Beyond the Black Pound Report : Anti Racist Cumbria

a pile of pound coins with the top one painted a shiny black colour

NEW RESEARCH has found that British businesses are missing out on up to £4.5 billion each year by overlooking Black, Asian and ‘Minority Ethnic’ consumers.

Lydia Amoah

The landmark Black Pound Report 2022 which was created and published by Lydia Amoah, Founder and CEO of BACKLIGHT, was released on January 31st. It found that ‘multi-ethnic’ consumers, (the term used in the report to describe people from Black, Asian, and other ethnic groups) have an annual disposable income of £4.5 billion which is being overlooked by major British brands and businesses. The disposable income figure for African Caribbean consumers alone is £1.1 billion, but nearly four in ten Black women shoppers still find it difficult to buy cosmetics and skin care. Black and Brown consumers were twice as likely as white consumers to favour and trust brands that are representative of different communities by considering diversity in the creation of their products, services and across the business as a whole.

On the face of it, this report is good news, a beacon to businesses to engage better with non-white customers. However, thinking beyond the headlines throws up some complex questions.

The effects of racism are many, not only are Black and Brown people undervalued and overlooked as consumers but also their personal economic capability is held back. The ‘Ethnicity pay gap’ was last recorded* as 23.8% in London. Across the 100 FTSE companies (The Financial Times Stock Exchange 100 Index) only five of the directors occupying a CEO position were not white.

A 2017 report* showed that the UK economy would be £24bn better off if Black, Asian and ‘Minoritised’ employees were able to progress throughout their careers at the same pace as their white colleagues. No doubt that figure would be higher now.

Effectively without racism, that £4.5 billion could and should be £28.5billion.

We have concerns about what impact the Black Pound report will have on those who are not engaged in anti-racism, and it brings up wider discussions.

There are many existing campaigns, such as #BlackPoundDay, that encourages people to support Black owned businesses, so what impact would it have on them if for example a mainstream hair business such as L’Oreal started to offer products for afro hair?

Would Black people be part of the research and development, are they shareholders, employees, or simply another commodity to be used in marketing campaigns and sold to? Who will benefit really?

The answer is L’Oreal, and its shareholders.

Ask which manufacturers of Black centric products sitting on the shelves are actually Black owned? For example, did you know that one of the best selling Black hair brands, Cantu, is owned and run by white Men?*

How do Black and Brown people get their product on the shelf in the first place?

What are distributors doing about this?

These reports should provide companies with the research and compelling financial reasons to prove it would be worth their while investing and better considering Black and Brown consumers, yet we would ask whether they will spend the time uplifting authentically owned Black businesses, or simply giving more shelf space to existing brands who have increased their range.

A focus on representation and marketing often means anti-racism work stops there, in a performative state of ‘looking good’. Companies are very aware they need to *look* more ‘inclusive’ but they often do this without implementing any real changes.

It’s time to look beyond the Black Pound as solely an opportunity for profit and address the racist systems that are in place across our industries. Only this way can we create equity, release people’s full economic potential, level the playing field, dismantle racism and ensure fairer distribution of wealth.

So whilst we welcome the Black Pound report and richly applaud the work of Lydia Amoah in pulling it together, we hope this results in companies stepping up to do the anti-racist WORK rather than simply encourage them to be even more performative.

We especially hope this report encourages individuals, distributors to get behind businesses and manufacturers that are authentically owned by Black, Asian and ‘Minoritised’ people and create equitable pathways to get their products on the shelves.

Looking to support more Black owned businesses?