South Africa's Emerging Black Diamonds

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Social – South Africa’s emerging “Black Diamonds”

In South Africa the emerging young, black middle class, sometimes referred to as Black Diamonds, have grown at an accelerating rate and have proven to have a strong influence on the rest of the country. The term was coined by TNS Research Surveys and the UCT Unilever Institute of Strategic Marketing. SAinfo Reporter. (2013). It is worth noting that the South African black diamonds are a lot younger than the white middle class. UCT Unilever Institute. (2007).

In just 8 short years (2004 – 2012) the number of black people that were part of the middle class grew from 1.6 million to 4.2 million – a 240% growth in the middle class segment according to new research by the UCT Unilever Institute of Strategic Marketing. UCT Unilever Institute. (2013).

The annual spend of the South Africa’s black middle class has since risen to over R400-billion per annum compared to their white middle class counterparts whose spending power is estimated at R380 billion. Disposable household income has increased by 35% for the black middle class, since 2004, and will continue to grow in years to come. UCT Unilever Institute. (2007).

Reports show that “12% of South Africa's black population account for over half (54%) of all black buying power". SAinfo Reporter. (2007).

Company example: BMW

One company that seems to have gained popularity among Black Diamonds is German automobile manufacturer, BMW. When black diamonds started emerging, owning a BMW was almost a right of passage for them. McLaughlin, A. (2005). For many people in the black middle class, cars are a symbol of status and wealth. SAinfo reporter. (2013).
BMW SA reported to CNN that with the recent Eurozone crisis occurrence, BMW wou...

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