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The Black Middle Class Report 2015
- 1. THE BLACK MIDDLE CLASS: Is yourbrand connecting with their aspirations?
- 2. WHO ARE THEY?Thenew kids on the block Live in households making between 15k -50k Own a car and at least pay 4k towards a house Have a degree and work in a white collar job
- 3. DEFINING ASPIRATIONS IN THE BLACKMIDDLE CLASS
- 4. “I want toqualify as a lawyer” Siya, 26 “I want a bigger home for my parents” Siya ,26 “I wanna be successful and have more than one source of income” Denzel, 24 “I want to be in the Mail & Guardian’s top 200 young South Africans” Sandile,26 “I want to live a debt free peaceful life” Thandiswa, 50 “I want money to work for me and not work for my money” Vuyiseka,37 “I want my kids to have the best education that will enable them to be successful in life” Vuyiseka, 37 “ I want my siblings to own their businesses instead of being employees” Vuyiseka, 37 “I would like to become an innovator in the social entrepreneurship space. There is something encouraging about making a difference in someone’s life and this is what I feel would make my life worthwhile.” Zikhona, 24 “ I want to run a successful management consultancy firm” Sandile, 26
- 5. Black Middle ClassAspiration tension Majority of the black middle class are still new to their status so their aspirations aim to reclaim the respect, status and dignity once denied to black people.
- 6. Age and Aspirations Age+ Generic, broad long- term aspirati on - Short-tem more specific aspiration + Age - “to be successful” “I want to own a mercedez benz by 30” Age + Age - Aspir ation for other s Aspira tions for self
- 7. We are here! BlackMiddle Class Needs
- 8. The biggest aspirationof the black middle class • The older generation still struggles with debt. • The younger generation yearns for a second income.
- 9. Aspiration Model forthe black middle class Ego Needs Aspiration Time taken Length spent with need unsatisfied Ag e Internal drivers
- 10. FUNDING ASPIRATIONS IN THEBLACK MIDDLE CLASS
- 11. New Generation vsOld Generation Believes in saving for aspirations Finds it easier to use loans and pay back later.
- 12. “I have beensaving for the registration fees, thereafter will pay monthly instalments” Siya, 26 “ Debt is unavoidable….you just need to learn to manage it. ” Thandiswa, 50
- 13. Trade-offs experienced whenreaching for aspirations 43% 26% 21% 10% Dining out/going out Family times Personal time travel
- 14. Products and Black MiddleClass Aspirations
- 15. Motives influencing productpurchase Product Purchase Status Convenience Quality
- 16. High involvement aspirationalproducts/services sought by BMC
- 17. New emerging statusof wealth in the black middle class Being an entrepreneur is becoming a sought after status in the black community
- 18. Black middle classand middle involvement products
- 19. Best Ads :Santam “One of a kind”
- 20.
- 21. Successful ads: MercedesBenz ‘the best or nothing’
- 22. Poor Ads :MAQ
- 23. Poor Ads: Vodacom‘slaap tiger’
- 24. Poor Ads: KFC‘Win a home’
- 25. Lesson for brandsconnecting with the black middle class Do not be condescending Avoid making ads musicals Focus on consumer’s aspirations, not their present situations Avoid being stereotypical in representation of black people, focus on their core underlying values. Use modern references that reflect the advancement of black people Wit goes along way
- 26. Understanding the BlackMiddle class The black middle class wants to be seen for their aspirations and potential rather than where they are and come from. The middle class wants to be acknowledged as educated and modern members of society, not in the archaic manner they were once seen by marketers. The group sees themselves through the lenses of their aspirations and goals thus they relate more to brands within a higher financial class. Education and entrepreneurship are ways in which brands can use to try and connect with this dynamic group
Editor's Notes
- #3 The UCT Unilever Institute of Strategic Marketing defines the black middle class as adults above the age of 18 either living in households with incomes between R16000 – R50000 per month, OR the consumer must meet two of the following criteria. They own a car, have a tertiary qualification or are currently studying towards a tertiary qualification, work in a white collar or professional job (often in government) or they live in a metropolitan area in formal housing, paying rent of at least R4000 p/m. This segment is primarily concentrated in urban areas, with the majority residing in Gauteng.
- #6 The aspirations of the black middle class represent a fear of not wanting to go back to the days pre-middle class segment where poverty was strife. The aspirations are a telling of a people who are ambitious and have been deprived of a lot. Aspirations are thus their attempt at bridging the gab between where they were a while ago to where they are now. It is about reclaiming respect and dignity.
- #7 The more people grow the more specific and urgent their aspirations become. When they are younger they are they are more likely to have broader and higher expectations that have a longer lead time. The older you get the more your aspirations become about your loved ones and less about you.
- #8 The black middle class is motivated by their needs for status, recognition and respect. These needs belong in the esteem needs group of Maslow’s hierarchy of needs.
- #12 The younger generation believes in using savings to finance aspirations while only using credit for short term monthly expenses that can be covered by salary. Saving part of a monthly salary even when there is no eminent need for such is becoming a practise. The older generation on the other hand still believes in using loans and credit to finance purchases. These loans include short term loans in the form of store and credit cards, as well as long term loans in the form of back loans to cover vehicles.
- #14 The black middle class makes a lot of effort to make money to achieve aspirations often sacrificing a lot of their social needs to meet their egoistic needs. Dining out/ general outing seem to get sacrificed the most in favour of indoor activity.
- #17 Houses and cars still remain the ultimate status of success. The middle class rates Mercedes benz and living in estates or gated communities as prime indicators of success. These products show dignity, style and financial status to others to see. This is particularly important to this group as it has worked hard to achieve all that it has, it then becomes imperative for them to have others see.
- #19 These products showcase their aspirations through these products and services. They are used because they best showcase the need for style, quality, recognitions and status.