity each year, says McKinsey partner Shelley Stewart III in The McKinsey Podcast. “The median age of Black Americans is 34. That’s a decade younger than the median age for White Americans,” says Stewart. “If you can get these customers today, you can have a long life of engaging with these customers. So there’s vested interest in getting in early.” |
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A troubling gap. The three-and-a-half-year gap in life expectancy between Black and White Americans has stretched to five years during the COVID-19 pandemic, says Stewart. In fact, 16 million Black Americans live in areas that have too few healthcare providers, Stewart adds. Listen to the podcast for ways companies can adapt products to meet Black consumer needs, potentially growing their bottom lines while also transforming communities for the better. |
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| — Edited by Belinda Yu |
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