Does Labeling and Marketing as “Black Owned” Work?

SunZoo

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Mostly not, unless your target demographic is guilty white liberals. If it's something only black people use/need then sure, otherwise it's always seemed like a no brainer to me.
 

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Some of you are not serious and have a very limited view of what business means...

I've also lived in Houston in the past, and visit often to see friends and family, and your analysis is only correct if you are a micro business or if you use small samples as examples. Outside of that, it doesn't work. I know multiple upper-middle and upper-class black Houstonians. The truth is, the biggest black-owned companies in Houston, ranging from Oil, Manufacturing, and Tech to Real Estate, are not advertised as black-owned. You can find footnotes about it, but not the core image. They actually donate a lot to black causes, but their corporate image is not centered around that.

Research on black-owned companies such as Camac Group, Con-Real, Erin Energy Corp, etc...Companies that make billions and employ millions, not a singular restaurant, bar, nightclub, or nail shop. Of course, a singular restaurant can do that. A single restaurant will have some of the most basic marketing and supply chains, and a small number of employees. How many contracts and partners do you need to successfully operate 1 restaurant? How many investors? Again, of course, it is easier to do that when it comes to a restaurant.

Now, where is this at a macro level? Where is the black area in Houston that looks luxurious like the entire River Oaks shopping district and is full of businesses with paintings like this that you posted? Which large black-owned manufacturing or oil company in Houston has the same images that you posted?


I'm assuming this thread is about customer facting businesses that deal directly with the average everyday consumer. Not industrial infrastructure companies, seeing as the op mentioned "cacs, mexicans and Asians" using them not "partners, contractors, sub-contractors, developers, investors, stakeholders etc". Obviously those kinds of companies operate at a completely different layer of economics. Marketing as black owned, atleast in a city like houston, absolutely can and does help in any businesse in the consumer facing industry. It damn sure doesn't harm a business.

And even then I can still push back on your point as well- HJ Russell and Company in ATL is the largest black owned construction company in the nation. And they ain't shy at AT ALL about being black owned.



Lil more than a footnote there.

And fashytsho ain't tryna hide it out of fear of scaring away investors, partnerships, contracts etc So, I don't know where this idea that black owned businesses should be coy about the fact they are black owned to be successful is coming from.

And BTW TBK ain't a billion dollar company, but it certainly ain't chump change by any means. It's comfortably a multi million dollar generating business. $14 mill to be exact.

And as to the bolded. Uhh you don't think that has anything to do with the level of collective income of black folk in Houston vs non black folk especially at the highest levels and prevailing socio economic conditions in black neighborhoods. To you it all has to come down to the fact that black businesses ain't hiding their blackness enough. If black businesses in third ward just hid they fact they were black owned better, it would look like River Oaks according to you? :what:

What I can show you is a decent thriving Chinatown and Little Saigon business district along bellaire where ethnicty of the business owners concentrated in that area is the MAIN selling point, cuz that's how they've intentionally branded themselves as a collective. The ethnic culture of those institutions there have a perceived value by the market not just by the asian community but even NON asians who want to experience authentic asian culture in some way.

Talk about ppl having a limited view of business but don't understand how cultural soft power influences marketing, breh.
 
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Consigliere

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Really depends on who your customers are.

I will say that it feels like there is a lazily abundant amount of Black owned businesses with “Black” or something similar in the name. Very few if any of them are household names.
 

MegaManX

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Depends on the product. If it is a show, book, or some kind of product that explicitly has a overwhelming majority of black users, it should be marketed as black owned, as it will help sales with the majority of your potential customers.

If it is general product, it will most likely hurt you. AKA food, clothes, whatever.

The reason for this is exploitation. Everyone knows certain industries b*stardize black representation so knowing a black show is actually written by black people makes the show much more likely to be watched.

The opposite is also true. A black movie written by cacs will have blow back because black people will not give them the benefit of the doubt.
 

ViShawn

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When authenticity is important in the product I'd say yes. No one wants to go to a Mexican owned Japanese restaurant. Nor do they want to watch a TV show that is written by white people.

Of course certain products you generally just have to make a superior product to the rest of the competition.
 

Anerdyblackguy

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It does. But best believe you would be a fool not to research them first.
 
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I'm assuming this thread is about customer facting businesses that deal directly with the average everyday consumer. Not industrial infrastructure companies, seeing as the op mentioned "cacs, mexicans and Asians" using them not "partners, contractors, sub-contractors, developers, investors, stakeholders etc". Obviously those kinds of companies operate at a completely different layer of economics. Marketing as black owned, atleast in a city like houston, absolutely can and does help in any businesse in the consumer facing industry. It damn sure doesn't harm a business.

Yeah, because these are the businesses that generate more revenues, employ more people and help any community create a stable middle class. You cannot build a community with only customer-facing businesses. Because the people that are going to spend their money at your customer-facing businesses need to make money from somewhere.

If your goal is to make real money and expand, then it damns sure limits your business.

And even then I can still push back on your point as well- HJ Russell and Company in ATL is the largest black owned construction company in the nation. And they ain't shy at AT ALL about being black owned.



Lil more than a footnote there.

And fashytsho ain't tryna hide it out of fear of scaring away investors, partnerships, contracts etc So, I don't know where this idea that black owned businesses should be coy about the fact they are black owned to be successful is coming from.

And BTW TBK ain't a billion dollar company, but it certainly ain't chump change by any means. It's comfortably a multi million dollar generating business. $14 mill to be exact.


HJ Russell and Company is not the same as the restaurant that you posted. HJ Russell rose to prominence due to its high-quality work, not because it advertised itself as black-owned. People work with them because of their quality. How being black-owned boosted them? It actually made it harder for them. Now, what you can say is that the owner never hid that he was black and that the company was black-owned. But tell, how did it help him?

And as to the bolded. Uhh you don't think that has anything to do with the level of collective income of black folk in Houston vs non black folk especially at the highest levels and prevailing socio economic conditions in black neighborhoods.

Of course, that's what I think and it is my main point. Large black-owned businesses cannot be super, ultra, mega, or hyper-pro-black because their revenues are not entirely dependent on black people. In most cases, their revenues come mostly from non-black people. Do you know any major black business in the US that generates billions and survives only on money coming from other black people? You just mentioned HJ Russell and Company, who do you think are the bulk of their suppliers and contractors? Other black people?

To you it all has to come down to the fact that black businesses ain't hiding their blackness enough. If black businesses in third ward just hid they fact they were black owned better, it would look like River Oaks according to you? :what:

It is not about hiding, it is simply the fact that the US is a majority-white country, where whites for historical reasons and wickedness have the biggest access to capital. So, naturally, most businesses will cater to the majority. A black business that wants to make money, follows the same rule.

So, let's say that a black developer wants to make a place like the River Oaks District, with multinational brands on every corner, from luxurious condos to hotels, supermarkets, shops, clinics, etc. Who is going to be their main audience?

What I can show you is a decent thriving Chinatown and Little Saigon business district along bellaire where ethnicty of the business owners concentrated in that area is the MAIN selling point, cuz that's how they've intentionally branded themselves as a collective. The ethnic culture of those institutions there have a perceived value by the market not just by the asian community but even NON asians who want to experience authentic asian culture in some way.

These are poor examples. Chinatowns were just ghettoes until the rise of China. They are not huge sources of revenue, and Chinese investors constantly pour money there to save face. They are basically tourist destinations now, with a few restaurants and bars. The idea that Chinatowns are breeding millionaires or even upper-class and middle-class Chinese immigrants is nonsense. Chinatowns are simply overrated due to the model minority nonsense. Little Saigon is even worst.

And let's not forget that Chinatowns are usually plagued by triads who kill, sell drugs, and smuggle people left and right.

Chinatown in Bellaire, with a population of 70,000 people, has a median household income of 35,771$. How is this thriving? You are actually proving my point, on how they limited themselves economically. If the goal is cultural preservation, then yeah, that's a good idea. But if the goal is to make money, expand and employ millions of your own, then that's not a good idea.

I could even argue that Richmond Avenue, only from Chimney Rock to Gessner, probably has black businesses with higher revenues than the Chinese businesses located in Chinatown in Bellaire.
Heck, I even think that black businesses located from Scott Street to Old Spanish Trail generate more revenue than Chinese businesses located in Chinatown in Bellaire. Because at Old Spanish Trail area, people look for a range of black businesses, from car washes, barbershops, karaoke bars, restaurants, and nightclubs to auto mechanic shops. On the other hand, people go to Chinatown for what? Food and laundry?



Talk about ppl having a limited view of business but don't understand how cultural soft power influences marketing, breh.

Yeah right...The world is now using Chinese brands after years of clowning them for low quality and imitation, due to cultural soft power. 10-15 years ago you would be clowned for using a Chinese phone, tv, or car, today it is being completely normalized...And it is because of cultural soft power lol

Breh, open your mind and see the real world.
 

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If you're just trying to sell to black folk... maybe.
If you're trying to sell to more than black folk... then you're better off not letting anyone know the business is black.
 

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Yeah, because these are the businesses that generate more revenues, employ more people and help any community create a stable middle class. You cannot build a community with only customer-facing businesses. Because the people that are going to spend their money at your customer-facing businesses need to make money from somewhere.

If your goal is to make real money and expand, then it damns sure limits your business.



HJ Russell and Company is not the same as the restaurant that you posted. HJ Russell rose to prominence due to its high-quality work, not because it advertised itself as black-owned. People work with them because of their quality. How being black-owned boosted them? It actually made it harder for them. Now, what you can say is that the owner never hid that he was black and that the company was black-owned. But tell, how did it help him?



Of course, that's what I think and it is my main point. Large black-owned businesses cannot be super, ultra, mega, or hyper-pro-black because their revenues are not entirely dependent on black people. In most cases, their revenues come mostly from non-black people. Do you know any major black business in the US that generates billions and survives only on money coming from other black people? You just mentioned HJ Russell and Company, who do you think are the bulk of their suppliers and contractors? Other black people?



It is not about hiding, it is simply the fact that the US is a majority-white country, where whites for historical reasons and wickedness have the biggest access to capital. So, naturally, most businesses will cater to the majority. A black business that wants to make money, follows the same rule.

So, let's say that a black developer wants to make a place like the River Oaks District, with multinational brands on every corner, from luxurious condos to hotels, supermarkets, shops, clinics, etc. Who is going to be their main audience?



These are poor examples. Chinatowns were just ghettoes until the rise of China. They are not huge sources of revenue, and Chinese investors constantly pour money there to save face. They are basically tourist destinations now, with a few restaurants and bars. The idea that Chinatowns are breeding millionaires or even upper-class and middle-class Chinese immigrants is nonsense. Chinatowns are simply overrated due to the model minority nonsense. Little Saigon is even worst.

And let's not forget that Chinatowns are usually plagued by triads who kill, sell drugs, and smuggle people left and right.

Chinatown in Bellaire, with a population of 70,000 people, has a median household income of 35,771$. How is this thriving? You are actually proving my point, on how they limited themselves economically. If the goal is cultural preservation, then yeah, that's a good idea. But if the goal is to make money, expand and employ millions of your own, then that's not a good idea.

I could even argue that Richmond Avenue, only from Chimney Rock to Gessner, probably has black businesses with higher revenues than the Chinese businesses located in Chinatown in Bellaire.
Heck, I even think that black businesses located from Scott Street to Old Spanish Trail generate more revenue than Chinese businesses located in Chinatown in Bellaire. Because at Old Spanish Trail area, people look for a range of black businesses, from car washes, barbershops, karaoke bars, restaurants, and nightclubs to auto mechanic shops. On the other hand, people go to Chinatown for what? Food and laundry?





Yeah right...The world is now using Chinese brands after years of clowning them for low quality and imitation, due to cultural soft power. 10-15 years ago you would be clowned for using a Chinese phone, tv, or car, today it is being completely normalized...And it is because of cultural soft power lol

Breh, open your mind and see the real world.


Breh.....so much factually incorrect in this post.

1 Houston's chinese immigrant community does not at ALL have the same history as that of San Francisco or New York of chinatowns being places were mostly poorer immigrants congregated, lived, worked and shopped because of affordability and cultural familiarity. Houston chinese immigrants by and large came much later, and the particular chinatown along bellaire blvd(not bellaire the city) was a planned from the beginning as a chinese business district, not a residential enclave, after the original one in eado ran out of space.



Does this look like a damn residential ghetto to you?

5a30cbcfa3108bc89ad856d2UY47516.jpeg


2. I don't know what the source of information the site you posted is, but the actual *asian* median household income in the census tract were chinatown is located is $48,472. Source: 2020 ACS 5 year estimate, Table- B19013D. But again that chinatown wasn't meant to be a residential neighborhood and the tract only has a total asian pop of 1,268.

3. The actually RESIDENTIAL asian enclaves of Houston are all across Fort bend and especially the nearby microcity of Bellaire if anything. Bellaire the city which is right down the street from chinatown has an asian median income of $91,775.


Yeah, I have no idea what you're point about China is suppose to be with the bolded. China(PRC) is a country who historically had a notoriously bad soft power comprehension and output although they have made huge investments to change that in the past decade.

Japan and especially South Korea recently are countries with large soft power outputs. Most evident in the popularity of video games, anime, kpop and kdramas.

Both Japans and SKs tourism industries are their fastest rebounding sectors in this post pandemic environment.



Japan's anime industry was one of its most resilient during the covid recession.


So you laugh and live in the past all you want as if we're still living in some early 20th century manufacturing labor based economy. All of the truly advanced economies of the world(silicon valley, japan, south korea, etc) are embracing the 4th industrial revolution, automation, information age and service & creative sectors. There's a reason why those governments invest so much money into soft power.




"In the 21st century, culture is power."

— Former South Korean president Park Geun-hye.\


Most of the rest of your post was based on strawman arguments.

1. Never said advertising as black owned HELPED HJ, only that it didn't hinder him, as you and other seemed to be imply happens as a rule

2. I said being proudly black owned and cultured can and does help customer facing businsses in a city like houston

3. I never said that black owned businesses whether they advertise themselves as such or not only rely on black patrons. Simply that being proudly openly black owned doesn't harm them. Black American folk appreciate being catered to and non racist non black ppl like to be able to experience authentic black american culture in a safe environment(ya know only the most popular immitated culture in the entire country).

shyt really ain't that hard to understand.
 
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jay83

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Being black owned is the equivalent of a woman saying she has a degree and she deserves a man. It’s a selling point but you shouldn’t lead with it. It should be the cherry on top.
 
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I have a side business, and an Amazon shop. I always add #blackowned and #blackownedbusiness to my IG posts, and people have found me, and included me in gift guides, and black business spotlights for Black History Month. However, I had both the Small Business, and Black Owned Business badge on my Amazon shop, and I told them to take it down, because of the current political climate. I think it can turn a lot of people off, and I care about my bank account.
 
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