Why African Americans Support Asian Business Owners
The Push to Buy Black Movement
Chris Xu, the E-commerce owner, and founder of Shein, knows the value of black dollars for his company. Known as Yang Tian Xu, the former online foreign trade marketing employee, according to Forbes had an estimated revenue of more than $10 billion in 2020.
The 2008 CEO and founder of Shein provides affordable online catwalk fashion to more than 200 regions around the world, leaving many competitors asking, “How can a company afford to sell products for little or nothing and still make profit?”
Shein, like many lucrative companies, outsource their labor to reduce overhead cost, which tend to attract customers who want fashion forward products for less. Although many speculate the company uses questionable manufacturing, including child labor and fast fashion, it seems none of the allegations have been validated so, unless CNN, or some reputable news outlet exposes unethical business practice, we will assume Chris Xu is operating Shein within regulation.
In general, no one understands the need of low to middle income customers more than the Asian business owner, who for years, has capitalized on the African American market. Black communities throughout America historically support Asian business and will likely continue to do so for quite some time.
The allure of support can be seen throughout the countless nail and beauty supply shops strategically located in most urban neighborhoods throughout America, where customers can’t seem to get enough of Asian markets and wholeheartedly support their ventures, including brick and mortar as well as e-commerce, from food to fashion.
China has become the largest E-commerce market in the world as evidenced by a predicted total revenue of close to 1 trillion dollars for 2020.
Asian businesses like AliExpress, Alibaba, and JD.com, continue to accelerate scale and growth rates better than their competitors.
Meanwhile, the percentage of black-owned business in metropolitan demographic areas continue to decline.
Not only are the number of urban businesses considerably lower than any other demographic in America, but black wages are well below national average.
For a race of people who supplied forced labor to build America, it is unfathomable that inner-city salaries are at the bottom of the barrel. Combine low incomes with the current Covid-19 pandemic, and black industries are suffering even more.
The economic impact of closing the racial wealth gap | McKinsey
In a recent study by McKinsey & Company, African Americans are predicted to make $1 million less than white Americans over the life cycle. In addition, more than 60% of black Americans live in states that score well below the national average for economic opportunity, health care access, and public health, the three areas shown to accelerate generation wealth.
Despite having lower than average wealth ratios, data show African Americans continue to favor business entities other than their own, further marginalizing Black Owned Markets.
But why? Why are black Americans not supporting Black?
Black enterprise, typically the small business owners, can’t compete with markets like Alibaba, Shein, and Los Angeles based, Fashion Nova.
Although black brands and E-commerce platforms are expanding, it will be a while before they reach the height of their competitors unless Buy Black is prioritized within African American communities.
Why Is SHEIN So Cheap? Details on How They Keep Things Low-Priced (distractify.com)
Shein: Is China’s Mysterious $15 Billion Fast Fashion Retailer Ready For Stores? (forbes.com)
CEO Spotlight: Inside Richard Saghian’s Winning Strategy for Fashion Nova > CEOWORLD magazine
COVID-19’s effect on minority-owned small businesses | McKinsey
Buy Black Movement
BlackBusinessList.Com — BlackBusinessList.Com — Online Black Business Directory
50 Companies Founded by Black Entrepreneurs (newsweek.com)
10 of the Most Successful Black Entrepreneurs
Buying Black Matters: Black Professionals Launch Black Dollar Index | NewsOne
